Boost for UK hydrogen as government backs world-leading industry

Low carbon hydrogen will get a further boost with over £21 million of government support for 7 projects to make green fuel, powering up local transport and businesses from Suffolk to Shetland.

Four projects will develop plans for new hydrogen production plants, to supply cleaner fuel to companies across a range of industries – from pharmaceuticals to automotive, boosting our energy security for the long term.

The remaining projects are set to get spades in the ground in Aberdeen, Tees Valley and Suffolk, helping to secure the UK’s energy supply by producing more home-grown hydrogen for industry and transport, with projects including:

• Suffolk Hydrogen run by Hydrab Power, which will make green hydrogen for low carbon service vehicles at the Sizewell C nuclear site
• Tees Valley Hydrogen run by Exolum, which will build a new hydrogen refuelling station to help supply the local transport sector
• Aberdeen Hydrogen Hub run by BP and Aberdeen City Council, which will provide cleaner fuel for the local fleet of 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.”

Minister for Energy Efficiency and Green Finance Lord Callanan said: “We expect hydrogen to play a vital role in decarbonising businesses and transport as we work towards meeting our net zero targets.

“These new projects announced today are further proof of our enduring commitment to supporting the UK’s growing hydrogen industry on that journey.

“This follows our announcement of over £2 billion for 11 other green hydrogen production projects, making sure more of our energy is made at home in the UK.”

The 7 projects have the potential to increase our capacity to make hydrogen by 800MW, supporting local communities to cut their emissions while moving towards net zero.

The government has also launched a call for evidence on the hydrogen and carbon capture, usage and storage (CCUS) elements of the Green Industries Growth Accelerator.

Announced at last year’s Autumn Statement, the £960 million Green Industries Growth Accelerator will speed up advanced manufacturing capacity in sectors including offshore wind, networks, carbon capture, usage and storage, hydrogen and nuclear.

The announcements were made at the government’s second Hydrogen Investor Forum, where industry leaders gathered to discuss the economic and net zero opportunities offered by the UK’s hydrogen economy.

This follows government support for 11 major new hydrogen production projects in December 2023, which are expected to support over 700 jobs and unlock £400 million in new investment, positioning the UK as a global leader in this industry.

This builds on significant steps to deliver cheap, clean, British energy and create a strategic advantage in emerging industries including:

• progressing a number of new carbon capture and hydrogen projects across the UK to capitalise on this emerging market backed by £20 billion
• opening a competition to build small modular reactors – one of the most advanced nuclear technologies in the world – backed with investment
• launching a £160 million fund to support the emerging UK floating offshore wind sector
• opening bids for new British low-carbon electricity generation projects, worth £205 million this year alone