An update posted on the gov.uk website stated: "The government has decided not to progress work on a hydrogen town pilot until after 2026 strategic decisions on the role of hydrogen in decarbonising heat.

"This follows careful consideration of the future of the work in light of the decision in December 2023 not to proceed with the hydrogen village trial in Redcar.

"We believe that low carbon hydrogen may have a role to play in heat decarbonisation, alongside heat pumps and heat networks, but in slower time in some locations. We plan to take a decision in 2026 on whether, and if so how, hydrogen will contribute to heating decarbonisation.

"We will assess evidence from our wider research programme, the neighbourhood trial in Fife and similar schemes across Europe, to take this decision."

Commenting on the decision, David Cowdrey, Director of External Affairs at the MCS Foundation, said: “We welcome the decision to suspend the ‘hydrogen town’ project. Today’s decision confirms that heat pumps and low-carbon heat networks are the only viable solution for decarbonising heating at scale. 

“Heat pump installations in the UK have been growing in the last few years, but we need long-term policy certainty to ramp up the market. Today’s announcement should be followed with a commitment to a massive public awareness campaign to increase heat pump uptake.

"The government must also take levies off electricity prices so that heat pumps are always cheaper to run than gas boilers, which would address fuel poverty while helping meet climate targets.”