The hydrogen landscape in the UK
As the UK eagerly awaits the refreshed Hydrogen Strategy, there is hope that it will bring clearer targets and stronger direction for the country’s hydrogen ambitions.
This comes on the back of growing momentum: the Government’s Hydrogen Update to the Market (July 2025) marked a forward step in plans for low carbon hydrogen, embedding it firmly into the UK’s 10 year National Infrastructure Strategy and wider energy goals.
Hydrogen is now positioned as a core tool for decarbonising heavy industry, transport and power, and regional initiatives such as the Hydrogen Valley programme demonstrate how this national ambition is being translated into delivery.
The UK has been a pioneer in exploring low-carbon hydrogen, launching one of the world’s first national hydrogen strategies in 2021 and embedding its 2050 net-zero target into law. Backed by concrete measures, including new business models for hydrogen production, power, transport and storage, an enhanced Low Carbon Hydrogen Standard, and the removal of levies on green hydrogen to help reduce production costs, hydrogen is becoming a recognised pillar of the UK’s future energy system.
Where does the UK stand on the global stage?
In the period following the publication of the UK’s 2021 Hydrogen Strategy, global competition intensified rapidly. By 2023-24, at least 16 other countries had published or refreshed national hydrogen strategies, with many setting out more ambitious targets or introducing substantial support mechanisms. At the time, comparative analysis suggested the UK risked falling behind faster‑moving markets that were signalling scale, speed and long‑term certainty.
Germany, for example, built on its early leadership by updating its 2020 National Hydrogen Strategy in 2023, increasing ambition with a target of 10 GW of domestic electrolyser capacity by 2030 and placing a strong focus on hydrogen imports, alongside an earlier net‑zero deadline of 2045. This was supported by plans for a 9,000 km national hydrogen pipeline network and legislation intended to fast‑track hydrogen infrastructure by designating it as being of “overriding public interest”.
At EU level, policy was underpinned by coordinated regulation and funding. Legislation such as RED III created legally binding demand for renewable hydrogen in industry and transport, giving producers greater certainty that new capacity will be utilised. This was reinforced through EU‑level funding mechanisms, including IPCEI, national support schemes in countries such as Germany, France and the Netherlands, and progress on cross‑border infrastructure such as the European Hydrogen Backbone.
In the United States, the 2022 Inflation Reduction Act was seen as a major development. The introduction of a clean hydrogen production tax credit of up to $3/kg dramatically altered project economics, reduced investment risk and triggered a surge of announced hydrogen projects. This momentum was reinforced in late 2023 with the announcement of $7 billion in federal funding for seven Regional Clean Hydrogen Hubs, positioning the U.S. as a leading destination for hydrogen investment at that time.
Similarly, early pioneers such as Japan and South Korea, continued to strengthen their frameworks. For example, Japan passed the Hydrogen Basic Act in 2024, creating a comprehensive support framework to bridge the cost gap between clean hydrogen and fossil fuels and to scale domestic supply chains across production, transport, storage and use. Elsewhere, countries like China, Canada, Australia, and those in the Middle East announced their own ambitious plans, leveraging their unique resources (large renewable energy potential, natural gas reserves, or demand for cleaner fuels) to stake their claim in the hydrogen future.
A changing global context
A couple of years on, however, the picture is more mixed. While many of these commitments appeared compelling in 2024, delivery has often been slower or more complex than anticipated. Political change, fiscal constraints and regulatory uncertainty have slowed momentum in several markets, and not all early announcements have translated into projects reaching final investment decision or construction.
Viewed in this context, the UK’s position looks more balanced. While the UK was slower to move and has taken a more cautious approach to public targets, it has made steady progress against much of what it committed to deliver. Crucially, this is now translating into real projects taking shape. Through mechanisms such as the Hydrogen Allocation Round (HAR), hydrogen projects are moving from plans into delivery, demonstrating that the UK is not just setting policy but actively supporting projects to reach operation.
The challenge now is maintaining momentum. The UK may not be the fastest‑moving market, but it has built credibility through delivery. If progress stalls, there is a real risk of investment flowing elsewhere. But if certainty and clarity are reinforced through the refreshed Hydrogen Strategy, the UK remains well placed to compete in the global hydrogen landscape.
