New Energy Minister Michael Shanks faced questions from cross-party MPs on Tuesday (9 September), with warnings that the UK could fall behind international competitors without swift policy clarity.
Led by Labour MP Tom Collins, a former hydrogen heating specialist at Bosch, called for the government to be “agile” and work in partnership with industry to “cut through the administration and bureaucracy” to deliver a clear vision.
Several MPs pointed to the scale of the economic prize. Figures cited in the debate suggest hydrogen already contributes £8.4bn ($11.4bn) to the UK economy but could add £18bn ($24.4bn) and 60,000 jobs by 2050 if domestic supply chains are strengthened.
Capturing just 10% of the global hydrogen technology market could be worth £46bn ($62.2bn) a year and support more than 400,000 jobs, they were keen to add.
It comes amid wider concerns from European hydrogen manufacturers that Chinese competitors could soon dominate deployments, and ahead of the UK’s hydrogen strategy refresh in the autumn.
Government ministers have vowed the new strategy will be “evidence-led, impact-focused,” and aimed at fast-tracking delivery.
Shanks said he wanted the UK to be a “global leader” not only in hydrogen deployment, but also “in making sure that we capitalise on the supply chains.”
He stressed the government was reviewing extending the Clean Industry Bonus, which provides incentives for wind power projects to invest in sustainable supply chains, to hydrogen.
“We are looking at whether we should expand that to hydrogen, and we will consult on that in due course,” he said.
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