UKPIA is calling on the government to bring forward plans to develop its business model for low carbon hydrogen transport and storage or risk delaying major projects needed for Net Zero.
In response to the government’s consultation, UKPIA has expressed concern about plans to publish the business model by mid-2023 because the delay could hold back vital investment decisions.
Some low carbon hydrogen projects will need transport and storage facilities to be in place before final investment decisions are made. And it can take up to four years for the infrastructure to be built.
Elizabeth de Jong, UKPIA’s CEO, said: “The message from our members is clear – the timescale for publishing the business model is too long and risks delaying investment decisions for vital hydrogen projects.
“Government should consider how it can bring forward the publication of the business model to help bring these projects to fruition as quickly as possible.”
She explained a coordinated approach is needed to align the development of transport and storage infrastructure with that of major production facilities. This will help ensure that hydrogen production has an associated demand that can be supplied. Otherwise, there is a risk that production plants could start without customers, or transport and storage infrastructure standing idle due to a lack of production infrastructure.
UKPIA warned the main barriers to growth in hydrogen networks are a currently limited user base as well as uncertainty over future demand and supply.
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