The country’s leading hydrogen trade association has welcomed commitments to build a Hydrogen to Power (H2P) Business Model to de-risk investment in hydrogen projects.
Celia Greaves, CEO of The Hydrogen Energy Association spoke after the release of the Hydrogen to Power: Market Intervention Consultation Response today which saw the government make the pledge in order to deliver on the Prime Minister’s clean energy superpower mission.
She said: “This is a welcome step in unlocking the immense potential of hydrogen as a cornerstone of Britain’s clean energy future.
“Hydrogen to Power offers a unique solution to some of the most pressing challenges in the energy transition. Its ability to deliver low-carbon, dispatchable power Is not only a critical enabler for integrating renewables into a balanced, secure, and reliable energy system, but also provides a path for replacing unabated gas.
“The strategic vision outlined, combined with the planned introduction of a business model, is precisely the kind of forward-thinking policy needed to address the barriers identified in the consultation: investment uncertainty and the nascent state of enabling hydrogen infrastructure. Enabling H2P participation into the Capacity Market (CM) Is a valuable additional measure.”
The response followed consultation with industry and will see a business model based on a Dispatchable Power Agreement mechanism to support the deployment of H2P and will publish a market engagement document in Spring 2025 outlining further detail on the proposed design.
In addition, the government is set to establish the H2P Expert Working Group.
Celia said: “As we move towards Spring 2025 and beyond, the Hydrogen Energy Association looks forward to engaging with government and industry stakeholders to shape a business model that balances innovation, risk-sharing, and efficiency.
“This effort will be pivotal in enabling hydrogen to realise its potential as a transformative energy vector, supporting a cleaner, more sustainable, and more secure energy system for the UK.”
