UK provides £2 billion in funding for 11 major hydrogen projects

The UK government today has announced backing for 11 major projects to produce commercial scale green hydrogen at projects spread across the country.

According to the government, over 700 jobs will be created across the UK in a world-leading hydrogen industry from the South West of England to the Highlands of Scotland, backed by £2 billion in government funding over the next 15 years.

Energy Security Secretary Claire Coutinho confirmed suppliers will receive a guaranteed price from the government for the clean energy they supply.

In return for this government support, the successful projects will invest over £400 million in the next 3 years, generating more than 700 jobs in local communities across the UK and delivering 125MW of new hydrogen for businesses including:

  • Sofidel in South Wales, who will replace 50% of their current gas boiler consumption with hydrogen at their Port Talbot paper mill
  • InchDairnie Distillery in Scotland, who plan to run a boiler on 100% hydrogen for use in their distilling process
  • PD Ports in Teesside, who will use hydrogen to replace diesel in their vehicle fleet, decarbonising port operations from 2026

Commenting on the news, Coutinho said: “Hydrogen presents a massive economic opportunity for the UK, unlocking over 12,000 jobs and up to £11 billion of investment by 2030. [The] 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 

Sopna Sury, COOr Hydrogen RWE Generation added: [The] announcements on the first two hydrogen allocation rounds mark a significant milestone in the development of the UK hydrogen economy.  They represent a shift from policy development to project delivery, giving industry more clarity on the route to final investment decisions.  Alongside the wider policy publications, this demonstrates that the UK wants to be a leader in delivering the clean energy transition.”

“These early projects are vital not only in driving the production of electrolytic hydrogen but also in signalling the need to build-out the T&S infrastructure for its wider distribution.”