New report from Hydrogen UK and Chemical Industries Association report reveals sustainable aviation fuel, ammonia and methanol could unlock jobs, industrial resilience and clean growth across aviation, farming, ports and manufacturing.
8 July 2026 – Hydrogen UK, the leading trade body for the hydrogen industry and the Chemical Industries Association (CIA), the leading trade body for the chemicals industry, have today launched their joint report Hydrogen Derivatives: Building Blocks of the Hydrogen Economy.
The report highlights that while the UK remains in a strong position to be a leader in low carbon hydrogen production, the clean fuels and chemicals that can be made with low carbon hydrogen also offer strong support for the UK economy.
These hydrogen derivatives include sustainable aviation fuel, which can reduce emissions from flights; ammonia, which is used to make fertiliser and key industrial products; and methanol, which can be used as a clean fuel in shipping as well as a key ingredient and solvent in manufacturing. Together, these chemical products could help strengthen domestic supply chains, supporting growth and resilience across the UK’s most strategically important industrial sectors.
Building the UK’s next clean aviation fuel industry
Aviation remains one of the hardest sectors to decarbonise, with UK aviation emissions rising by 9% in 2024 to 38 million tonnes of carbon dioxide equivalent. The report highlights sustainable aviation fuel as one of the clearest routes to cleaner flying, particularly fuels made using low-carbon hydrogen and captured carbon dioxide that can be used in existing aircraft and airport infrastructure. With the UK sustainable aviation fuel sector estimated to support up to 10,000 jobs and contribute around £2 billion a year to the economy by 2035, projects including Equinor’s Sustainable Aviation Fuel in the Humber show how this opportunity could be anchored in UK industrial clusters.
Protecting fertiliser supplies and strengthening food security
Ammonia is central to fertiliser production and, as a result, UK food security. The report warns that UK farmers now rely on imports for around 60% of their fertiliser needs, leaving the sector exposed to global price shocks and supply disruption. Low-carbon ammonia could help strengthen domestic fertiliser resilience while reducing emissions from farming supply chains. The Statkraft’s Shetland Ammonia Project shows how renewable power could be converted into ammonia for both fertiliser and low carbon marine fuel.
Turning UK ports into clean fuel hubs
The report also identifies a major opportunity for UK ports to become hubs for future clean shipping fuels, including methanol and ammonia. Methanol represents a ‘near-term’ option because it can be stored and handled more easily than some alternatives, while ammonia is being explored for long-distance shipping. The Humber and Immingham, which together handle around 40,000 vessel movements a year, are well placed to lead the transition, while the TURBO-METH project at Shoreham Port is already testing how methanol could be stored, handled and supplied in a working port environment.
Policy frameworks must cater for clean fuel and chemical infrastructure
However, the report also warns that policy uncertainty is already affecting investment. Sustainable aviation fuel, ammonia, methanol and other Liquid Organic Hydrogen Carriers (LOHCs) risk being overlooked by core policy frameworks, despite their importance to aviation, agriculture, shipping, chemicals and energy security.
Hydrogen UK and the Chemical Industries Association are calling for a more joined-up approach across energy, transport, trade, agriculture and industrial policy, including clearer market support, stronger demand signals, faster infrastructure planning, better access to carbon dioxide feedstocks for clean fuels, and standards that allow UK-produced fuels and chemicals to compete internationally.
Steve Elliott, Chief Executive of the Chemical Industries Association, said:
“The UK is well positioned to realise the potential of low-carbon hydrogen. We have an innovative industrial base ready to access clean fuel and feedstock, but industry needs meaningful signals from government on the role these products will play in the UK’s energy transition.
The opportunity is there to unlock private investment in clean fuels and circular chemicals, strengthening resilience, material security and economic growth. If we get this wrong, energy-intensive industries such as chemicals will continue to face business closures, on top of the 25 that have already happened in the last five years.
Safeguarding existing industrial capacity and jobs is the platform for future growth. We need to get it in place while we still have time.”
Clare Jackson, Chief Executive Officer of Hydrogen UK, said:
“The UK has rightly recognised hydrogen as a strategic technology, but production alone risks missing out on the full economic opportunity. We also need the fuels and chemicals derived from hydrogen as these support vital industries within the UK economy.
This report shows that the UK has the industrial clusters, ports, engineering expertise and resources to lead in this space. But without clearer policy support, we risk creating demand for clean fuels and chemicals while the investment, jobs and manufacturing capability are built overseas.
A joined-up strategy for hydrogen-derived fuels and chemicals would help unlock private investment, strengthen energy security, support UK farming and create huge opportunity across our industrial heartlands.”
The full report is available here.
