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Grangemouth Keir Starmer

Labour’s Landslide: New Era for UK’s Hydrogen Sector

Anela DoksoBy Anela Dokso05/07/20243 Mins Read
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The recent UK General Election has dramatically shifted the political landscape, with the Labour Party securing a landslide majority, winning over 410 parliamentary seats out of 650.

This victory marks the end of 14 years of Conservative administration, reducing the party to just 120 MPs. Labour Leader and incoming Prime Minister, Sir Keir Starmer, has pledged to implement an ambitious agenda centered on renewable energy and green initiatives, signaling significant changes for the UK’s hydrogen sector.

In his victory speech, Starmer emphasized the start of a new era: “We did it. You campaigned for it, you fought for it – and now it has arrived. Change begins now.” Central to this change is Labour’s commitment to renewable energy. The party has laid out plans for the state-owned Great British Energy (GBE) to drive investments into wind, solar, hydrogen, and carbon capture and storage (CCS). This initiative reflects Labour’s strategic focus on achieving energy security and sustainability.

Ed Milliband, the incoming Secretary for Energy Security and Net Zero, stated that Labour would “hit the ground running” in setting up GBE. The party’s manifesto includes a dedicated £500 million to support the development of the UK’s green hydrogen sector. This significant investment aims to enhance the country’s capacity to produce green hydrogen, positioning the UK as a leader in the global hydrogen economy.

Despite the Conservative Party’s electoral defeat, Labour inherits a robust hydrogen policy framework. Troy Aharonian, Head of Public Affairs at Hydrogen UK, noted that Labour is taking over a “healthy” state of affairs regarding hydrogen policy. The 2019 national hydrogen strategy, established by the Conservatives, laid strong foundations in standards and business models, which the new government can build upon.

Brett Ryan, Hydrogen UK’s Head of Policy and Analysis, highlighted that UK hydrogen projects are mature and familiar with regulatory requirements. He emphasized the need for continued deployment to realize the sector’s full potential. Labour’s renewed focus and substantial investment in green hydrogen could catalyze further growth and innovation in the industry.

The reaction within the hydrogen and renewable energy sectors to Labour’s landslide victory has been largely positive. Green hydrogen producers are particularly optimistic about the hundreds of millions of pounds in new subsidies promised by the incoming government. These subsidies are expected to provide much-needed financial support for developing and scaling green hydrogen projects across the UK.

Industry leaders and stakeholders are calling for increased momentum to capitalize on the established foundations. The transition to a Labour government is seen as an opportunity to accelerate the deployment of hydrogen technologies and infrastructure, driving the UK towards its net-zero goals.

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