UK Chancellor unveils green hydrogen commitment in Budget

UK Chancellor Rachel Reeves has confirmed that the government will provide funding for 11 green hydrogen projects across Britain.

In a speech in Parliament, she named the locations of some of the projects: Bridgend in Wales, East Renfrewshire in Scotland and Barrow-in-Furness in England

Unveiling her first Budget – and the first one ever to be delivered by a woman – Reeves said she and the government was committed to "making Britain a clean energy superpower".

The hydrogen investment comes on the back of a similar recent announcement for carbon, capture and storage.

And she also confirmed funding to set up GB Energy as a national energy entity to be based in Aberdeen, Scotland.

Siobahn Miekle, Vice-President for Northern Europe at power management company Eaton, welcomed the government’s ambition to make the UK a clean energy superpower, however she said the measures in the Budget “do not go far enough”.

“They overlook a significant issue: supporting businesses on the energy transition. Commercial buildings devour a third of the nation's power, yet the support to greening them remains unclear.

"While today's Budget champions our renewable future, transforming energy hungry-businesses requires more than bold declarations. We need smart storage solutions and flexible power systems that work when nature takes a break.”

Miekle  said that "without clear market frameworks to unlock private investment in these vital technologies, our clean energy dreams risk remaining just that – dreams. The government has shown the destination; now it must build the bridge to get us there."

James Watson, head of decarbonisation at law firm Osborne Clarke, said: "The support for the new green hydrogen production facilities is welcome. The form of support is yet to be determined but the sector and investors have been trailing for some time the need for investment and policy certainty. This is a big step in the right direction."

Kelly Becker, Schneider Electric’s President for the UK and Ireland, Belgium and Netherlands, also broadly welcomed the Budget – yet had similar reservations to Miekle.

“We would have liked to see commitments to supporting the manufacturing supply chain that will play a key role in delivering the industrial and green growth ambitions set by the Government... the UK needs a clear roadmap for decarbonising the commercial and industrial sectors."

Yselkla Farmer, chief executive of BEAMA, the UK trade association for energy infrastructure and systems, said making big investment pledges “sends a valuable political signal but the government urgently needs to grasp the nettle on trickier details that will drive decarbonisation in people’s lives and bring long-term financial and quality of life benefits”.

She called for “a more ambitious policy and regulatory framework to match these financial signals”.