Offshore Energies UK (OEUK) has called for policymakers to accelerate deployment of the UK hydrogen sector.
In a new report, the body warned that the country’s hydrogen industry has been slower to develop than expected and outlined key recommendations to help boost its growth.
Among its recommendations are prioritising the deployment of hydrogen into industries where it can make the biggest impact in decarbonising sectors, such as high-temperature manufacturing processes.
In addition, OEUK said that the government should commit to realistic, deliverable deployment targets to attract investment and build confidence in the sector.
The report also called for ensuring funding mechanisms for hydrogen business models, such as the proposed Gas Shipper Obligation, are fair and proportionate whilst balancing the need to preserve energy security, reduce energy costs and deliver net zero objectives.
Finally, OEUK said that policies must recognise the critical importance of domestic gas production in delivering the scale of low carbon hydrogen supplies needed to create this new market.
OEUK head of energy policy Enrique Cornejo said: “The UK has the people, projects, and potential to make hydrogen a cornerstone of our energy future – but without urgent action, that opportunity could slip through our fingers.
“The UK has over 100 hydrogen projects in the pipeline, equating to more than 15GW of production capacity, but without clarity on key areas and policies, these projects will struggle to progress.
“Hydrogen has a role to play as a decarbonisation solution and for those industries, there needs to be a scale up of the sector. This isn’t only about hitting targets – it’s about securing jobs, investment, and a future for many of these sectors.”
The UK hydrogen industry recently echoed some of OEUK’s calls, saying that the government needs to deliver “pragmatism” and policy certainty to help the sector reach its potential.
Their statements also come as the UK Labour government announced plans to unveil an updated hydrogen strategy later this year, building on one introduced under the previous Conservative government in 2021.
