Hydrogen: Taxation

(asked on 29th March 2023) - View Source

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, if he will make it his policy to remove the proposed hydrogen levy in the Energy Bill.


Answered by
Graham Stuart Portrait
Graham Stuart
This question was answered on 21st April 2023

There are no plans to remove the proposed hydrogen levy from the Energy Bill.

The purpose of the levy is to provide long-term funding for the hydrogen production business model. This could unlock significant private sector capital by 2030, create thousands of jobs, grow CCUS and hydrogen supply chains, and deliver carbon savings which help meet net zero.

The provisions in the Bill will not immediately introduce a levy. They will only enable Government to introduce a levy through secondary legislation. The decision to introduce the levy will take into account all relevant considerations, including energy bill affordability.

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