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EIC: Legislative reforms needed to establish hydrogen economy supporting net zero goals

Anela DoksoBy Anela Dokso15/02/20233 Mins Read
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According to the Energy Industries Council (EIC), the world’s top trade organisation for energy-independent businesses, the growth of a viable hydrogen industry that aids in the achievement of net zero ambitions in the UK and abroad depends on significant legislative reforms.

According to EIC, the adjustments must address problems with hydrogen infrastructure, dynamics of supply and demand, and funding requirements.

The UK has a strong supply chain that is active in manufacturing, research, and other areas, according to EIC Chief Executive Officer Stuart Broadley. However, more work needs to be done to create a long-lasting, sustainable hydrogen supply chain.

52 hydrogen production projects totaling approximately $13.7 billion are planned or under development in the UK as of October 2022, according to EIC Data Stream. Some of the largest electrolyser production facilities in the world are located in the UK, with ITM Power producing 1,000 units year and aiming to reach 5,000.

In the UK, there are also plans to inject hydrogen into the main gas pipeline by 2025. In two years, anywhere between 2% and 5% of the fuel traveling through the country’s transmission network will be hydrogen, according to plans created by National Gas, the owner of the pipelines.

The topic of hydrogen and what constitutes “green hydrogen” is a hot topic in the EU as well. A mechanism was introduced by the European Commission that allows hydrogen generated from electrical grids that use a considerable amount of nuclear electricity to be labeled as green if the producer has a long-term contract for renewable energy proportionate to its use. This entire period was the inaugural UK Hydrogen Week.

The North West Hydrogen Alliance (NWHA) organized it in an effort to unite the UK’s regions in order to solidify the nation’s status as a hydrogen leader in the world and take advantage of the tremendous opportunity the industry presents for both lowering carbon emissions and promoting green economic growth.

Many EIC members who are based in the UK are involved in hydrogen and offer their services and knowledge both domestically and internationally. As part of the EIC Supply Map, extensive databases from EIC give vital information about hydrogen projects in the UK and elsewhere in the world, as well as details on hydrogen suppliers. The Hydrogen EIC Insight Report, which analyzes hydrogen projects globally and offers in-depth analysis on the current condition and potential trends of the hydrogen industry, was recently published by EIC.

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