In early 2025, significant strides were made in the UK’s hydrogen industry, with both the Scottish and UK governments leading various initiatives.
The Scottish Government released its strategy titled “A Trading Nation – Realising Scotland’s Hydrogen Potential.” This plan outlines steps for expanding hydrogen export opportunities, with goals to achieve 5GW low-carbon hydrogen production by 2030 and 25GW by 2045. The strategy focuses on generating demand, ensuring consistent supply, and establishing key infrastructure like pipelines and storage facilities. By leveraging its oil and gas expertise, Scotland sees its robust supply chain as crucial for leading the renewable hydrogen sector. The plan also emphasizes collaboration with EU partners to enhance connectivity for hydrogen export.
In December 2024, the UK government provided an update on its Hydrogen Strategy, focusing on production progress, storage, regulation, and sector development. Initiatives such as the Hydrogen Allocation Rounds and the Hydrogen Transport and Storage business models were highlighted. These initiatives are part of broader efforts to achieve the Prime Minister’s Clean Energy Superpower Mission. Investment through the Net Zero Hydrogen Fund and National Wealth Fund shows the government’s commitment to expanding the hydrogen sector.
The Low Carbon Contracts Company signed its first contracts for hydrogen production under the Hydrogen Allocation Round 1. These projects, located in Cromarty, Whitelee, and West Wales, will have a combined capacity of 31.8MW. This marks a significant step in the UK’s effort to scale up hydrogen production capacity to 1GW by 2025 and 10GW by 2030.
Expectations for 2025
Looking ahead to 2025, several developments in the UK’s hydrogen sector are expected. These include the second Hydrogen Allocation Round, implementation of the Hydrogen to Power (H2P) business model, and development of version 4 of the Low Carbon Hydrogen Standard. The UK government plans to finalize the H2P business model to integrate hydrogen into the Capacity Market, with industry expertise and collaboration playing a crucial role.
Stay updated on the latest in energy! Follow us on LinkedIn, Facebook, and X for real-time news and insights. Don’t miss out on exclusive interviews and webinars—subscribe to our YouTube channel today! Join our community and be part of the conversation shaping the future of energy.
