Humber Hydrogen urges government to award £500m infrastructure contract

A coalition of major energy firms has formally requested that the UK government designate the Humber region as the host for the nation’s first integrated hydrogen network. The group, known as Humber Hydrogen, is seeking selection under the £500 million hydrogen transport and storage business model. This subsidy framework, designed by the Department for Energy Security and Net Zero, aims to bridge the operating cost gap for critical infrastructure such as pipelines and storage facilities.

The partnership, which includes National Gas, Centrica, Equinor, and SSE Thermal, argues that securing this funding would have significant economic benefits for the area. They estimate that the initiative could preserve up to 4,000 jobs within the steel and chemicals sectors. Furthermore, the group claims that awarding the contracts to the Humber region would support the creation of 700 new apprenticeships. Beyond immediate employment, Humber Hydrogen suggests that selecting the region could unlock up to £15 billion in investment across the entire hydrogen value chain, spanning production, storage, transportation, and end-use applications.

The government has not yet announced the winners of the business model, a decision delayed by significant hold-ups in the refresh of the national hydrogen strategy. Despite this pause in policy direction, the Humber Hydrogen group continues to lobby for the region to become the epicentre of hydrogen development. The government has confirmed that it has completed market engagements and consultation rounds for the first iteration of the model. It has also stated that it intends to align contract awards directly with the clusters developed through the first hydrogen allocation round in 2023.

Ian Radley, chief commercial officer at National Gas, spoke on behalf of the group during the launch of their analysis. He called on the government to back the Humber as the obvious choice for Britain’s first hydrogen cluster. Radley noted that developing this infrastructure in Yorkshire and Lincolnshire would bring substantial investment to the region. He emphasised that the area’s skilled workforce has been instrumental to industrial success for decades and is ready to lead the next phase of the energy transition.

The proposal has received backing from the GMB union. Chair Dave Douglas stated that the union has long advocated for government investment in industrial heartlands. He described the project as an opportunity to reinvigorate a city historically built on heavy industry and shipping. Douglas highlighted the potential to provide good, unionised jobs that offer a twenty-first-century future for workers and their families, while also facilitating a just transition for energy and manufacturing workforces.

The Humber is not the only region in northern England competing for government support. The HyNet alliance, which aims to connect a hydrogen network with carbon capture and storage ambitions, has also lobbied the government for selection. This competing bid was signed by Andy Burnham, the former mayor of Manchester and current prime minister. Both groups are seeking to secure the necessary funding to advance their respective infrastructure plans.