The UK government has confirmed over £500 million in new hydrogen infrastructure funding, with the aim of creating thousands of skilled clean energy jobs in Merseyside, Teesside and the Humber.
The announcement forms part of a wider Plan for Change strategy to position Britain as a clean energy superpower and reduce reliance on volatile fossil fuel markets.
The new funding will support development of the UK’s first regional hydrogen transport and storage network, linking producers with industrial users and power stations.
Energy secretary Ed Miliband said the investment would “deliver jobs and energy security for Britain” and “bring in the investment needed across the country to deliver our Plan for Change”.
The government said the investment will also support hydrogen’s role in decarbonising hard-to-abate sectors such as iron, steel, chemicals and heavy transport, while enabling long-term energy storage for periods of peak demand.
The announcement builds on previous support for low-carbon hydrogen production through the Hydrogen Allocation Rounds, including £2 billion allocated to 11 projects under the first HAR.
Hydrogen UK head of policy Brett Ryan welcomed the announcement, calling networks “essential for a secure and resilient hydrogen sector”.
Dr Emma Guthrie, CEO of the Hydrogen Energy Association, said the plan would help “galvanise the UK’s regional hydrogen hubs” and support the “creation of skilled jobs in places such as Merseyside, Teesside and the Humber”.
The hydrogen sector has already attracted £400 million of private investment across the UK, including projects in Milford Haven and High Marnham.
In addition to hydrogen, the Spending Review confirmed funding for new nuclear and fusion developments and support for the Acorn and Viking carbon capture projects.