Leeds-based East Coast Hydrogen is to receive £96 million of funding from UK energy regulator Ofgem.
East Coast Hydrogen will repurpose and build new gas pipelines to deliver clean hydrogen at scale across the North East of England, the Humber region, Yorkshire and the East Midlands.
It said it will play a key role in helping power generation and heavy industry across the East Coast transition from natural gas – replacing it with low-carbon hydrogen “to protect jobs, keep the lights on and deliver the infrastructure needed” to support the UK’s future hydrogen economy.
“Ofgem has now confirmed its support for East Coast Hydrogen – a partnership led by National Gas, Cadent and Northern Gas Networks – by awarding around £96 million in funding to carry out engineering, planning and public consultation on proposals,” said East Coast Hydrogen.
“This follows the £500 million announced by Government last week for regional hydrogen transport and storage networks as part of the Spending Review.
“It will pave the way for delivery of a hydrogen-ready pipeline network which is expected to be delivered over the next decade and make a major contribution to the UK’s decarbonisation efforts.
“This latest funding ensures work can continue at pace on the infrastructure needed to deliver that transformation.”
National Gas CEO Jon Butterworth said: “This funding marks a crucial step in building the infrastructure needed to unlock the UK’s hydrogen economy at scale.
“At National Gas, we’re committed to enabling the UK’s transition to a low-carbon energy system that is secure, cost-effective, and future-ready. Project Union, our plan to create a 1,500-mile core hydrogen network across Great Britain, will start in the East Coast and this funding will support that ambition.
“By repurposing existing infrastructure, we will connect hydrogen production, storage, and demand, helping to deliver flexible electricity, decarbonise industry, and protect jobs in some of the UK’s most energy-intensive regions.”
Cadent CEO Steve Fraser said: “This funding marks a major milestone and is very welcome news: not just in terms of this specific project, but for the UK’s entire energy transition. Ofgem’s support will allow our partnership to forge ahead with the vital planning and engagement work that is needed to fully realise this important project.
“East Coast Hydrogen is exactly the type of pioneering partnership that’s needed on the path towards achieving net zero. It not only lays the foundations for the creation of a new low-carbon network, but it will also protect jobs, support industry, and help deliver on national ambitions for growth via the creation of new green skills and jobs, with the benefits being felt right across the country.”
Northern Gas Networks CEO Mark Horsley said: “Our East Coast Hydrogen partnership represents a clear route to driving growth for regional economies, job creation and decarbonisation support for industries that otherwise would find it difficult to meet net zero targets.
“This funding is essential to determining the technical work needed to build hydrogen infrastructure, in order to understand how a hydrogen network can be operational in time to meet government net zero plans.”