Summary
We're seeking views on our proposed design of the Gas Shipper
Obligation, a funding mechanism for the Hydrogen Production
Business Model and related costs.
This consultation closes at
11:59pm on 9 April 2025
Consultation description
This consultation seeks views on proposed design choices of the
Gas Shipper Obligation. The Gas Shipper Obligation is intended to
be the long-term funding mechanism for initial hydrogen
production projects funded through the Hydrogen Production
Business Model. It may also fund further hydrogen projects,
subject to future decisions on the hydrogen programme and the
funding of future hydrogen production projects.
The Hydrogen Production Business Model is designed to provide
revenue support to hydrogen producers, to overcome the operating
cost gap between low carbon hydrogen and high carbon fuels. It is
intended to incentivise investment in low carbon hydrogen
production and usage, and to deliver security of supply to end
users, recognising that both cost and supply security are key
considerations for switching. This will help to scale up delivery
of the UK hydrogen economy and achieve our Clean Energy
Superpower and Growth Missions.
We have published an analytical annex alongside this
consultation. It focuses on the impact of the Gas Shipper
Obligation on gas users, including fuel poor households, and
small and micro-businesses.
This consultation is open to anyone to respond, but will be of
particular interest to:
- gas shippers
- relevant participants in the gas market
- hydrogen production projects
- consumer groups
We encourage respondents to review both the consultation and
analytical annex, and respond using the online response
form.
Read our consultation privacy
notice.
Documents
Funding mechanism for the
Hydrogen Production Business Model: proposed design of the Gas
Shipper Obligation - consultation document
Funding mechanism for the
Hydrogen Production Business Model: proposed design of the Gas
Shipper Obligation – analytical annex
Ways to respond
Respond online
or
Email to:
GasShipperObligation@energysecurity.gov.uk
