RWE’s Senior Hydrogen Regulatory Manager, Richard Sargent, shares his reflections on what the recent announcements from government on hydrogen mean for the prospects of a thriving hydrogen economy in the UK.
The challenges ahead
Of course, there remain big challenges for both government and industry. There will likely be an expectation from government that the average £241/MWh strike price comes down by HAR2. Industry is understandably cautious about managing down costs while still developing "First-of-a-Kind" (FOAK) projects, and with the first T&S projects unlikely to be built by 2030 (acknowledging government’s ambition for “up to” two projects to be “in construction or operation” by that date), there will be limits to how soon hydrogen production can be accessed by geographically widespread demand – the key to truly building a hydrogen economy.
These types of challenges are to be expected in new markets whose ultimate purpose is to clean up the future energy system; but we should acknowledge that progress in hydrogen policy marches on and that delivery is no longer where we are headed, but where we are now.
DESNZ deserves credit for reaching this milestone and industry stands ready to take on that delivery and continue its support for government in developing the policies needed to scale it up . Is it too soon to raise a glass to the next “Hydrogen Moment?”