The UK government has announced over £500 million in new funding to develop hydrogen infrastructure, marking a significant step forward in the country’s clean energy transition.
The investment is expected to create thousands of skilled jobs in Britain’s industrial heartlands and support the country's ambition to become a global clean energy leader.
New regional hydrogen network
The funding will support the creation of the UK’s first regional hydrogen transport and storage network. This infrastructure will link hydrogen producers with major end users—such as power stations and heavy industry—helping to decarbonise key sectors and reduce reliance on imported fossil fuels.
Regions set to benefit include Merseyside, Teesside, and the Humber. The investment will not only deliver cleaner energy but also stimulate local economies by creating high-quality jobs across the supply chain.
Part of a broader clean energy push
This announcement is part of the government’s broader “Plan for Change,” which focuses on boosting energy security and long-term industrial growth. It coincides with additional funding commitments outlined in the Spending Review, including:
10,000 jobs at the new Sizewell C nuclear plant in Suffolk
A fusion reactor in Nottinghamshire
Up to 3,000 jobs from a small modular reactor (SMR) programme
Support for the Acorn carbon capture project in Scotland and the Viking project in the Humber
These efforts build on an existing pipeline of 4,000 jobs from carbon capture projects in the North West and Teesside.
Backing key manufacturing industries
Hydrogen is seen as essential for decarbonising industries such as steel, chemicals, ceramics, and glass. This investment underpins the government’s long-term vision for revitalising British manufacturing and will be detailed further in the upcoming Infrastructure Strategy.
Government and industry reactions
Energy Security Secretary Ed Miliband said:
“We are investing over half a billion pounds in our industrial heartlands to deliver jobs and energy security for Britain. By building hydrogen networks, we are securing homegrown energy that will power British industry for generations to come.
This will bring in the investment needed across the country to deliver our Plan for Change by unlocking clean energy and growth in our local economies”.
Brett Ryan, Head of Policy and Analysis at Hydrogen UK, welcomed the news:
“We welcome today’s announcement on hydrogen transport and storage infrastructure. Hydrogen networks are essential for a secure and resilient hydrogen sector, whilst ensuring sufficient energy storage capacity will be critical to energy security and affordability during the energy transition. We look forward to working with the government as we continue to deliver hydrogen’s role in reaching net zero and ensuring our energy security”.
Dr. Emma Guthrie, CEO of the Hydrogen Energy Association, added:
“This announcement is a key piece of the puzzle and represents very welcome government support to galvanise the UK’s regional hydrogen hubs. By investing in transport and storage infrastructure, the government is rightly joining the dots, connecting already supported hydrogen production with end users across power and industry.
This strategic thinking builds on the strength of our established industrial regions and supported clusters, unlocking clean energy potential while creating skilled jobs in places such as Merseyside, Teesside and the Humber. It’s a vital step forward on the UK’s journey to becoming a clean energy superpower”.
Building on existing investment
Hydrogen has already attracted £400 million in private investment in locations like Milford Haven in Wales and High Marnham in Nottinghamshire. The new government support is expected to significantly boost this momentum, creating thousands of new roles for engineers, construction workers, pipefitters, operations specialists, apprentices, and graduates. Photo by UKinUSA from Washington, D.C., USA, Wikimedia commons.