Energy companies Octopus Energy and Renewable Energy Systems have joined forces to spend 3 billion pounds ($4.1 billion) by 2030 to build hydrogen plants across the U.K.
Octopus Renewables, part of the generation arm of the renewable energy retailer, and renewables developer RES will combine their expertise and capital to develop, own and operate the facilities.
In a push to accelerate U.K. industries shift away from fossil fuels the two companies said they are planing to build a fleet of new hydrogen plants across the U.K. The plants will utilize times with excess of wind and solar to make the green fuel readily available for large scale consumers.
They pointed out that green hydrogen offers protection from present and future gas price volatility.
The duo plans to work with large industrial businesses seeking to decarbonise. Octopus Renewables co-head Alex Brierley called on industrial businesses currently using hydrogen to contact the partners and lock in early-mover benefits.
“The supply of green hydrogen will be critical to the success of many industries in meeting the U.K.’s net zero targets,” Alex Brierley, Co-Head for Octopus Renewables said in statement. “We are providing a solution for those businesses.”
The companies also said they act in response to the UK government’s recently released hydrogen strategy. The government eyes 5 GW of low-carbon hydrogen production capacity by 2030.