UK Government reveals Clean Power 2030 Action Plan: What does it mean for hydrogen?
The UK government has announced its landmark Clean Power 2030 Action Plan, aiming to achieve 100% clean electricity by 2030.
The strategy includes £40billion in annual investment, the creation of 480,000 jobs, and a targeted reduction in consumer energy bills, all whilst enhancing energy security and cutting carbon emissions.
Downing Street’s ambitious plan is to reshape the UK’s energy landscape, making the UK a global leader in clean power technology.
What does this mean for hydrogen?
Grid modernisation and clean energy expansion
At the heart of the plan is an overhaul of the UK’s energy infrastructure, including a long-awaited restructuring of the National Energy System Operator (NESO).
The Government will centralise energy management and introduce cutting-edge technology, aiming to ensure that renewable energy is effectively distributed across the country.
No. 10 plans to replace the outdated ‘first-come, first-served’ grid connection model with a project-readiness prioritisation system, clearing a backlog of 739 GW of clean energy projects.
This upgrade will streamline project approvals, reduce delays, and create new opportunities for renewable energy companies.
Hydrogen impact
Hydrogen production facilities will benefit from faster grid connections through a streamlined project-readiness prioritisation system, where projects with secured funding, advanced planning permissions, and clear timelines will be prioritised.
The system will be managed through regular performance reviews and transparent criteria set by the National Energy System Operator (NESO) to ensure fairness and efficiency in project selection.
For example, a large-scale hydrogen electrolyser hub with committed industrial off-takers and planning approvals in place could be fast-tracked, reducing delays and accelerating deployment.
Infrastructure upgrades such as expanded transmission capacity and new hydrogen-specific grid hubs will also support faster integration into the national energy network, unlocking previously stalled projects.
The upgrades will connect renewable power generation sites with hydrogen production plants, ensuring continuous clean energy supply.
Hydrogen infrastructure – Project Union and FutureGrid
National Gas, who are responsible for operating and maintaining the UK’s National Transmission System (NTS), play a key role in the Clean Power 2030 Action Plan by ensuring the safe and efficient transport of gas and spearheading hydrogen infrastructure projects like Project Union and FutureGrid.
It announced that its Project Union will repurpose 1,500 miles of the National Transmission System (NTS) pipelines to transport 100% hydrogen, with initial infrastructure upgrades set for completion by 2026 and full operational capacity targeted for 2030 – aiming to create a national hydrogen backbone, connecting key industrial regions.
Simultaneously, its FutureGrid initiative is testing hydrogen compatibility in existing infrastructure, focusing on adapting pipelines to carry hydrogen safely and efficiently.
Key developments:
Project Union:
Will connect major hydrogen hubs like Teesside, Humberside, and Grangemouth, creating a resilient hydrogen network.
FutureGrid:
Testing up to 100% hydrogen blends in decommissioned pipelines to pave the way for national implementation.
Darren Davidson, UK Head of Siemens Energy, emphasised this, saying: “Hydrogen infrastructure is the foundation for a resilient, zero-carbon economy. We stand ready to power up Britain’s hydrogen economy.”
Industrial and regional impacts
The Clean Power 2030 Action Plan foresees hydrogen driving industrial decarbonisation, with significant regional development, especially in ‘hard-to-abate’ sectors like manufacturing and heavy industry.
Teesside and East Coast Cluster
Construction on the UK’s first Carbon Capture project begins mid-2025, enabling hydrogen-based industries such as chemical manufacturing and steel production to connect directly to the national hydrogen network, allowing for seamless integration with production hubs and storage facilities.
By supplying key industrial hubs and facilitating exports through strategically-positioned hydrogen ports, these projects will strengthen the national hydrogen economy and boost the UK’s competitiveness in the global clean energy market.
Industrial growth
The plan is expected to create jobs for engineers, technicians, and hydrogen specialists across the UK’s hydrogen corridor, particularly in regions hosting hydrogen production hubs and associated supply chain industries.
Economic forecasts suggest tens of thousands of long-term positions, with a focus on renewable energy technology development, manufacturing, and logistics.
Energy Secretary Ed Miliband said: “Hydrogen offers a path to clean industrial growth and energy security. It’s our bridge from fossil dependence to a sustainable, job-rich economy.”
Support for emerging hydrogen technologies
To complement these efforts, the government will expand funding mechanisms like the Clean Industry Bonus, designed to stimulate hydrogen research and deployment.
The expanded renewable energy auction process will also allow hydrogen projects to secure funding pre-planning approval, accelerating the development pipeline.
Fintan Slye, CEO of NESO, said: “The Clean Power Action Plan reflects our strategic vision for a renewable future supported by hydrogen and flexible grid technologies.”
Could it help fix the chicken-and-egg problem with UK hydrogen cars?
A well-developed hydrogen network could also solve the long-standing ‘chicken-and-egg’ problem in hydrogen mobility.
If hydrogen pipelines crisscross the country, linking production hubs with industrial clusters and storage sites, the logistical groundwork for nationwide hydrogen refuelling stations would be firmly in place.
This network would enable economies of scale, reducing hydrogen fuel costs while supporting the broader adoption of fuel-cell electric vehicles (FCEVs).
Fuel station operators could be more likely to build new refuelling stations if they can rely on consistent, competitively-priced hydrogen deliveries.
Long-term vision – Hydrogen as an export powerhouse
The government’s hydrogen vision extends beyond the Channel. Project Union’s design includes international interconnectors linking the UK to European hydrogen networks.
Hydrogen exports could become a vital economic engine as global demand grows, potentially enhancing the UK’s energy diplomacy and trade influence across Europe and beyond.
The Clean Power 2030 Action Plan signals the UK’s most decisive pivot toward a low-carbon future, though its success will depend on timely policy implementation, streamlined planning approvals, and investment incentives.
With integrated hydrogen infrastructure, accelerated project development, and a supportive regulatory environment, hydrogen could fuel not only UK industry but its global energy ambitions.