Action plan to boost green hydrogen rollout

An action plan has been put forward to more than halve production costs of green hydrogen and drive demand.

Trade associations RenewableUK and Hydrogen UK said their proposals could take the cost of hydrogen from £241/MWh, which was achieved in the first Hydrogen Allocation Round in 2023, to less than £100/MWh.

Their report said affordable green hydrogen will be an essential tool for building the energy system of the future, providing long duration storage for surplus electricity, and also for decarbonising sectors such as steel, chemicals and shipping.

Dan McGrail, Chief Executive of RenewableUK said: "Green hydrogen generated from renewables will play an important role in helping the Government to achieve its clean power mission. It can add vital flexibility to our energy system, as it can be stored and used whenever it's needed.”