A coalition of major UK companies has announced a significant clean hydrogen initiative, Project HySpeed, aiming to invest £6.5bn into the UK economy and create approximately 24,300 jobs.
The project, which unites both FTSE 100 firms and small and medium-sized enterprises (SMEs), is a response to the UK government’s strategy to bolster the country’s position as a leader in clean energy.
Key players involved in the initiative include Centrica, Heidelberg Materials, ITM Power, JCB, Johnson Matthey and National Gas. Collectively, they aim to increase hydrogen production capacity to 1GW by 2030, thereby helping to cut carbon dioxide emissions by 1Mt annually.
This first-phase effort aligns with the government’s recent announcement of 27 shortlisted electrolytic projects, which are part of a broader commitment to develop a low-carbon hydrogen economy in the UK.
The secretary of state for science, innovation and technology Peter Kyle recently underlined the potential for Britain to take a leading role in hydrogen technology, telling The Times: “We cannot compete on cost in the production of batteries. That ship has sailed. But on hydrogen what we are doing in Britain is market leading.”
HySpeed aims to aid the country to fulfill this potential by establishing strategically located hydrogen production hubs to aid local economies and facilitate the integration of hydrogen into the national gas grid. This approach is intended to support the decarbonisation of various industries across the UK. The project also plans to enhance cost efficiency through combined procurement of equipment and services, optimised energy purchasing, and low-cost financing strategies, all with the goal of lowering the overall cost of green hydrogen production.
Moreover, the initiative is projected to generate an annual £2bn in Gross Value Added (GVA) through the establishment of new industrial supply chains and hydrogen production facilities. Many of the newly created jobs are expected to be in construction, operations and manufacturing, contributing to the UK’s Green Jobs Delivery Group’s target of creating 480,000 skilled green jobs by 2030.
The proposal was put forward by HydraB Power group, the group holding company of several “Road to Zero” businesses including Wrightbus, producer of the world’s first hydrogen-powered double decker bus, Ryze Power, which distributes hydrogen to fleet users and industrial customers and Hygen, a company focused on the building of low-carbon hydrogen production sites.
HydraB executive chairman Jo Bamford said: “Now more than ever the UK needs to stand on its own two feet, especially when it comes to our energy resources. Hydrogen offers us the opportunity to be energy secure and energy independent.
“Our conversations with the Department for Energy Security and Net Zero (DESNZ) have been hugely encouraging and we know the Government is keen to support clean energy projects of this size.”
ITM Power CEO Dennis Schulz said: “A consortium approach between credible industry players is the most effective pathway to the rapid scale-up of the UK’s green hydrogen economy.
“Comprising all elements of the hydrogen value chain from production to storage, transport and distribution, the initiative aims to locate green hydrogen generation in strategic locations across the UK. With volume come economies of scale, which will drive down costs and accelerate the market substantially.”
Centrica group CEO Chris O’Shea said: “There is no silver bullet to decarbonise the energy system. It will take every technology we have at our disposal to achieve Net Zero. The scale and ambition of this project has the potential to dramatically lower costs, making hydrogen roll-out affordable for Government and the private sector alike. Hydrogen can play a crucial role in tackling emissions from sectors that other clean energy sources can’t easily reach. It can be used to power the UK when the sun doesn’t shine, and the wind doesn’t blow.”
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