International Partnership for Hydrogen and Fuel Cells in the Economy

Hydrogen Strategy Update to the Market (Aug 2023) Hydrogen Strategy Update to the Market (Dec 2022) UK Hydrogen Strategy 2021 (Aug 2021)

Update: June 2026 Revenue Certainty Mechanism for SAF:   In March 2026, the SAF Act received Royal Assent. It aims to boost domestic SAF production by providing a Revenue Certainty Mechanism (RCM), which guarantees a fixed price to SAF producers to reduce investment risk. The RCM addresses the lack of a clear, predictable market price for SAF, one of the biggest constraints on investment in UK SAF production. The RCM builds on the established precedent of contracts for difference in the renewables sector. Public consultation on the indicative Heads of Terms of the mechanism, which would pay producers the difference between a strike price and a reference price, and the allocation strategy for projects launched January 2026 and ran until beginning of April 2026. Responses are being analysed and will feed into final T&Cs for the contract and the agreed allocation strategy.   The Zero Emission Flight Demonstrator Challenge:   Funded by DfT, Innovate UK launched the Zero Emission Flight Demonstrator Competition in February 2026. This offers up to £8 million funding to support feasibility studies and demonstration activity of zero emission flights between UK airports. This includes hydrogen-propelled aircraft. This competition is now closed to bids, and these will be assessed as part of a competitive process. Successful projects will run for up to 24 months.   The UK Civil Aviation Authority's Hydrogen Challenge:   With DfT funding confirmed for the 2025/26 financial year, the UK’s Civil Aviation Authority has expanded its regulatory sandbox for hydrogen technologies in aviation. This is to support development of a proportionate regulatory framework and encourage investment in this nascent technology.   UK Shipping Office for Reducing Emissions (UK SHORE) - Phase 2 (2026-2030)   GBP 448 million of public funding for the 2026-2030 period has been confirmed which is the second phase of the UK SHORE programme. This phase will further accelerate the technologies required to decarbonise the UK maritime sector and deliver the objectives of the Maritime Decarbonisation Strategy (MDS). Funded activities include a Zero Emission Vessels and Infrastructure competition (ZEVI2), launched on 26 March 2026; the seventh round of the Clean Maritime Demonstration Competition (CMDC7), launched on 11 March 2026 (with two further rounds planned between 2027 and 2029); early-stage scientific research of novel technologies delivered through the Clean Maritime Research Hub until at least 2028; and a multi-year maritime challenge under the Transport Research and Innovation Grant (TRIG) programme supporting early‑stage research and development of clean maritime technologies through to 2029.

Update: June 2026 R&D funding Between 2021 and 2026, DESNZ’s Net Zero Innovation Portfolio has included the following programmes. These programmes all closed by the end of March 2026 and final reports from individual projects are due to be published on the NZIP programme webpages: Low Carbon Hydrogen Supply 2 Programme (~£55 million) – aimed to make hydrogen production, transport and short‑term storage more efficient and cost‑effective. Stream 1 supported novel, less‑advanced technologies and initially supported 23 feasibility studies. Five of the 23 projects then secured demonstration funding in phase 2. Industrial Hydrogen Accelerator Programme (~£9 million) – aimed to demonstrate the viability of end‑to‑end hydrogen fuel switching in industrial applications, as well as reducing its costs and risks. The programme supported nine feasibility projects whose published findings illustrate the varied challenges and opportunities of switching to hydrogen. Hydrogen Skills and Standards for Heat Programme (~£3 million) - aimed to develop sets of technical standards, for domestic and non‑domestic hydrogen gas installations. These codify safe ways to repurpose existing natural gas installations for hydrogen, and to design and install new hydrogen‑suitable pipework and appliances.

Update: June 2026 Hydrogen and CCUS Skills Accelerator We provided Cogent with £400k to develop a pilot Hydrogen and CCUS Skills Accelerator (HCCSA) in September last year; The project was completed at the end of March. The HCCSA was created in collaboration with employers and training providers in the North West and South West of England to pinpoint the vital capabilities needed in an emerging workforce and the necessary training courses. Some key outputs: Identified critical occupations – identified the roles that will be critical to any transition through consultation with regional and national employers (including those in hydrogen production, storage, transport and CCUS). Developed and extended skills frameworks – created a new evidence-based skills framework for CCUS, which identifies and defines the knowledge required for CCUS operations, and mapped the critical occupations to the CCUS and hydrogen skills frameworks. Developed short courses and qualifications – developed four training specifications, training courses and two new qualifications to equip current and future workers with the essential skills needed for the emerging hydrogen and CCUS sectors.   Deployments Projects that were successful in Hydrogen Allocation Round 1 (HAR1) are now moving through to the final investment decision, construction and operation phases. HAR1 is expected to unlock around £400 million of private investment and create over 600 direct jobs.   In January 2026, Hygen announced that it had acquired the HyBont project in Bridgend, Wales, which was successful in HAR1, and will now take it forward into the next stages of development.   In March 2026, MorGen Energy announced, in collaboration with UK Government Ministers, that it has approved the final investment decision (FID) on the West Wales Hydrogen project in Milford Haven. MorGen has selected Sheffield-based ITM Power to supply the electrolyser system, and the project is now entering the construction phase and expects to begin commercial operations in early 2028.

