UK government confirm £500 million for hydrogen funding

The government has confirmed that the spending review allocated landmark new funding to create the UK’s first regional hydrogen transport and storage network, connecting hydrogen producers with vital end users, including power stations and industry for the first time.

This major infrastructure boost will help deliver clean energy while creating thousands of skilled jobs in industrial regions such as Merseyside, Teesside, and the Humber, as well as in the supply chain. This will ensure communities across the country feel the benefits of Britain’s renewal while reducing reliance on volatile international fossil fuel markets.

The announcement also follows confirmation in the Spending Review that the government is creating thousands of clean energy jobs across the country, with 10 000 jobs to be created at Sizewell C in Suffolk, a new fusion reactor to be built on the site of an old power station in Nottinghamshire, up to 3000 jobs created through the small modular reactor programme, and funding to kickstart the Acorn project in Scotland, and the Viking project in the Humber.

This investment builds on the 4000 jobs already set to be created in carbon capture, utilisation, and storage (CCUS) projects in the North West and Teesside.

This will support manufacturing sectors likely to require hydrogen like iron, steel, glass, chemicals, and ceramics – and forms part of government’s long-term plan to invest in and secure the country’s industrial future, with more detail expected in the upcoming Infrastructure Strategy.

Energy Secretary, Ed Miliband, said: “We are investing over half a billion pounds in our industrial heartlands to deliver jobs and energy security for Britain. By building hydrogen networks, we are securing homegrown energy that will power British industry for generations to come. This will bring in the investment needed across the country to deliver our Plan for Change by unlocking clean energy and growth in our local economies.”

The funding will unlock hydrogen’s unique role in Britain’s energy system, where it can decarbonise industrial sectors including refineries and heavy transport, while providing long-term energy storage that can be deployed during peak demand periods. The funding also enables progress on supporting low carbon hydrogen production through continued Hydrogen Allocation Rounds (HAR), building on the success of the First Hydrogen Allocation Round which saw 11 projects being allocated over £2 billion in government funding.

Hydrogen UK’s Head of Policy and Analysis, Brett Ryan, said: “We welcome this announcement on hydrogen transport and storage infrastructure. Hydrogen networks are essential for a secure and resilient hydrogen sector, while ensuring sufficient energy storage capacity will be critical to energy security and affordability during the energy transition. We look forward to working with the government as we continue to deliver hydrogen’s role in reaching net zero and ensuring our energy security.”

Dr. Emma Guthrie, CEO of the Hydrogen Energy Association, said: “This announcement is a key piece of the puzzle and represents very welcome government support to galvanise the UK’s regional hydrogen hubs. By investing in transport and storage infrastructure, the government is joining the dots, connecting already supported hydrogen production with end users across power and industry.”

Hydrogen has already attracted £400 million of private sector investment in towns and cities such as Milford Haven in Wales and High Marnham in Nottinghamshire, and government support will help create thousands of jobs in the sector, including roles for apprentices, graduates, and technically trained professionals, such as engineers, welders, skilled construction workers, pipefitters, and operations specialists.

Read the article online at: https://www.globalhydrogenreview.com/hydrogen/13062025/uk-government-confirm-500-million-for-hydrogen-funding/