£500m hydrogen boost to back UK transport and storage buildout
The UK government has confirmed over £500 million of funding to support new hydrogen transport and storage infrastructure, in what it claims will create “thousands” of clean energy jobs across key industrial regions.
The money, announced in Wednesday’s Spending Review, will go towards developing the UK’s first regional hydrogen network, linking production hubs with major industrial and power sector users via new pipeline and storage infrastructure.
Backed under the government’s “Plan for Change”, the investment is pitched as a major step in Britain’s push to become a “clean energy superpower” – and one that ministers say will deliver long-term energy security, support decarbonisation, and stimulate growth in places like Merseyside, Teesside and the Humber.
Connecting the dots
According to the Department for Energy Security and Net Zero (DESNZ), the funding will help enable hydrogen to serve industrial sectors including steel, glass, chemicals, and ceramics, and provide long-duration energy storage to support the grid during peak demand periods.
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.”
Hydrogen UK’s head of policy and analysis, Brett Ryan, welcomed the announcement, calling transport and storage infrastructure “essential for a secure and resilient hydrogen sector”, while Hydrogen Energy Association CEO Dr Emma Guthrie described it as “a key piece of the puzzle”, connecting supported hydrogen production with actual end users.
Guthrie said: “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.”
Wider clean energy push
The hydrogen announcement formed part of a broader Spending Review package aimed at clean energy job creation. Other measures included:
- £20bn for carbon capture and storage, including new support for the Acorn and Viking projects in Scotland and the Humber
- 10,000 jobs at Sizewell C nuclear plant in Suffolk
- A new fusion reactor in Nottinghamshire
- Up to 3,000 jobs from the Ssmall Mmodular Rreactor (SMR) programme
In hydrogen specifically, the government says £400 million of private investment has already been drawn into towns such as Milford Haven in Pembrokeshire, Wales and High Marnham in Nottinghamshire, and that its ongoing Hydrogen Allocation Round (HAR) process will continue.
The next HAR round is expected to award more production contracts later this year.
Further details on the infrastructure rollout – including exact project locations and timelines – are expected in the government’s upcoming Infrastructure Strategy.
