Airbus and Tata Steel again push to spark inexperienced hydrogen technique

Big multinational traders in Britain together with Airbus and Tata Steel are backing a brand new group fashioned to bolster Britain’s drive to develop a globally aggressive inexperienced hydrogen market.

Sky News has seen a replica of a letter to Grant Shapps, the vitality safety and internet zero secretary, during which a physique known as the Green Hydrogen Alliance (GHA) mentioned it may assist “deliver significant investment and highly-skilled jobs to regions that need it most”.

The GHA’s different company founding members embody Air Products, Associated British Ports and London City Airport, insiders mentioned on Monday.

In its letter to Mr Shapps, which has additionally been despatched to Ed Miliband, his Labour shadow, the group mentioned {that a} complete inexperienced hydrogen technique may play a major function in delivering Britain’s vitality diversification and internet zero aims.

“The UK has unique strengths in the development of green hydrogen technologies, and the potential to be a pioneer of this emerging industry, bringing highly skilled jobs and sustainable economic growth to areas that need it most,” the letter mentioned.

“Indeed, we welcome the progress made by the ‘Powering Up Britain’ strategy towards the realisation of a green hydrogen supply chain, specifically the announcement of the first projects shortlisted for the Net Zero Hydrogen Fund.

“This is a crucial first step in the direction of making a inexperienced hydrogen economic system, and we hope to see this momentum proceed within the full improvement of a resilient hydrogen market within the UK.”

The GHA said areas such as Port Talbot in South Wales – where Tata Steel’s vast steelworks is located – and the Humber Estuary were particularly well-placed to benefit from the creation of green hydrogen clusters.

One industry source referred to “an arms race” beneath means between the federal government and Labour to behave as efficient champions of the event of inexperienced hydrogen.

Ministers have set out plans to provide 5GW of inexperienced hydrogen by 2030, whereas Sir Keir Starmer, the Labour chief, lately mentioned a Labour authorities would search to provide 10GW of inexperienced hydrogen throughout the identical timeframe.

“The challenge facing both parties is the lack of a roadmap as to how exactly the UK will get there, especially given the US and EU subsidy schemes for green energy projects,” the business supply mentioned.

The new alliance will give attention to the usage of ports and imported renewables which may then be transformed into inexperienced hydrogen as a means of kickstarting a home hydrogen manufacturing market that may finally give attention to exports, they added.

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The timing of the GHA’s launch can also be seen as opportune due to ongoing criticism of the federal government’s method to growing a inexperienced hydrogen market.

Speaking to the Financial Times final month, Andrew Forrest, the Australian mining tycoon, mentioned the UK was “just sleepwalking” when it got here to addressing the difficulty.

Read extra:
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The way forward for vitality might lie with hydrogen, however the journey to get there will not be straightforward

A spokesperson for the Green Hydrogen Alliance mentioned on Monday: “We welcome the government’s ambitious target of 5GW of electrolytic hydrogen production by 2030, but we must move further and faster on policy if we are to unlock the benefits green hydrogen will bring.”

The GHA’s secretariat operate is being supplied by WPI Strategy, a public affairs agency.