The UK government has today announced over £500 million in funding to supercharge the country’s hydrogen economy, in a move set to create thousands of skilled jobs and establish the UK as a clean energy superpower.

Unveiled as part of the government’s Plan for Change, the investment will support the development of Britain’s first regional hydrogen transport and storage network. The infrastructure will connect hydrogen producers with major industrial end users, including power stations and heavy industry, helping to drive down emissions while revitalising traditional industrial heartlands.

Regions including Merseyside, Teesside and the Humber are poised to benefit from this transformative funding, with the promise of new roles for engineers, welders, construction workers, pipefitters and operations specialists. The funding is expected to bolster the manufacturing sectors most likely to rely on hydrogen, including iron, steel, glass, chemicals and ceramics.

A national effort to secure energy independence

Energy Security and Net Zero 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.”

The initiative comes amid a wider Spending Review announcement that sets out substantial investments in clean energy across the UK, including:

• 10,000 jobs at the Sizewell C nuclear project in Suffolk

• A new fusion reactor on the site of a former coal power station in Nottinghamshire

• Up to 3,000 jobs through the Small Modular Reactor programme

• Funding for the Acorn carbon capture project in Scotland and the Viking project in the Humber

• 4,000 jobs already underway via Carbon Capture, Utilisation and Storage (CCUS) projects in the North West and Teesside

Building a clean hydrogen economy

The investment aims to unlock hydrogen’s potential as a key pillar in the UK’s decarbonisation strategy, enabling its use in refineries, heavy transport, and long-term energy storage. The network will support the ongoing Hydrogen Allocation Rounds (HAR), building on the success of the first round, which allocated over £2 billion to 11 low-carbon hydrogen projects.

Industry voices have welcomed the news. Brett Ryan, Head of Policy and Analysis at Hydrogen UK, said: “Hydrogen networks are essential for a secure and resilient hydrogen sector. Ensuring sufficient storage capacity will be critical to energy security and affordability during the energy transition.”

Dr Emma Guthrie, CEO of the Hydrogen Energy Association, added: “This announcement is a key piece of the puzzle... 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.”

Private investment already flowing

The hydrogen sector has already attracted £400 million in private investment in locations such as Milford Haven in Wales and High Marnham in Nottinghamshire. Today’s government commitment is expected to catalyse further growth, including new apprenticeship schemes and technical training programmes.

More detailed plans will be outlined in the upcoming Infrastructure Strategy, expected to set the long-term vision for Britain’s low-carbon industrial transformation.

With this investment, the UK takes a significant step towards realising a net zero economy, strengthening energy independence and ensuring communities across the country benefit from the clean energy transition.