UK ‘on cusp’ of becoming key hydrogen hub

The UK is on the cusp of becoming a key hydrogen hub in Europe generating significant economic value and job creation, a report by Hydrogen UK’s Import and Export Taskforce has stated.

The report emphasises the UK’s competitive advantage in existing ports, terminals, and interconnectors, which positions it “perfectly” to become a major trading hub for hydrogen and its carriers in Europe, it said.

“World-class” off-shore wind generation capacity and geological storage meant that the UK is likely to become a net exporter of hydrogen in the future.

Despite the natural advantages available to the UK, it must navigate a competitive global market, it said.

With many major European economies already having a “well-established hydrogen trade strategy”, there is “growing uncertainty” about how the UK will leverage its competitive edge and establish itself in the global hydrogen market, according to the report.

It said the UK must establish hydrogen trading relationships and routes early, given the competition from demand centres like the European Union.

Building on the government’s announcement last month that the UK and Germany will be developing a feasibility study for hydrogen exports from the UK to Germany, the study suggested further research is needed on hydrogen supply and demand within the transitioning UK energy system while domestic production is built-out.

The taskforce’s report also emphasises that in order to best position the UK as a future hydrogen trade hub, investment is required in small scale hydrogen imports and exports to ‘wet the pipes’ and stimulate investment in infrastructure.

Concurrently, by leveraging existing infrastructure that can be repurposed for hydrogen carriers, the UK can solidify its role as a significant energy hub in Europe.

It also notes how in order to fully harness the UK’s hydrogen export potential, the deployment of hydrogen infrastructure should be coordinated with the European Union.

International cooperation is also essential to achieve mutual recognition of certification frameworks, alongside the Low Carbon Hydrogen Standard (LCHS).

Commenting on the report Clare Jackson, CEO of Hydrogen UK said:

“Our aim in developing this report is to enable the UK to become a world leader in the application and service of hydrogen, to deliver excellence throughout the supply chain and create a globally attractive import and export market. By leveraging the UK’s world-class offshore wind generation and geological storage, we have the potential to become a leading European hydrogen hub and reap all the associated economic benefits.”

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