The UK government has set an ambitious green hydrogen production target of 10GW by 2030, doubling the target set by the country’s previous government.
For this to become a reality, a robust hydrogen ecosystem across the value chain needs to be established, scaling the UK’s pioneering hydrogen technology companies at pace. Government backing to unlock significant capital investment and collaboration will be key.
As part of our In the Field series, Barclays’ Steven Poulter visited one such company, GeoPura, to see their growth that’s been possible thanks to such investment and collaboration - including backing from the National Wealth Fund and Barclays.
CEO of GeoPura, Andrew Cunningham, shared with us his key reflections on the UK’s hydrogen sector:
1. Collaboration is key to tackling the supply-demand dilemma
The UK’s hydrogen sector has been held back by limited supply, a self-fulfilling issue as products react to limited demand. To tackle this issue and scale the UK’s green hydrogen sector, at least to begin with, we must produce and consume hydrogen in parallel. GeoPura have a great relationship with the majority of organisations that have a mandate to produce and distribute hydrogen, and we work together with them to improve overall supply. Once the supply chain has strengthened, the efficiency and economic return will be such that the mega-scale projects we need to scale even further will be achievable.
2. We need partners across the economy, not simply just in the hydrogen sector
In common with the majority of companies in the hydrogen industry, we have great collaboration partners across the UK economy to help us move at pace. Siemens Energy manufacture our hydrogen power units in Newcastle; we use fuel cells provided by General Motors and Ballard; and our shareholders Barclays, National Wealth Fund, SWEN, GM Ventures and Siemens Energy are incredibly important to us not just as financial backing but also advisors and partners.
3. There is appetite for change from our clients, but government intervention is needed
Probably most importantly, our current customers are also our collaboration partners, they recognise that they and us are on a journey together. Whilst our offering is certainly affordable, it is not the same price as the fossil fuel equivalent. The UK Government can help expand our reach and increase affordability by placing a ban on carbon fuel-based processes that we know are ruining our health and our environment.
Barclays currently provides support to sectors that significantly contribute to global greenhouse gas emissions, including the oil and gas sector. Barclays is working to reduce the emissions it finances; for more information on our strategy, visit home.barclays/netzero