© Photographer: Sean Gallup/Getty The UK government has confirmed £500 million in funding to develop Britain’s first regional hydrogen transport and storage network.
The Department for Energy Security and Net Zero (DESNZ) said the “major infrastructure boost” will create thousands of skill jobs in industrial regions such as Merseyside, Teesside and the Humber.
Energy secretary Ed Miliband said the £500m spend will unlock further clean energy and growth in local economies.
“We are investing over half a billion pounds in our industrial heartlands to deliver jobs and energy security for Britain,” Miliband said.
“By building hydrogen networks, we are securing homegrown energy that will power British industry for generations to come.”
It comes as part of the Labour government’s spending review, which also included funding for nuclear energy and carbon capture and storage (CCS) projects.
DESNZ said the hydrogen investment will help to further decarbonise industrial sectors, including refineries and heavy transport, while providing long-term energy storage options.
The UK hydrogen sector has advocated for more investment in transport and storage infrastructure to enable further growth in the industry, which has been hampered by delays and uncertainty over demand for the fuel.
© Supplied by ShutterstockDESNZ said the latest funding will enable further progress supporting low carbon hydrogen production through future hydrogen allocation rounds (HAR).
Last year, the government allocated over £2bn towards 11 green hydrogen projects included in the first allocation (HAR1).
The HAR1 round has since attracted £400m of private sector investment in areas like Teesside, Barrow and Greater Manchester.
An additional 27 projects made the shortlist for the second allocation round (HAR2) earlier this year.
Ahead of the HAR2 announcement, Labour energy and industry minister Sarah Jones pledged to unveil an updated hydrogen strategy later this year.
Hydrogen networks a ‘key piece of the puzzle’
The UK hydrogen sector welcomed the funding announcement, calling it a “vital step forward”.
Hydrogen Energy Association chief executive Dr Emma Guthrie said the funding is a “key piece of the puzzle” and will “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,” Dr Guthrie said.
© Supplied by Ryze Power“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.”
Meanwhile, Hydrogen UK head of policy and analysis Brett Ryan said hydrogen networks are “essential for a secure and resilient hydrogen sector”.
Ensuring sufficient energy storage capacity through investment in hydrogen infrastructure will also be “critical to energy security and affordability during the energy transition”, Ryan added.
Hydrogen doubts
But while the UK hydrogen sector remains determined to deliver on its ambitions, significant challenges remain.
Norwegian firm Statkraft, Europe’s largest renewable energy developer, recently said it would stop developing new green hydrogen projects in the UK.
North Sea operator BP has also cancelled its first UK green hydrogen project at Teesworks.
European projects are also experiencing setbacks.
Ørsted, Equinor and Shell have all cancelled major hydrogen projects in recent months due to uncertain demand, including plans for a pipeline between Norway and Germany.
© Supplied by NZTCBut at the same time, the German government is pressing ahead with plans to build a core hydrogen network consisting of more than 9,700km of pipelines.
With other EU nations like the Netherlands also continuing to invest in hydrogen infrastructure, the UK still sees a future export opportunity for green hydrogen thanks to significant wind resources in Scotland.
For the SNP Scottish government, hydrogen remains one of the country’s “greatest industrial opportunities since oil and gas”, according to energy secretary Gillian Martin.
Investing in early stage transport and storage networks will be key to realising that future potential.
