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.
Key Insights from the Report
The report highlights the UK’s unique opportunity to become a global leader in the emerging hydrogen supply chain market. Leveraging its advantageous geography, geology, a robust pipeline of hydrogen projects, a stable policy environment, and transferable skills from the North Sea, the UK is well-positioned to capitalise on this burgeoning industry.
Quick Wins and Strategic Focus Areas
The report identifies several quick wins in the hydrogen supply chain, including:
- Electrolyser Stacks
- Power Electronics
- Hydrogen Network Pipes
- Compressed Hydrogen Storage Tanks
However, there are areas that require more focused efforts, such as:
- Compressors
- Reformer Packages
These components are high-value and impactful but present delivery challenges. The report also suggests an opportunistic approach to:
- Carbon Capture Packages
- Industrial Equipment
- Industrial Burners
For the long term, the focus should be on:
- HV Transformers
- Hydrogen Gas Turbines
- Air Separation Units
Recommendations for Future Investments
To seize these opportunities, the report recommends:
- Mandatory UK Supply Chain Assessment: Future business model funding should include this assessment and a top-up bonus mechanism to encourage the selection of UK suppliers.
- Central Hydrogen Supply Chain Support and Funding Body: This body would coordinate investments in high-priority supply chain areas.
- Skills Strategy Alignment: The UK’s skills strategy should focus on priority supply chain areas and align with required timelines, including retraining and upskilling the existing workforce.
Attracting Foreign Investment and Encouraging Engagement
The report also emphasises leveraging existing UK assets and programmes to attract foreign direct investment in key supply chain areas. Suggested initiatives include:
- “Meet the Buyer/Specifier” Events: To foster engagement between UK project developers and supply chain companies.
- Database of Hydrogen Supply Chain Companies: To maintain a comprehensive list of companies involved in the hydrogen supply chain.
Monitoring and Evaluation
A monitoring and evaluation framework should be developed to track the success of supply chain growth and ensure that the UK’s skills strategy remains focused on 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.”
Conclusion
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.
