Government backs development of cutting-edge energy technologies

13th April 2022
Paige West

The government recently launched a £375 million package for energy technologies powering British homes and businesses.

This investment will support research, development, and deployment of cutting-edge energy technologies to reduce the UK’s reliance on expensive fossil fuels.


£240 million will be used to support the production of clean, low-cost hydrogen for industry, power, transport and potentially heating. This Net Zero Hydrogen Fund will advance the government’s ambition to have up to 2GW of low-carbon hydrogen production capacity by 2025 and up to 10GW installed by 2030, using electricity to produce power by splitting water into hydrogen and oxygen.

The Hydrogen Business Model will support further investment in hydrogen production with £100 million for electrolytic projects to cover the difference between the cost of production and the sale price for hydrogen.

The Industrial Hydrogen Accelerator is a £26 million innovation funding programme to support UK industry in adopting hydrogen as a clean, affordable fuel source. It will demonstrate the feasibility of hydrogen to businesses and reducing the cost of switching energy systems.


£2.5 million will go towards developing next-gen nuclear reactors. These reactors use novel and innovative fuels, coolants, and technologies to generate high-temperature heat for industrial applications as well as for electricity to power people’s homes.

The Business and Energy Secretary has also announced that nuclear regulators (the Office for Nuclear Regulations and Environment Agency) have been provided with an additional £830,000 of funding to help bring the development of UK AMRs to fruition.

Carbon capture

Lastly, £5 million will be spent on accelerating Carbon Capture and Storage (CCS) technologies under the ACT 3 scheme. CCS entails capturing, transporting, and storing greenhouse gas emissions that would otherwise be released into the atmosphere meaning energy can be stored and used. ACT 3 is an international initiative between 14 countries worldwide including the UK, aimed at accelerating CCS technologies through funding research and innovation projects and the funding will support the commercialisation of the technology so that companies right here in the UK can invest in it.

Business and Energy Secretary Kwasi Kwarteng said: “This investment will unlock the enormous potential of hydrogen, advanced nuclear reactors, and carbon capture to level up the UK energy landscape and deliver for businesses and households.

“High gas prices and Russia’s aggression in Ukraine have highlighted the urgent need to produce more of our energy here in the UK.

“That’s why we have set out bold plans to harness clean, cutting-edge, homegrown technologies and build the energy security we need for the future.”

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