A new report released by the North West Hydrogen Alliance (NWHA) has indicated that hydrogen could bring the region an economic boost of £3.4 billion.
The development of a hydrogen sector in the North West of England could also create 11,500 jobs, helping to bring further economic opportunities and wealth to the area.
The report delves into the economic impact of hydrogen activity in the North West across the hydrogen value chain, including production, infrastructure, and end-use. It shows that hydrogen production is estimated to have the most significant impact on employment and gross value added (GVA).
Thousands of jobs are expected to be created primarily in construction, manufacturing, and engineering to build essential hydrogen infrastructure. Professional services and business roles will also experience wider employment impacts.
Demand for hydrogen in the North West is expected to soar in the coming years, mainly due to the region’s industrial prowess. A report released in February 2024 disclosed that demand could reach 2GW by 2030 before reaching 7.5GW by 2050. A significant portion could be taken up by the transportation sector and heating buildings.
It is worth noting that the UK government has supported hydrogen’s development in the North West through various funding initiatives over the years. In 2021, the UK government allocated £171 million to the Industrial Decarbonisation Fund, which predominantly focused on hydrogen and carbon capture and storage (CCUS).
In this package, it was confirmed that HyNet North West would receive almost £33 million in funding for two projects looking at capturing and storing carbon emissions from the operations of a low-carbon industrial cluster and creating a hydrogen economy in the North West. This will include repurposing old oil and gas facilities in the area to transport and store carbon.
Dave Richardson, interim chair of the NWHA and decarbonisation solutions director at Costain, a founding member of NWHA, said: “The North West stands to benefit hugely from leading the charge on hydrogen. The regional economy is set for a £3.4 billion boost, with thousands of jobs created in production, infrastructure development and end-use by 2030.
“With projects like HPP1, HyNet and Trafford Green Hydrogen currently underway, there are already plenty of opportunities to get involved in the net zero transition, whether starting out in your career or looking to transfer skills honed in other sectors.
“Developing a hydrogen economy will also help safeguard many thousand more jobs as industry in the region switches to this low carbon fuel on their decarbonisation journey.”
