Supporting Clean Energy and Growth Missions
Low-carbon hydrogen is vital to achieving the UK’s Clean Energy Superpower and Growth missions. It serves as a key enabler of a low-carbon, renewables-based energy system. This consultation marks an important step in the development of the UK’s hydrogen economy.
Purpose of the Gas Shipper Obligation
The Gas Shipper Obligation is intended to be the long-term funding mechanism for hydrogen production business model payments and related costs. This business model aims to provide revenue support to hydrogen producers, helping bridge the operating cost gap between low-carbon hydrogen and traditional high-carbon fuels. Doing so will facilitate the growth of the UK’s hydrogen sector and contribute to the Clean Energy Superpower and Growth missions.
Analytical Annex
An analytical annex has been published alongside the consultation. It examines the potential impact of the Gas Shipper Obligation on gas users, including fuel-poor households and small and micro-businesses.
Join the Town Hall Briefing Event
The DESNZ Gas Shipper Obligation team will host a Microsoft Teams Town Hall briefing on the consultation:
- Date: Tuesday, 4 February 2025
- Format: Presentation followed by a Q&A session
- Registration: Sign up here
Consultation Timeline
The consultation will close on 9th April 2025, after which responses will be analyzed. The government’s response is expected to be published later in 2025.
