The UK Government is backing seven projects across the country with £21m in funding to advance domestic hydrogen fuel production.
Announced at the government’s second Hydrogen Investor Forum, which explored the financial and net zero opportunities of the UK’s hydrogen economy, the hydrogen fuel projects will be instrumental in powering local transport and business nationwide.
Claire Coutinho, the Secretary of State for Energy Security, explained: “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.”
Why hydrogen fuel is critical for the green transition
Hydrogen fuel has emerged as a promising solution to address pressing environmental and energy challenges, garnering attention for its potential to revolutionise the way we power our world. Its importance lies in its versatility, efficiency, and sustainability.
Unlike fossil fuels, hydrogen combustion emits only water vapour and heat, making it a clean energy source that contributes significantly to reducing greenhouse gas emissions and combating climate change.
Furthermore, hydrogen fuel represents an opportunity for energy independence and security, as it can be produced domestically, reducing reliance on imported fossil fuels.
By investing in hydrogen technology and infrastructure, the UK can foster innovation, create jobs, and stimulate economic growth while transitioning towards a more sustainable and resilient energy future.
What projects have been selected?
The seven projects are expected to have a significant impact on the UK’s hydrogen capabilities, increasing production capacity by an estimated 800MW, and enabling local communities to cut their emissions significantly.
Four of the projects will create plans for new hydrogen fuel production plants – a move that will benefit a range of industries, from pharmaceuticals to automotive.
The additional three projects, located in Aberdeen, Tees Valley, and Suffolk, will produce domestic hydrogen for industry and transport.
Suffolk Hydrogen, operated by Hydrab Power, will produce eco-friendly hydrogen to fuel low-carbon service vehicles at the Sizewell C nuclear site.
Tees Valley Hydrogen, managed by Exolum, will establish a fresh hydrogen refuelling station aimed at supporting the transportation needs of the local community.
The Aberdeen Hydrogen Hub, a collaboration between BP and Aberdeen City Council, is set to deliver cleaner fuel options for the city’s electric bus fleet.
The investment follows the government’s significant financial support for 11 hydrogen production plants last December, which are expected to generate 700 jobs and £400m in new investment.
Minister for Energy Efficiency and Green Finance Lord Callanan added: “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 £2bn for 11 other green hydrogen production projects, making sure more of our energy is made at home in the UK.”
Focus on CCUS and hydrogen
The government has also initiated a request for evidence regarding the hydrogen and carbon capture, utilisation, and storage (CCUS) aspects of the Green Industries Growth Accelerator.
Unveiled during last year’s Autumn Statement, the £960m Green Industries Growth Accelerator aims to expedite the development of advanced manufacturing capabilities across various sectors such as offshore wind, networks, CCUS, hydrogen, and nuclear energy.
