Commons Sense

House of Commons · Written Ministerial Statement

Gas Shipper Obligation Consultation

16 January 2025 · Department for Energy Security and Net Zero

Proposed by Sarah Jones Lab Croydon West

Energy

Summarised by AI from the official record, so it can contain mistakes.

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At a glance

Key points

  • The Government has published a consultation on the design of a Gas Shipper Obligation to fund hydrogen production projects.
  • The consultation seeks to ensure consumer affordability and value for money in the funding mechanism.
  • The aim is to create a fair and effective approach to future funding decisions for hydrogen production.

Issue summary

The statement discusses the publication of a consultation on the design of a Gas Shipper Obligation to fund hydrogen production projects.

Action requested

The Government is consulting on the design of a funding mechanism, the Gas Shipper Obligation, which will support initial hydrogen production projects and related costs. The consultation aims to ensure consumer affordability, value for money, and fairness in future funding decisions.

Key facts

  • The Department for Energy Security and Net Zero is publishing a consultation.
  • The Gas Shipper Obligation aims to fund hydrogen production business model payments and related costs.
  • The Government considers consumer affordability, value for money, and fairness in funding decisions.
  • Low carbon hydrogen will support the delivery of Clean Energy Superpower and Growth missions.
  • It could lead to billions of pounds of savings by 2050.
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