UK government confirms £500m hydrogen investment to create thousands of jobs

First regional hydrogen transport and storage network to boost industrial regions across Britain

The UK government has confirmed over £500 million in new funding for hydrogen infrastructure, with ministers promising the investment will create thousands of clean energy jobs and drive economic growth in Britain’s industrial heartlands.

Announced as part of the Spending Review, the funding will support the UK’s first regional hydrogen transport and storage network, connecting producers of low-carbon hydrogen with end users in energy and heavy industry.

The network is expected to benefit manufacturing sectors including iron, steel, glass, chemicals and ceramics, and is part of the government’s wider strategy to make the UK a clean energy superpower while reducing reliance on international fossil fuel markets.

According to the government, the move will deliver skilled jobs in areas such as Merseyside, Teesside and the Humber, as well as along the wider supply chain.

Speaking today, 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 Spending Review also included support for other major energy projects. The government confirmed 10,000 jobs will be linked to the construction of Sizewell C in Suffolk, England.

A new fusion reactor will be built in Nottinghamshire, and up to 3,000 jobs are expected to be created through the small modular reactor programme. Further funding will also kickstart the Acorn carbon capture project in Scotland and the Viking project in the Humber.

These commitments are said to follow on from the 4,000 jobs already expected to be created through carbon capture, usage and storage (CCUS) projects in the North West and Teesside.

The hydrogen investment will also support the government’s ongoing Hydrogen Allocation Rounds (HAR), building on the first round which saw 11 projects awarded more than £2 billion in funding.

The announcement was welcomed by industry bodies. 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, added: “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.”

To date, the UK’s hydrogen sector has already attracted £400 million in private investment, including in Milford Haven in Wales and High Marnham in Nottinghamshire. 

The sector is expected to create thousands more jobs in engineering, construction, welding, and operations, with roles available for graduates, apprentices and skilled technical professionals.

Further detail is expected later this year in the government’s upcoming Infrastructure Strategy.

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