(Berlin / Germany) – Great Britain is developing “into a pioneer in low-carbon technologies.” Hydrogen and CCUS are of “central importance for the decarbonization of heavy industry, energy and transport,” according to a study by the Export Initiative Energy of the Federal Ministry for Economic Affairs and Energy (BMWi).
Market analysis: Great Britain aims to achieve net-zero emissions by 2050. © BMWE
The United Kingdom government aims to achieve net-zero emissions by 2050. To achieve this, low-carbon hydrogen production facilities with a cumulative capacity of ten gigawatts are to be built by 2030, capturing 20 to 30 million tons of CO2 annually. The target market analysis assesses the growth potential and investment opportunities for carbon capture, utilization, and storage (CCUS) technologies. It is intended to demonstrate market entry opportunities and strategies for German small and medium-sized enterprises (SMEs) along the hydrogen and CCUS value chain in the British market.
The Humber Estuary region is one of the strategic industrial clusters with growing momentum for investors. © Image by Kreuzschnabel/Wikimedia Commons, License: artlibre
According to the report, there is strong political support and growing momentum in strategic industrial clusters. The Humber, Teesside, Northwest, and Scotland regions are developing integrated CO2 and hydrogen networks, including key projects such as HyNet and the East Coast Cluster. There is also increasing interest from the private sector. Blue hydrogen is currently more economically viable due to existing infrastructure, while green hydrogen is expected to gain importance as renewable energy costs decrease.
CCUS projects still require development, including infrastructure, long-term pricing mechanisms, and regulations. However, the UK government supports hydrogen and CCUS projects with subsidies, financing models such as contracts for difference (CfDs), and the £240 million Net Zero Hydrogen Fund. In addition, the Labour government is investing around €26 billion in CCS infrastructure, while offshore wind capacity is set to grow to 50 gigawatts by 2030.
German companies are particularly in demand for electrolyzers, transport solutions, digital control systems, EPC services, as well as certification and consulting services. "This provides German SMEs with numerous entry points into a dynamic and heavily government-supported target market," the study found.
The target market analysis "United Kingdom: Decarbonizing Industry (including green hydrogen and CCUS)" is available free of charge as a PDF (24 pages). It is published by Trade Horizons Ltd.
We present the Energy Export Initiative's country analyses for hydrogen markets, available free of charge as PDFs, in a loose series. These analyses highlight opportunities for German industry and trade to gain a foothold there with climate-friendly energy solutions in the fields of renewable energies, energy efficiency, storage technologies, power-to-gas, fuel cells, and hydrogen.
Published so far: Norway.
Photo above
Exxon Mobil plans to eventually replace heavy fuel oil with green hydrogen at its refinery in Fawley, southern England. © Exxon Mobil Corp.
