The UK’s leading hydrogen association has welcomed news of £4.5bn for “strategic manufacturing sectors” to “build the UK’s expertise for the industries of the future”.
The Hydrogen Energy Association, formerly known as the UK HFCA, spoke out following the announcement from government of the cash injection that includes £960m for a Green Industries Growth Accelerator to support clean energy manufacturing, which is open to the hydrogen sector to compete in.
CEO of HEA Celia Greaves said: “Hydrogen offers huge potential for clean growth across the UK and this funding should help our world leading companies to accelerate growth and help the UK maximise its share of the global hydrogen market, predicted to be worth £335 billion by 2030.
“We look forward to working with Government to help optimise the impact of this funding which will include targeted support for aerospace and the automotive industry.”
Jeremy Hunt made the funding announcement ahead of next week’s Autumn statement, which has been billed as the moment when the UK Government will respond to the US Inflation Reduction Act.
The funding will be available from 2025 for five years, coming into effect after the General Election.
The Government also plans to launch a hydrogen industry taskforce with the Hydrogen Innovation Initiative and Innovate UK, supporting ambition to maximise investment opportunities for UK manufacturing of hydrogen propulsion systems.
Of the funding, more than £2bn has been earmarked for the automotive industry while £975m will be allocated for aerospace, “supporting the manufacturing, supply chain and development of zero emission vehicles, and investment in energy efficient and zero-carbon aircraft equipment.”
Steve Field, HMT Director of Climate, Environment and Energy said: “The funding forms part of the Prime Minister’s pledge to grow the economy, and his focus on making decisions for the long-term, ensuring this funding doesn’t just focus on the most successful sectors today but looks ahead to how we keep pace internationally and build the UK’s expertise for the industries of the future.
“Together with our existing manufacturing support and plans for net zero transition, this package will help unlock private investment, provide certainty to investors, boost energy security, and protect and create jobs.
“This approach has already mobilised £198 billion in public and private investment in low carbon energy deployment since 2010. It will also help ensure that the UK remains at the forefront of the global transition to net zero and can seize growth opportunities in the new green economy. The UK remains a world-leader in cutting emissions, having decarbonised faster than any G7 country since 1990 and set out clear plans to meet all our climate targets and deliver energy security.
Further detail on the design of the Green Industries Growth Accelerator will be provided by the Department for Energy Security and Net Zero in due course. The official notice for this announcement will shortly be uploaded to
https://www.gov.uk/government/organisations/hm-treasury and HM Treasury on X: “NEWS: £4.5bn announced to support UK manufacturing. We’re safeguarding our energy security, building our resilience for health emergencies and preparing for a green future. https://t.co/aQhkqznjG0” / X (twitter.com)
