The UK Government is exploring the development of innovative low-carbon technologies such as hydrogen, while a 5GW national capacity target for hydrogen will be doubled to 10GW.
Through the Government’s UK Export Finance, a £400 million (€456 million) sustainability-linked loan has been underwritten and given to Johnson Matthey, a London-based conglomerate company specialising in chemicals, batteries and sustainability technologies.
Johnson Matthey will use the loan to assist the development of sustainable productions such as hydrogen and chemicals recycling.
The company has committed to ensuring that 95% of its sales and R&D spend will contribute to sustainable projects by 2030.
The financing is being provided by HSBC, Sumitomo Mitsui Banking Corporation (SMBC) and Bank of America, with the government backing it via UK Export Finance.
Last year, Johnson Matthey set a 2040 net-zero target, with interim science-based targets to cut emissions filed for 2030.
The Government has outlined how a “twin-track” approach will be introduced to support multiple technologies, including green hydrogen – produced by splitting water using electrolysers powered with renewable energy – and blue hydrogen, produced by splitting natural gas and capturing most process emissions with man-made technologies.
This approach has proven controversial among green groups, as carbon capture technology is in its relative infancy at a commercial scale. Moreover, blue hydrogen production facilities cannot easily be retrofitted to become green.
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