United Kingdom

Hydrogen Strategy update to the market: December 2024

The United Kingdom’s National Hydrogen Strategy has been regularly updated since its publication, providing stakeholders with a summary of the government’s recent activities and funding opportunities. The latest update was in December 2024. The strategy focuses both on electrolytic and low-carbon hydrogen, enabled via CCUS or other production pathways. Targets remain unchanged from 2023.

PRODUCTION

The current national target for hydrogen production is up to 10 GW of low-carbon hydrogen, production capacity by 2030 with at least half of it electrolytic (5 GW). Further interim targets are to have up to 1 GW of CCUS-enabled and up to 1 GW of electrolytic hydrogen in construction or operational by 2025, which will be reviewed at the Hydrogen Delivery Council meeting in early 2025. Support is provided under different funding schemes for different pathways, if they comply with the UK Low Carbon Hydrogen Standard. Support of up to £21.7 billion (€25.5 million) was announced for the 11 successful Hydrogen Allocation Round 1 (HAR1) projects to launch the UK’s new carbon capture, utilisation and storage industry. These 11 projects have a total capacity of 125 MW.

TRANSMISSION AND DISTRIBUTION

Development of transport infrastructure will be focused on large-scale infrastructure. Storage development will be focused on geological storage, with above ground storage in certain cases and it will be developed under private law contracts with a revenue floor and an incentive to sell storage capacity. Both the Hydrogen Storage and Hydrogen Transport Business Models will be designed by 2025 and include an ambition of incentivising the development of regional pipeline infrastructure to be in operation or construction by 2030, as well as an ambition to support up to two storage projects at scale to be in operation or construction by 2030.

The National Energy System Operator was launched in October 2024, which is to be responsible for strategic planning of hydrogen transport and storage infrastructure from 2026. Early hydrogen projects will be established in areas where hydrogen transport and storage infrastructure can be built, to help prioritise strategically significant projects.

A consultation on transmission-level blending will be held in 2025, to provide clarity to Industry on blending hydrogen with the existing natural gas transmission system.  

TRADE

The strategy focuses on hydrogen exports from the UK to continental Europe, the US, Brazil, Azerbaijan and Chile. UK companies are entering into strategic partnerships to accelerate exports of their world-leading technologies globally. Hydrogen trade is being facilitated by keeping the standards and certification for low carbon hydrogen consistent with international standards and schemes where appropriate.

RESEARCH AND DEVELOPMENT

The UK is advancing hydrogen technologies through its £1 billion Net Zero Innovation Portfolio and wider public sector support, focusing on production, infrastructure, and application across key sectors. The supported projects include energy production, with projects focused on green hydrogen from offshore wind and bioenergy sources; heavy industry, particularly steel manufacturing; and public services, such as crematoriums transitioning to hydrogen fuel.

There is also significant activity in aviation, with investments in hydrogen storage and aircraft integration, and in transport and infrastructure, addressing hydrogen distribution, compression, and purification. Additionally, the government is supporting research, education, and regional development to build skills and regional hydrogen ecosystems across the UK.

CROSS-CUTTING

The Hydrogen Delivery Council brings together stakeholders from across the hydrogen value chain and is the primary forum for government and industry to collaborate in achieving the UK’s hydrogen ambitions. The Hydrogen Skills Strategy is still awaiting publication. 

END-USES

Mobility

The UK Government is working to integrate hydrogen into the transport sector as part of its broader decarbonisation strategy, focusing on heavier transport applications such as aviation, shipping, heavy goods vehicles (HGVs), and some public transport, while recognising that battery electrification will remain dominant for cars, vans, and buses. The Tees Valley Hydrogen Transport Hub exemplifies a cross-modal approach, combining hydrogen supply and transport applications to demonstrate commercial viability.

In maritime, hydrogen and its derivatives are being supported through policy and investment, including £129 million for 142 Clean Maritime Demonstration projects and international negotiations to promote low-emission shipping fuels.

In aviation, the UK has implemented a Sustainable Aviation Fuel (SAF) Mandate, which will require increasing use of sustainable fuels from 2025, with hydrogen-supported SAF eligible under the scheme. 

For ‘surface’ transport, hydrogen is being tested in HGVs and rail, including through the Zero Emission HGV Demonstrator and projects like HydroFLEX, the UK's first hydrogen train. Hydrogen is also supported through the Renewable Transport Fuel Obligation, with ongoing review and stakeholder consultation.
 

Industry

Hydrogen is expected to play a key role in decarbonising hard-to-electrify industrial processes, particularly where high temperatures or specific chemical inputs are required. Sectors with near-term opportunities include chemicals, refineries, off-road machinery, and industries like glass and ceramics. 

The focus is especially on industrial clusters, where shared infrastructure and early access to hydrogen supply can lower costs and accelerate adoption. To support this transition, the government has introduced several initiatives. These include the Industrial Energy Transformation Fund (£500 million) to support energy-intensive sites and machinery, and the Local Industrial Decarbonisation Plans competition (£6 million) to help clusters develop decarbonisation strategies. Additional efforts include the development of new safety and performance standards (PAS 4445) for hydrogen-fired equipment, a review of Decarbonisation Readiness requirements for industrial heat plants, and an upcoming government-led review into the use of hydrogen in primary steel production.

Energy

The UK Government’s Clean Energy Superpower Mission aims to deliver clean power by 2030 and accelerate net zero, with hydrogen playing a key role through "hydrogen to power"—the use of low carbon hydrogen for electricity generation. This technology offers long-duration, flexible, and low carbon generation essential for a renewables-led power system, particularly at lower load factors. The government is developing a Hydrogen to Power Business Model, supported by the Dispatchable Power Agreement, to accelerate deployment and enable participation in the Capacity Market.

Heating

The government is reconsidering the role of hydrogen in home heating, with a decision initially planned for 2026 now under review due to evolving circumstances, including the cancellation of village trials and a pause on town pilot planning. A consultation on this topic is expected in 2025, following a review of the latest evidence. The Health and Safety Executive continues to assess hydrogen heating safety, with results due in 2026.