Budget sets out £68m to fund energy storage prototypes
The Decarbonised Gas Alliance (DGA) welcomes the progress for decarbonisation that the 2021 budget delivered on 3rd March, which builds on the support announced in the Energy White Paper.
Of particular importance to the decarbonised gas agenda was the announcement of £68 million to fund a UK-wide competition to deliver first-of-a-kind long-duration energy storage prototypes. The value of decarbonised gas to the UK economy and net zero ambitions covers the whole energy supply chain. This funding will not only encourage technology advancements and SME involvement but ultimately help to develop a solution to store excess low carbon energy over longer periods thereby reducing the cost of net zero.
For hydrogen, the Governments ‘Build Back Better: our plan for growth’ publication reiterates the UK’s support for hydrogen and CCUS in meeting net-zero. Evidenced by announcement in the budget of £4.8m for the development of a demonstration hydrogen hub in Holyhead.
An important new fund for decarbonised gas is the £4 million announced for a biomass feedstocks programme, to produce green energy crops and forest products that can be used to fund innovative ideas that address barriers to biomass feedstock production.
And finally, the £27 million in the Aberdeen Energy Transition Zone and £5 million in the Global Underwater Hub in Scotland, are important steps in developing the North Sea Transition Deal which aims to support emerging decarbonised energy technologies in the context of delivering net zero.
The DGA looks forward to seeing further definition in 2021 of the government’s spending plans for the Net Zero Innovation Fund and has recently submitted its response to the Carbon capture, usage and storage: market engagement on cluster sequencing.