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					</table><p>The <a href="https://www.gov.uk/" target="_blank" rel="noopener">UK government</a> has unveiled a £2 billion (~$2.19 billion) government investment initiative to help expand green hydrogen production in the country, spanning from the Southwest of England to the Highlands over the next 15 years.</p>
<p>Over the next three years, an upfront allocation of ~£400 million (~$438.2 million) is projected to generate 125 MW of green hydrogen capacity, catering to diverse industries and furthering the progression of the country&#8217;s green economy.</p>
<p>The initiative aims to position the UK as a global frontrunner in the rapidly expanding hydrogen industry. During the initiative&#8217;s launch, Energy Security Secretary Claire Coutinho unveiled government support for 11 projects utilizing electrolysis to produce green hydrogen.</p>
<p>The move ensures a guaranteed price from the government for suppliers contributing to the clean energy sector, marking the largest simultaneous announcement of commercial-scale green hydrogen production projects in Europe.</p>
<p>Coutinho emphasized the economic opportunity presented by hydrogen, predicting up to £11 billion (~$12.05 billion) in investment by 2030.</p>
<p>The announcement represents a leap for the UK&#8217;s hydrogen economy, aligning with the government&#8217;s ambition to deploy up to 10 GW of low carbon production capacity by 2030.</p>
<p>A new second round of funding has been introduced, allowing producers to apply for support for their projects and further contribute to the industry&#8217;s growth.</p>
<p>Ministers have also outlined plans for future allocation rounds in 2025 and 2026, aiming to boost the green hydrogen capacity up to 1.5 GW across these rounds. Additionally, the government will fund projects facilitating up to 4 GW of Carbon Capture, Usage, and Storage (CCUS)-enabled, or blue hydrogen and 6 GW of green hydrogen by 2030.</p>
<p>Hydrogen blending, subject to safety assessments and final agreement, is also supported in certain scenarios.</p>
<p>While recognizing the potential role of hydrogen in home heating, the government has decided not to proceed with a hydrogen trial in Redcar, a town in England, due to the unavailability of the main hydrogen source.</p>
<p>The decision will be reevaluated in 2026 based on evidence from trials in Fife, Scotland, and similar European programs.</p>
<p>The collaboration between industry and government is seen as a crucial mechanism for progress in the early stages of the hydrogen economy.</p>
<p>Recently, the UK government <a href="https://mercomindia.com/uk-announces-support-clean-energy-manufacturing/" target="_blank" rel="noopener">pledged</a> to provide £960 million (~$1.19 billion) for the Green Industries Growth Accelerator to support clean energy manufacturing. This investment is expected to enable the growth of strong, home-grown, clean energy supply chains across the UK, including carbon capture, utilization and storage, electricity networks, hydrogen, nuclear, and offshore wind.</p>
<p>The UK’s transformation to clean energy is <a href="https://www.mercomindia.com/uk-cfd-clean-energy-fifth-round" target="_blank" rel="noopener">expected</a> to draw £100 billion (~$124.6 billion) in private investment and support the nation’s journey towards sustainable energy and job creation.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/gautamee-hazarika/" class="vcard author" rel="author"><span class="fn">Gautamee Hazarika</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Picture1.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Gautamee,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/gautamee-hazarika/" target="_blank" rel="noopener">More articles from Gautamee.</a><br />
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<a href="gautamee@mercomindia.com" target="_blank" rel="noopener">gautamee@mercomindia.com</a></p>
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<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Picture1.jpg" width="102" height="102" /><a href="https://mercomindia.com/author/gautamee-hazarika/" rel="noopener">Gautamee</a> is a reporter at Mercom India. Prior to Mercom, Gautamee was working as a multimedia news journalist at ThePrint in New Delhi. She has received her Bachelors in English Honors and Masters in English Literature from St.Stephen&#8217;s College, University of Delhi.<a href="https://mercomindia.com/author/gautamee-hazarika/" rel="noopener">More articles from Gautamee</a></div>
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UK Government Pledges $2.2 Billion to Scale Green Hydrogen Production

<p>Bharat Heavy Electrical Limited (<a href="https://www.bhel.com/bhel-landing/" target="_blank" rel="noopener noreferrer">BHEL</a>) has issued an Expression of Interest (EoI) inviting global companies to partner and leverage its facilities and capabilities for setting up a manufacturing base in the country.</p>
