Introduction
The Hydrogen Growth Roundtable brought together industry leaders, investors, policymakers, and education specialists to discuss the key challenges and opportunities in advancing the hydrogen agenda. Key topics included investment, workforce development, regulatory clarity, and the role of hydrogen in the UK's industrial future.
Key Themes and Discussions
1. Investment & Industrial Strategy
Hydrogen production and investment landscape:
Across the world, we produce 75 million tonnes of hydrogen per year, with 98% currently classified as grey hydrogen.
The UK’s 2021 Hydrogen Strategy set a 10GW production target by 2030, with at least half designated as green hydrogen. Concerns were raised about whether this goal remains achievable.
The long-term vision for 2050 is unclear—what are the next steps to move from concept to large-scale reality?
Attracting investment & preventing deindustrialisation:
The UK needs inward investment to prevent losing industrial capabilities to other nations.
Reindustrialisation efforts in the Northwest, Humber, and other regions should be a key priority.
Investors aim to become owners/operators on behalf of offtakers, but financial models must be attractive for long-term viability.
Joint Ventures (JVs) can help share risks, making projects more appealing to investors.
Holistic support for innovation is needed to market UK technology effectively before handing projects to offtakers.
2. Regulatory Clarity & Policy Certainty
Investor confidence is hindered by a lack of clarity on:
Timelines for hydrogen deployment – when and where hydrogen will be used at scale.
Investment return periods – uncertainty discourages financial commitment.
Government support measures – how incentives, mandates, and carbon taxes will shape the market.
Comparisons with Europe & barriers in the UK:
Europe has been investing in electrolysis for a long time, whereas the UK has mainly approached hydrogen from a chemical industry perspective.
The UK lacks baseline electrolysis data (e.g., 1MW trials), making investment riskier.
Planning and approval processes in the UK are much slower than in Germany and Sweden, limiting project agility.
3. Hydrogen Offtakers & Market Demand
Challenge of securing offtakers (end-users) before projects are built:
Many industries are hesitant to commit without guarantees of supply and price stability.
Hydrogen projects lack coordination—multiple developers rely on the same limited pool of early adopters.
Lessons can be learned from Sustainable Aviation Fuel (SAF), which benefits from mandates requiring airlines to use it, creating a clear market.
Deindustrialisation concerns:
The UK risks losing more industries than it is decarbonising, with some major offtakers closing rather than transitioning.
Hydrogen’s business case must be stronger to avoid long-term energy and manufacturing losses.
Unlike offshore wind, hydrogen does not yet guarantee investor returns, making it difficult to secure financing.
4. Workforce & Skills Development
Building a skilled hydrogen workforce requires:
A clear framework that maps out how jobs evolve regionally and align with national strategies.
Collaboration between industry and education providers to upskill workers efficiently.
Raising awareness of hydrogen careers among young people and educators.
Promoting skilled trades such as pipe fitting and mechanical engineering, which offer high-earning potential.
Current challenges in the UK workforce:
Retirement crisis looming – the average worker age is 55, with shortages expected as projects scale up.
Insufficient government funding for hydrogen education, making it hard for colleges to offer training.
Public perception of hydrogen careers as ‘uninteresting’—a major branding challenge.
Engagement through digital platforms (e.g., TikTok, VR experiences) could attract younger workers.
5. Infrastructure & Supply Chain Readiness
Water availability for hydrogen production is a growing concern:
The Cheshire and Warrington region is one of the most water-stressed areas in the UK.
Government policy currently focuses on housing sustainability rather than industrial water usage.
DESNZ (Department for Energy Security & Net Zero) and DEFRA (Department for Environment, Food & Rural Affairs) must coordinate on water policy.
Lessons from offshore wind:
The UK was a leader in offshore wind expansion, but failed to retain full supply chain control.
Hydrogen risks following a similar path unless policy and infrastructure support are strengthened.
The UK needs to balance project speed with ensuring domestic supply chain growth.
6. Future Actions & Next Steps
Policy recommendations:
Streamline hydrogen project approvals to shorten the development cycle.
Provide clear timelines for hydrogen adoption to lock in investor confidence.
Establish more robust investment incentives similar to those in offshore wind.
Building investor confidence:
Hydrogen projects need to be packaged attractively, focusing on long-term profitability rather than short-term risk.
The UK must market its hydrogen innovation more effectively, showcasing end-to-end solutions.
Investor engagement strategies should focus on holistic sector growth, not just isolated projects.
Developing the workforce:
Hydrogen career pathways must be made more visible to young people and career changers.
Industry and education collaboration should be scaled nationally.
A skills alliance should be formed to ensure a continuous pipeline of workers.
Enhancing public & industry communication:
Promoting hydrogen as a ‘sexy’ and exciting industry to attract talent.
Collaboration across the sector rather than competition is key to long-term success.
Developing a unified ‘Hydrogen Elevator Pitch’ to engage policymakers, investors, and the public.
Conclusion
The Hydrogen Growth Roundtable underscored the urgency of aligning policy, investment, and industry coordination to unlock the UK’s hydrogen potential. While significant progress has been made, the sector still faces major barriers, including regulatory delays, lack of clear offtakers, and workforce shortages.
For hydrogen to succeed, the UK must act decisively to attract investment, secure demand, and develop a skilled workforce. By improving communication, policy clarity, and collaboration, the UK can position itself as a global hydrogen leader.
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