Low Carbon Hydrogen
Low Carbon Hydrogen will play an important role in the UK achieving Net Zero by 2050, by offering a solution to decarbonise carbon intensive industries. The Government has set a target to deliver 10 GW of hydrogen production capacity by 2030 with up to 6 GW electrolytic production from alternative technologies also contributing towards this.
The Government has chosen the CfD framework for the delivery of the Hydrogen support mechanism. The CfD has a proven track record of increasing investor confidence, with revenue stabilization mechanisms, wider protections, and independent counterparty managing the contract, so it was the natural choice for the delivery of the Hydrogen support mechanism.
We have been advising government, using our expertise and deep understanding of the CfD mechanism to develop the Hydrogen Production Business Model and resulting Low Carbon Hydrogen Agreement, ensuring any learning is implemented to deliver an effective solution for all.
We are the counterparty to the Low Carbon Hydrogen Agreement.
Read more about the Low Carbon Hydrogen Agreement Here: Hydrogen production business model - GOV.UK (www.gov.uk)
The Department for Energy Security and Net Zero recently announced backing for 11 major projects to produce green hydrogen- and confirmed producers will receive a guaranteed price from the government for the clean energy they supply.
On January 3rd, LCCC was announced as the counterparty for the Low Carbon Hydrogen Agreements by the Department for Energy Security and Net Zero (DESNZ). As the designated counterparty for the Low Carbon Hydrogen Agreements, we will support the projects announced by government at the end of 2023.