The UK-Germany Hydrogen Partnership represents a significant step forward in both countries’ efforts to establish a robust hydrogen economy. The collaboration aims to accelerate the deployment of hydrogen projects, foster international leadership in hydrogen markets, and promote trade and investment along the entire hydrogen value chain.
The partnership was formalized during UK Prime Minister Rishi Sunak’s visit to Berlin, where he and German Chancellor Olaf Scholz agreed to a feasibility study on exporting renewable and low-carbon hydrogen from the UK to Germany. This study will explore infrastructure options, including pipeline locations, and address the regulatory, technical, and commercial steps required to enable future hydrogen trade.
Drawing parallels with the NeuConnect pipeline, a £2.4 billion project involving 700km of subsea cables connecting the UK and Germany, the hydrogen pipeline aims to replicate this commitment to energy security and climate action. The feasibility study’s outcomes are expected to scale up hydrogen economies, meet net-zero targets, and decarbonize industries in both countries.
The hydrogen partnership’s potential outcomes include closer business collaboration, development of hydrogen trade and transport infrastructure, and the establishment of a regional hydrogen market. By divesting from Russian hydrocarbons and developing alternative energy sources, the UK and Germany are positioning themselves as leaders in the hydrogen sector.
The JDoI focuses on accelerating hydrogen project deployment, establishing international hydrogen market leadership, advancing research and innovation, and promoting hydrogen trade and investment. A working group from BMWK-DESNZ is tasked with addressing these issues, consulting with industry stakeholders and advisory councils from both countries.
The UK government aims to achieve up to 10GW of low-carbon hydrogen production capacity by 2030, with at least half from electrolytic hydrogen. The interim target is to support up to 1GW of electrolytic hydrogen being operational or under construction by 2025. This ambition is part of the broader Hydrogen Strategy, which promotes production, demand, transport, and storage across the hydrogen economy.
The UK anticipates that by 2030, the hydrogen sector could support over 12,000 jobs and attract up to £11 billion in private investment. This presents significant opportunities for investors, particularly in the UK’s industrial heartlands. The government’s support aims to drive private sector investment and provide clarity to the industry.
As global trade in hydrogen accelerates, the UK is well-positioned to become a key exporter of hydrogen and related goods and services, especially to continental Europe. The geographic proximity and established energy trading relationships enhance the UK’s competitiveness in the hydrogen market.
In December 2023, the UK Government announced 11 new hydrogen projects with a combined capacity of 125MW, representing an upfront investment of over £400 million over three years. The second Hydrogen Allocation Round (HAR2) is now open for applications, supporting up to 875MW of low-carbon hydrogen projects.
