The UK and Germany have signed a joint Declaration of Intent that will see the two countries work together to develop an international hydrogen industry.

On Tuesday, UK Minister for Energy Efficiency and Green Finance Lord Callanan signed the agreement with Germany’s State Secretary for Energy, Philip Nimmerman, at the UK Embassy in Berlin.

In the UK, the government is providing £197.66m ($240m) for low-carbon hydrogen production from its Net Zero Hydrogen Fund and revenue support from the Hydrogen Production Business Model. Lord Callanan said: “This agreement will underpin the development of this new fuel, not just for our respective countries but also an international trade that could be transformative in our work towards achieving net zero by 2050.”

The UK Government aims to produce 10GW of low-carbon hydrogen energy by 2030, with at least half of this coming from electrolytic hydrogen and the rest from carbon capture and storage using gas as a feedstock.

British offshore trade association Offshore Energies UK (OEUK) has described the agreement as a “great boost for homegrown energy”. According to its recent economic report, low-carbon hydrogen could become one of the UK’s largest sources of energy by 2050. The trade body predicts that hydrogen will grow to 7% of energy in 2035 and 17% of energy in 2050.

Enrique Cornejo, head of energy policy at OEUK, said: “The UK is in a global race for investment in energy projects and international agreements like these are a boost which could help us lock in the homegrown advantage. With the right support we can deliver an energy future which helps millions across the UK and does so in a way which grows the economy, supports jobs and anchors new industries in our communities.”

Germany’s 2020 National Hydrogen Strategy aims for 10GW of electrolyser capacity to produce green hydrogen by 2030. Nimmerman said: “Hydrogen is of the highest importance for us to meet our goals regarding emission reduction. Also, it is a great opportunity for business.”