Going for green: how the UK can remain a global hydrogen leader.

Despite a myriad of defeatist rhetoric in recent years over the future of the hydrogen economy, the slow inexorable growth of green hydrogen projects across the UK paints a much brighter picture than its detractors would suggest. 

Hydrogen’s versatility as an energy source is a key part of its value, from localised on-site generation to Gigawatt-scale production and transmission. 

With the UK Government set to announce a revised hydrogen strategy, now is opportune to assess the current state of the green hydrogen sector and the actions needed to support its development. 

The current landscape 

The government’s 2021 Hydrogen Strategy set a target for 5GW of green hydrogen production by 2030, with the primary aim of scaling up production and cultivating demand. Five years on, generation remains a significant hurdle. 

The Hydrogen Allocation Rounds (HARs) mechanism has helped to establish a small pipeline of projects, with a combined capacity of 125MW anticipated by 2028. HAR2, for its part, has shortlisted projects totalling 765MW of potential capacity, with those allocated funding to be announced shortly. 

Private enterprise has also progressed its own generation solutions. Equinor and Centrica are developing plans to transition the gas terminal at Easington – one of the UK’s largest sites for gas imports – into a hub producing up to 1GW of green hydrogen. While others, such as Hynamics and Four Zeros Energy, are utilising green hydrogen to displace fossil fuels in local industries, including the ExxonMobil Petrochemical Complex in Fawley and St Austell Green Hydrogen respectively. 

In the past six-months, we’ve also witnessed a number of advancements in transport and storage. Exeter Airport trialled the first use of multiple hydrogen-powered ground support equipment; Network Rail demonstrated the first transportation of hydrogen by train; and Severn Valley Railway unveiled the HydroShunter – one of the first hydrogen-powered shunting engines. 

Elsewhere, Centrica and National Gas recently celebrated the successful injection of a 2% blend of green hydrogen into the gas grid at Brigg Power Station, while a consortium of partners continue to progress the HyNet Hydrogen Pipeline aimed at creating the UK’s first decarbonisation cluster for heavy industries. 

Looking to the future 

The UK’s nascent hydrogen economy has great potential, yet policy and regulatory certainty from lawmakers is imperative. 

The Hydrogen Energy Association recently warned ministers that continued delays around HAR and the long-awaited refresh of the Hydrogen Strategy could undermine the UK’s comparative advantage and lead to a loss of both jobs and investment by 2030. 

Key demands from advocates like RenewableUK and Green Alliance include: 

• Identification of priority hydrogen sectors: Establishment of a hydrogen hierarchy to steer investment toward energy-intensive industries for whom electrification is not possible and where the displacement of natural gas will lead to greater efficiency and savings. This will ensure sustainable demand and generation in the longer term. 
• Reducing production costs: The high cost of electricity relative to international competitors is hindering the production of green hydrogen and greater support is needed to boost competitiveness and commercial viability. 
• Support for a strategic hydrogen transmission network: A strategy for a core hydrogen network connecting mainland Britain, including timelines and funding mechanisms, is vital for developers to plan projects which can be integrated into a national system. This includes guidance on the role of long-duration storage in supporting the deployment of renewables. 

The window for green hydrogen to play a significant role in the UK’s transition to net zero is rapidly closing. The decisions made by government in 2026 will ultimately determine whether we secure the long-term viability, and benefits, of the green hydrogen economy.