UK Hydrogen Strategy targets 20-fold demand increase by 2050
The UK released its Hydrogen Strategy this week, following on from November’s ten point plan. The strategy targets a 6-fold growth in demand by 2035, driven by a twin green & blue approach across electrolysis & SMR with CCS. The plan envisages 20-fold growth by 2050, with the share of biomass gasification with CCS forecast to increase. In 2050, hydrogen is forecast to meet 20-35% of final energy consumption. Demand at these levels is heavily contingent on driving down the cost of hydrogen as production scales. For green hydrogen that in turn means sourcing very low cost power.
The demand in 2050 is forecast to be driven by transport (up to 140 TWh), industry (up to 105 TWh) and hydrogen for power (up to 40 TWh).