Boost for blue hydrogen in UK spring budget

Government’s £20bn funding pledge for CCUS is positive for blue hydrogen projects lining up to join ‘track one’ clusters

The UK's recently unveiled budget may be a disappointment for green hydrogen, but it presents a step forward for the deployment of the blue variety this decade. The UK government has budgeted £20bn ($24bn) towards the deployment of CCUS, with support aimed initially at ‘track one’ clusters due to start coming online by the mid-2020s. No additional funding has been committed to the ‘hydrogen business model’ support scheme, despite industry concerns that the 250MW cap on the current funding round for electrolytic projects will leave credible projects unfunded. However, the funding commitment for CCUS is a positive sign for the blue hydrogen projects shortlisted for connection to the track-one