Andrew Bowie (Conservative)

The Under-Secretary of State for Energy Security and Net Zero, my noble Friend Lord Callanan, has today made the following statement:

The Energy Act 2023 (“the Act”) makes provision for the implementation of the Hydrogen Production Business Model (HPBM), which is intended to provide revenue support to overcome the cost gap between low-carbon hydrogen and higher carbon counterfactual fuels. The HPBM is designed to incentivise the production and use of low-carbon hydrogen, supporting the UK’s net zero and energy security ambitions.

The standard sets a maximum threshold for the amount of greenhouse gas emissions allowed in the production process for hydrogen to be considered “low-carbon hydrogen”. It sets out the methodology for calculating the emissions associated with hydrogen production using production pathways in scope of the standard, and the steps that producers should take to prove that the hydrogen they produce is compliant with the standard.

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