Hydrogen supply chains

Summary

In order to achieve climate and net zero targets, alternatives to the use of fossil fuels for energy will be needed and industrial processes will need to be decarbonised. 

Low-emissions hydrogen is hydrogen that has been produced using a process associated with low emissions of greenhouse gases, such as CO2, which could be used to decarbonise a range of sectors, such as industry, power, transport and heating. As a result, demand for low-emissions hydrogen could increase significantly as the world attempts to decarbonise and this could lead to the growth of a global hydrogen economy. This would require supply chains to provide the necessary technology and services. 

Hydrogen is an emerging sector with high growth potential. Various organisations have highlighted the opportunity for the UK to establish a strong domestic supply chain, but they have also identified a number of challenges, such as: 

• the high cost of producing and using low-emissions hydrogen compared to fossil fuel alternatives
• uncertainty about the scale of future demand and applicability of hydrogen in different sectors
• international competition for investment in hydrogen projects and supply chains.

The government is planning to publish an updated hydrogen strategy later this year, which will set out its vision and objectives for the UK hydrogen sector. 

This debate pack contains information on the production, supply and use of hydrogen, the potential for the hydrogen sector and supply chain to contribute to the UK economy and job creation, and government policy relevant to hydrogen. It also includes relevant Parliamentary material, news items and useful links.