Johnson Matthey chief says UK has fallen behind in hydrogen energy race

The UK has misplaced its place as one of many leaders within the world race to develop hydrogen energy, the chief government of Johnson Matthey has warned, as he stated the FTSE 100 group may take extra enterprise to the US as Washington unleashes funding for inexperienced initiatives.

Liam Condon stated companies would bypass the UK if the nation didn’t introduce extra supportive insurance policies, and that an “unimaginable bureaucratic layer” was holding Europe again from growing the infrastructure wanted to assist hydrogen energy.

“The UK was a frontrunner [in supporting hydrogen power],” stated Condon, who since taking on Johnson Matthey in March has set out a plan for the 205-year-old industrial conglomerate to concentrate on growing sustainable applied sciences.

“However we’ve now received to maintain aggressive with US insurance policies, which have clearly moved forward,” he advised the Monetary Occasions. “In any other case, funding will merely drift off to the US.”

Many nations have seemed to hydrogen energy as they set decarbonisation targets to fulfill local weather objectives. The UK, which is aiming to realize web zero emissions by the center of the century, declared its ambition in 2019 to turn out to be “a world-leading hydrogen financial system”, because it introduced £105mn in funding for companies to develop low-carbon fuels.

However in latest months companies have turned to the US, the place the Senate in August handed the $369bn Inflation Discount Act to assist clear power programmes, which incorporates tax credit for hydrogen initiatives.

Condon stated Johnson Matthey, which manufactures gasoline cell parts and catalysts for producing hydrogen energy, is “reviewing further investments” within the US because it anticipates rising demand within the nation, including that the group remained dedicated to the UK.

In mainland Europe, nonetheless, he stated organisational obstacles had been holding again progress.

“The cash is there, the intent is there . . . however there’s an unimaginable bureaucratic layer that slows down that cash really attending to the businesses,” he stated. “It’s unlikely that any single personal firm can afford to construct the infrastructure [to support a net zero economy]. So there must be governmental assist.”

Johnson Matthey is doubling down on hydrogen following an ill-fated transfer into manufacturing chemical substances for electrical automobile batteries. The group introduced an exit from the enterprise this 12 months, months after touting it to traders as pivotal to future development.

Condon, who joined Johnson Matthey after Robert MacLeod stepped down as CEO within the wake of the fiasco, admitted that earlier administration had dedicated a “cardinal sin” by coming into the enterprise earlier than securing any prospects.

He stated the group, which has equipped know-how to the hydrogen business for a number of years, will now concentrate on core companies and areas the place it may be a market chief.

Johnson Matthey hoped to generate £300mn from the sale of as much as 4 extra subsidiaries, Condon added, together with its companies producing medical gadget parts and measuring devices.

Pursuing battery supplies “turned out to be a foul enterprise determination”, he stated. “However the classes out of that had been actually vital . . . for the brand new technique and to place in place ideas that may be sure that we don’t find yourself there once more.”