LCP Delta has urged the government to ensure the UK’s new hydrogen strategy is fully integrated into the wider energy system, warning that failing to act decisively could leave the country trailing international competitors.
The consultancy cautiously welcomed signs of a shift away from a rigid target of 6GW of clean hydrogen production by 2030 toward a demand-led, bottom-up approach.
However, it stressed that policy barriers preventing the growth of the hydrogen ecosystem must be removed.
LCP Delta’s modelling indicates that tens of gigawatts of electrolysis will be required by 2050 to support investable offshore wind and clean thermal generation, both essential for balancing the UK’s power system.
Hydrogen will also be critical across sectors such as heavy industry and transport, where electrification is not always viable.
The group outlined several key steps for progress.
These include catching up with Europe on infrastructure, where regional clusters and traded hydrogen are already developing; improving business model design to bring down costs in future Hydrogen Allocation Rounds; and positioning hydrogen as a strategic part of the broader energy transition.
Brendan Murphy, Head of Hydrogen at LCP Delta, said: “Removing policy barriers to the uptake of hydrogen in a range of sectors where the UK wants to lead, by building networks & storage and driving down support costs allocation-round by allocation-round, is the way forward.”
He added: “If policymakers lean into those lessons now, the 2030s can be the decade we stop paying for volatility and start paying for value.”
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