MPA responds to UK Hydrogen Strategy

The UK's Mineral Products Association (MPA) has welcomed the government's proposals to accelerate the development of a low-carbon hydrogen economy but has warned that the costs of production, transmission and distribution need to be shared by the whole UK economy.

The UK Hydrogen Strategy sets out how progress will be made over the next decade to deliver 5GW of low-carbon hydrogen production capacity by 2030 for use across the economy, as part of the country's drive towards its net zero targets. A consultation has also been launched to identify how the current cost gap between low-carbon hydrogen and fossil fuels can be overcome.

"The publication of the government's strategy is a welcome first step in the UK's journey to developing hydrogen as an alternative energy option, which will play a critical role in our collective journey to a net zero society," said Dr Richard Leese, director of Industrial Policy, Energy and Climate Change at the MPA.

"However, it's now critical that energy intensive industries including the UK cement sector, which are essential for our economy and way of life, are not unduly penalised by additional policy costs for the production, transmission and distribution of hydrogen on top of already high electricity costs and carbon-related environmental taxes. Hydrogen development costs need to be shared by the wider economy to encourage acceleration of the technology and ensure industrial gas users and hydrogen-generated power users are not placed at any further international competitive disadvantage."