Unveiled today (April 8), £240m ($313m) of this funding will be utilised in order to support the production of hydrogen as a means to decarbonise the industrial sector.
In doing so, the Net Zero Hydrogen Fund will target having 2GW of low-carbon hydrogen production established by 2025.
Read more: UK Government unveils new energy security strategy doubling low-carbon hydrogen production to 10GW by 2030
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In addition to this, the UK Government will additionally establish a Hydrogen Business Model which it hopes will support further investments with £100m ($130m) available for electrolytic projects to cover the cost of production and sale price. This is expected to launch in the summer of 2022.
This could be a crucial catalyst for the hydrogen industry and create a domino effect with further investment opportunities in the clean energy carrier within the UK.
An Industrial Hydrogen Accelerator is also expected to be launched with a £26m ($33m) innovation funding programme set to support UK industry in adopting hydrogen as a clean and affordable fuel source for various sectors.
According to the UK Government, these investments will support research, development and deployment of these cutting-edge technologies and give the country the energy independence it needs, reducing reliance on expensive fossil fuels.
From next-generation nuclear reactors to hydrogen fuel for industry, power, transport and heating, the Government is revolutionising the way the UK gets its energy across a range of technologies.
Kwasi Kwarteng, the UK’s Business and Energy Secretary, said, “This investment will unlock the enormous potential of hydrogen fuel, advanced nuclear reactors and Carbon Capture to level up the UK energy landscape and deliver for businesses and households.
“High gas prices and Russia’s aggression in Ukraine have highlighted the urgent need to produce more of our energy here in the UK.
“That’s why we have set out bold plans to harness clean, cutting-edge, homegrown technologies and build the energy security we need for the future.”
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