Rebecca Evans, Cabinet Secretary Economy Energy and Planning
I am pleased that today we are publishing our hydrogen policy.
Wales is rich in renewable energy resources which provides a tremendous opportunity for low carbon hydrogen production. The Welsh Government is committed to ensuring hydrogen is deployed safely and effectively, making the best use of the technology to deliver decarbonisation and economic benefit for Wales.
Following a public consultation which ended in May 2025, we have taken time to consider fully the consultation responses, the advice of the Climate Change Committee on Wales’ Fourth Carbon Budget, and the UK Government Spending Review and Modern Industrial Strategy. We have also considered how this policy will align with the recently published Welsh Government strategic Carbon Capture and Storage policy.
The hydrogen policy we publish today highlights the strategic importance of hydrogen infrastructure to decarbonisation and sustainable economic growth in Wales. The policy aligns with UK Government hydrogen business models and support mechanisms, providing the best opportunity for Welsh developers to successfully access Hydrogen Allocation Rounds, while also reflecting a clear commitment to our well-being objectives.
Designing our hydrogen policy
Our vision for the future of industry and energy generation is one in which sustainable industries are retained in Wales, and continue to generate high-quality jobs and careers, and other benefits for the communities in which they operate. Wales is proud of its industrial base, and we must encourage the investment necessary to support a transition to a decarbonised, sustainable future.
Guided by the advice and views of the Climate Change Committee, Net Zero Industry Wales, UK Government regulatory groups, and our industrial, academic and public stakeholders, we are taking bold steps to support industry in decarbonising, as set out in Net Zero Wales, our strategic plan to achieve net-zero greenhouse gas emissions by 2050.
The Welsh Government recognises the importance of hydrogen for decarbonisation, particularly for sectors that are hard to electrify, such as heavy industry and certain transport applications. We also recognise the significant economic opportunities the technology can deliver for industry, business and citizens in Wales. Hydrogen projects will create jobs and careers during construction, operation and maintenance, as well as safeguarding jobs in other sectors and providing wider supply chain opportunities.
Consultation Details and Outcomes
The consultation received sixty-two responses representing a broad cross-section from industry, academia, government bodies, trade organisations and individuals, and I would like to thank those who responded.
Many respondents used the consultation to stress how important hydrogen is for decarbonising industry and energy, in particular for sectors that are challenging to electrify. Most respondents supported aligning the policy with the UK Low Carbon Hydrogen Standard, and the requirement for hydrogen to make a clear and sustainable contribution to decarbonisation and building a stronger, greener economy that avoids de-industrialisation.
Some responses questioned how the energy hierarchy within Planning Policy Wales would apply to the specific nature of hydrogen developments. The role of the hierarchy is to guide energy investment towards reduced energy use, efficiency gains and renewable energy. Hydrogen has a strategic role in achieving these aims, and we are committed to producing additional guidance that will clarify how hydrogen aligns with the energy hierarchy.
Final Strategic Policy for Hydrogen
The published policy encourages investment in the production and deployment of hydrogen where:
- The hydrogen production process meets the requirements of the UK Government Low Carbon Hydrogen Standard (LCHS).
- Where hydrogen makes a clear, measurable and sustained contribution to meeting decarbonisation targets and objectives.
- Where hydrogen production does not contribute to unsustainable levels of fossil fuel use or impede our transition to net-zero.
- Where hydrogen contributes to growing a sustainable economy.
The consideration of a development’s emissions intensity, rather than prescribing favoured technologies, provides developers with the broadest possible scope to devise innovative approaches to sector and site-specific challenges. The policy also provides additional clarity and a solid foundation from which we will continue to work with the UK Government, regulators and developers to help deliver both Welsh and UK net-zero ambitions.
Our finalised strategic policy position for hydrogen will sit alongside our evolving policy framework, designed to avoid the extraction and use of fossil fuels, provide alternatives for fuel switching, and managing those emissions that cannot be avoided.