Business Outlook 2022

Sea Transition Deal, it is important that appropriate commercial models are implemented in order to stimulate demand for low carbon hydrogen production. Support from government is required to enable this, in line with: • Low Carbon Hydrogen Threshold: OEUK strongly believes that there should only be one label of “low carbon hydrogen standard” for the UK market and that it should consider all production pathways, including methane reformation, that align with the UK’s NSTD goals. • Hydrogen business models: a contractual producer-focused model is essential if hydrogen is to be deployed at scale and attract new investment quickly into the sector in the initial phases. Hydrogen must be made available in enough quantity to demonstrate its many applications and to allay fears about availability. • Blending: integrating hydrogen into the gas grid poses several challenges that are the responsibility of various regulators including Ofgem and HSE. • Recognition of the role of devolved and local initiatives to develop applications for hydrogen in transport, domestic and commercial locations.

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BUSINESS OUTLOOK 2022