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Government boosts low-carbon hydrogen in £166m ‘Green Industrial Revolution’ funding

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Low-carbon hydrogen, carbon capture and industrial energy efficiency have all received a boost from the government's 'Green Industrial Revolution' funding (Credit: Shutterstock)
Low-carbon hydrogen, carbon capture and industrial energy efficiency have all received a boost from the government's 'Green Industrial Revolution' funding (Credit: Shutterstock)

Low-carbon hydrogen development has received a £60m boost as part of the government’s plans for a ‘Green Industrial Revolution’.

Improved carbon capture, use and storage (CCUS) and industrial energy efficiency are also major targets in the plans, announced today (24 May) with £166.5m funding.

The Hydrogen Supply 2 project aims to bring down the cost of low-carbon hydrogen to make it closer to the cost of natural gas. The government hopes it will identify and scale-up more efficient ways of producing hydrogen through electrolysis of water. It will also explore the use of low-carbon hydrogen in industries including manufacturing, rail, shipping and heating. The £60m funding could contribute to the creation of about 8,000 jobs.

Also included in the total funding was £20m for the development of next-gen CCUS technologies, which the government hopes to deploy ‘at scale’ by 2030. This could include innovative technologies that widen its suitability for more industries, such as chemicals and cement. Other aims include reducing the cost of deployment and helping companies target carbon emissions at source.

Overall, a government announcement said, “the multi-million pound investment awarded to innovators, businesses, academics and heavy industry right across the UK will accelerate the delivery of the critical game-changing technologies needed to further drive Britain’s climate change ambitions, while creating over 60,000 jobs across the UK.”

Government commitments include reaching net zero emissions by 2050, and reducing emissions by 78% – compared to 1990 levels – by 2035.  

A further £16.5m will be spent through the Industrial Energy Transformation Fund to develop new technologies and processes that could help energy-intensive sectors cut their emissions. Projects include improving the energy efficiency of scrap metal recycling into steel at Celsa Manufacturing, and the installation of energy efficient technology at BAE Systems.

Elsewhere, a new £4.7m Transforming Foundation Industries Research and Innovation Hub – led by Cranfield University in Bedfordshire – aims to help industries like metal, glass, cement and paper work together to address common challenges. This could include creating new, ‘smart’ materials and processes that enable lower energy use and low carbon products.

The director of UK Research and Innovation’s Transforming Foundation Industries challenge, Bruce Adderley, said: “For the foundation industries there are huge benefits to be gained by looking at reducing and reusing waste materials that arise from the creation, processing and use of the products manufactured by these sectors, so it is inspiring to see so many innovations that tackle this challenge head on.

“The focus these projects bring on greener alternatives, lower emissions and energy saving will have an impact across the economy, support the move towards net zero in the UK, and we look forward to helping them bring their innovations to fruition.”


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Content published by Professional Engineering does not necessarily represent the views of the Institution of Mechanical Engineers.

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