Octopus Energy and RES commit £3 billion to build new UK hydrogen plants
Octopus Energy and RES will invest £3 billion in the construction of new hydrogen plants across the country by 2030.
The aim is to help the UK become more energy independent.
The new plants will maximise electrons when they are generated in abundance on sunny and windy days by storing them as green hydrogen.
In the long term, the two companies also believe that the growth of hydrogen power will help protect the industry from gas price volatility which caused two more energy firms to cease trading this week.
Rachel Ruffle, EMEA CEO for RES argues that hydrogen will be an effective supplemental energy supply to wind and solar.
She said, “We know that renewable based electrification using wind and solar is the fastest way to decarbonise. When coupled with the production of green hydrogen, it becomes the natural choice for industry and our hard to abate sectors. Our partnership will enable industrial users to make the switch to reliable and cost-effective green hydrogen.”
Octopus Renewables co-head, Alex Brierley added, “The supply of green hydrogen will be critical to the success of many industries in meeting the UK’s net zero targets and with this partnership we are providing a solution for those businesses to help deliver on the government’s ambitions.”
The announcement follows the government releasing its hydrogen strategy in August, calling for low-carbon hydrogen production and use to be ramped up over the coming decade to reach net zero emissions.
It also comes in the lead up to COP26, the UN Climate Change Conference in Glasgow, later this month.
Alok Sharma, minister of state at the cabinet office, recently reaffirmed the government’s commitment to limiting global temperature rises to 1.5 degrees in line with the Paris Climate Change Agreement.