Current Status of Energy and Utilities Sector as of August 14, 2020
UK Leads the Way in Green Hydrogen Production
The United Kingdom is making significant strides in the development of its low carbon hydrogen strategy, with substantial government support and market advancements. The UK government has pledged over £2 billion in revenue support and over £90 million in capital expenditure through the Hydrogen Production Business Model and the Net Zero Hydrogen Fund, aiming to scale green hydrogen production between 2025 and 2028 [1][3][5].
Recently, the government selected 27 projects in the second Hydrogen Agreement for Revenue (HAR2) round, demonstrating a competitive process to broaden hydrogen infrastructure and production capacity [1]. Furthermore, the government is consulting on hydrogen blending into existing gas transmission networks to reduce costs and support wider hydrogen adoption [3].
In contrast, Australia is in the early stages of developing its hydrogen industry. Its national hydrogen strategy (2020-2050) outlines activation and initial scale production from 2020 to 2030, moving towards significant export capacity between 2030 and 2050. Australia is considering hydrogen auctions as a policy tool to stimulate investment but this mechanism is still in the initial discussion phases, with serious implementation closer to 2030 [4].
Japan and South Korea are also active players in the hydrogen market. Japan has been an early proponent of hydrogen, heavily investing in hydrogen technologies linked to its energy transition goals, but specific mid-2025 updates are not detailed in these sources. Japan focuses on hydrogen for transport and industrial use, with strategic imports and domestic production [6]. South Korea is developing large-scale hydrogen infrastructure projects such as the Ulsan Green Hydrogen Town, with extensive underground pipeline installation to distribute hydrogen from petrochemical byproducts [2].
The UK's approach is currently among the most proactive in terms of government funding and project scale in 2025. However, some concerns have been raised about the lack of a clear vision for hydrogen from the UK government, which could potentially hinder the growth of the sector, according to Phillip Dunne MP [3].
Meanwhile, other countries like Australia, Japan, and South Korea have already set ambitious hydrogen strategies. For instance, South Korea is emphasizing integrated industrial hydrogen hubs and infrastructure, while Australia is focusing on future market activation and export potentials with longer timelines and auction mechanisms under exploration [4].
In the domestic sphere, projects like the SSE Enterprise and the Mayor of London's office leading a project to fit vehicle-to-grid (V2G) technology in a bus garage in North London, funded by the government, Innovate UK, and the Office for Low Emission Vehicles, are demonstrating the UK's commitment to low-carbon technologies [1]. Similarly, Digital network business BT Openreach has placed an order with Vauxhall for nearly 300 EVs as part of its commitment to electrification, moving away from the use of diesel vans [7].
Moreover, Gridserve, which builds, owns, and operates hybrid solar assets, has purchased Clayhill hybrid solar farm, the UK's first subsidy-free solar farm [8]. Connected Kerb has announced the installation of infrastructure to support at least 130 EV charging points on a 250-hectare site in Wichelstowe, where around 3,000 homes are expected to be built [2].
The benefits of these advancements could include smart heating systems cutting domestic energy use by 20%, smarter transfer of EV energy back to the grid, and improved efficiency and productivity in factories, potentially removing 40 megatonnes of emissions from the economy by 2035 [1].
References:
- GOV.UK (2021)
- Connected Kerb (2021)
- Environmental Audit Committee (2021)
- Australian Government (2020)
- Office for Low Emission Vehicles (2021)
- Japan Hydrogen and Fuel Cell Association (2021)
- O2 (2021)
- Gridserve (2021)
- The UK's green hydrogen production strategy receives substantial support from both the government and industry, with a pledge of over £2 billion in revenue support and capital expenditure.
- Renewable energy sources, like green hydrogen, are increasingly being adopted in various sectors, such as transportation, as seen by BT Openreach's commitment to electrify its fleet of vehicles and the UK'sfirst subsidy-free solar farm, owned by Gridserve.
- Climate-change concerns drive the need for environmental-science innovation, and the UK continues to demonstrate its commitment through projects like vehicle-to-grid (V2G) technology installation and the development of smart heating systems.
- Within the lifestyle space, electric-vehicles are becoming more prevalent, with the adoption of over 200 EV charging points in Wichelstowe, UK, supporting the move away from traditional fuel-powered cars.
- Despite the UK's proactive approach in green hydrogen production, other nations like Australia, Japan, and South Korea have already outlined ambitious hydrogen strategies, focusing on future market activation, resource integration, and large-scale infrastructure development.
