Minister for Industry (): I am tabling this
statement to inform members of the publication of the Hydrogen to
Power - market intervention Consultation Response on 9th December
2024. This response commits to delivering a Hydrogen to Power
Business Model to support the accelerated deployment of Hydrogen
to Power as low carbon long duration flexible electricity
generating capacity.
Making Britain a clean energy superpower by 2030 is one of the
Prime Minister's five missions. Unabated gas currently provides
the majority of flexibility in Great Britain and so the
deployment of Hydrogen to Power – the conversion of low carbon
hydrogen to produce low carbon electricity – will play an
important part in displacing unabated gas generation from the
power system, to support the Clean Power Mission, and the
government's legally binding target to reduce greenhouse gas
emissions to net zero by 2050.
Low carbon hydrogen can make our energy system more flexible,
resilient, and independent. When connected with large-scale
storage, hydrogen to power can provide electricity to cover
longer periods of lower renewable output, whilst also creating a
decarbonisation pathway for unabated gas power plants. The
Hydrogen to Power Business Model will de-risk investment in
Hydrogen to Power by mitigating the deployment barriers we
identified, through a Dispatchable Power Agreement --style
business model, helping to support the unlocking of investment in
Hydrogen to Power and improving the pipeline of projects.
The response document commits to:
- Delivering a Hydrogen to Power Business Model based on a
Dispatchable Power Agreement -style mechanism to support the
deployment of Hydrogen to Power.
- Publishing a Hydrogen to Power Business Model market
engagement document in 2025 outlining further detail on the
proposed design of the Hydrogen to Power Business Model and plans
for launching the first allocation round.
- Establishing a Hydrogen to Power industry expert working
group. This will provide a key forum for Hydrogen to Power
Business Model design and strategic policy considerations.
- Enabling Hydrogen to Power to participate in the Capacity
Market as soon as practical.
This publication is an important step towards supporting the
deployment of Hydrogen to Power, a key low carbon flexible
technology, and therefore facilitating a clean power system. It
will build on the positive stakeholder feedback received through
the consultation and provide industry with clarity on
government's position on the technology and the next steps for
implementing the market intervention.
