Ed Miliband invests £86.5m into UK-first Sheffield clean hydrogen project
Ed Miliband has pumped £86.5m into a major clean hydrogen project in Sheffield, the first of its kind in the UK, saying it “is essential to take back control of our energy” with the Middle East conflict.
ITM Power, based in Meadowhall, will use the funds to build state of the art technology, known as “Chronos”, which is used to generate green hydrogen.
The Government says this is “vital” for the country to hit net zero by decarbonising heavy industries that are hard to electrify, such as Sheffield’s famous steel production and also aviation.
It comes amid plans to reopen Doncaster Sheffield Airport next year and turn it into a sustainable aviation hub.
The funding is set to create more than 400 jobs in the region, the Department of Energy Security and Net Zero said.
Great British Energy, the UK’s publicly owned energy company, will invest £40m in ITM Power, and it will also receive a £46.5m government grant.
Mr Miliband said the conflict in the Middle East has shown the importance of the UK producing its own power to get off the “fossil fuel rollercoaster”.
Iran is continuing to keep the Strait of Hormuz closed, the key shipping lane for oil from the Gulf.
Experts believe it could take six months for prices to come back down, even if the fragile ceasefire manages to hold.
Mr Miliband, who is also the MP for Doncaster North, said: “Investment's like today's in hydrogen in South Yorkshire are all the more important at a time when the UK is once again experiencing the volatility of the global fossil fuel market rollercoaster.
“Clean homegrown energy like hydrogen is essential to taking back control of our energy from these markets and the effects of global instability like the war in Iran."
He added: “Communities have long been calling out for a new generation of good industrial jobs, and with these plans we answer that call, helping to create an economy in which there is no need to leave your hometown just to find a decent job.”
Chancellor Rachel Reeves said: “Sheffield was the backbone of Britain’s industrial revolution, and today shows our commitment to it being at the forefront of the industries that will shape our future.
“We have the right economic plan. We are backing skilled jobs, regional growth and British manufacturing – benefiting the people of Sheffield and strengthening the country’s economy.”
Dennis Schulz, CEO of ITM Power, said that the funds “will enable the build-out of large-scale domestic manufacturing of our next-generation Chronos platform”.
The technology uses electricity to split water into hydrogen and oxygen, which gives off no carbon emissions, unlike when it is made using natural gas.
Mr Schulz added: “We are grateful for the confidence and support demonstrated by the UK government.
“Clean power increasingly underpins energy sovereignty and resilience, which are critical to long-term economic success.”
Mayor Oliver Coppard added: “The government’s commitment reinforces South Yorkshire’s status as a globally leading advanced manufacturing region, and positions the Don Valley Corridor as an international hub for hydrogen production.”