Hydrogen to Power: Bridging the gap to Net Zero
- Eric Lewis
- Oct 23
- 4 min read
The Foresight Event, in partnership with the North West Hydrogen Alliance, recently hosted a webinar titled “Hydrogen to Power: Bridging the Gap to Net Zero.” The session brought together industry and government leaders to explore the opportunities and challenges of the Hydrogen-to-Power business model and its implications for the UK business sector. The discussion was moderated by March Floyd of Energy Voice.
Making a guest appearance from the Department for Energy Security and Net Zero, Jessica Young, Hydrogen-to-Power Policy Lead, and Matthew Pugh, Hydrogen-to-Power Business Model Implementation Lead, outlined how hydrogen-fuelled generation will play a vital role in achieving the government’s Clean Power Mission. Both officials highlighted that hydrogen-to-power will form a key pillar of the UK’s long-duration flexibility strategy—ensuring grid stability during periods of low renewable output and supporting the transition toward a clean, dispatchable power system.
DESNZ announced several significant updates:
The Hydrogen Power Business Model is scheduled for a 2026 launch, introducing a Dispatchable Power Agreement (DPA)-style mechanism to incentivise investment in low-carbon hydrogen generation.
Over £500 million in public funding has been allocated to support hydrogen infrastructure, encompassing regional transport and storage networks.
A revised UK Hydrogen Strategy is forthcoming, outlining governmental priorities for hydrogen's role within the energy system.
DESNZ analysis has identified two major barriers limiting investment in hydrogen-to-power: the high risks associated with first-of-a-kind projects and the sector’s dependence on enabling infrastructure such as storage and distribution networks. The forthcoming business model aims to tackle both challenges by de-risking early projects and promoting greater coherence across the broader hydrogen value chain.
Matthew Pugh: "The Hydrogen Power Business Model will be designed with flexibility and efficiency in mind - we want hydrogen power to dispatch in the most effective way possible"
Industry developers Adam Baddeley (Progressive Energy) and Marta Csibra (EET Hydrogen) shared their perspectives on the technical, operational, and infrastructural advancements shaping the hydrogen-to-power sector.
Adam welcomed the government’s progress and emphasised that the Hydrogen-to-Power Business Model (HPBM) will be crucial to unlocking investor confidence. He noted that Progressive Energy is working with ESB to develop a suite of hydrogen-to-power projects at Carrington Power Station in Manchester, as part of the HyNet cluster. Baddeley stressed that the rollout of the HPBM must align closely with the forthcoming transport and storage business models, cautioning that the timing and design of these frameworks will ultimately determine how quickly the market can scale.
Echoing this point, Marta highlighted the need for policy alignment with business priorities. She outlined EET Hydrogen’s two flagship projects at Stanlow Refinery:
HPP1, set to become the UK’s first hydrogen-fired combined heat and power (CHP) plant, providing 350 MW of low-carbon generation.
HPP2, which will connect to the regional transport and storage network to enable large-scale, dispatchable hydrogen power for the wider energy system.
Marta underlined that the success of hydrogen-to-power projects will depend on the coordinated development of hydrogen storage capacity, particularly in regions such as the North West and North East, where geological formations allow for large-scale storage solutions.
“An investable business model is critical. Whether through the Capacity Market or the HPBM, we need a framework that enables us to reach market within a sensible timeframe” - Adam Baddeley
There was broad consensus among the panellists on the critical importance of transport and storage readiness for the scalable deployment of hydrogen-to-power. The discussion also explored hydrogen’s potential role as a form of long-duration energy storage—converting curtailed renewable electricity into stored hydrogen that can be dispatched during periods of high demand.
“To succeed, hydrogen-to-power needs to demonstrate that it can provide flexibility at low cost while ensuring the entire system — from production to storage — runs optimally and efficiently” Marta Csibra
Both government and industry speakers agreed that hydrogen could play a unique role in balancing the grid, reducing renewable curtailment, and strengthening UK energy security. There was also strong emphasis on regional coordination, with both DESNZ and industry representatives underscoring the need to align central government strategy with devolved authorities such as the Greater Manchester Combined Authority, which is developing its own hydrogen roadmap.
Skills and workforce development were identified as critical enablers of the growing hydrogen economy. The recently published Clean Energy Jobs Plan was cited as a key framework to ensure that regions such as the North West benefit from new technical, construction, and operational roles created by hydrogen projects.
Financing mechanisms also featured prominently in the discussion. The panel agreed that the National Wealth Fund and GB Energy could complement DESNZ’s business models by crowding in private capital and de-risking early-stage infrastructure investment, helping to accelerate the scale-up of the UK hydrogen sector.
“Clean power is central to the government’s mission, and hydrogen-to-power will be critical to maintaining flexibility, energy security, and affordability across the system.”
With the Hydrogen Power Business Model slated for launch in 2026, £500 million already committed to supporting infrastructure, and a revised Hydrogen Strategy on the horizon, the UK is well positioned to cement its role as a leading global market for hydrogen investment. The session concluded on an optimistic note, with consensus that hydrogen-to-power will play a pivotal role in bridging the gap between renewables, industry, and grid reliability—advancing the UK’s progress toward a net zero power system.
