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PRIVACY
Economic Development

Hydrogen sector calls for Government support to help it deliver £34bn economic boost and support º£½ÇÊÓÆµ net zero

The Stanlow refinery complex will be at the heart of the North West's hydrogen sector(Image: PUBLICITY PIC)

Leaders of the hydrogen industry in the North West have told the Government to back the development of hydrogen transport and storage systems so the sector can help the º£½ÇÊÓÆµ reach net zero targets.

A new report from the North West Hydrogen Alliance (NWHA) says that while Government policy frameworks have been created to support hydrogen production, the development of transport and storage policies has been slower.

“The role of hydrogen infrastructure in the future energy system” says a transport network, consisting of new pipelines and the repurposing of existing gas lines, is vital to help link producers both to storage sites and to the end users of hydrogen. The alliance says “A well-developed hydrogen network enables large-scale production at central facilities for distribution across various regions and users. It also provides flexibility in choosing storage locations, allowing hydrogen to be produced where it's most cost-effective and consumed where demand is highest.”

And it adds: “Hydrogen storage can support the º£½ÇÊÓÆµ energy system by matching production with demand whilst facilitating decarbonisation of the electricity system. By storing surplus electricity during periods of excess generation, hydrogen storage provides flexible energy generation during times of high demand and low renewable energy output.”

The report comes on the day Sir Keir Starmer set a target for the º£½ÇÊÓÆµ to be “on track” to deliver 95% clean power by 2030.

The North West is a leader in the development of hydrogen, with work ongoing at the key hub of Stanlow in Cheshire where two large-scale low-carbon hydrogen production plants are in development. Those plants would link to existing local gas infrastructure – potentially including gas storage facilities in salt caverns below the Irish Sea.

This year the Government announced £22bn in support for two carbon capture and storage (CCS) schemes – Hynet, which stretches across the North West and North Wales, and the East Coast Cluster in Teesside and the Humber.

The NWHA’s Economic Impact Assessment estimates the North West’s hydrogen sector could boost the region’s economy by £3.4bn by 2030.