This week Joy Morrissey MP has welcomed the announcement of the new Energy Security Strategy from the Government.
Today the Government has announced the new Energy Security Strategy. We will prioritise affordable, clean and independent supplies as we secure our energy future.
The announcement today of a £375 million package of support for innovative energy technologies is putting real investment behind our energy security strategy. This will back cutting edge new technologies in hydrogen, advanced nuclear and carbon capture.
The £240 million Net Zero Hydrogen Fund, funding low carbon hydrogen production projects, with the aim of awarding funding from the end of 2022. This will advance the government’s ambition to have up to 2GW of low-carbon hydrogen production capacity by 2025 and up to 10GW installed by 2030, using electricity to produce power by splitting water into hydrogen and oxygen.
The Hydrogen Business Model, which will support further investment in hydrogen production with £100 million for electrolytic projects to cover the difference between the cost of production (the strike price) and the sale price for hydrogen (reference price). Funding for this will launch this summer.
The Industrial Hydrogen Accelerator, a £26 million innovation funding programme to support UK industry in adopting hydrogen as a clean, affordable fuel source for sectors like manufacturing by demonstrating the feasibility of hydrogen to businesses and reducing the cost of switching energy systems.
A £2.5 million competition for bidders seeking to develop a UK Advanced Modular Reactor (AMR). These reactors use novel and innovative fuels, coolants, and technologies to generate high-temperature heat for industrial applications as well as for electricity to power people’s homes. Industry representatives are invited to apply for a share of this funding to develop their projects. On top of this, the Business and Energy Secretary has also announced today that nuclear regulators (the Office for Nuclear Regulations and Environment Agency) have been provided with an additional £830,000 of funding to help bring the development of UK AMRs to fruition.
£5 million government funding for accelerating Carbon Capture and Storage (CCS) Technologies under the ACT 3 scheme. CCS entails capturing, transporting and storing greenhouse gas emissions that would otherwise be released into the atmosphere meaning energy can be stored and used. ACT 3 is an international initiative between 14 countries worldwide including the UK, aimed at accelerating CCS technologies through funding research and innovation projects and the funding will support the commercialisation of the technology so that companies right here in the UK can invest in it.
In addition to this funding, the government is also publishing a range of important documents and guidelines to support the development of these industries.
Government support for hydrogen is also being complemented by extensive private investment, including ITM Power’s announcement of a new electrolyser plant in Sheffield which will support the hydrogen industry and create 500 jobs.
