Scaling up the use of hydrogen could unlock £18bn ($23bn) for the UK economy and support as many as 75,000 jobs by 2035, according to a new report that sees ‘blue’ H₂ from abated fossil fuels dominating the emerging market for the key energy transition fuel by then.

The Hydrogen Taskforce — a lobby group many of whose members have links to the fossil fuel sector, including oil and gas companies Shell and BP — said in a new economic impact assessment that the UK is well placed to become a global leader in hydrogen production, supplying domestic and European demand.

“The government must act now to ensure that the UK capitalises on the opportunity presented by hydrogen and builds a world-leading industry,” said the group, which also includes gas industry players Cadent, Natural Gas Networks and BOC.

Its report reckons blue hydrogen — produced from natural gas with carbon capture and storage — will make up 80% of the UK's hydrogen mix by 2035.

Only 20% will be green hydrogen — produced from renewable energy — it argued.

The relative roles of blue and green H₂ in the energy transition, and how that should dictate investment priorities, is a controversial issue across Europe, as explored in a recent Recharge digital roundtable on the subject.

The economic contribution of the downstream hydrogen sector — using the gas in transport, industry and power generation — could total more than £8.7bn and 31,000 jobs, said the Hydrogen Taskforce.

The midstream sector — comprising transmission, distribution and storage — could deliver about £5.26bn and support more than 15,000 jobs.

On the upstream side, the report predicted green hydrogen production could contribute £1.35bn to the UK economy and support 18,370 jobs.

Blue hydrogen jobs

Blue hydrogen production, meanwhile, could support nearly 10,000 jobs, contributing £2.57bn to the economy.

“Hydrogen offers the UK a pathway to deep, cost-effective decarbonisation while delivering economic growth and job creation. It should therefore be at the heart of the government’s green recovery programme, ensuring that the UK builds back better and greener," said the report.

“Scaling up hydrogen solutions will allow the UK to build on existing areas of expertise and global leadership. With a value chain that spans production, storage, transmission and distribution, and downstream appliances, this growing global market could support thousands of jobs in the UK for decades to come.”

The Hydrogen Taskforce was launched in in March, setting out policy recommendations to enable hydrogen solutions to be deployed at a commercial scale.

This article first appeared in Recharge's sister publication Upstream

Transition

Gas lobby group with BP and Shell touts blue hydrogen to lead $23bn UK boost