Update: June 2026 World Hydrogen Summit, 19th-21st May OEUK North Sea CCS & Hydrogen Summit, 2nd June  HEA annual conference, 9th July

Update: June 2026 Recent announcements In April 2026, DESNZ and GBE announced a proposed £86.5m funding package to support ITM Power’s 1GW hydrogen electrolyser manufacturing expansion in Sheffield, comprised of an in-principle offer of £46.5m DESNZ grant, alongside a £40m GBE equity investment. The grant is subject to subsidy control scrutiny, final approvals, and final contract signing. ITM Power plans to manufacture its next-generation electrolyser technology in the UK, stimulating over 400 jobs locally in South Yorkshire and across the supply chain.   Other support The Government backed hydrogen as a frontier technology through the 10 Year Clean Energy Industries Sector Plan, as part of the Industrial Strategy released in June 2025. The policies outlined in the Plan were reaffirmed in the publication of the Government’s North Sea Future Plan, published in November 2025, and the Carbon Budget and Growth Delivery Plan, published October 2025. This includes a comprehensive public finance institution support package to crowd private investment into sustainable UK supply chains, including in the hydrogen sector, including Great British Energy’s £1bn funding programme ‘Energy, Engineered in the UK’; £5.8bn for the National Wealth Fund to invest in industries including low carbon hydrogen across this Parliament, and a £4bn British Business Bank Industrial Strategy Growth Capital scale up and start up financing package.

Update: June 2026 Regulations  UK government published a consultation response on 3 December on the economic regulatory framework for hydrogen pipeline networks. This confirms that we intend to establish an effective economic regulatory framework for hydrogen pipeline networks through legislation, licences, and a new hydrogen network code. This framework will aim to provide regulatory clarity, support investment, delivery of the UK’s decarbonisation commitments and ensure the safe and efficient operation of early hydrogen pipeline networks through: Adopting primary and residual balancing arrangements for hydrogen networks, based on arrangements that are in place for natural gas; Assigning the role of System Operator to hydrogen transporters; Exempting hydrogen supply to premises from supplier licence requirements, keeping this under review as networks develop; and The development of a new hydrogen network code.   Standards  In January 2026, the UK published the fourth update to the Low Carbon Hydrogen Standard (LCHS) which incorporates updates to improve clarity, simplify processes, and reflect lessons learned from Version 3 and stakeholder feedback.

Department for Business, Energy and Industrial StrategyUK Hydrogen Association & Fuel Cells UKScottish Hydrogen & Fuel Cell AssociationUK H2MobilityH2FC SupergenHydrogen LondonIEA Hydrogen

Hydrogen Energy Strategic Framework for the UK: The Government's Response (PDF 36KB) Hydrogen Appliances: Desk study on the development of the supply chain for 100% hydrogen-fired domestic and commercial appliancesHydrogen and Fuel Cells: Opportunities for Growth – A Roadmap for the UKH2FC SUPERGEN Hydrogen & Fuel Cell whitepapers

United Kingdom Statement (PDF); 40th Steering Committee Meeting; Washington DC, USA; 4-5 October 2023 United Kingdom Statement (PDF); 36th Steering Committee Meeting; Seoul, Republic of Korea; Nov 16-17, 2021 United Kingdom Statement (PDF); 32nd Steering Committee Meeting; Seoul, Republic of Korea; Oct 21-25, 2019 United Kingdom Statement (PDF 411KB); 31st Steering Committee Meeting; Vienna, Austria; April 9-12, 2019 United Kingdom Statement (PDF); 30th Steering Committee Meeting; Pretoria, South Africa; Dec 6, 2018 United Kingdom Statement (PDF); 29th Steering Committee Meeting; Kobe, Japan; May 8 - 11, 2018 United Kingdom Statement (PDF); 26th Steering Committee Meeting; Gwangju, Republic of Korea; November 1-4, 2016 United Kingdom Statement (PDF 231KB); 25th Steering Committee Meeting; Berkeley, CA, USA; May 17-20, 2016 United Kingdom Statement (PDF 177KB); 22nd Steering Committee Meeting; Rome, Italy; 2-3 December 2014 United Kingdom Statement (PDF 242KB); 21st Steering Committee Meeting; Oslo, Norway; 19-21 May 2014 United Kingdom Statement (PDF 440KB); 19th Steering Committee Meeting; London, United Kingdom; 23-24 May 2013 United Kingdom Statement (PDF 179KB); 18th Steering Committee Meeting; Seville, Spain; 14 November 2012 United Kingdom Statement (PDF 321KB); 17th Steering Committee Meeting; Cape Town, South Africa; 3-4 May 2012 United Kingdom Statement (PDF 484MB); 14th Steering Committee Meeting; Shanghai, China; 21-22 September 2010 United Kingdom Statement (PDF 47KB); Steering Committee Meeting; Moscow, Russia; 21-23 April 2008 United Kingdom Statement (PDF 17KB); Implementation-Liaison Committee; Reisensburg, Germany; 26 February 2004 Ministerial Statement (PDF 85KB); IPHE Inaugural Ministerial Meeting; Washington, D.C.; 20 Nov 2003 Contact: James Dobing | james.dobing@beis.gov.uk

Alexandra Jenkins - Alexandra.Jenkins@energysecurity.gov.uk