Consultation outcome: Proposals for hydrogen production and industrial carbon capture regulations

From: Department for Energy Security and Net Zero

Published 30 March 2023

Hydrogen production and ICC business model revenue support regulations: government response

PDF, 1000 KB, 54 pages

Detail of outcome

This government response confirms our intention to proceed with our proposals largely as consulted on having considered feedback from respondents.

• Direction to offer to contract: Setting out the process by which the Secretary of State may direct a counterparty to offer to contract, including the power for the Secretary of State to revoke a direction that has been issued
• Information publication: Requiring a counterparty to publish each contract entered into and establish a public register containing key project information
• Counterparty ability to carry out its functions: Requiring a counterparty to provide early notification to the Secretary of State if it is, or considers that it is likely to be, unable to fulfil its functions
• Low carbon hydrogen producer eligibility: Supporting new production facilities as well as new production capacity added to existing facilities. Projects will be required to demonstrate the ability to meet the ‘live’ UK Low Carbon Hydrogen Standard at the time of their application
• Carbon capture entity eligibility: Supporting CO2 capture from industrial and commercial sources, including from combined heat and power and energy recovery generating stations, but excluding capture of CO2 produced from other types of power generation facility

We intend to deliver these regulations as soon as departmental and Parliamentary timelines allow, enabling business model contracts to be awarded.

Detail of feedback received

We received 28 responses from a wide range of stakeholders including:

• hydrogen and CCUS trade associations
• potential hydrogen producers
• potential carbon capture entities
• organisations on the wider supply chain
• members of the public

Many of the respondents were supportive of the proposals for regulations.

We're seeking views on proposals for revenue support regulations in relation to the hydrogen production, industrial carbon capture (ICC) and waste ICC business models.

This consultation ran from
8am on 24 March 2023 to 11:45pm on 10 May 2023

Consultation description

This consultation seeks views on proposals for revenue support regulations in relation to the hydrogen production business model, industrial carbon capture (ICC) and waste ICC business models, including:

• the process by which the Secretary of State may direct a counterparty to offer to contract with an eligible low carbon hydrogen producer or carbon capture entity
• requirements that certain information about contracts and projects must be published
• the meaning of ‘eligible’ in relation to a low carbon hydrogen producer and carbon capture entity to determine the type of projects that could be supported through the business models

The consultation is open to all, but we expect responses in particular from those directly affected by these proposals, or have an interest in low carbon hydrogen and industrial carbon capture projects, including:

• project developers
• financial investors
• trade associations

See our consultation privacy notice.

Hydrogen production and ICC business model revenue support regulations: consultation

PDF, 464 KB, 42 pages