The North East's strengths in emerging hydrogen technologies should be built on in the Government's forthcoming Industrial Strategy, a key regional business group has said.
A report from the North East Chamber of Commerce says the region is well placed to benefit if the Ƶ can take a 10% slice of the hydrogen technology market that could be worth £46bn to the country by 2050. But to do so, several factors such as lack of transport and storage infrastructure, a lack of skills and awareness about career opportunities in the sector and community suspicions about hydrogen developments need to be tackled.
The research, published in collaboration with law firm Womble Bond Dickinson and Teesside University, uses insights from industry experts, legal specialists and North East businesses to paint a picture of opportunities and challenges in the hydrogen economy. It cites the growth of Newcastle-based hydrogen power units provider GeoPura as an example of how production can be ramped up in the face of the "chicken and egg" problem facing the industry which is that providers need demand and buyers need certainty of supply.
In recent years French hydrogen innovator Lhyfe has established itself in the region, and has plans to build a production plant on the site of the former Neptune Bank Power Station, on the banks of the Tyne. The firm, which has talked of its hopes to find industrial partners in the region, is also namechecked in the report which points out that Teesside already produces half of the country's hydrogen output. Among other projects, energy giant bp is also hoping to establish its HyGreen Teesside plant which could generate about 5% of the Ƶ government’s hydrogen target of 10 GW by 2030.
Marianne O’Sullivan, policy manager at the Chamber, said: “The North East is uniquely positioned to be at the forefront of the Ƶ’s hydrogen revolution, with key infrastructure, industrial expertise and a strong commitment to sustainability. This report highlights the strategic importance of hydrogen in our region, showcasing the pioneering work already taking place and the steps needed to unlock further potential. We hope this report sparks further collaboration and investment to drive forward a cleaner, greener economy.”
Dr Nugun Jellason, senior lecturer of sustainability and international business at Teesside University International Business School, said: “The North East is key to the Ƶ's net zero goals, with hydrogen playing a vital role in the future energy mix. Teesside, with its industrial strengths and access to renewable energy resources, is positioned to lead in hydrogen development. While challenges like infrastructure investment remain, the potential for economic growth and job creation is significant. Through collaboration, government support and education, the North East can drive innovation in sustainable energy."
Sarah Daun, partner from Womble Bond Dickinson, said: “The North East is at a pivotal moment in the Ƶ's journey towards net zero, with hydrogen offering a clear pathway to decarbonisation. There is growing optimism among investors and energy suppliers, and the region’s industrial expertise places it in a prime position to seize the opportunity.
"While challenges like infrastructure and workforce development remain, the potential for economic growth and job creation is immense. By embracing innovation and collaboration, the North East can transform itself into one of the leading hydrogen hubs in the Ƶ and beyond.”
The North East Chamber of Commerce's Hydrogen Report can be viewed .
