A proposed hydrogen cluster in the Humber could generate £17 billion of economic growth and support more than 54,000 construction jobs, according to new research commissioned by the companies behind the scheme.
Humber Hydrogen brings together Centrica, Equinor, National Gas and SSE Thermal, which argue the region should become Britain’s first large-scale hydrogen cluster by linking production, storage, transport and power generation across one of the country’s most energy-intensive industrial areas.
The economic analysis suggests the development could support more than 54,000 jobs during construction, safeguard up to 4,000 existing industrial jobs and create around 700 apprenticeships. The companies say the Humber’s existing heavy industry, engineering base and access to North Sea infrastructure make it one of the strongest locations for early hydrogen deployment.
The proposed cluster includes more than 4GW of hydrogen-to-power capacity and around 3GW of low-carbon hydrogen production. It could also provide as much as 65% of Britain’s planned new-build hydrogen storage capacity, giving the region a major role in balancing a power system increasingly dependent on wind and solar.
That storage matters because hydrogen can be produced when renewable generation is plentiful, then stored and used later in power stations or industrial processes when demand rises or renewable output falls.
For the Humber’s heavy industries, it could also offer a route to cutting emissions in sectors where direct electrification is more difficult.
The Humber already supports large numbers of jobs in refining, chemicals, power generation and manufacturing, so the challenge is to decarbonise those industries without hollowing out the regional economy.
The next major issue is funding and market design.
Humber Hydrogen is calling on the Government to launch the competition for the £500 million Hydrogen Transport and Storage Business Model at the Autumn Budget. The mechanism is intended to support the pipelines and storage facilities needed to connect hydrogen producers with power stations and industrial users.
Without that infrastructure, developers face the familiar chicken-and-egg problem of producing hydrogen without guaranteed customers or building new demand without secure supply. The consortium says coordinated investment across production, transport, storage and end use is therefore essential if the market is to develop at scale.
For the Humber, the prize could be substantial, but the group says policy decisions now will determine whether investment is secured in Britain or moves to competing hydrogen hubs overseas.
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