- £90 million package announced to tackle emissions from homes and heavy industry – including funding for Europe’s first hydrogen plants which could generate enough clean energy to heat over 200,000 homes
- local energy projects across the country could reduce housing emissions by up to 80% and save consumers money on their energy bills
- renewable energy to power industry instead of fossil fuels, removing 3.2 million tonnes of CO2 from the atmosphere by 2030
Cleaning up emissions from industry and housing is a big challenge but today’s £90 million investment will set us on the right path as we develop clean technologies like hydrogen. This is an important part of our world-leading efforts in eliminating our contribution to climate change by 2050 while also growing our economy, creating up to 2 million green collar jobs across the country by 2030.
The news comes just 2 weeks after the Prime Minister announced plans to bring forward the phase-out of coal to 2024 as we continue to ramp up our Year of Climate Action ahead of the UN Climate Change Conference (COP26) this November.
Key Points of Note:
- The complete funding package forms part of the Department for Business, Energy and Industrial Strategy’s £500 million innovation fund, which is dedicated to harnessing and rolling out cutting edge technology to fight climate change.
- Currently difficult and expensive to produce in bulk, hydrogen could be vital in the fight against climate change as a low carbon alternative to fossil fuels used by heavy transport and industry.
- Of the £70 million being invested in these technologies, £28 million will be for projects developing hydrogen production, including the 2 plants.
- A further £18.5 million of funding is being awarded to projects developing and trialling technologies to move industrial concrete and glass production away from fossil fuels and onto renewables.
- The projects have the potential to be scaled up and rolled out across industry, meaning houses and roads could be built using low-emission concrete by 2030. This would prevent 3.2 million tonnes of CO2 a year from polluting the environment - equivalent to taking 679,000 cars off the road.
- The remaining £22 million of funding will go to top UK scientists and engineers to conduct cutting-edge research into decarbonising industry, focusing on emission-heavy transport and heating.
Breakdown of funding:
- Hydrogen Supply programme – £28 million for 5 demonstration phase projects
- Industrial Fuel Switching programme – £18.5 million for 4 demonstration phase projects
- UKRI Local Smart Energy Designs - £21 million for 10 demonstration phase projects
- UKRI Key Technology Components for Local Energy Systems - £3 million awarded to various demonstration phase projects
- UKRI Research funding - £22 million for research into challenges in reaching net zero posed by: heating, transport and global fuel markets