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Hydrogen projects receive government backing

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The UK’s hydrogen sector is getting a boost with over £21 million of government support being provided for 7 projects to make green fuel, powering up local transport and businesses from Suffolk to Shetland.

A call for evidence has also been launched on the hydrogen and carbon capture, usage and storage (CCUS) elements of the Green Industries Growth Accelerator, the government backed fund announced as part of last year’s Autumn statement, aiming to speed up advanced manufacturing capacity in sectors including offshore wind, networks, carbon capture, usage and storage, hydrogen and nuclear.

The seven projects have the potential to increase the country’s capacity to make hydrogen by 800MW. Four projects will develop plans for new hydrogen production plants, to supply cleaner fuel to companies across a range of industries – from pharmaceuticals to automotive, to help support the country’s energy security in the long term.

The remaining three projects are set to get spades in the ground in Aberdeen, Tees Valley and Suffolk, helping to secure the UK’s energy supply by producing more home-grown hydrogen for industry and transport. These include:

  • Suffolk Hydrogen run by Hydrab Power, which will make green hydrogen for low carbon service vehicles at the Sizewell C nuclear site
  • Tees Valley Hydrogen run by Exolum, which will build a new hydrogen refuelling station to help supply the local transport sector
  • Aberdeen Hydrogen Hub run by BP and Aberdeen City Council, which will provide cleaner fuel for the local fleet of electric buses

Secretary of State for Energy Security Claire Coutinho said:

“We are cementing the UK’s place as a world leader in hydrogen. The new projects we’re funding across the country will boost our supply of clean homegrown energy for use in buses, trains and local businesses. By backing the UK hydrogen industry, we can support over 12,000 jobs and up to £11 billion in private investment by 2030.”

Announced at last year’s Autumn Statement, the £960 million Green Industries Growth Accelerator aims to speed up advanced manufacturing capacity in sectors including offshore wind, networks, carbon capture, usage and storage, hydrogen and nuclear.

The announcements were made at the government’s second Hydrogen Investor Forum, where industry leaders gathered to discuss the economic and net zero opportunities offered by the UK’s hydrogen economy, and follows the government’s December announcement regarding support for 11 major new hydrogen production projects.

CEO of Hydrogen UK Clare Jackson said:

“Today’s endorsement of 7 pioneering hydrogen projects underscores the transformative power and versatility of hydrogen as a bedrock for secure, clean energy solutions. Such pivotal announcements fortify the UK’s burgeoning hydrogen economy, accelerating us towards meeting our ambitious production.”

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