A new publication released by the University of Manchester has warned that the “hydrogen bubble has burst,” despite being labelled as the “silver bullet.”
The On Hydrogen report, unveiled by the university’s policy engagement unit Policy@Manchester, began with a foreword from the Baroness Brown of Cambridge, Julia King, and the Chair of the House of Lords Science and Technology Select Committee.
“In the last 10 years, hydrogen has been hyped as the silver bullet that can decarbonise almost everything,” she said. “The trouble with bubbles is that once they have burst, it takes time for industry, governments and investors to regain confidence and take the subjects seriously again.”
Baroness Brown © Ceres Power
In her role as Chair of the Hosue of Lords Science and Technology Select Committee, she contributes to scrutinising government policies and practices concerning science and technology, with a focus on energy and environmental issues.
Furthermore, as Chair of the Adaptation Sub-Committee, Climate Change Committee (CCC), Baroness Brown oversees efforts to prepare the UK for the impacts of climate change.
She added that hydrogen must be taken seriously in “pressing industry tasks,” such as the decarbonisation of steelmaking and sustainable synthetic fuel production.
“Until both potential users and producers are convinced that there will be a market for hydrogen at an affordable price, everyone is waiting for someone else to take the first step.
“Low-carbon hydrogen, especially green hydrogen, can be a green growth opportunity for the UK. The UK government can take some bold steps to ensure we grow this industry in the UK – it could start by committing to a no-regrets investment in a strategic reserve of hydrogen to support our electricity system.”
Last October, UK Chancellor Rachel Reeves confirmed £2bn ($2.6bn) of funding for 11 green hydrogen projects totalling 125MW of capacity, selected under the first Hydrogen Allocation Round (HAR1).
Read more:Labour’s first budget in 14 years confirms £2bn for green hydrogen projects
“Today, I am providing funding for 11 new green hydrogen projects across England, Scotland and Wales,” Reeves said. “They will be amongst the first commercial-scale projects anywhere in the world.”
However, the selected projects have essentially been stalled since the government announced the winners in December 2023, while awaiting confirmation of the funding. Official contracts for the funding are still yet to be signed with the shortlisted projects.
Read more:UK Government selects 11 green hydrogen projects for £2bn of revenue support
UK must align hydrogen policies to drive adoption, HyDEX report stresses
A new whitepaper has urged the UK Government to fast-track hydrogen adoption across sectors, warning that regulatory barriers and insufficient incentives threaten progress.
The document released by UK-based hydrogen innovation consortium HyDEX, calls for a coordinated approach across government departments and siloes to be “broken down across industries.”
Based on a series of four industry roundtables with companies and organisations across the UK value chain, the report highlights misalignment between the Department for Energy Security and Net Zero (DESNZ) and the Department for Transport (DfT).
“Without cohesive coordination, efforts to integrate hydrogen into the wider transport sector, including the aviation sector, remain fragmented and less effective,” it said.
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