<p>The scope of work includes manufacturing and technology partnerships with global original equipment manufacturers (OEMs) who are seeking an opportunity to establish or expand their supply chains or manufacturing base in India. These include the manufacture of various goods, including heavy electrical equipment, process project equipment, and solar value chain.</p>
<p>Some of the possible areas of partnership could be on heavy electrical equipment, project, and transportation equipment, silicon to module solar value chain, and setting up of up to 5 MW capacity of Li-Ion cell manufacturing facility for all types of electric vehicles and energy storage.</p>
<p>BHEL, a central public sector enterprise under the Department of Heavy Industries, has 16 manufacturing facilities spread across the country. It also plans to expand its operations in the solar value chain by taking up polysilicon refining, wafer, and ingot manufacturing.</p>
<p>The company seeks partnerships with global OEMs through a range of cooperation models such as joint ventures, joint manufacturing, technology licensing, contract manufacturing, and know-how transfer arrangement.</p>
<p>The coronavirus (COVID-19) pandemic has had a major impact on all the economic activities, including manufacturing. “Supply chain disruptions in many sectors have been witnessed, the results of which will become more pronounced in the future,” said  BHEL in the EoI. The government enterprise further added that the result of these disruptions would become more pronounced in the future.</p>
<p>“For a world that must quickly come to terms with the new normal, it is imperative that manufacturing activities are quickly resumed and ramped up, which would help the restoration of normalcy and avoiding shortages that may adversely affect the international economic recovery. A key lesson for businesses, emerging from the Covid-19 aftermath, is that the decentralizing of manufacturing will have to be adopted as a major strategy to mitigate disruption risks associated with concentrated and localized operations,” the document added.</p>
<p>Last month, Mercom hosted a <a href="https://attendee.gotowebinar.com/recording/3249283765771363083" target="_blank" rel="noopener noreferrer">webinar</a> to find out the trends in the renewable energy market with a primary focus on the Indian solar sector. It included findings from across the supply chain to understand how the solar industry in the country is tackling the global COVID-19 pandemic.</p>
<p>During the program, Anand Kumar, the former secretary of the Ministry of New and Renewable Energy (<a href="https://mnre.gov.in/wind/current-status/" target="_blank" rel="noopener noreferrer">MNRE</a>), said that the MNRE has <a href="https://mercomindia.com/mnre-seci-address-indian-solar-industry/" target="_blank" rel="noopener noreferrer">plans</a> to promote domestic solar manufacturing capacity as a large portion of solar equipment is imported from China and abroad. He also noted that the ministry not only has plans to develop solar components like cells, modules, ingots, and wafers, but it is also looking to venture into manufacturing ancillary equipment like back sheets, inverters, and transformers.</p>
<p>Meanwhile, India’s solar <a href="https://mercomindia.com/solar-cell-manufacturing-demand-dcr-programs/" target="_blank" rel="noopener noreferrer">cell manufacturing</a> units are still facing the challenge of manufacturing domestically.</p>
<p>Earlier, Mercom <a href="https://mercomindia.com/implications-covid-lockdown-indian-solar-industry/" target="_blank" rel="noopener noreferrer">published an in-depth analysis</a> of the ongoing pandemic on the solar industry as it coincides with the busiest time of the year for solar installations.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/anjana/" class="vcard author" rel="author"><span class="fn">Anjana Parikh</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><p><img class="alignleft" src="https://mercomindia.com/wp-content/uploads/2019/06/Anjana2.png" width="112" height="121" />Anjana is a news editor at Mercom India. Before joining Mercom, she held roles of senior editor, district correspondent, and sub-editor for The Times of India, Biospectrum and The Sunday Guardian. Before that, she worked at the Deccan Herald and the Asianlite as chief sub-editor and news editor. She has also contributed to The Quint, Hindustan Times, The New Indian Express, Reader’s Digest (UK edition), IndiaSe (Singapore-based magazine) and Asiaville. Anjana holds a Master’s degree in Geography from North Bengal University, and a diploma in mass communication and journalism from Guru Ghasidas University, Bhopal.</p>
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BHEL Calls Global OEMs to Set Up Solar and Energy Storage Manufacturing Units in India

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