APPG Report on Hydrogen: How the UK’s Hydrogen Sector Can Help Support the UK’s Economic Recovery

By July 8, 2020 5   min read  (774 words)

July 8, 2020 |


The UK is a global leader in hydrogen technology and innovation, but with many countries now pressing ahead with national hydrogen strategies, we must quickly set out our plan or risk falling behind.

Jacob Young MP Chair

Jacob Young MP Chair APPG on Hydrogen

The UK Government was the first world leader to boldly establish a 2050 net-zero carbon target, but our ambitions will be unachievable without embracing hydrogen as an alternative fuel. The longer we wait to develop our hydrogen strategy, the more difficult achieving net-zero becomes.

The All-Party Parliamentary Group (APPG) on Hydrogen has compiled this report based on our inquiry into the next steps the UK Government must take in order to see growth in the sector and enable the transition between innovation and commercialisation.

The APPG received almost 100 responses to its call for evidence and held three oral evidence sessions focusing on industry, local, regional and Government priorities. We have listened to organisations about how they are contributing to a greener future and what steps need to be taken to ensure that hydrogen can play a more prominent role in this.

We believe that hydrogen is the solution to decarbonisation in industry, power, heat and transport. It has the potential to create and sustain hundreds of thousands of high-quality jobs across the country, and aid in the Government’s plans to “level-up”.

Hydrogen will play a key role in shaping our future economy and our ability to meet our net-zero targets, the only question that remains, is when.

If you would like more information on the APPG, please contact the secretariat on [email protected] and follow us on Twitter @HydrogenAPPG.

Read the Full Report Here


The Hydrogen APPG believes the Government should take a number of steps in both the short term and long term to support and accelerate the growth of the UK’s hydrogen sector.

  1. A cross-departmental hydrogen strategy must be developed between Government and industry. This must provide an opportunity to hydrogen producers, end-users, and the associated supply chain and research community to develop
  2. The Government should accelerate research in hydrogen technology, otherwise we risk our place as a global leader.
  1. In order to increase green hydrogen production, a new regulatory framework must be established to support early deployment and help to commercialise renewable
  2. Interim targets for low-carbon hydrogen production should be set by 2030 alongside the introduction of a Low Carbon Obligation to enable investment in low carbon forms of heating such as hydrogen, as well as heat pumps, biomethane and hybrid
  3. Implementing measures similar to Offshore Wind, such as Contracts for Difference to incentivise industry and scale-up a hydrogen
  4. Invest in developing the first Carbon Capture and Storage (CCS) network by 2025, in line with the 2019 Conservative Party manifesto
  5. Policymakers and industry must ensure any funding models developed deliver investment and economic jobs directly to the
  6. The Government and industry should work with local and regional authorities already exploring hydrogen’s potential and support the uptake and commercialisation of existing projects.
  7. Use regulatory levers to unlock the private sector investment required, thereby minimising the impact on the public finances. For example, amend Gas Safety (Management) Regulations (GSMR) to enable hydrogen blending and undertake community trials in the gas network, and introduce a Low Carbon Obligation to enable investment in low carbon forms of heating such as hydrogen, as well as heat pumps, biomethane and hybrid
  8. The Government should work with industry, through a formal working group, to incentivise the public uptake on hydrogen-ready boilers and mandate hydrogen-ready boilers by
  9. In transport, subsidies should be created to help stimulate hydrogen vehicle purchases or a subsidy per kg of hydrogen sold. This can be further supported by establishing incentives such as capital investment grants and business rate relief on hydrogen refuelling
  10. Continue to invest in hydrogen alternatives and incentivise organisations and customers who produce, purchase or use hydrogen HGVs, buses and Also, expand the remit of the Bus Service Operator Grant for hydrogen buses and create greater flexibility with the Renewable Transport Fuels Obligation.
  11. Work with industry to develop a public engagement strategy to ensure the public are aware of and educated on the opportunities and challenges of a hydrogen
  12. The UK must set more ambitious policies and financial targets on hydrogen to meet net-zero by 2050 ahead of other international competitors, to support this, the UK hydrogen industry should play a major role at COP26, allowing the UK to inspire other nations and sell our products and services to do
  13. There should be stronger incentives for energy-intensive industrial sectors to decarbonise more effectively and efficiently than international


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