The UK’s green hydrogen economy is gaining momentum as initial investments pour into the growing project pipeline, which has now reached 1.5GW of electrolyser projects.1 The government’s target of 10GW of low carbon hydrogen by 2030, with at least half being green hydrogen, is not only ambitious but underscores the necessity of developing domestic supply chains capable of catering to the required scale of deployment
Furthermore, National Grid Future Energy Scenarios estimate that hydrogen demand in 2050 could be between 147- 474TWh,2 offering a huge economic opportunity for UK based companies in this sector. Wood and Optimat’s Supply Chain analysis, a report commissioned by the Department for Energy Security and Net Zero (DESNZ), offers a conceptual framework for comprehending the supply chain necessary to sustain a green hydrogen economy.
This includes the feedstock (such as water) and power utilities required for electrolysis; primary equipment such as electrolysers and compressors, as well as ancillary equipment; and the development and construction of hydrogen transport, distribution and storage systems. All of this is underpinned by expertise in research and development, professional services and the installation, commissioning and maintenance of hydrogen production and infrastructure. Using this framework as a base, RenewableUK has undertaken research and gathered insights from various stakeholders across the green hydrogen value chain to identify gaps in the supply chain and recommend ways to address them.
This paper highlights several ongoing themes, including:
• Building multiple large-scale projects complimented by solid policy foundations.
• Plugging the skills gap.
• Preparing the UK’s infrastructure for green hydrogen.
• Tapping into the UK’s plentiful wind resource.
Together, these highlight the level of policy and financial support that is required to help the green hydrogen economy create a robust, resilient and sustainable supply chain.
