a day ago
- Business
- Business News Wales
OEUK Welcomes £500m Government Investment in Hydrogen Infrastructure
Offshore Energies UK (OEUK) has welcomed the UK Government's announcement of more than £500 million to support the development of the UK's first network for hydrogen transport and storage.
It said the investment confirmed in the Spending Review was a major boost to the UK's ambitions to become a clean energy superpower and to support industrial regions including Teesside, Merseyside, the Humber and Scotland.
The development of a hydrogen transport and storage network is essential for building a UK-wide market, it said, connecting production with end users such as power stations and industrial clusters. This infrastructure is the foundation for scaling up both hydrogen produced with carbon capture and hydrogen produced with electrolysis, and for repurposing much of the UK's existing natural gas infrastructure.
The funding can help unlock long-term secure jobs in manufacturing, engineering, and the wider energy supply chain, OEUK said.
OEUK's members are already investing in carbon capture and hydrogen projects that could support thousands of skilled roles across the country, particularly in places where economic renewal is needed most.
But to make hydrogen competitive, early investments must be supported by a clear regulatory framework and investable business models, it added.
OEUK is now calling on Government to work with industry to ensure this funding has the best possible impact and accelerates enabling policies that reduce costs and de-risk private investment
Hydrogen will play a vital role in decarbonising sectors such as steel, glass, ceramics, and refining but it will only succeed if a stable market is created that attracts investors, it said.
OEUK's Head of Energy Policy, Enrique Cornejo, said:
'If we are serious about getting to net zero, hydrogen must be a key piece of the puzzle for decarbonising heavy industry, power, and enabling energy storage but it must be made affordable and attractive to the companies that need to bring it to life.
'Because it is expensive the government is right to focus deployment in sectors where it offers most value. For hydrogen to become competitive there must be cost reductions which will only be achieved if we initiate early investments and learn from them.
'Developing a strong hydrogen sector is critical to our industrial future, and the UK's oil and gas supply chain has the skills and capabilities to accelerate progress.'
