According to the government, investing in low-carbon hydrogen fuel to power cars and heat homes might result in the creation of thousands of new jobs. Ministers have announced a proposal to kickstart the hydrogen sector, claiming that it has the potential to attract billions of pounds in investment. According to Business Secretary Kwasi Kwarteng, the fuel is also crucial for the UK’s efforts to reach net-zero emissions. According to him, it has the potential to produce a third of the UK’s energy in the future.

Subsidies have been proposed to bridge the cost gap between hydrogen production and traditional fuels. The government has been asked to comment on this initiative. Labor acknowledges that hydrogen has a lot of promise, but maintains that the government hasn’t put in as much money as other countries have. When hydrogen gas is used as a fuel, no CO2 is produced. It can be burned in a boiler or vehicle engine to create electricity, or it can be used to power fuel cells, which are devices that generate energy through an electrochemical reaction.

As a result, it’s a low-carbon, multifunctional fuel that can power cars, trucks, and trains, as well as heat our homes and power industrial activities like steel manufacturing. By 2030, the government intends to have installed 5GW of hydrogen production capacity, with the industry valued at £900 million and employing over 9,000 people.