Boost for UK hydrogen as government backs industry


Author: Mankirat Kaur

UK hydrogen industry receives significant government backing with over £21 million allocated to seven projects aimed at advancing low carbon hydrogen production, powering transportation and local businesses across the nation.

Projects span from Suffolk to Shetland and include initiatives such as developing hydrogen production plants and establishing refuelling stations for buses and trucks. This announcement, made at the Hydrogen Investor Forum, highlights the economic opportunities within the UK hydrogen sector.

Key projects include Hydrab Power's Suffolk Hydrogen initiative, focusing on producing green hydrogen for service vehicles at the Sizewell C nuclear site, and Exolum's Tees Valley Hydrogen project, which aims to build a hydrogen refuelling station to support local transport. Additionally, BP and Aberdeen City Council are collaborating on the Aberdeen Hydrogen Hub to provide cleaner fuel for electric buses.

Secretary of State for Energy Security, Claire Coutinho, said: “We are cementing the UK’s place as a world leader in hydrogen. The new projects we’re funding across the country will boost our supply of clean homegrown energy for use in buses, trains and local businesses. By backing the UK hydrogen industry, we can support over 12,000 jobs and up to £11 billion in private investment by 2030.”

These initiatives follow the government's allocation of over £2 billion for 11 green hydrogen production projects, aiming to increase hydrogen capacity by 800MW and support local communities in emission reduction efforts. Additionally, the government launched a call for evidence on hydrogen and carbon capture, usage, and storage (CCUS) as part of the Green Industries Growth Accelerator.

CEO of Hydrogen UK, Clare Jackson, said: “Today’s endorsement of 7 pioneering hydrogen projects underscores the transformative power and versatility of hydrogen as a bedrock for secure, clean energy solutions. Such pivotal announcements fortify the UK’s burgeoning hydrogen economy, accelerating us towards meeting our ambitious production.”

We plan to bid the project into the government’s HAR2 process to secure a 15-year Low Carbon Hydrogen Agreement by early 2025, which enable commencement of operation in 2028.