The Low-Carbon Hydrogen Race
Last Friday, 4 September, the Government of Ireland closed its Consultation1 on Developing a Hydrogen Strategy for Ireland. The consultation comes hot on the heels of the Government setting a new target to install 2GW of green hydrogen production capacity by 2030.
Developers and investors have long recognised the potential of low-carbon hydrogen to play a transformational role in energy transition but, in the last few years, momentum towards developing low-carbon hydrogen markets has jumped up a gear, as governments and policy-makers around the world have seized on low-carbon hydrogen as being essential to making their net-zero commitments deliverable.
The drive towards net-zero has turned the hydrogen conversation into a race, with governments around the globe jostling to be the quickest to develop policy frameworks that will support market development.
Rarely has there been such widespread international consensus that a new market will quickly become essential to the economic, social and environmental health of the planet.
Ireland’s Hydrogen Strategy
Nations around the world are anxious to ensure they act quickly to secure a slice of the low-carbon hydrogen market and the closure of the Government’s consultation last Friday marks a notable milestone in Ireland’s journey towards getting significant hydrogen projects off the ground.
Ireland is not alone in this endeavour. Dozens of nations have developed, or are in the process of developing, their own hydrogen strategies. The United Kingdom is one of the nations that has taken an early lead in policy development, having launched its own hydrogen strategy2 in August 2021 and, this summer, followed that up with a sector development action plan3Â and proposals for a hydrogen business model4.
The low-carbon hydrogen market is one that will reward early and ambitious action by the Government. Ireland has the potential to play an important role in the development of global markets if the Government acts quickly and decisively.
DLA Piper’s Response to the Consultation
At DLA Piper, one of our core values is to be bold in the face of change.
Rather than simply advising on established law and regulation, we believe we best represent our clients’ interests when we contribute to the policy conversations that shape change.
By taking an active role in the low-carbon hydrogen conversation, we stand alongside our clients as the market develops, rather than seeking to play catch-up when the market has formed.
We have one focal point in our response to the consultation, which is an examination of potential designs for a Government support scheme that will enable developers to seize the enormous opportunities that exist in this sector.
Whilst our response provides a detailed exploration of the various types of Government support that could be provided, the message behind our response is simple – with ambition comes reward.
Our response to the consultation can be viewed here.
1 Consultation on developing a hydrogen strategy for Ireland.
2 UK hydrogen strategy.
3 Hydrogen Sector Development Action Plan.
4 Design of a business model for low carbon hydrogen.
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