Recently, the British government passed an energy bill, which covers the financing mechanism for the hydrogen energy industry. The bill went through a lengthy legislative process and was approved by King Charles III. What this means
for the UK's hydrogen industry is that the controversial hydrogen tax has been passed and government-backed projects have a chance to receive funding. Earlier in
2023, the British think tank said that if the tax burden was added to taxpayers, it could increase the energy bill of the average dual-fuel British household by 119 pounds ( $144) a year. Subsequently, the British government amended the bill to make gas transporters bear these costs. A spokesman for the Department of
Energy Security and Zero Emissions (DESNZ) said the bill allowed for a levy on gas carriers, but would only be introduced after consultation and taking into account factors such as the burden of energy bills. Clare Jackson, chief executive of
Hydrogen UK, welcomed the bill's passage. She said the bill would lay the foundation for the UK's future hydrogen economy, setting out a business model for hydrogen production and a business model for hydrogen transport and storage. The production business model is designed to incentivize investment in low-carbon hydrogen production and use to meet the government's 10G W capacity target by 2030. The transport and storage model wants to develop the infrastructure that connects production and demand.
She said it was a clear demonstration to the global hydrogen economy and international investors that the UK was serious about achieving a zero-emissions future and the role hydrogen plays in it.
The bill also aims to help achieve the goal of zero emissions by 2050 in a pragmatic, proportional and realistic way, according to the British government. To this end, the bill will promote the first large-scale village hydrogen heating experiment, providing key evidence of the role of hydrogen technology in reducing carbon emissions from heating. But the National Infrastructure Commission (NIC), a government adviser, ruled out hydrogen heating altogether last week. According to the
report, about 88% of buildings in England currently use gas-fired boilers, which need to be replaced by heat pumps. And other countries are deploying accordingly.
The United Kingdom plans to carry out a large village conversion project of 1,000-2,000 homes to replace hydrogen and natural gas. The Hydrogen Village project will pilot the conversion of the existing natural gas pipeline network infrastructure to 100% hydrogen. Claire Courtinho,
the UK Energy Minister, said that the Energy Bill was the most important energy legislation of our generation. It will increase investment in clean energy technology and support tens of thousands of skilled jobs across the country, laying the foundation for Britain's energy independence.
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