D-BEIS has followed up on Thursday’s energy security strategy, splitting out the technologies favoured to share the £375 million in subsidies earmarked by the government for its preferred ‘secure’ fuels.
Producers of low-carbon hydrogen will benefit by up to £240 million, available for applications up until the end of 2022 through the Net Zero Hydrogen Fund.
Helping specifically with the gas’s production by electrolysis, a Hydrogen Business Model to be launched this summer will offer a further £100 million. Grants under the HBM will serve to cover the difference between the guaranteed strike price of the green gas, and the price it achieves in commercial sales.
An Industrial Hydrogen Accelerator programme funded with £26 million will support hydrogen’s adoption as a fuel source in industry.
Commercial developers big and less big have jumped the government’s H2 gun, driving the gas’ adoption and its clean production across the UK, as D-BEIS acknowledges. Whitehall is eager to link recent activity to last August’s Hydrogen Strategy.
In England’s north-east BP has lined up Mitsubishi Chemical and aviation fuel purifiers Alfanar as customers for its H2 Teesside venture.
Partners BayWa re and Octopus’s new hydrogen offshoot are pledged to electrolyse the gas on the latter’s wind and solar farms. Digger heir Joe Bamford is supporting green hydrogen through routes including his HyCap investment fund, which seeks £1 billion in private capital, and through his Ryze Hydrogen vehicle.
ITM Power has two electrolyser factories in Sheffield, the first producing since January and the second already earmarked to surpass it as Europe’s biggest plant.
Boosting the development of small modular nuclear reactors such as Rolls Royce’s, Whitehall is offering £2.5 million in prizes rewarding innovations in fields such as coolants and base fuels SMRS as deliverers of heat for industry and power generation are targeted.
A smaller £830,000 pot offered jointly through the Office for Nuclear Regulations and the Environment Agency will also promote small reactors.
Carbon Capture Use and Storage will benefit from the international ACT3 scheme, which receives £5 million of new UK public money. ACT involves 14 countries working together to fund CCUS research and innovation projects, delivering on hopes of making CCUS commercially viable.
Absent from public support, as critics noted last week, are any new funds for mass insulation to retrofit Britain’s existing buildings and homes, for community-controlled generation or for on-shore wind.