Water abstraction delay threatens 2030 hydrogen target

Hydrogen producers urgently need clarity over expected changes to water abstraction licensing if the UK’s 10GW production target by 2030 is to be met.

The changes, which will see water abstraction licencing move into the Environmental Permitting Regulations 2016, could mean hydrogen producers are unable to guarantee a water supply for the duration of their project.

It may also mean that they would not receive compensation if the permit was removed.

Trade body Energy UK said that projects are progressing but continued delays are “unhelpful” to the prospect of getting projects up and running “in time”.

The department for the environment, food and rural affairs (Defra) was widely expected to introduce the changes this year, although this already represented a one-year delay to one of its key milestones for reforming water abstraction, as set out in its 2017 plan.

Defra said it would not be able to publish a response to its 2021 consultation on the changes until 2023, which is when they were originally due to be introduced, due to receiving many “very detailed” responses.

However, the government has to date failed to publish its response or to give an updated timetable on when one should be expected. It is understood that Defra and the Environment Agency have worked up policy approaches, which the Labour government will now consider. The department declined to comment when approached by Utility Week.

The changes are being introduced in an effort to modernise and streamline the environmental regulatory framework but will also see permits subject to regular review for the first time.

Permit holders may only be given six years’ notice that they will have to change or end their abstraction of water, which will follow catchment reviews every six years.

In a submission to Water Resources West in response to its draft regional plan Energy UK said that both power and hydrogen production need long term certainty over water availability for the necessary investment to take place, especially if there is no option for adequate government compensation to cover losses from early closure.

It added that licence capping and reduction present “real threats” to both the security of the electricity industry and the ability of the country to achieve net zero by 2050.

“The aspirations for hydrogen and the key role it will play in a decarbonised power system are clear and underlined by an ambitious production target of 10GW by 2030,” said Energy UK’s senior policy manager Sophie Lethier.

“Projects are under development but with such a tight timescale, clarity and certainty is needed across several different and interdependent elements, including water resources, which therefore need to progress in parallel to enable completion.

“Water abstraction is particularly important for electrolytic projects and any decisions also need to take into consideration other local demand for water and the effect of climate impacts.

“So further delay is unhelpful both on this vital issue and for the prospects of getting projects up and running in time.”