INSIGHTS / Blog

This week (26 February – 3 March) is Hydrogen Week – an opportunity to unite stakeholders from across the sector and promote the role of hydrogen in reaching Net Zero.

The opportunity in this space right now is unprecedented. It is estimated that by 2050, the hydrogen economy could create more than 100,000 jobs and £13bn of GVA for the UK, signalling a pivotal moment for clean energy generation in the UK.

At the tail end of last year, the Department for Energy Security and Net Zero (DESNZ) announced backing for 11 major projects to start producing green hydrogen at scale. Unlike blue hydrogen, green hydrogen uses electrolysis, powered by renewable energy sources, to split the water, helping to provide cleaner fuel for energy-intensive industries and transport. The new projects will invest more than £400m to kick the UK’s hydrogen economy into gear, with an additional £2 billion in government funding pledged over the next 15 years to continue the industry’s growth.

As a result of these projects, more than 125MW of new hydrogen will be produced for use in business the length and breadth of Britain. This includes PD Ports in Teeside, which will use hydrogen to replace diesel in its vehicle fleet and decarbonise port operations from 2026, and Sofidel in South Wales, which will replace 50% of its current gas boiler consumption with more sustainable hydrogen alternatives.

This announcement marks the largest number of commercial-scale green hydrogen projects announced anywhere in Europe, helping to place the UK firmly on the map for sustainable energy production.

However, we can’t ignore the fact that this is an ambitious undertaking. The shift towards a Net Zero Britain involves lots of moving parts, many of which are time-consuming, resource-intensive and ultimately, particularly costly. As outlined in the Department for Energy Security and Net Zero’s Hydrogen Production Delivery Roadmap, the Government is looking to industry to demonstrate that there will be significant cost reductions as the UK’s hydrogen sector takes off. The key will be working with demand sectors to maximise the opportunity and develop a competitive marketplace that can drive investment and push down costs.

To support this shift, SETsquared is leading the Hydrogen and Sustainable Transport Economy Accelerator, delivering a package of low-carbon business support to help those in the sector accelerate product development and raise valuable investment. The programme will build a pipeline of low-carbon hydrogen projects in line with the next steps identified in DESNZ’s Delivery Roadmap – projects that can deliver cost-effective solutions whilst driving visible carbon reductions.

Funded by the West of England Combined Authority, the programme leans into the knowledge, expertise, and facilities of IAAPS at the Bristol and Bath Science Park, covering all areas of sustainable transport, including the decarbonisation of road, marine, rail and air vehicles and fleets, as well as the development of hydrogen as a green fuel and its storage infrastructure.

As part of the support on offer, businesses can tap into upcoming events including masterclass sessions exploring key trends in the hydrogen space (12 March), and how to craft the perfect bid to guarantee grant funding success (23 May), as well as an Innovation Workout taking place at IAAPs Bristol and Bath (30 April & 1 May). All of these opportunities are designed specifically for businesses innovating in the hydrogen and sustainable transport space.

As the urgency to reach net zero continues to increase, now really is the time to capitalise on the hydrogen opportunity, positioning yourself and your business as leaders in the transition towards a low-carbon future.

Access support through the Hydrogen and Sustainable Transport Economy Accelerator