The REA has produced a paper on financial support for hydrogen blending, you can download the full paper here.

The key recommendations are as follows:

  • Given the strategic role of hydrogen blending, as set out in this and a previous REA’s paper, it is crucial it is commercially supported by BEIS.
  • The preferred option to commercially support blending in the short term would be via the hydrogen business model. We would therefore encourage BEIS to reconsider their position that hydrogen blending is not an eligible offtaker under the first round of allocation of the Net Zero Hydrogen Fund and the Hydrogen Business Model (strand 3).
  • We would not support the introduction of a financial support for blending based on a tiering structure for the reasons set out below, but we suggest here other options and we would be happy to discuss these further with BEIS.
  • In the longer term, the successor scheme to the Green Gas Support scheme may also be an appropriate way to support hydrogen production and injection via a more market-led approach and we would be happy to explore this further with BEIS.