UK Government Allocates £21 Million to Diverse Hydrogen Projects Nationwide

A diverse array of hydrogen production initiatives spanning Suffolk to Pembroke via Aberdeen and the Shetlands have clinched a portion of government funding totaling £21 million. These projects aim to bolster the UK's inventory of clean, domestically sourced hydrogen fuel, earmarked for utilization by buses, trains, and local enterprises.

The Department for Energy Security and Net Zero (DESNZ) disclosed that among the funding recipients are four ventures dedicated to hydrogen production for various sectors, including automotive and pharmaceuticals, and three endeavors focused on producing and distributing hydrogen as a transportation fuel.

In a significant development unveiled yesterday, the seven funded projects are anticipated to augment the UK's hydrogen production capacity by 800MW, aligning with the government's ambition to establish up to 10GW of low-carbon hydrogen production capacity by 2030.

Concurrently, the government has initiated a call for evidence to shape the £960 million Green Industries Growth Accelerator fund. This fund aims to fortify the supply chain for hydrogen, carbon capture, usage, and storage (CCUS), engineered greenhouse gas removals, and civil nuclear projects.

Claire Coutinho, Secretary for Energy Security and Net Zero hailed the government's commitment to solidifying the UK's position as a global frontrunner in hydrogen innovation. She underscored the significance of the funded projects in augmenting the nation's clean energy reserves, poised for deployment in various sectors.

The funded projects encompass Hydrab Power's consortium, which plans to establish a network of hydrogen production and refueling stations in Suffolk, serving a spectrum of clients, including vehicles catering to the adjacent Sizewell C nuclear site. BP and Aberdeen City Council have also secured funding to establish a new hydrogen hub in Aberdeen, catering to the local hydrogen-electric bus fleet.

Veri Energy has garnered support to construct a 50MW green hydrogen production facility in Shetland. At the same time, EDF Renewables and Hynamics are set to develop a 200MW electrolyzer to supply a proposed e-methanol plant at Teesport, aimed at producing low-carbon shipping fuel.

Furthermore, RWE has received funding to facilitate the development of a 200MW green hydrogen electrolyzer facility at its Pembroke power station in Wales, while Grenian Hydrogen is exploring the viability of establishing a new hydrogen electrolyzer facility near Liverpool.

Clare Jackson, CEO of the trade association Hydrogen UK, welcomed the series of funding awards. "Today's endorsement of seven pioneering hydrogen projects underscores the transformative power and versatility of hydrogen as a bedrock for secure, clean energy solutions," she said. 

"Such pivotal announcements fortify the UK's burgeoning hydrogen economy, accelerating us towards meeting our ambitious production." 

The announcement follows separate government funding announced in December last year for 11 significant new hydrogen production projects, which it expects to support 700 jobs and unlock £400m in new investment.

Minister for Energy Efficiency and Green Finance Lord Callanan said the government expected hydrogen "to play a vital role in decarbonizing businesses and transport as we work towards meeting our net zero targets."

"These new projects announced today are further proof of our enduring commitment to supporting the UK's growing hydrogen industry on that journey," he said.