UK and Germany form new hydrogen fuel deal
October 3, 2023The countries have signed a new partnership to help boost energy security while pursuing net zero carbon.
The United Kingdom recently announced that it would be working in close collaboration with Germany to secure international hydrogen fuel trade within a new partnership that the government is hopeful will boost energy security while aligning with net zero carbon targets.
The countries will be working together to accelerate the role H2 will play in their energy mix.
The UK and Germany will aim to accelerate low-carbon hydrogen fuel uptake into their energy mixes, said the statement from the United Kingdom.
“This agreement will underpin the development of this new fuel not just for our respective countries but also for an international trade that could be transformative in our work towards achieving net zero emissions by 2050,” said junior minister in the energy department of the UK government Martin Callanan. “It is through these partnerships that we can move away from expensive fossil fuels – and in doing so boost our energy security.”
Lawmakers and industries alike have been increasingly turning their attention toward H2 to reduce the carbon footprints of some of the sectors that have been the most challenging to decarbonize. They’ve also been considering this option as an alternative to natural gas. That said, they recognize that they face notable technical challenges and initial investments if this is to take off.
Last year, the UK pledged to double its hydrogen fuel production by 2030, to reach as much as 10GW.
The UK also included in its pledge that half of the H2 would be electrolytic.
In pursuit of this, the government launched a £240 million net zero H2 fund to support commercial low-carbon H2 production deployment through this decade.
Germany’s side of this strategy
Germany intends to provide state aid for about 2.5 GW of electrolysis projects in 2023, and its government has stated that it will designate €700 million for H2 research for production optimization.
Germany has set its own domestic electrolysis hydrogen fuel production capacity target of at least 10 gigawatts to be achieved by the end of this decade.