UK Hydrogen Sector Grows, but Policy and Investment Hurdles Remain

Dr Emma Guthrie, CEO of the Hydrogen Energy Association (HEA), reflects on a year of significant progress and persistent challenges in the UK’s hydrogen sector. Her assessment underscores a pivotal shift: hydrogen is no longer a technology of the future; it’s being deployed today. Yet, she argues, the sector’s potential hinges on clear policy and investment signals to transition from pilot projects to large-scale implementation.

Guthrie points to a burgeoning landscape of hydrogen initiatives across the UK. The HEA’s UK Hydrogen Project Map reveals a nationwide tapestry of activities, from production and distribution to end-use and enabling technologies. Notable examples include N-Gen Energy Solutions and Hygen Energy’s agreement with the UK Government for a hydrogen production and refuelling facility in Bradford, and ULEMCo’s HyTANKa, a mobile hydrogen supply and refuelling vehicle designed to decarbonise construction and other off-grid sectors. GeoPura’s Hydrogen Power Units (HPUs) are demonstrating the viability of hydrogen power in replacing diesel generators, while Fuel Cell Systems is developing hydrogen refuelling infrastructure along the M4 corridor. HiiROC’s breakthrough process, Thermal Plasma Electrolysis (TPE), produces low-carbon hydrogen and solid carbon, showcasing the sector’s innovation.

Despite these advancements, Guthrie highlights persistent barriers, including infrastructure gaps, policy uncertainty, first-mover cost premiums, skills bottlenecks, and inconsistent cross-departmental signals. The HEA has been actively engaging with the government to address these issues. In collaboration with the Road Haulage Association (RHA) and Construction Plant-hire Association (CPA), the HEA has urged a twin-track approach for hard-to-electrify applications, recommending a national hydrogen refuelling roadmap, demand signals to crowd-in private investment, and support for all viable hydrogen powertrains.

The HEA has also advocated for the inclusion of ammonia in the UK Hydrogen Strategy, recognising its potential as a direct decarbonisation lever and a pragmatic maritime fuel opportunity. Guthrie emphasises the importance of a broad approach to supporting a range of low-carbon production pathways for hydrogen and considering hydrogen derivatives.

The HEA’s Annual Conference, held in Westminster, brought together industry leaders and policymakers to discuss the future of hydrogen in the UK. The conference’s theme, “Invest, Innovate, Implement,” underscored the need for accelerated action. Guthrie notes that while the government’s response was positive, there is a pressing need to match ambition with acceleration.

To inform future strategies, the HEA launched the State of the Hydrogen Nation survey in October, a sector-wide ‘health check’ on business confidence, skills, investment, policy clarity, barriers to growth, and market outlook. The results will underpin the HEA’s first State of the Hydrogen Nation report, publishing in early 2026, and will shape evidence-based recommendations to the government.

Guthrie’s reflections highlight the UK’s hydrogen sector’s progress and the critical need for policy and investment signals to drive large-scale implementation. The sector’s future hinges on addressing persistent barriers, fostering innovation, and building a skilled workforce. As the HEA continues to engage with policymakers and industry leaders, the UK’s hydrogen sector stands at a crossroads, poised to either accelerate its growth or risk falling behind in the global race to a low-carbon future.

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