The Government has confirmed funding of over £500m for hydrogen infrastructure in Britain.

The landmark new funding, announced in the Spending Review, will create the UK’s first regional hydrogen transport and storage network, connecting hydrogen producers with vital end users, including power stations and industry for the first time.

The major infrastructure funding will help deliver clean energy and create thousands of skilled jobs in industrial regions such as Merseyside, Teesside and the Humber, as well as in the supply chain.

The Department for Energy Security and Net Zero said the funding would unlock hydrogen’s unique role in Britain’s energy system, where it can decarbonise industrial sectors including heavy transport. It will also provide long-term energy storage that can be deployed during peak demand periods and will reduce reliance on volatile international fossil fuel markets.

Energy Secretary Ed Miliband said: “We are investing over half a billion pounds in our industrial heartlands to deliver jobs and energy security for Britain. By building hydrogen networks, we are securing homegrown energy that will power British industry for generations to come.

“This will bring in the investment needed across the country to deliver our Plan for Change by unlocking clean energy and growth in our local economies.”

Emma Guthrie, CEO of the Hydrogen Energy Association, said: “This announcement is a key piece of the puzzle and represents very welcome government support to galvanise the UK’s regional hydrogen hubs. By investing in transport and storage infrastructure, the Government is rightly joining the dots, connecting already supported hydrogen production with end users across power and industry.”