Published the 26/02/2025
By Boris Davis, Head of Business Development, UK
As the world races to combat climate change, industries across the UK face mounting pressure to decarbonise. Achieving the ambitious target of net-zero carbon emissions by 2050 requires bold innovation and investment in alternative energy sources. One such solution is green hydrogen, a promising technology poised to revolutionise various sectors, from heavy industry and transport to power generation and manufacturing.
Green Hydrogen is Here—But is the UK Ready?
Countries across Europe have already embraced hydrogen as a cornerstone of their decarbonisation strategies, with large-scale production and infrastructure projects underway. France, Germany, and the Netherlands have committed billions in subsidies and regulatory frameworks that enable hydrogen adoption at pace, and Lhyfe has already kicked off large-scale production of green hydrogen in Europe, inaugurating the world’s first industrial-scale green hydrogen production plant directly connected to a wind farm and the first offshore green hydrogen pilot platform.
The UK has ambitious targets, including 10GW of low-carbon hydrogen production by 2030, but ambition alone is not enough. Projects like Wallsend prove that the industry is ready to deliver, yet without clear long-term policy support, investment incentives, and a streamlined regulatory framework, the UK risks falling behind its European counterparts. Key questions remain: Will the UK government accelerate funding allocations? Will policies favour green hydrogen over blue hydrogen? And crucially, will industrial users receive the backing they need to transition?
The answer to these questions will determine whether the UK can fully seize this opportunity. The infrastructure is emerging, the technology is proven, the customers are there, and pioneers like us are prepared to lead the charge. Now, it’s time for the UK government to step up and match industry ambition with decisive action.
Why Green Hydrogen?
Green hydrogen is produced through electrolysis powered by renewable energy, resulting in a near-zero carbon fuel. Unlike battery-electric solutions, which are limited by charging times and range, hydrogen-powered applications offer rapid refuelling and extended operational capability, making them ideal for heavy-duty transport, industrial heating, and energy storage.
Industries such as steel production, chemicals, and energy-intensive manufacturing require high-temperature processes that are difficult to electrify. Green hydrogen provides a viable alternative to fossil fuels, enabling businesses to transition toward sustainability without compromising efficiency. Additionally, it can be used in power generation to help balance intermittent renewable energy sources like wind and solar, ensuring a stable and resilient grid.
The Wallsend Project: Pioneering Green Hydrogen in Action
In Wallsend, we are leading an ambitious initiative to integrate green hydrogen into the UK’s energy ecosystem. Pending government funding under the Hydrogen Allocation Round (HAR), we plan to build a 20MW production plant capable of generating up to 8 tonnes of hydrogen daily. This facility is designed to supply half the output to a neighbouring industrial user, with the remainder available for applications in transport, manufacturing, and energy storage.
This project illustrates how localised hydrogen ecosystems can meet the specific demands of various industries and bridge the gap between renewable energy generation and sustainable operations.
Dispelling Misconceptions
Despite its promise, green hydrogen often faces scepticism. Critics point to its perceived inefficiency, high costs, and limited infrastructure. However, advancements in production technologies and increasing government support are addressing these challenges:
- Efficiency: Modern electrolysis methods are achieving efficiencies of up to 80%. While energy losses exist during compression and storage, the operational benefits for industries and transport outweigh these concerns.
- Infrastructure: The UK government’s hydrogen strategy, targeting 10GW of production capacity by 2030, includes substantial investment in refuelling infrastructure. Projects like Wallsend demonstrate that localised hydrogen ecosystems can effectively meet demand.
- Cost: Early adoption carries a premium, but economies of scale and growing renewable energy capacity are steadily reducing production costs. Subsidies under HAR will further enhance the economic feasibility of hydrogen projects.
Industry Collaboration is Key
To unlock hydrogen’s full potential, collaboration across multiple sectors is essential. Industrial manufacturers, energy producers, logistics operators, and government stakeholders must work together to standardise technologies and ensure seamless integration into existing operations.
The Wallsend project exemplifies this synergy, with plans to transport hydrogen directly to industrial facilities and transport depots for use in multiple applications. This model can scale, paving the way for broader adoption across the UK economy.
Seizing the Opportunity
For UK industries, the shift to green hydrogen represents not only a step toward sustainability but also a strategic advantage. Early adopters can position themselves as leaders in the green transition, capitalising on government incentives and meeting growing demand for eco-conscious practices.
We believe green hydrogen is not just an alternative fuel but the cornerstone of a decarbonised industrial future. By embracing this technology, the UK can drive meaningful change while ensuring economic resilience in an evolving energy landscape.
The time to act is now. Industrial sectors, transport operators, and energy providers are already exploring the potential of green hydrogen to future-proof their operations while the government is carrying out hydrogen trials of its own. With government support, advancing technologies, and trailblazing projects, hydrogen is no longer a distant dream but a tangible reality for a sustainable UK economy.
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