UKPIA calls on Government to speed up hydrogen transport plans or risk net zero

UKPIA is calling on Government to bring forward plans to develop its ‘business model for low carbon hydrogen transport and storage’ or risk delaying major projects needed to deliver net zero.

UKPIA says timescale for Government’s ‘business model for low carbon hydrogen transport and storage’ risks net zero

In response to the Government’s consultation, UKPIA has expressed concern about plans to publish the business model by mid-2023 because the delay could hold back vital investment decisions.

Timescale is too long

Some low carbon hydrogen projects will need transport and storage facilities to be in place before final investment decisions are made. And it can take up to four years for the infrastructure to be built.

Elizabeth de Jong, UKPIA’s CEO, said: “The message from our members is clear – the timescale for publishing the business model is too long and risks delaying investment decisions for vital hydrogen projects. Government should consider how it can bring forward the publication of the business model to help bring these projects to fruition as quickly as possible.

“A coordinated approach is needed to align the development of transport and storage infrastructure with that of major production facilities. This will help ensure that hydrogen production has an associated demand that can be supplied. Otherwise, there is a risk that production plants could start without customers, or transport and storage infrastructure standing idle due to a lack of production infrastructure.”