The government has announced a £500 million funding package to create the first regional hydrogen transport and storage network in the UK.
Allocated through the Spending Review, the investment into the new network will see hydrogen producers connected with vital end users, spanning the likes of power stations and industry, for the very first time. Not only is it expected to help drive forward the UK’s clean energy ambitions, but it will also lead to “thousands of skilled jobs” across Merseyside, Teesside and the Humber, as well as more in the supply chain.
The Spending Review also saw the green light given to Sizewell C in Suffolk, backing for fusion energy and a Small Modular Reactor programme, as well as funding to help kickstart the development of carbon capture, usage and storage (CCUS) projects. This includes maximising deployment to fill the storage capacity of the East Coast Cluster and HyNet Cluster, as well as development funding to support the Acorn Project in Scotland, as well as the Viking Project in the Humber.
The backing for a hydrogen transport and storage network will add to the jobs already set to be created thanks to CCUS projects in the North West and Teesside, while supporting manufacturing sectors that are likely to need hydrogen. This includes the iron, steel, glass, chemicals and ceramics sectors.
Hydrogen East Chair, Anne Haase said: “Today’s announcement of over £500 million in hydrogen infrastructure is a major milestone in the UK’s clean energy transition, and it presents a significant opportunity for the East of England. With strategic assets such as Sizewell, Bacton, and our growing offshore wind capacity, this region is uniquely placed to become a national hub for low carbon hydrogen production, transport and storage.”
Haase continued: “The investment will not only support decarbonisation of our energy and industrial systems, but also deliver high-quality skilled jobs across Suffolk, Norfolk and Essex – from engineering and construction to operations and innovation. This is a chance to build on the East’s energy legacy and secure its future as a clean energy powerhouse. We welcome the government’s commitment and urge continued support to unlock the full potential of hydrogen in the East of England – accelerating regional growth while helping the UK meet its net zero goals.”
