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Government pledges £500m to boost UK hydrogen network

  • Publish Date: Posted 3 days ago
  • Author: Steve Walia

The UK government has announced over half a billion pounds in funding to accelerate the rollout of a national hydrogen transport and storage network, aiming to support regional industry and cement Britain's role in the clean energy sector.

This investment will underpin the development of the country's first large-scale hydrogen infrastructure, connecting producers with major users in power generation and manufacturing. It is expected to support thousands of jobs across industrial regions including Merseyside, Teesside and the Humber.

The funding is part of a wider national strategy to strengthen energy independence and transition away from fossil fuels. By establishing a dedicated hydrogen network, the government aims to reduce emissions in sectors that are difficult to decarbonise through electrification, such as steelmaking, chemical processing and heavy freight.

Hydrogen is also seen as a potential solution for large-scale energy storage, helping to balance the electricity grid during peak periods.

This latest funding follows previous commitments made under the Hydrogen Allocation Rounds, a government initiative designed to scale up low-carbon hydrogen production. More than £2 billion was allocated to 11 projects during the first round of support, with further rounds expected.

Industry organisations have responded positively, citing the critical role of transport and storage infrastructure in building a reliable and future-proof hydrogen economy. Several hubs around the country have already attracted significant private backing, including projects based in Milford Haven and High Marnham, contributing over £400 million in additional investment.

Alongside the hydrogen plans, the recent Spending Review also confirmed continued government support for other low-carbon technologies. These include new developments in nuclear and fusion energy, as well as progress on carbon capture schemes such as the Acorn and Viking projects, which are intended to cut industrial emissions and support the UK's climate goals.