UK Prepares Strategic Overhaul of Hydrogen Policy as Industry Urges Clarity and Investment Certainty
With hydrogen ambitions under review, government edges towards refreshed strategy amid stalled targets and sector warnings
The United Kingdom is preparing to publish an updated hydrogen strategy in the coming months as policymakers and industry stakeholders reassess the role of low-carbon hydrogen in the nation’s clean energy transition.
The review comes against a backdrop of evolving market dynamics, shifting technology costs and mounting calls from business groups that policy uncertainty could jeopardise tens of billions of pounds in potential investment.
Under existing policy, the government has pursued a long-term ambition for up to ten gigawatts of low-carbon hydrogen production by 2030, with a series of interim targets and deployment mechanisms established in successive hydrogen strategy updates to the market over 2024 and 2025. However, progress toward these goals has faltered, with landmark projects such as a planned one-gigawatt hydrogen facility on Teesside scrapped and industry groups warning that a narrowing of focus to a limited set of sectors could soon dilute broader commercial demand.
Critics of the existing framework highlight an urgent need for clearer demand signals across transport, power and industry, pointing to the risk that investment may flow to jurisdictions with more supportive policy environments unless London strengthens its approach.
Government officials have responded by confirming that the updated strategy will set out refined priorities, build on recent market progress and maintain strong support for hydrogen’s role in decarbonising hard-to-abate sectors and enhancing energy security.
The upcoming document is expected to articulate the government’s vision for hydrogen’s place alongside electrification and other clean technologies, integrate hydrogen transport and storage infrastructure planning and outline how future allocation rounds will bring new projects forward.
Industry advocates have welcomed the prospect of a refreshed policy framework but continue to urge that it must provide durable incentives, robust regulatory frameworks and clarity on blending, infrastructure and certification to unlock private capital at scale.
As the broader energy landscape evolves, with electrification and other clean fuels gaining traction, the forthcoming hydrogen strategy update represents a critical inflection point for the United Kingdom’s efforts to balance decarbonisation with long-term industrial growth and investment attraction.
The review comes against a backdrop of evolving market dynamics, shifting technology costs and mounting calls from business groups that policy uncertainty could jeopardise tens of billions of pounds in potential investment.
Under existing policy, the government has pursued a long-term ambition for up to ten gigawatts of low-carbon hydrogen production by 2030, with a series of interim targets and deployment mechanisms established in successive hydrogen strategy updates to the market over 2024 and 2025. However, progress toward these goals has faltered, with landmark projects such as a planned one-gigawatt hydrogen facility on Teesside scrapped and industry groups warning that a narrowing of focus to a limited set of sectors could soon dilute broader commercial demand.
Critics of the existing framework highlight an urgent need for clearer demand signals across transport, power and industry, pointing to the risk that investment may flow to jurisdictions with more supportive policy environments unless London strengthens its approach.
Government officials have responded by confirming that the updated strategy will set out refined priorities, build on recent market progress and maintain strong support for hydrogen’s role in decarbonising hard-to-abate sectors and enhancing energy security.
The upcoming document is expected to articulate the government’s vision for hydrogen’s place alongside electrification and other clean technologies, integrate hydrogen transport and storage infrastructure planning and outline how future allocation rounds will bring new projects forward.
Industry advocates have welcomed the prospect of a refreshed policy framework but continue to urge that it must provide durable incentives, robust regulatory frameworks and clarity on blending, infrastructure and certification to unlock private capital at scale.
As the broader energy landscape evolves, with electrification and other clean fuels gaining traction, the forthcoming hydrogen strategy update represents a critical inflection point for the United Kingdom’s efforts to balance decarbonisation with long-term industrial growth and investment attraction.
