A consortium of businesses operating across the hydrogen sector has called on the government to address the existing regulatory and policy anomalies that are creating distortions in the market and preventing a level playing field for hydrogen.
The group believes that addressing these barriers will further support the growing momentum behind hydrogen and will encourage investors as well as consumers and businesses to accelerate the adoption of hydrogen technologies.
In a document produced by the consortium, a variety of policy anomalies are listed alongside recommendations for the government to consider. Policy anomalies include:
- Value Added Tax (VAT) for hydrogen is consistently higher than alternatives
- The threshold for additionality is far higher for hydrogen than for alternatives
- Current policies focus excessively on-road vehicles, to the detriment of other vehicles
- Green hydrogen production for industrial fuel switching is subject to double taxation
- Tax deductions for Ultra Low Emission Vehicles penalize hydrogen
Commenting on the note, Chris Jackson, CEO of Protium, said: “We strongly believe that these measures are inhibiting the government from delivering on its own objectives and are delaying the deployment of solutions that can materially advance the move towards a net-zero UK. We call on the government to engage with our simple yet crucial recommendations and to incorporate them into the hoped-for government hydrogen strategy.”
Protium is a UK-based hydrogen solutions provider for project operators, developers and investors. Founded in 2019, the company provides services including project origination, design and funding to support the deployment of hydrogen and fuel cell technologies. For more information, visit www.protium.co.uk
About the consortium
More information about the consortium, the anomalies set out above and industry-led recommendations can be found in this document.