The Government has announced 11 new production projects which will help to place the UK at the forefront of the hydrogen industry and work towards Net Zero ambitions.
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.
Earlier this month, Energy Security Secretary Claire Coutinho announced backing for 11 major projects to produce green hydrogen – through a process known as electrolysis – and confirmed suppliers will receive a guaranteed price from the government for the clean energy they supply.
This represents the largest number of commercial scale green hydrogen production projects announced at once anywhere in Europe, helping to place the country at the forefront of this emerging industry. Unlike blue hydrogen, which is formed using fossil fuels and capturing the carbon emissions, green hydrogen is made by using renewable energy to split water – helping provide cleaner fuel for energy intensive industries and transport.
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
Energy Security Secretary Claire 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. Today’s 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 deliver new opportunities from Plymouth in England to Cromarty in Scotland.”
