With the new funding, the government hopes to accelerate job creation across the sector, providing opportunities not just for engineers and operations specialists, but also for apprentices, welders, pipefitters, and other skilled trades.
The UK government has unveiled a landmark £500 million investment in hydrogen infrastructure, a move expected to create thousands of skilled jobs in Britain’s industrial heartlands while securing the country’s transition toward clean energy.
The funding, confirmed as part of the Spending Review, will establish the nation’s first regional hydrogen transport and storage network. This infrastructure will, for the first time, link hydrogen producers with key end users—including heavy industry and power stations—across regions such as Merseyside, Teesside and the Humber. The network is a cornerstone of the government’s broader Plan for Change, aimed at securing Britain’s future as a clean energy superpower and reducing its dependence on volatile international fossil fuel markets.
Alongside this new investment, the government also confirmed progress on other major clean energy projects. These include 10,000 jobs at the Sizewell C nuclear plant in Suffolk, a new fusion reactor at a former coal plant in Nottinghamshire, and 3,000 positions supported through the small modular reactor programme. Additional funding will support the Acorn project in Scotland and the Viking initiative in the Humber. These projects add to the 4,000 jobs already in development across carbon capture, usage and storage (CCUS) schemes in the North West and Teesside.
The hydrogen network will play a crucial role in decarbonising manufacturing sectors such as iron, steel, glass, chemicals and ceramics—industries that require reliable, high-heat energy sources. It will also support long-term energy storage, helping balance the grid during peak demand.
Energy Secretary Ed Miliband said the investment demonstrates a long-term commitment to Britain’s energy independence and industrial renewal. “We are investing over half a billion pounds in our industrial heartlands to deliver jobs and energy security for Britain. By building hydrogen networks, we are securing homegrown energy that will power British industry for generations to come,” Miliband said.
Industry leaders have welcomed the announcement. Brett Ryan of Hydrogen UK noted that infrastructure for hydrogen transport and storage is “essential for a secure and resilient hydrogen sector,” particularly to ensure energy security and affordability during the transition. Dr Emma Guthrie, CEO of the Hydrogen Energy Association, praised the move as “joining the dots” between production and end users, which she said would galvanise the UK’s regional hydrogen hubs and unlock long-term growth.
This latest boost builds on the government’s first Hydrogen Allocation Round, which allocated over £2 billion to 11 hydrogen production projects. Continued support through future allocation rounds is expected to accelerate low-carbon hydrogen output and infrastructure readiness.
Hydrogen development has already attracted £400 million in private investment across locations like Milford Haven in Wales and High Marnham in Nottinghamshire. With the new funding, the government hopes to accelerate job creation across the sector, providing opportunities not just for engineers and operations specialists, but also for apprentices, welders, pipefitters, and other skilled trades.
As Britain pursues its net-zero ambitions, the investment marks a key step in reindustrialising regions through clean energy growth—ensuring that economic revitalisation and environmental responsibility go hand in hand.
