What does the hydrogen industry need from Labour to build a strong infrastructure?
August 21, 2024A new Labour government opens up a raft of opportunities for our industry.
Sir Keir Starmer made a manifesto pledge to invest hundreds of millions of pounds in green hydrogen, and vowed to make tackling climate change a key priority.
But if the UK is to be world-leading in the hydrogen economy and the transition to a net zero future, we need to address the yawning gaps in our hydrogen infrastructure.
And this requires commitment, innovation and a major shift in policies and funding from our new Prime Minister.
Here are the ten areas that Labour needs to focus on to achieve this:
Think long-term
It’s crucial that the industry gets a long-term hydrogen strategy from the government, including setting targets for hydrogen production, distribution and usage. And we need this to align with broader climate goals to boost confidence for investors.
Develop regulatory frameworks
Establishing a stable and predictable regulatory environment is key to encouraging investment in the UK’s hydrogen infrastructure.
This means clarification for regulations around hydrogen production, especially when it comes to green hydrogen.
Get building
The government needs to start backing large-scale hydrogen production plants for both green hydrogen and blue hydrogen.
The initial costs may be high but this is an emerging industry, and the opportunities for growth are huge.
Think big with storage
The sector cannot fulfil its potential without advanced storage facilities, such as underground caverns and above ground tanks.
This will help to ensure that the country has a reliable hydrogen supply during peak demand.
Driving transportation forward
We also need to develop our transportation networks and look into innovative solutions for the future – for example, can existing natural gas pipelines be retrofitted?
More refuelling stations
The government needs to invest in expanding our refuelling stations, especially in urban areas and along major transport routes.
It also needs to explore how hydrogen refuelling stations can be integrated into the UK’s existing gas network.
This will help to enable hydrogen-powered HGVs and buses to be more widely adopted – and these vehicles will play such a crucial role in reducing carbon emissions in the transportation sector.
Subsidies and funding
New funds or grants to support projects in the early stages will help to encourage private investors by cutting the financial risks.
Meanwhile, Labour could make the industry more competitive by introducing subsidies or tax incentives to make green hydrogen more attractive than fossil fuel alternatives.
Prioritising R&D
We’d like to see an increase in funding for research and development initiatives which are focused on improving things like electrolysis technologies, fuel cells, and hydrogen storage solutions.
Upskilling the UK workforce
We need a forward-thinking government that will invest in education and training programmes. This could be a mix of upskilling existing workers in related industries or apprenticeships and specialist courses.
Promoting collaborations
Labour should encourage the public and private sector to work together on joint ventures and shared infrastructure.
They could also promote international partnerships to make sure the UK is a strong player in global hydrogen supply chains.
Moving towards a greener future
Labour can’t achieve all of this alone – industry collaborations will be key.
Transitioning to hydrogen will also require gaining public trust, so the government will need to promote acceptance through public awareness campaigns.
A stronger hydrogen infrastructure is a vital tool to helping us on our journey to Net Zero – but investing in hydrogen offers huge benefits to the UK in so many other ways.
From helping to strengthen energy security to creating much-needed economic opportunities, it’s a win-win.