The UK government has announced a £500M investment to establish the country’s first regional hydrogen transport and storage network.
The scheme aims to link hydrogen producers with key end users, including power stations and industrial facilities, marking a significant step towards enhancing the nation’s clean energy infrastructure.
This funding, revealed as part of the latest Spending Review, is expected to stimulate job creation across several industrial areas such as Merseyside, Teesside and the Humber. Officials estimate that thousands of skilled roles will emerge not only within these regions but also across related supply chains, offering employment opportunities in trades including engineering, welding, construction, pipefitting and operations.
The development forms part of a broader government strategy to reduce dependence on volatile international fossil fuel markets while supporting the manufacture of hydrogen-dependent materials such as iron, steel, glass, chemicals, and ceramics. The government said that hydrogen’s potential for decarbonising challenging sectors, such as heavy transport and refineries, as well as providing scalable energy storage during peak demand, underpins this investment.
This injection for a regional hydrogen network builds upon previous investments that have already generated approximately 4,000 jobs within carbon capture, usage, and storage (CCUS) initiatives across the North West and Teesside. The government’s wider industrial strategy, with further details anticipated in an upcoming Infrastructure Strategy report, aims to secure Britain’s manufacturing future by fostering low-carbon technologies.
Further backing will support ongoing low-carbon hydrogen production through the continuation of Hydrogen Allocation Rounds (HARs). The first round allocated over £2bn to eleven projects, demonstrating significant government support for expanding the sector. Private investment has also shown confidence, with £400M committed to hydrogen initiatives in places like Milford Haven in Wales and High Marnham in Nottinghamshire.
While the government is positioning hydrogen as a cornerstone technology for the UK’s clean energy transition, the success of these plans depends on continued investment, technological innovation, and the development of a skilled workforce to meet growing industry demands.
Alongside the hydrogen network funding, the Spending Review highlighted further commitments to clean energy job creation. Notably, the Sizewell C nuclear power station in Suffolk is projected to generate 10,000 jobs. In Nottinghamshire, plans include the construction of a new fusion reactor on a former power station site, while the small modular reactor programme could produce up to 3,000 positions. Additionally, funding will advance the Acorn carbon capture and storage project in Scotland and the Viking project in the Humber region.
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.”
Hydrogen UK 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.
Hydrogen Energy Association CEO Emma Guthrie said: “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.”
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