Reassessing the UK’s hydrogen strategy as the government prepares its update

The UK's hydrogen strategy requires a course correction to prioritize hard-to-electrify sectors and resolve policy misalignments across government departments. While the UK has established production targets and funding streams like the Hydrogen Allocation Rounds (HAR), inconsistent frameworks between the Department for Energy Security and Net Zero (DESNZ) and the Department for Transport (DfT) create investment barriers. The document warns that slow policy delivery and high energy costs risk turning decarbonisation into deindustrialisation, as seen in the shutdown of the UK ammonia industry. It recommends integrating hydrogen strategy with broader industrial decarbonisation, aligning low-carbon fuel standards, and increasing stakeholder representation in decision-making bodies like the Hydrogen Delivery Council.

• Low-carbon hydrogen should be reserved for applications that are genuinely hard-to-electrify, specifically energy-intensive industries like chemicals and fuels production, as well as aviation and maritime sectors where demand is expected to grow into the 2040s.
• There is significant misalignment in funding and policy across UK government departments; for example, producers supported by the Department for Energy Security and Net Zero (DESNZ) hydrogen-derived fuels scheme are ineligible for support under the Department for Transport (DfT) scheme.
• Inconsistent standards for hydrogen feedstocks exist between departments, notably the DfT Sustainable Aviation Fuel mandate, which currently excludes CCS-enabled hydrogen as a feedstock, contrary to DESNZ rules.
• Policy uncertainty and delays in awarding Hydrogen Allocation Rounds (HAR) 2 projects have reduced investor confidence and created a "valley of death" for developers, threatening the viability of future projects.
• Slow government support and policy uncertainty have already led to negative industrial outcomes, including the shutdown of the UK ammonia industry and the near-exit of Tata Steel from the domestic market.

APA

Carr, A. (2025). Reassessing the UK’s hydrogen strategy as the government prepares its update. Clean Air Task Force. https://www.catf.us/2025/12/reassessing-uks-hydrogen-strategy/

Chicago

Carr, Alex. Reassessing the UK’s hydrogen strategy as the government prepares its update. Clean Air Task Force, 2025. https://www.catf.us/2025/12/reassessing-uks-hydrogen-strategy/.

Wikipedia

{{cite press release |last1=Carr |first1=Alex |title=Reassessing the UK’s hydrogen strategy as the government prepares its update |publisher=Clean Air Task Force |date=17 December 2025 |url=https://www.catf.us/2025/12/reassessing-uks-hydrogen-strategy/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{carr2025reassessing, author = {Carr, Alex}, title = {{Reassessing the UK’s hydrogen strategy as the government prepares its update}}, publisher = {Clean Air Task Force}, year = {2025}, month = dec, url = {https://www.catf.us/2025/12/reassessing-uks-hydrogen-strategy/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }