Hydrogen: Public sector support for private investment

The role of hydrogen within the UK’s commitment to net zero is attracting increasing interest. PMSI share their insights on how public sector support can drive private investment in the space.

Our key insights:

  • With the UK committing to decarbonising the electricity system by 2035, and reach net zero emissions across the economy by 2050, low-carbon hydrogen will play an important role in facilitating this transition, particularly within the industrial sector
  • In the short-term, private sector investment in low-carbon hydrogen will benefit greatly from government financial and regulatory support to de-risk investments, particularly given the uncertainties in the timing and scale of future low-carbon hydrogen demand
  • Public sector funding has already encouraged significant private sector interest in low-carbon hydrogen, which is only set to grow as it establishes a foothold in the UK’s energy system, opening up further opportunities for traditional private equity investors as the market matures

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