No one knows
Paul Homewood
https://register.lowcarbonantracts.uk/?search= hydrogen
The first three CFDs have been announced as the first round of hydrogen distribution.
All prices are available for 2022, so at current prices from £213 to £242/MWh. Like other CFDs, hydrogen producers will provide guaranteed index-related prices.
But the most important thing is the cost of transporting hydrogen to a location that can be used or stored. LCCC provides an estimated cost for this – for example, in Cromarty, it is £24.37/MW.
Therefore, the total cost of total hydrogen will be as high as £266/MW. In comparison, the wholesale price of natural gas is about £34/MW.
The cost of this subsidy is expected to be added to the gas bill.
The first round of hydrogen distribution provided contracts for 11 producers with a total capacity of 125 MW and an annual output of about 500 gwh, accounting for only 0.07% of the UK's total natural gas consumption.
Subsidies vary with changes in gas market prices, but the current level is about £120 million per year.
These three have a capacity of 31.8 MW
Related
Discover more from Watt?
Subscribe to send the latest posts to your email.
