UK Unleashes ￡960 Million Boost for Clean Energy

The UK Government has designated a substantial ￡960 million to boost clean energy manufacturing, with a keen focus on hydrogen. This allocation is part of a broader ￡4.5 billion initiative to fortify various manufacturing sectors. Known as the Green Industries Growth Accelerator, the initiative aims to propel the expansion of clean energy supply chains throughout the UK, encompassing hydrogen, nuclear, offshore wind, electricity networks, and carbon capture, utilisation, and storage (CCUS).

The government is optimistic that this funding will act as a catalyst for additional private investments, contributing to the nation's growing green industry, which is anticipated to attract ￡100 billion by 2030.

The funds from this package are earmarked to become available in 2025, spanning a five-year period and kicking in after the upcoming general election.

“We have long been energy pioneers in advanced manufacturing, and this will allow us to carry on that great British tradition.” said Claire Coutinho, Energy Security and Net Zero Secretary.

In tandem the government has outlined plans to launch a hydrogen industry task force collaborating with the Hydrogen Innovation Initiative and Innovate UK. This task force is poised to champion opportunities in the manufacturing of hydrogen propulsion systems.

Beyond the clean energy sector, the government has also allocated ￡2 billion for the automotive industry, and ￡520 million for life sciences.

The Hydrogen Energy Association (HEA), a prominent UK hydrogen association, has warmly welcomed this injection of funds.

“We look forward to working with government to help optimise the impact of this funding which will include targeted support for aerospace and the automotive industry.” said HEA CEO, Celia Greaves.

As anticipation builds for Chancellor Jeremy Hunt's Autumn Statement on November 22, many are hopeful that it will position the UK strategically, responding to the global landscape and, notably, the US' Inflation Reduction Act (IRA).

“Britain is now the eight largest manufacturer in the world, recently overtaking France. To build on this success, we are targeting funding to support the sectors where the UK is or could be world leading.” the Chancellor said.

A September 2023 report by the Energy Networks Association (ENA) and Hydrogen UK highlighted concerns that the UK had slipped in the global competition for hydrogen investments, dropping from 2nd place in 2021 to 8th in 2023.

The Government's commitment not only demonstrates some dedication to green initiatives and also opens up opportunities for investors. With hydrogen gaining prominence, there is substantial potential for strategic partnerships and targeted investments. This funding, part of a broader ￡4.5 billion package, underscores the critical role hydrogen is playing in shaping the future energy landscape. The key challenge now lies in efficiently channeling these funds into impactful projects, enabling innovation, and digging deeper to position the UK as a global leader in hydrogen.