On 26 October 2023, the Energy Act 2023 became law. The Energy Act 2023 is a significant overhaul of the UK energy regulatory framework. It is aimed at supporting the development of the UK energy systems in line with the UK government’s current strategy, focusing on net-zero commitments and energy security.
On 30 March, the UK Government released a package of policy plans related to decarbonization and energy initiatives it has termed “Powering Up Britain”. Originally promoted as “green day” in Whitehall, many saw the release as the Government’s potential unveiling of a new, more detailed plan for achieving net zero emissions, as well as the UK’s response to substantial state subsidy programs announced by the US and EU. More recently, the Government sought to temper those expectations, with the release being rebranded “Energy Security Day”.
On 10 February 2023, the European Commission finally adopted the Additionality Delegated Act, which outlines conditions under which hydrogen, hydrogen-based fuels or other synthetic fuels can be considered as renewable fuels of non-biological origin (RFNBOs).
This alert analyses the Additionality Delegated Act and its impact on the hydrogen market.
The H2Global Foundation announced on 8 December 2022 the launch by its wholly-owned subsidiary, HINT.CO GmbH, its first procurement procedure for the import of green ammonia into Europe. This procedure is intended to provide an innovative and efficient funding instrument, backed by EUR 900 million provided by the German Federal Ministry for Economic Affairs and Climate Protection, with further funding planned for 2023. This is the first global tender procedure of its kind. The deadline for application is 7 February 2023.
The ongoing shift in the Global Energy landscape has been accelerated by the firm commitment of many governments around the globe to decarbonise and achieve net zero, as well as, most recently, very significant geo-political developments. A number of new energy strategies have been launched by governments around the globe (most notably, in the EU, UK and USA) as well as new regulatory frameworks put into place to enable these strategies.
Following the government’s announcement of the creation of a new Future System Operator to oversee the UK’s energy system including emerging technologies and the arrival of the UK Energy Security Strategy, on 8 April 2022, the UK government published a package of proposals in support of UK hydrogen policy, including in particular a policy paper titled “Hydrogen Investor Roadmap: leading the way to net zero”. The paper reiterates the government’s pledge made in the Strategy to double its 5GW low-carbon hydrogen target to 10GW by 2030, with the intention that at least half of this production will come from electrolytic hydrogen. The paper aligns with the approach laid out in the Strategy to utilise excess offshore wind power to drive down hydrogen production costs
Following the government’s announcement of the creation of a new Future System Operator to oversee the UK’s energy system including emerging technologies and the arrival of the UK Energy Security Strategy, on 8 April 2022, the UK government published a package of proposals in support of UK hydrogen policy, including in particular a policy paper titled “Hydrogen Investor Roadmap: leading the way to net zero”. The paper reiterates the government’s pledge made in the Strategy to double its 5GW low-carbon hydrogen target to 10GW by 2030, with the intention that at least half of this production will come from electrolytic hydrogen. The paper aligns with the approach laid out in the Strategy to utilise excess offshore wind power to drive down hydrogen production costs.
On 7 April 2022 the UK published its Energy Security Strategy. The key aim of the strategy is for the UK to achieve long-term independence from foreign energy sources and decarbonise the nation’s power supply. The strategy echoes the communication released on 8 March 2022 by the European Commission in relation to the Joint European Action for more affordable, secure and sustainable energy.
The UK’s Energy Security Strategy reinforces the Government’s commitment to decarbonisation, with an ambitious new target for offshore wind by 2030 and a doubling of the previous target for hydrogen production in the same time frame.
Please join Baker McKenzie on 15 February 2022 for a 45 minute webinar in which our industry-focused practitioners will discuss the potential of adapting and developing existing market structures and models to the new hydrogen market, as well as key issues emerging from pioneer hydrogen projects.
Following the recent publication of the UK Hydrogen Strategy, the UK Government has now published its Net Zero Strategy. As expected, low carbon hydrogen development is central to this strategy. At the core of the strategy is an ambitious goal of fully decarbonizing UK power systems by 2035.