NEWS & INSIGHTS | Opinion
Ofgem approves 77 energy storage projects to supercharge UK’s grid resilience
Luca Corradi
Luca works to bring “the outside in”, connecting innovators and academics across sectors and disciplines, to explore the latest technologies that could be adopted to address oil and gas industry challenges. Leading The Net Zero Technology Centre’s horizon scanning activity, he identifies emerging technology trends, cutting through the hype to identify potential areas of impact and application. With a background in business and organisational change leadership, Luca has developed a strong network and is passionate about harnessing this to deliver the next generation of the net zero energy industry.
Outside work Luca loves reading, music and travel. He is married with two young daughters and a dog. He enjoys the rare motorbike ride in Scotland and even rarer ski trip on the Alps.
This week in net zero: Global Hydrogen Review, UK-US nuclear deal, Long Duration Energy Storage (LDES)
Chief Technology Officer at NZTC, Luca Corradi, and his team closely monitor the global net zero landscape. They follow the trends, policies, investments and technological innovations that, together, bring the world closer to its shared climate goals. Learn more about our horizon scanning service. This week, Luca and his team look at IEA’s Global Hydrogen Review, new UK-US agreement to accelerate nuclear deployment, and 77 diverse LDES projects advanced by Ofgem.
Projected hydrogen production capacity declines while low-emission deployment gains momentum
The IEA’s Global Hydrogen Review tracks global hydrogen production and demand.
Global hydrogen demand rose by 2% in 2024, mirroring the overall growth in energy demand. This increase was largely driven by traditional sectors such as oil refining and industry. New applications, however, contributed less than 1% to total demand.
Progress in hydrogen deployment continues to face headwinds. High costs, uncertain demand, evolving regulatory frameworks, and slow infrastructure development have led to project delays and cancellations. As a result, the projected hydrogen production capacity for 2030 – based on industry announcements – has declined for the first time, dropping from 49 Mtpa in the Global Hydrogen Review 2024 to 37 Mtpa.
Despite falling short of government and industry ambitions, low-emission hydrogen is showing signs of momentum. Since 2021, the number of committed low-emission hydrogen projects has grown from a handful of demonstrations to over 200 investments. Production increased by 10% in 2024 and is on track to reach 1 Mt in 2025.
China is leading the charge in electrolyser deployment, accounting for 65% of global capacity that is either installed or has reached final investment decision (FID). According to the IEA, low-emission hydrogen production from projects already operational or at FID is expected to reach 4.2 Mtpa by 2030, a fivefold increase from 2024. This would raise its share from under 1% of total hydrogen production today to around 4% by the end of the decade.
With the right policies in place to stimulate demand and secure offtake agreements, there is potential to unlock an additional 6 Mt of low-emission hydrogen production by 2030.
UK–US agreement accelerates nuclear deployment through licensing reform and advanced reactor projects
A new trans-Atlantic alliance will expand nuclear in the UK through new commercial deals and accelerated licensing.
The UK and US governments have signed a new agreement to accelerate nuclear development in Britain. The deal aims to cut the licensing timeline for nuclear projects from 3–4 years down to just 2, helping to fast-track deployment.
Key commercial partnerships announced include:
X-Energy and Centrica – These companies plan to deploy the UK’s first Advanced Modular Reactor (AMR) in Hartlepool, with up to 12 units and a broader UK-wide programme targeting 6 GW of nuclear capacity. The initiative is expected to generate at least £40 billion in economic value. X-Energy’s technology is designed for high efficiency and resilience, supporting both electricity generation and high-temperature heat and steam for industrial use.
Holtec, EDF and Trix – This partnership will develop advanced data centres in Nottinghamshire powered by Small Modular Reactors (SMRs). The project will leverage experience from the US to reduce risk and accelerate progress.
Last Energy and DP World – Together, they plan to establish one of the world’s first micro modular nuclear plants in London. The proposed PWR-20 microreactor would supply 20 MW to power the London Gateway logistics hub, with surplus energy exported to the grid.
Ofgem advances 77 long-duration energy storage projects exceeding 2030 targets with diverse technologies
Ofgem has confirmed that 77 Long Duration Energy Storage (LDES) are entering the final assessment stage of their cap and floor scheme.
Long Duration Energy Storage (LDES) refers to systems capable of storing and discharging electricity for eight hours or more – making them essential to the expansion of Great Britain’s electricity grid.
Ofgem has confirmed that 77 LDES projects, totalling 28.7 GW, have passed the first eligibility stage under its new cap and floor scheme. Of these, 71 projects (24.5 GW) are expected to be operational by 2030, with the remaining six (4.2 GW) deliverable by 2033. This pipeline significantly exceeds the Department for Energy Security and Net Zero’s (DESNZ) 2030 target range of 4–6 GW for LDES.
Currently, GB has 2.8 GW of LDES capacity, all from four Pumped Storage Hydro (PSH) facilities located in Scotland and Wales. However, a broader mix of technologies is emerging.
The approved projects include:
- 1 compressed air energy storage project
- 48 lithium-ion battery energy storage systems (BESS)
- 5 pumped storage hydro (PSH) projects
- 16 vanadium flow or zinc battery systems
- 5 standalone vanadium flow battery projects
- 2 hybrid systems combining liquid air energy storage and BESS
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