The UK Government continues to support the development and production of green hydrogen.
In March 2025, the Treasury launched a consultation on the best way forward to removing Climate Change Levy (CCL) costs on electricity used in electrolysis.
The CCL is a tax on the supply of energy and was originally designed to encourage businesses and the public to reduce their energy demand through increased efficiencies.
However, continuing to apply this levy on electricity used for electrolysis contributes to higher costs for green hydrogen, making it less competitive as a low carbon energy solution.
Its removal will reduce barriers to green hydrogen production, making it easier and more cost effective to produce green hydrogen locally.
It also reduces the price difference between green hydrogen and blue/grey hydrogen which in turn will encourage more uptake in green hydrogen for commercial and industrial use, helping reduce carbon emissions, especially in hard to electrify industries.
The full consultation runs until 7th May, and can be found here.
