Policy background Part 4: New Technology Hydrogen
Hydrogen is a low carbon solution which can help the UK achieve net zero by 2050, and our Sixth Carbon Budget target by 2035. The hydrogen economy is in its infancy and will take time to establish at scale. While hydrogen is already a gas for the purpose of the Gas Act 1986, the implications of this at scale cannot be fully tested without transport and storage projects being operationalised. As a result, there is some uncertainty as to whether every provision applying to natural gas in the Gas Act will technically work for hydrogen or whether unforeseen problems will arise that require a provision be disapplied or modified in respect of its application to hydrogen.
	This power enables the Secretary of State to make regulations that provide for any provisions of the Gas Act 1986 not to apply, or apply with modifications, in relation to the production, transportation, storage or use of hydrogen. It may only be used for the purpose of facilitating or promoting the production, transportation, storage or use of hydrogen. Fusion Energy.
	Fusion energy facilities are not identified in the Nuclear Installations Act 1965 as sites that require a nuclear site licence. This section amends the Nuclear Installations Act 1965 to make the exclusion of fusion energy facilities explicit: to make clear that they will not require nuclear site licences and regulation by the Office for Nuclear Regulation. This will enable a regulatory framework for fusion that is appropriate and proportionate to the overall hazard of a fusion energy facility.