10 November 2026
The Hydrogen Energy Association (HEA) has called on the UK Government to provide clearer funding arrangements and delivery timelines for the hydrogen sector, warning that uncertainty could affect investment decisions, supply chain development and job creation. The association is seeking greater certainty over the second Hydrogen Allocation Round (HAR2), future support mechanisms and the infrastructure required to transport and store hydrogen.
The Hydrogen Energy Association (HEA)
The call follows the Government’s confirmation of funding for the first allocation round, plans to progress HAR2 and the potential availability of up to £300 million in government-backed loans and equity investment for strategically important projects. The proposed financial support remains subject to affordability and value-for-money considerations.
The HEA said developers needed greater visibility over the timing of the HAR2 Invite to Offer stage and subsequent funding decisions. It also highlighted uncertainty surrounding the development of hydrogen transport and storage infrastructure, including the implications of a £500 million reduction in planned capital grant expenditure for these areas.
Dr Emma Guthrie, chief executive of the HEA, said that clearer timelines, transparent funding arrangements and a defined direction for the sector would help developers, investors and supply-chain businesses make longer-term investment decisions.
The association also highlighted the potential role of hydrogen in industrial applications where direct electrification is technically challenging or prohibitively expensive. It said production, transport, storage and demand needed to develop in a coordinated way to support the emergence of a commercially viable market.
The HEA is calling for a delivery roadmap covering production, demand, transport and storage infrastructure, investment mechanisms and future allocation rounds. It has offered to work with ministers and officials on the development of the sector.
