The UK Government has launched a £375m support package consisting of funding for innovative energy technologies that aim to strengthen the nation’s energy security.
Designed to support research, development, and deployment of ‘clean’ fossil fuel alternatives, the investment will comprise of a £240m support package to produce hydrogen, £2.5m to go towards funding next-generation nuclear technology and a further £5m which will advance the carbon capture sector.
The scheme, launched on April 8th, aims to help mitigate the country’s reliance on expensive fossil fuels, while backing up the Energy Security Strategy unveiled by the Prime Minister last week.
The strategy sets out ways by which Great Britain could accelerate renewable energy development while also supporting domestic production of domestic oil and gas in the nearer term.
Commenting on the investment, Kwasi Kwarteng, Business and Energy Secretary, said, “This investment will unlock the enormous potential of hydrogen fuel, advance nuclear reactors and carbon capture to level up the UK energy landscape and deliver for businesses and households.”
Citing high gas prices and the ongoing Russia-Ukraine conflict, Kwarteng added that domestic energy production is an ‘urgent need’.
“That’s why we have set out bold plans to harness clean, cutting-edge, homegrown technologies and build the energy security we need for the future,” he added.
Funding will go towards the £240m Net Zero Hydrogen Fund, which will advance the Government’s ambition to have up to 2GW of low-carbon hydrogen production capacity by 2025 and up to 10GW installed by 2030, using electricity to produce power from water by splitting water into hydrogen and oxygen.
A Hydrogen Business Model will receive £100m in funding for electrolytic projects to cover the difference between the cost of production and the sale price for hydrogen.
A £26m programme to support the UK’s adoption of clean hydrogen titled the Industrial Hydrogen Accelerator will demonstrate the feasibility of hydrogen to businesses.
Funding will also go towards a £2.5m competition for bidders seeking to develop a UK Advanced Modular Reactor (AMR).
To accelerate carbon capture and storage (CCS) technologies under the ACT 3 scheme, £5m of Government funding will support the UK’s advancement of CCS technologies through funding research and innovation projects.