UK targets 5GW hydrogen production by 2030

Market: Electricity
18/11/20

The UK has set a target of 5GW hydrogen production capacity by 2030.

This will be "low-carbon hydrogen" capacity, so may not necessarily be green hydrogen generated from renewable energy. But industry association RenewableUK welcomed the announcement, saying there was a "clear pathway for offshore wind to produce low-cost renewable hydrogen at scale".

The government plans to invest up to £500mn in hydrogen, with £240mn going to new hydrogen production facilities. The rest will be spent on trialling homes using hydrogen for heating and cooking.

The government also pledged £525mn to "help develop large and smaller-scale nuclear plants, and research and develop new advanced modular reactors".

But it has yet to decide on support for the 3.2GW Sizewell C nuclear plant. Last year, the government opened a consultation on a regulated asset base model for funding new nuclear, which Sizewell's developer, EdF, is seeking. Sizewell could start construction in late 2021 and the project would take 10-12 years to complete.

The UK is struggling to bring a new generation of nuclear stations on line, with Hitachi recently ending work on two projects.

By Killian Staines

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News

03/03/25

IG Windkraft calls for Austrian renewables focus

London, 3 March (Argus) — Austrian wind association IG Windkraft has urged the new government to focus on renewables expansion in its energy policy. "Wind energy and renewables are safer, cleaner and more affordable energy and are part of the solution to high energy costs and security of supply," IG Windkraft said. And the electricity industry act, which is "already in place and ready", should be passed immediately, the association said, reiterating a previous call for the rapid implementation of the law. The government on Thursday in its energy plan said it aims to have the law passed by this summer. But the association welcomed the fact that climate neutrality targets "remain unchanged", and that "for the first time" there will be "long-term" grid plans. And the fact that the government sees the energy transition as "location-relevant" and as an important part of economic growth is "encouraging". By Bea Leverett Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more

News

Japan thermal power capacity to fall despite cold snap

03/03/25

News

03/03/25

Japan thermal power capacity to fall despite cold snap

Osaka, 3 March (Argus) — Japan's thermal power generation capacity is expected to fall in the week to 9 March, despite the return of colder weather. This would encourage power producers to increase utilisation rates at available thermal units to meet heating demand. The power sector plans to add around 5.2GW of thermal capacity over 3-9 March, with the closure of 9.5GW outstripping the return of 4.3GW, according to Argus' survey based on Japan Electric Power Exchange (Jepx) data. The difference incorporates the net decrease in gas-fired capacity of 3.3GW, coal-fed capacity of 394MW and oil-fed capacity of 1.6GW. Japan's power sector has entered the spring maintenance season, taking advantage of a seasonal fall in electricity demand in line with a gradual rise in temperatures. Large parts of the country experienced warmer than usual weather over the past week. But temperatures are predicted to plunge this week, with the minimum temperatures in central Tokyo forecasted at 2°C on 4 March and 1°C on 5 March, down from the 7.9°C on 2 March, according to the Japan Meteorological Agency. The Tokyo area, as well as the nearby Tohoku area, are expected to secure a 9.8pc surplus in electricity supply for 4 March, still above the ideal reserve level of 8pc, according to a notice released on 28 February by the Organisation for Cross-regional Co-ordination of Transmission Operators (Occto). But Occto has called on power producers to prepare to increase output, which it will request if the reserve level falls to 7.5pc at the time of peak demand. Bidding demand for day-ahead contracts on Jepx totalled 1.13TWh for deliveries on 4 March, up by 8.4pc from the previous day, while supplies fell by 2.4pc to 1.07TWh. Deals rose by 5.2pc to 831GWh. Day-ahead system-wide prices averaged ¥18.86/kWh ($125.67/MWh), up from ¥17.01/kWh over the same period. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Energy a priority for Uruguay’s new government

28/02/25

News

28/02/25

Energy a priority for Uruguay’s new government

Montevideo, 28 February (Argus) — Energy will play a central role as Uruguay's new president Yamandu Orsi begins his five-year term on 1 March. Orsi, of the left-wing Broad Front coalition, takes over one of South America's most economically and politically stable countries. The economy is forecast to expand by 3pc this year, above the regional average, and the government wants to attract investment to maintain growth. The energy sector is a priority. Uruguay already has one of the region's cleanest grids, with 99pc of power coming from renewable sources, and in February reached the goal of 100pc electrification nationwide, according to the state-run electric company, UTE. The Orsi administration is studying options for the second phase of the energy transition, which includes adding capacity to meet increasing demand from electrification of transportation and clean fuel production. New finance minister Gabriel Oddone said the administration would focus on reducing red tape and potentially provide incentives for investment in the energy sector. Uruguay currently has close to 5.3GW of installed capacity, with 78pc in renewable sources, for its population of 3.5mn. The UTE, which had a profit of $315mn in 2024, is adding 100MW in wind power in the next two years. The Orsi administration plans to prioritize solar capacity. The new government is keenly following the development of low-carbon hydrogen and e-fuel projects. The most advanced project is for production of 700,000 tonnes (t) of synthetic fuel by Chile's HIF Global and ALUR, the biofuel arm of the state-owned Ancap. Investment is estimated at $6bn, making it the largest planned single investment in the country's history. The company requested approval in January of environmental permits for the project's solar park that would include 1.84mn bifacial solar panels. It would produce a peak of 1,162MW. Construction would take 18 months from approval. The municipal council in Paysandu, in northwestern Uruguay where the project is planned, on 27 February approved a change in land use to facilitate plant construction. Ancap, which lost an estimated $130mn last year because its only refinery was closed for six months, has proposed offshore production of low-carbon hydrogen. The Orsi administration has not yet committed to the project. Reverse transition? The new government will also have to also have to decide on the future of seven offshore exploration blocks, with seismic testing planned for late this year, and the possible construction of a gas pipeline that would link Argentina and Brazil. A pipeline exists from Argentina to Uruguay, but it could be expanded and extended to supply southern Brazil. It would require an additional 415km (258mi) in Uruguay, and around 500km in Brazil's Rio Grande do Sul state. Orsi has taken a wait-and-see attitude toward exploration, while a gas pipeline would likely have more popular support because it could expand service from only a section of the coast to a wider region. By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Japanese utility Tepco faces nuclear restart delay

