Humber hydrogen network could add £17bn to region's economy, research finds

The Department for Energy Security and Net Zero (DESNZ) is to select one industrial region in the UK to receive £500m to create the first regional hydrogen transport and storage network.

The Humber is expected to be one of the leading contenders alongside Teesside, and four leading energy companies - National Gas, Centrica, Equinor and SSE Thermal - are helming the bid.

New research, commissioned by the Humber Hydrogen group, has found the region has the potential to support 53,000 jobs during the construction of the network and 900 jobs during the operation.

It also revealed that this could add £17bn to the region’s economy in gross value added.

Clare Jackson, Hydrogen UK’s CEO, said: “This analysis underlines what the hydrogen sector has been saying clearly: hydrogen is a major economic growth opportunity for the UK.

“The Humber is exactly the kind of industrial region where hydrogen can attract investment, support skilled jobs and help energy-intensive businesses remain competitive.”

The plans would see hydrogen production projects in Saltend, Aldbrough and Easington linked to industrial customers and power stations.

The Humber is the UK’s most carbon intensive industrial area and so the firms say this network is essential to support the Government’s bid for clean energy by 2030 and net zero by 2050.

It would allow British Steel, in Scunthorpe, to reduce its emissions by using green hydrogen instead of methane for its power.

The energy would also allow Yara International to restart the UK’s only production ready ammonia plant in Hull, to help Yorkshire farmers with locally-produced fertiliser, with the sector affected by the closure of the Strait of Hormuz.

The firms say that the Government has until the start of October to make a decision, otherwise businesses may start pulling investment.

Ian Radley, chief commercial officer at National Gas, said: “The Humber’s industrial heft makes it the obvious choice as the location of Britain’s first hydrogen network.

“East Yorkshire and North Lincolnshire have the industrial demand, infrastructure, supply chains, skilled workforce, and geological assets to deliver Britain's hydrogen capability.

“Unlocking hydrogen’s potential in the Humber will unleash economic growth and propel both the region and Britain into a new era of global leadership in low carbon industry.”

The project held a reception in Parliament yesterday, sponsored by Great Grimsby and Cleethorpes MP Melanie Onn, with a number of the region’s MPs showing up to support the bid.

This included Water Minister and Hull West and Haltemprice MP Emma Hardy and Employment Minister and Hull North MP Dame Diana Johnson.

Ms Onn said: “The Humber has long been the UK’s industrial powerhouse, and today it stands ready to lead the transition to a clean energy future.

“Humber Hydrogen represents a historic opportunity to decarbonise industry, deliver clean power, safeguard thousands of skilled jobs, and unlock new investment across our region.

“I’m proud to support this landmark project and to help champion the Humber’s role at the heart of Britain’s hydrogen future.”

A DESNZ spokesperson: “Hydrogen will play an important role in our mission to become a clean energy superpower - and we are already seeing the first wave of large-scale projects being delivered.

"Our renewed Hydrogen Strategy will set out how we intend to work together with industry to continue to transform ambition into action, following us backing the sector with £500 million in the summer spending review."