One of the UK’S largest manufacturing exporter - the chemical industry - welcomes the Government’s highly anticipated Hydrogen Strategy, released today (Tuesday, August 17 2021), that puts us back in competition to lead the world in the formation of an advanced and innovative hydrogen economy.

The Government said tens of thousands of jobs, billions of pounds in investment and new export opportunities will be unlocked through its plans to create a thriving low carbon hydrogen sector in the UK over the next decade and beyond.

Steve Elliott, Chief Executive of the Chemical Industries Association said: “ We welcome the Government’s long-awaited hydrogen strategy and agree that the ‘twin-track’ approach of pursuing both green and blue hydrogen is the right step forward, which will allow the UK to quickly scale-up production, stimulating a hydrogen market at the lowest possible cost.

"We are pleased to see £55m to support industrial fuel-switching, taken from the Ten Point Plan’s £1bn Net-Zero Innovation Portfolio. Nonetheless, we note that BEIS’ own report on the Conversion of Industrial Heating Equipment to Hydrogen cites a cost of "£3bn to convert UK industrial sites to hydrogen." £55m will be thinly distributed and we urge Government to move quickly to plug the funding gap.

“As we eagerly await details of the development action plan in early 2022, we also urge Government to engage with industry in advance of publication, to ensure that the action plan addresses the concerns of manufacturers.

“Fuel-switching to hydrogen is one of the three key pillars of decarbonisation for our sector, along with electrification and carbon capture and storage, so additional funding and support for the UK’s hydrogen future will undoubtedly play a crucial role in achieving the nations’ net zero ambitions.”

ENDS

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For more information please contact Simon Marsh at [email protected] or 07951 389197.

• Businesses who make chemical products and solutions are integral to something like 96% of all manufactured goods.  Whether it is ingredients for food and medicines; paints and coatings for cars and planes or materials for mobile phones and electric vehicle batteries, the chemical industry is truly the “industry of industries” – also playing a critical role in the nation’s response to Covid-19 through its supply of hand sanitiser, PPE and vaccine ingredients.

• Chemical businesses are located throughout the UK, with many of them clustered together in the North East of England, North West of England and Central Scotland.  These factories and laboratories, operated by a highly trained and skilled workforce, make a significant contribution towards the UK’s productivity performance – double that of any other manufacturing industry and triple that of any part of the UK economy.

• Nearly half a million people are employed in the sector or have roles that are dependent on the sector. Chemical workers typically earn 35% more than other manufacturing industries and 54% more than the average worker.

• From Runcorn to the Humber Bank; from Teesside to Grangemouth, chemical businesses and their employees right across the country are essential to the Government’s levelling-up agenda.

• We are the country’s biggest manufacturing exporter, sending goods to the value of more than £57 billion to other countries. The EU represents our most important market, but we continue to work closely with Government to inform and secure UK trade deals with other key chemical markets such as Japan and the USA.