Hydrogen Analytical Annexe HMG

Low carbon hydrogen will be critical for meeting the UK’s legally binding commitment to achieve net zero by 2050, with potential to help decarbonise vital UK industry sectors and provide flexible energy across heat, power and transport. As part of the Ten Point Plan for a Green Industrial Revolution1, in November 2020 the prime minister announced the UK’s ambition to deploy 5GW of low carbon hydrogen production capacity by 2030, to be supported by a range of measures including a Net Zero Hydrogen Fund and a proposed hydrogen business model.

In August 2021, the government published a package of policy documents building on these announcements and adding to the existing policies supporting growth of hydrogen economy2: • Hydrogen Strategy3: strategy setting out a series of commitments from government which clearly set out how we will deliver our vision for a low carbon hydrogen economy in 2030 and beyond. • Net Zero Hydrogen Fund (NZHF) consultation4: consultation on proposed position on the scope, design and delivery of upfront support under the NZHF. • Low Carbon Hydrogen Business Models consultation5: consultation on our minded-to position on the commercial design of the business model for low carbon hydrogen production. • Low Carbon Hydrogen Standards consultation6: consultation on a potential emissions standard to define and standardise what is meant by ‘low carbon’ hydrogen.

This document provides the analysis and evidence underpinning these publications. Chapters 1 and 2 focus on the whole hydrogen economy, setting out the strategic context and exploring the market barriers to uptake of low carbon hydrogen across the value chain. Building on this wider context, Chapters 3-5 focus on policy measures to support low carbon hydrogen production through the NZHF and hydrogen business models, and Chapter 6 focuses on low carbon hydrogen standards.