£500m government funding for hydrogen infrastructure

The government has confirmed it will spend over £500 million for hydrogen infrastructure, which will be used to create the UK’s first regional hydrogen transport and storage network, connecting hydrogen producers with end users, including power stations and industry, for the first time.

The funding for hydrogen will help 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 today’s announcement on hydrogen transport and storage infrastructure. Hydrogen networks are essential for a secure and resilient hydrogen sector, whilst 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 rightly joining the dots, connecting already supported hydrogen production with end users across power and industry.

"This strategic thinking builds on the strength of our established industrial regions and supported clusters, unlocking clean energy potential while creating skilled jobs in places such as Merseyside, Teesside and the Humber. It’s a vital step forward on the UK’s journey to becoming a clean energy superpower."