1. Current State of Policies and Guidelines for CCUS and Hydrogen in the UK

In the conversation, Chris Thackeray explained the existing UK government policies, which focused on a CCUS sector targeting clustered emissions and building a hydrogen network centred around industrial spheres. To address the potential cost gap arising from cross-chain risks, the Department of Energy Security and Net Zero (DESNZ) works closely with the private sector, providing policy interventions and managing projects effectively. As part of the Action Plan, DESNZ has introduced five business models to support these initiatives, and the Low Carbon Hydrogen Agreement (LCHA) allows projects to sell hydrogen at the gas price for 15 years. Furthermore, the Cluster Sequencing Process and Hydrogen Allocation Rounds have been implemented to drive the development of both the CCUS and hydrogen markets. Despite the complexities of commercialising these projects, developers, investors, and public servants are focused on optimising cost, revenue, and other key value drivers to develop the market.

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2. New Government’s Goal and Ambition of CCUS and Hydrogen

​As Olivia Powis indicated, the new government has a high momentum to emphasise the need for clarity on market mechanisms and agreements for the UK’s participation in the EU CO2 market and its goal of becoming a clean energy superpower. She also considered the CCUS industry driven by global competition and government support. CCSA, in this case, will play an essential role in commercialisation and collaboration. As Clare Jackson presented, the UK government plan to invest in infrastructure and support hydrogen production projects along the supply chain through strategic initiatives, including the Hydrogen Allocation Round and Track Cluster Program. By establishing clear regulations and fostering international cooperation, the UK seeks to create sustainable growth and decarbonisation opportunities and to solidify its position as a global leader in green hydrogen.

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3. Policymaking, Agenda-setting, and Role-identifying Challenges

​The ongoing process of developing the two markets will encounter challenges from different perspectives. There could be uncertainty in the supporting policies on CCUS and hydrogen, and the new government needs to clarify the specific amount of funds further, establish a viable and commercial production model, and manage projects linearly based on time frames. These measures and their feasibility require a solid base on the communication and collaboration between the government and the private sector. The new government will also need a more explicit agenda to achieve the 2050 net zero goal. The webinar discussion also emphasised addressing obstacles in the supply chain and ensuring business model visibility. Specifically, critical stakeholders along the supply chain may need clarification on the challenge of blurred or mixed roles in the market, which may lead to inefficiency compared with a specialised workforce at different stages of production.

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4. Industrial/Market Barriers and Key Factors

​Professor Niall Mac Dowell’s research indicates that implementing CCS technology in existing energy generation is affordable, with only a 1% increase in infrastructure costs. Key considerations are storage techniques, business models, and the clarified roles of stakeholders along the supply chain. Under the UK’s national context, green hydrogen was considered the most favourable option among all types of hydrogen. However, the opportunity cost, carbon intensity of the grid, hourly-matching cost, and avoided carbon amount are vital factors to consider in the commercialisation process of green hydrogen. Accordingly, the government's emphasis on upskilling the workforce and promoting collaboration between corporations and research centres underscores its commitment to advancing hydrogen technologies. Additionally, Professor Mac Dowell highlighted the significant potential of green hydrogen in HGVs (Heavy Goods Vehicles) to commercialise hydrogen more innovatively.

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