Hydrogen UK is proud to announce the launch of its comprehensive report, the "UK Hydrogen Supply Chain Strategic Assessment," at the Hydrogen UK Parliamentary Reception. This landmark report outlines a strategic roadmap to position the UK as a global leader in the burgeoning hydrogen industry, while simultaneously driving significant economic growth and job creation.
The report reveals that the UK has a unique opportunity to establish itself as a global leader in the nascent hydrogen supply chain market, leveraging its favourable geography, geology, strong pipeline of hydrogen projects, stable policy environment, and transferable skills from the North Sea. Hydrogen technology and supply chains are emerging, and the UK must invest in these areas alongside deployment to deliver economic benefits and address global supply chain constraints.
Quick wins in the hydrogen supply chain have been identified in the report, including electrolyser stacks, power electronics, hydrogen network pipes, and compressed hydrogen storage tanks. There are areas that require concerted effort to anchor, such as compressors and reformer packages, due to their high value and impact but challenging delivery. The UK should take an opportunistic approach to carbon capture packages, industrial equipment, and industrial burners, and focus longer-term on HV transformers, hydrogen gas turbines, and air separation units.
To capitalise on these opportunities, the report recommends that future business model funding should include a mandatory UK supply chain assessment and a top-up bonus mechanism to promote the selection of UK suppliers. The creation of a central Hydrogen Supply Chain Support and Funding Body is recommended to coordinate investment into the hydrogen space, focusing on high-priority supply chain areas. Additionally, the UK's skills strategy should focus on priority supply chain areas and align with the required timelines, including retraining and upskilling the existing workforce.
The report also highlights leveraging existing UK assets and programmes to attract foreign direct investment in key supply chain areas. Hosting "Meet the Buyer/Specifier" events and maintaining a database of hydrogen supply chain companies are suggested to encourage engagement between UK project developers and supply chain companies. Furthermore, a monitoring and evaluation framework should be developed to track the success of supply chain growth and ensure that the UK's skills strategy is focused on the priority supply chain areas.
Clare Jackson, CEO of Hydrogen UK, stated:
"This report is a pivotal step in realising the UK's potential in the hydrogen economy. By strategically investing in our supply chain and workforce, we can not only lead globally but also create thousands of jobs and drive significant economic growth."
Minister for Industry Sarah Jones said:
“We're on a mission to make the UK a clean energy superpower and low-carbon hydrogen is key to making it happen.
“This report highlights the critical areas we need to focus on to build a thriving hydrogen economy, create good jobs, and boost UK skills and I will be considering the findings carefully.
“We’re ready to work with industry to seize this opportunity and by targeting strategic areas of the supply chain, drive a new era of growth and innovation."
By implementing these recommendations, the UK can not only lead the global hydrogen economy but also ensure substantial job creation and skills development within the country.