The Renewable and Low Carbon Energy website

for farmers and landowners

UK Hydrogen market offers nearly £11bn of economic and environmental benefits says report

Case Studies

A new report from the Green Hydrogen Alliance has found that nearly £11bn of economic benefits could be gained from an acceleration of the UK’s green hydrogen market, bringing with it over 1.7 million tonnes of CO2 reductions a year.

The report shows that three 300MW production facilities, located in the port areas of the Humber, Thames Estuary and South Wales could act as hubs for rapid onshore hydrogen production, providing these significant economic and environmental benefits and driving regeneration in deprived areas.

Key findings include:

  • Carbon reduction: Over 1.7 million tonnes of carbon dioxide emissions would be reduced every year, equivalent to taking 60,000 diesel lorries off the road.
  • Levelling up: local authorities in the port areas would gain an average £480 million from hosting green hydrogen production facilities.
  • Energy security: The plan would add 900MW of green hydrogen capacity – capable of producing 18% of the Government’s 2030 target.
  • Job creation: Over 8,000 jobs would be created directly in operation sites, plus many more in supply chains across the country.

Launched earlier this year, the Green Hydrogen Alliance is an independent business group, representing some of the leading companies involved in the supply and use of green hydrogen technologies, including Airbus, Air Products, World Kinect and Tata Steel. 

The group are also calling for new measures to kick-start a green hydrogen market, through a variety of pathways, including widening options for feedstock imports and streamlining planning permissions for production and distribution infrastructure. 

Alex Stafford MP, the Chair of the Hydrogen All Party Parliamentary Group said:

“This report highlights the immense economic and employment opportunities that former industrial areas across the UK stand to gain from accelerating our green hydrogen economy. The UK has a real chance to lead the way in green hydrogen, especially when British innovation in this area is combined with our rich industrial heritage, but we must go further and faster to make a hydrogen economy a reality in the UK.”

A Green Hydrogen Alliance spokesperson said:

“Green hydrogen will be an important part of the UK’s future and journey to decarbonising. This report demonstrates the significant benefits that the UK can reap if we create the right investment environment to kickstart a flourishing green hydrogen market.”

The report can be downloaded in full from the group’s website.


Advice & Opportunities