“Supply without demand or demand without supply, a dilemma which could scupper the UK’s ambitious plans to be carbon neutral by 2050” says Danni Hewson, financial analyst at AJ Bell.
“The announcement today that BP plans to build a green hydrogen plant on Teesside might begin to address one area of concern. House builders might have been told that all new homes will have to have an alternative to a gas boiler in just four years-time but many people may have been scratching their heads as to exactly how all those new boilers might be powered.
“Hydrogen has been a much talked about option, not just here in the UK but also in other European countries which are heavily reliant on gas for keeping our homes toasty warm. Intended to come online by 2030 BP’s 1 GW of hydrogen will be too late for that first new build deadline, but bang on time to count towards the government promised target of 5 GW of hydrogen production by that date.
“Getting the supply part of the equation sorted will bolster consumer confidence and should lead to increased demand, though most homeowners will be keeping a close eye on the anticipated cost of the new generation of power generation.
“For investors keen to go green, it will further bolster confidence in increasingly desirable ESG stocks. There is a growing awareness, particularly among younger investors, that saving for the future can also shape the future.”
