UK government unveils €2.3 billion hydrogen investment plan

UK plans to develop up to 10GW of green hydrogen capacity by 2030. Image: Adobe Stock

Energy Security Secretary Claire Coutinho announced the investment in 11 major projects from southwest England to the Highlands of Scotland.

The funding represents the largest number of commercial-scale green hydrogen production projects simultaneously announced in Europe.

In return for government support, the projects are expected to inject over €460 million into the economy over the next three years.

The initiatives include Sofidel in South Wales, which is planning to replace 50% of its current gas boiler consumption with hydrogen at its Port Talbot paper mill; InchDairnie Distillery in Scotland, aiming to use 100% hydrogen in its distilling process; and PD Ports in Teesside, set to decarbonise port operations from 2026, by replacing diesel in its vehicle fleet with hydrogen.

Hydrogen’s net zero boost

Coutinho emphasised the economic potential of the hydrogen industry, projecting over 12,000 jobs and up to €12.8 billion in investment by 2030.

The funding marks a milestone in scaling up the UK’s hydrogen economy, aligning with the government’s ambition to deploy up to 10GW of low-carbon production capacity by 2030.

Ministers have opened a new round of funding and published a production roadmap outlining plans for 2025 and 2026, targeting a capacity of 1.5GW across these rounds. The UK government has further announced plans to deploy up to 10GW of low-carbon hydrogen production capacity by 2030.