Exemption from Climate Change Levy

CCL is GBP 7.75/MWh in 2025 (https://www.gov.uk/guidance/climate-change-levy-rates) and electrolytic processes are exempt from this levy. "A supply of a taxable commodity is exempt from the main rates of CCL ... An example of such eligible use is electricity used in electrolytic processes". The exemption applies when the commodity is used for non-fuel purposes or a mix (of fuel and non-fuel). However, specific processes are mentioned and water electrolysis is not included. The government announced in 2024 that it would assess the removal of CCL for water electrolysis and a public consultation was open in March 2025. Three options were proposed.Extend the current exemption to cover fuel uses of hydrogen; Relieve input fuel to hydrogen production; and Make hydrogen supply a taxable commodity

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