The UK Government has committed today (December 9) to deliver a support mechanism for hydrogen’s use in power generation and an associated business model to spur private investment.

Aimed at de-risking hydrogen-to-power (H2P) investments and support deployments, the Department for Energy Security and Net Zero (DESNZ) said it will introduce a business model based on a dispatchable power agreement (DPA) framework.

Already used for carbon capture, utilisation and storage (CCUS) in the power sector, the DPA is designed to incentivise private finance for projects. The government intends to adapt the mechanism to suit the needs of H2P.