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ARTICLE · 12 FEBRUARY 2025

Is Cheap UK Hydrogen On The Horizon?

Marks & Clerk
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Marks & Clerk

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A new report by RenewableUK and Hydrogen UK, Splitting the Difference – Reducing the Cost of Green Hydrogen to Accelerate Deployment...

United KingdomEnergy and Natural Resources

A new report by RenewableUK and Hydrogen UK, Splitting the Difference – Reducing the Cost of Green Hydrogen to Accelerate Deployment, outlines measures to drive down the cost of green hydrogen from £241 per MWh (2023) to under £100/MWh. The UK has significant potential to use renewable electricity for hydrogen production, but key steps are needed to unlock economies of scale. Recommendations include removing barriers to locating hydrogen production at renewable energy sites, incentivizing electrolysis during low-cost electricity periods, and reforming the hydrogen production business model.

The report emphasizes reducing the cost of electricity, which currently accounts for 70% of the price of green hydrogen, and cutting grid access charges for developers. The goal is to make hydrogen affordable, helping decarbonize sectors like steel, chemicals, and shipping, while creating jobs and economic growth. For hydrogen to fulfill its potential, collaboration between

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