The UK government has rolled out a £500 million plan to develop a nationwide hydrogen infrastructure, marking a major step in its industrial decarbonization strategy. The funding aims to build the backbone required to transport, store and distribute hydrogen across key economic sectors and regions.
The investment supports the UK’s target of generating 10GW of low-carbon hydrogen by 2030, including 5GW from green hydrogen produced using renewable energy. The focus is on linking hydrogen production facilities with high-demand users in heavy industry, power generation and freight transport, reported Hydrogen Fuel News.
Industrial regions such as Merseyside, Teesside, the Humber and Aberdeen are positioned at the centre of this initiative. Once reliant on coal, petrochemicals and steel, these hubs are now being positioned as clean energy centres through access to hydrogen and related infrastructure.
The plan overseen by the Department for Energy Security and Net Zero (DESNZ), includes the construction of pipelines, large-scale storage facilities such as repurposed salt caverns and an integrated distribution system. The goal is to overcome long-standing logistical barriers that have slowed hydrogen adoption, especially in energy-intensive industries.
Both green hydrogen and blue hydrogen—produced from natural gas combined with carbon capture technologies—will be supported under the new framework. By creating a stable supply chain and reducing the cost of delivery, the infrastructure is expected to drive wider industrial uptake of hydrogen technologies, including fuel cells and zero-emission manufacturing systems.
Private sector involvement is already underway. Projects like the Aberdeen Hydrogen Hub, backed by major energy firms are aligning with government plans to increase local hydrogen production and grid readiness. The move also positions the UK to enter the European hydrogen export market, as demand for clean fuel rises across the continent. With EU incentives favouring hydrogen imports, the UK’s early investment could offer a competitive advantage. According to Hydrogen UK, in 2023 the market generated revenue of approximately USD 746.1 million and is projected to reach USD 7,312.4 million by 2030, representing a compound annual growth rate (CAGR) of 38.6% from 2024 to 2030.
Source:
UK Commits £500 Million to Hydrogen Infrastructure in Push for Industrial Decarbonization
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