The North West could be set for an economic boost of £3.4bn and see 11,500 jobs created by 2030 through the hydrogen sector.
The North West Hydrogen Alliance (NWHA) sought to explore the potential economic impact of hydrogen deployment in the region between 2024 and 2030. It is home to some of the most well-developed hydrogen projects in the country, such as HyNet, as well as a quarter (31.5MW) of the electrolytic capacity that was made an offer through the Hydrogen Allocation Round 1 (HAR1) process.
With salt layers for hydrogen storage, a large industrial cluster, and offshore geology that is suitable for storage of carbon dioxide, these characteristics make the region an ideal candidate for early hydrogen adoption.
Therefore, exploring the impact of hydrogen deployment in the North West, it is expected it could see over 5,000 jobs in 2030 on a direct basis as part of an overall 11,500 direct and indirect roles. Going by a cumulative employment years basis, the potential impact would be 37,000 full-time equivalent years by 2030 on a total basis.
There is also substantial potential for economic growth too, with the hydrogen sector capable of contributing almost £500mn of Gross Value Added (GVA) on a direct basis in 2030. Cumulative GVA is forecast to be between £1.5bn and £3.4bn on a direct and total basis between 2024 and 2030.
The NWHA noted that these impacts are spread across different elements of the hydrogen value chain, with production, infrastructure and end use all making significant contributions. Hydrogen production is set to have the biggest impact, however.
Interim Chair of the NWHA, Dave Richardson, said: “With projects like HPP1, HyNet and Trafford Green Hydrogen currently underway, there’s already plenty of opportunities to get involved in the net zero transition, whether you’re starting out in your career or looking to transfer skills honed in other sectors. Developing a hydrogen economy will also help safeguard many thousand more jobs as industry in the region switches to this low carbon fuel on their decarbonisation journey.”
