UK HFCA sees the budget as a missed opportunity for hydrogen

In yesterday budget, the UK government announced to provide £4.8 million (US$ 6.7 million) to support the development of a hydrogen hub in Holyhead. The project would pilot the generation of hydrogen from renewable energy for use as a zero-emission fuel in heavy vehicles, and supporting up to 500 jobs.

The hydrogen hub will be developed by social enterprise Menter Môn, partnering with Anglesey County Council. The Chancellor of the Exchequer, Rishi Sunak, said: “These measures will help Wales pave the way to a greener future, create new high skilled jobs and build the infrastructure needed to drive growth in key sectors and build back better.”

Commenting on the budget, the UK Hydrogen and Fuel Cell Association (UK HFCA) told H2Bulletin, “Whilst we recognise the importance of a strong package of measure to support post-COVID recovery, we see the budget as a missed opportunity for hydrogen.”

UK HFCA, which is an industry body for hydrogen and fuel cells in the UK, further added: “The UK needs to take urgent action at scale, not only to ensure that we meet our net-zero targets but also to ensure that UK businesses can take a share in the growing international hydrogen market.”

Beyond the announcement of the hydrogen hub in Holyhead, we would have liked to see a suite of supply and demand-side measures to kick-start progress across the country.  One simple example would be a 10-year moratorium on VAT for green hydrogen production, the association further added.