UK ranked as one of many leaders in advancing hydrogen financial system

The UK has been ranked third amongst international locations which have the potential to be international leaders within the new hydrogen financial system. The rating from Cornwall Perception’s Hydrogen Index¹ exhibits a marked enchancment from 2022, with the UK surpassing each Spain and Japan in its efforts to ascertain an financial system the place low carbon hydrogen produced from sources apart from fossil fuels, performs a crucial position.

The Hydrogen Index ranks the 14 international locations which had probably the most potential to develop superior low-carbon hydrogen economies when the index launched in 2022. The brand new UK rating displays the substantial development within the UK’s low carbon hydrogen technique over the previous 12 months, together with the plans to double the UK’s capability targets rising from 5GW to 10GW, if attainable, by 2030². Future readability has additionally been improved with the introduction of the Hydrogen Investor Roadmap in April 2022 and the Hydrogen Technique Replace to the Market in December 2022.

Regardless of developments throughout a lot of the listed nations, Germany has retained the highest spot because it continues to show its dedication to creating a sophisticated low carbon hydrogen financial system. Most notably, the German authorities has elevated its ambitions by committing to a further 5GW of low carbon hydrogen manufacturing by 2035 if attainable and no later than 2040, bringing its whole goal capability to 15GW.

Hydrogen is a really versatile vitality supply and could have an vital position to play in assembly the UK’s goal for internet zero by 2050, particularly within the decarbonisation of the commercial sector.

Desk 1 – Index rankings and alter from the earlier launch (March 2022):

Jamie Maule, Analysis Analyst at Cornwall Perception commented: “Because the UK journeys in direction of attaining internet zero emissions, the potential of low carbon hydrogen to facilitate decarbonisation has emerged as a key subject of dialogue, each domestically and globally. Whereas the controversy round its relevance in a home context continues, we imagine that hydrogen may play a crucial position in transferring the commercial financial system in direction of a extra sustainable future.

“The motion of the UK up the low carbon Hydrogen Index rankings demonstrates a dedication from the federal government to ship a greener and extra environment friendly vitality system, whereas additionally acknowledging the potential financial advantages and job alternatives that may come up from creating a low carbon hydrogen sector. The dedication to extend the capability of hydrogen is moreover a constructive step in direction of the UK changing into extra vitality self-reliant, reducing our want for expensive and unstable imports.

“The UK’s low carbon hydrogen technique can at all times go additional, and it has some strategy to go to satisfy the goal commitments of Germany. Hopefully extra readability can be supplied to traders and builders round enterprise fashions, as secure and long-term income streams can be important to unlock the crucial mass of personal capital wanted for the event of the hydrogen financial system. However, the UK has made important strides up to now 12 months, and we stay optimistic that this progress will proceed within the low-carbon hydrogen sector.”

References

[1] A spread of indicators, topic to differing weightings, have been utilised within the manufacturing of this index. They’re listed as follows with out regard to significance or weighted worth:

Comprehensiveness of nationwide hydrogen technique
Timelines for hydrogen implementation
Hydrogen capability and infrastructure targets
Hydrogen storage and community targets
Dedicated authorities funding for hydrogen
Financing mechanisms for analysis & improvement
Financing mechanisms for infrastructure improvement
Evaluation course of for nationwide hydrogen technique

[2] British Power Safety Technique