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Hydrogen sector to bring economic boost to North West England

  • Publish Date: Posted 16 days ago
  • Author: Steve Walia

​A report from the North West Hydrogen Alliance has revealed that the development of a hydrogen sector could inject £3.4 billion into the North West of England's economy. This initiative is expected to create over 11,000 jobs, providing significant economic benefits and opportunities for the region.


The report explores the economic impact of hydrogen activities across the value chain. Hydrogen production is projected to have the most substantial effect on both employment and gross value added. The construction, engineering and manufacturing sectors are anticipated to see the most job creation as essential hydrogen infrastructure is built.


The demand for hydrogen in the area is set to rise sharply in the coming years, driven by the region's industrial strength. A report from February 2024 indicated that demand could reach 2GW by 2030, escalating to 7.5GW by 2050. A significant portion of this demand is likely to come from the transport sector and heating buildings.


The UK government has been supportive of hydrogen development in the North West. In 2021, the government allocated £171 million to the Industrial Decarbonisation Fund, which focused on hydrogen and carbon capture and storage. Nearly £33 million was earmarked for HyNet North West projects aimed at capturing and storing carbon emissions and developing a hydrogen economy. These projects include repurposing old oil and gas facilities for carbon transportation and storage.


The NWHA emphasises the North West's strategic advantage in leading the hydrogen transition. Ongoing projects like HyNet, HPP1, and Trafford Green Hydrogen provide numerous opportunities for those starting their careers or transferring skills from other sectors. The development of a hydrogen economy is not only expected to create thousands of new jobs but also to safeguard existing ones by enabling industries in the region to switch to low-carbon fuels.