Communication is key to unlocking new hydrogen infrastructure
On a balmy Tuesday in May, hundreds of professionals gathered at Eversheds Sutherland in London to explore how new hydrogen projects in the UK can be delivered, and the opportunities this can offer in the form of economic growth, greater energy security, and reducing carbon emissions.
There was much discussion about what ingredients are needed to make this a reality and the phrase ‘chicken and egg’ could be heard frequently over cups of coffee and cake. The overall consensus was that risks would need to be taken now so that the UK can meet its target of 10GW of low carbon hydrogen production capacity by 2030 and reap the associated benefits.
But for me, the common thread running through each presentation, panel discussion, and conversation was this: achieving buy-in from communities, influencers, and decision-makers is absolutely critical.
Where are we now?
The day began with an introduction from Hydrogen UK’s Clare Jackson, who said that hydrogen infrastructure needs to be on the scale of the current power grid in just 30 years. The task ahead is therefore undoubtedly a big one, but significant progress is being made.
An example of this progress is the way in which energy policy across the globe is shifting.
According to one speaker, as of 2019, there was only one country in the entire world with a specific hydrogen policy: Japan. As of today, there are around 60. However, although many new hydrogen projects are being planned, only a small percentage have reached a final investment decision (FID).
What are the challenges?
The challenges are complex and varied, but some of my key takeaways were as follows:
- The consenting process for new projects isn’t designed for hydrogen, and local authorities in particular require greater resource and guidance to be able to make decisions on these sorts of applications.
- Public acceptance towards new hydrogen infrastructure is essential, but knowledge about the technology and its benefits is currently limited and common concerns about the impact of new development will inevitably arise.
- To deliver hydrogen projects, the supply chain and job market has to evolve. People need to understand that there are career opportunities in hydrogen.
- The level of demand for hydrogen production and storage remains uncertain, which is a problem when it comes to financing. Taking and sharing the risk will be key.
- With a General Election on the horizon, political uncertainty is added into the mix.
What is the solution?
Clearly, these challenges need to be tackled in a variety of ways, but with each challenge, the need for a well-defined communications strategy is evident. Policymakers and regulators will need to be encouraged to act upon the challenges with consenting, communities will need to be educated about hydrogen and the benefits new infrastructure can offer directly or indirectly in terms of jobs, skills, and local investment, and current and future decision-makers in national Government must fully understand the importance of the hydrogen agenda and what industry needs from them to deliver the objectives that have been set out.
All of this requires clear and coordinated communication over a sustained period of time. Indeed, the Tees Valley Combined Authority’s Chris Rowell suggested that some buy-in already exists in his region because they have been talking about the benefits of a hydrogen economy for over a decade.
Who is responsible for delivering the communications piece?
Having identified the importance of there being a wider communications piece in place to tackle these challenges and support developers with their project-specific comms strategies, I asked some of the afternoon’s panellists who should be responsible for this.
The consensus was that partnership working is vital. Chris Taylor of Progressive Energy referred to HyNet North West, which is made up a cluster of organisations with a joined-up comms strategy. This has resulted in a distinct identity for the project being created and has fostered collaboration amongst the organisations involved. Paul Maile of Eversheds Sutherland suggested that central Government is unlikely to own the comms piece as the current approach is much more industry-led, but that this could change if the administration does. Meanwhile, Chris Rowell was keen to highlight that devolved government has itself become part of the hydrogen cluster in the Tees Valley.
What next?
Although there is plenty of work to be done, the enthusiasm at the event was palpable and there is a clear desire to get on with the task at hand. Beyond the panel discussions themselves, in conversations around the room, there was agreement that solid communications strategies will have to be formed and implemented to successfully deliver the hydrogen infrastructure we need, whether it is at the project level, via industrial clusters, local, devolved, or central government, or – as I expect – a combination of each.