The UK plans to export low carbon to continental Europe by 2030

The UK is looking at opportunities to export low carbon to international markets, including exporting UK hydrogen to Germany and the rest of continental Europe by 2030. The UK is working on a formal hydrogen partnership with Germany, which is a major importer of green hydrogen and hydrogen derivatives.

According to sources at the Department of Energy Security and Net Zero (DESNZ), the UK is exploring low hydrocarbon export opportunities.

A planned cooperation agreement with Germany would add Belgium, Norway and others.

The UK appears to be waiting for the emergence of a global market for trading hydrogen and its derivatives before making a final decision. Experts say a tradable hydrogen market could emerge as early as 2025, but a truly liquid market will take time.

Meeting the UK's domestic hydrogen demand, and in particular achieving the 10GW target, is one of the priorities of the UK Government's energy security brief.

Officials have come under pressure from members of the Scottish Parliament. Scottish producers are trying to harness the huge offshore wind potential to produce green hydrogen and green ammonia for export, much of which has been cut back due to grid constraints.

There are at least 1GW of green hydrogen projects in development in Scotland - the 3GW Kintore project in Aberdeenshire, which is planned to achieve a third of the UK's low hydrocarbon target of 10GW by 2030, and 60% of the Scottish Government's target of 5GW.

At the Financial Times Hydrogen Summit in London last week, several prominent UK company executives privately expressed their frustration at the UK government's lack of engagement with the industry.

Moreover, the deal to supply green hydrogen to the European market requires UK green hydrogen producers to meet strict EU requirements for renewable hydrogen, and the UK government has not indicated plans to realign the UK's regulatory framework.