27/02/25

News

27/02/25

Japanese utility Tepco faces nuclear restart delay

Osaka, 27 February (Argus) — Japanese utility Tokyo Electric Power (Tepco) is facing a possible further delay in restarting its Kashiwazaki-Kariwa nuclear power plant in Niigata prefecture, as the company is likely to miss a deadline for installing anti-terrorism facilities at the No.7 and No.6 reactors. Under Japanese nuclear safety regulations, nuclear power plant operators are required to build emergency control facilities in the event of severe accidents such as an aircraft crash or terrorist attack, within five years of receiving approvals to upgrade a reactor. Operators that miss the deadline will have to shut down their reactors. Tepco said on 27 February that it has revised its target date to complete the counter-terrorism measures at the 1,356MW Kashiwazaki-Kariwa No.7 reactor from March 2025 to August 2029, after reviewing the upgrade construction process. This means that Tepco will not be able to meet its October 2025 deadline. This will force the reactor to shut for an extended period to complete the reinforcement work, even if Tepco secures local government approval to restart and successfully resumes operations before the deadline. Tepco has also extended a target date to complete the counter-terrorism measures at the 1,356MW Kashiwazaki-Kariwa No.6 reactor from September 2026 to September 2031, later than the September 2029 deadline. The Kashiwazaki-Kariwa No.7 and No.6 reactors have been closed since August 2011 and March 2012 respectively, following the March 2011 Fukushima nuclear disaster. The reactors have already cleared the post-Fukushima stricter safety inspection by the Nuclear Regulation Authority (NRA), but still need to secure local approval as the final hurdle. Niigata governor Hideyo Hanazumi has been cautious about whether to approve the restoration of the Kashiwazaki-Karaiwa nuclear plant because of safety concerns, reiterating he will prioritise the concerns of local residents. Tepco has tried to restart the No.7 reactor first, while completing the loading of nuclear fuel into the reactor in April 2024. But given that the October 2025 deadline for the No.7 reactor is looming, the company may refocus on restoring the No.6 reactor to utilise it until its safety deadline of September 2029. Tepco plans to load nuclear fuel into the No.6 reactor on 10 June. The possible return of the Kashiwazaki-Kariwa nuclear plant will symbolic of Tepco's progress, given it has scrapped the melted-down Fukushima Daiichi and its nearby Fukushima Daini nuclear plants. Kashiwazaki-Kariwa is now Tepco's sole nuclear plant, and its return is expected to help ease the risk of an electricity shortage like the one that occurred in January 2021 in the Tokyo metropolitan area. Tepco estimates that the restart of one nuclear reactor, which can produce 10TWh/yr of electricity, will help boost the company's profits by around ¥100bn ($668mn). It also expects the return of the Kashiwazaki-Kariwa No.7 reactor will help reduce CO2 emissions by around 3.3mn t/yr. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

EU proposes reduced scope for climate disclosures

26/02/25

News

26/02/25

EU proposes reduced scope for climate disclosures

London, 26 February (Argus) — The European Commission today submitted a proposal to amend the Corporate Sustainability Reporting Directive (CSRD) as part of its omnibus package, which aims at simplifying the regulatory framework on corporate climate reporting. Under the proposal, mandatory sustainability reporting would only apply to large companies with more than 1,000 employees — up from companies with over 250 employees — and either a turnover above €50mn ($52mn) or a balance sheet above €25mn. Listed small and medium enterprises (SMEs), which are due to start reporting in 2027, would also be relieved of the requirement. Overall, this reduces the number of businesses under the scope of the directive by 80pc. For companies falling outside the revised scope and for which mandatory reporting would start in 2026-27, the commission is proposing to postpone the start of the requirement by two years. The use of a voluntary reporting framework is now suggested, based on the standard for non-listed SMEs developed by the European Financial Reporting Advisory Group last year . This will form the content of a separate recommendation. There is also a proposal to revise and streamline the European Sustainability Reporting Standards , which came into force at the beginning of 2024 as part of the CSRD. The standards require companies to make disclosures on the effect of their activities on the environment, including their energy production and consumption, and the risks that environmental issues might pose to them. The use of certificates such as guarantees of origin (GOOs) and renewable power purchase agreements are the only recognised ways to document use of renewable energy. All changes proposed by the commission need approval from the European Parliament and Council. By Giulio Bajona Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more