The Government has announced a major £400million investment into the hydrogen sector for the next three years, including a huge boost to transport.
Eleven new production projects will receive investment to help grow the UK’s green economy and support the production and use of hydrogen.
As part of the funding, over 700 new jobs will be created across the UK in a “world-leading” hydrogen industry from southern England to the Highlands of Scotland.
This represents the largest number of commercial-scale green hydrogen production projects announced at once anywhere in Europe.
The hydrogen industry could unlock £11billion of further investment by 2030
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Energy Security Secretary Claire Coutinho backed the move, saying the UK would be leading the way forward in the use of hydrogen across a number of sectors.
The new funding will deliver 125 megawatts of new hydrogen for businesses including PD Ports in Teesside.
As part of the new measures, the company will use hydrogen to replace diesel in their vehicle fleet, helping them decarbonise port operations from 2026.
Green hydrogen uses electrolysis and renewable energy whereas blue hydrogen is formed using fossil fuels and captures the carbon emissions.
This allows the Government to back the use of cleaner fuels with green hydrogen, which can help energy intensive industries and the transport sector.
Clare Jackson, CEO of Hydrogen UK, said the funding was critical to growth across the country and would help kickstart domestic production.
She said: “HAR1 (first Hydrogen Allocation Round) and the various other documents including a thorough Update to the Market, the Hydrogen Production Delivery Roadmap and the Transport and Storage Networks Pathway are important steps forward for the UK’s hydrogen economy.
“Today, Hydrogen UK also released an industry-led report on supply chains. Working together, industry and Government have a responsibility to channel investment into our supply chains, thereby cementing the UK’s stature as a global frontrunner in hydrogen production and its diverse end-use applications.”
The Government’s Hydrogen Transport and Storage Networks Pathway stated that the cleaner fuel would play an important role in decarbonising heavier transport applications.
It highlighted how manufacturers were also making progress in pushing hydrogen fuel cell vehicles to the market.
Many see these vehicles as an ideal middle ground for long-haul travel given the cut in emissions and the long range that drivers will be used to when driving a diesel vehicle.
One of the projects that received funding today was a hydrogen production facility in Bradford which could be worth £900million and create over 9,000 jobs by the end of the decade.
The partnership between Hygen and N-Gen will boost the production of hydrogen with hopes that it could achieve the decarbonisation equivalent of removing 800 diesel-fuelled buses a day from West Yorkshire roads.
Claire Coutinho said: “Hydrogen presents a massive economic opportunity for the UK, unlocking over 12,000 jobs and up to £11billion of investment by 2030.
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The UK could launch a world-leading hydrogen production industry
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“Today’s announcement represents the largest number of commercial scale green hydrogen production projects announced at once anywhere in Europe.
“These 11 major new hydrogen projects across the UK will create over 700 jobs and deliver new opportunities from Plymouth in England to Cromarty in Scotland.”