How is the UK faring in the global hydrogen race?

While the UK’s new emissions reduction target puts it at the forefront of climate action, Dr. Tom Mason (pictured), CEO and Co-Founder of Bramble Energy, looks at the nation’s progress in one of the most pivotal areas for achieving this goal: green hydrogen energy production.

At this year’s COP29, UK Prime Minister Keir Starmer announced an ambitious new emissions reduction target under the UK’s nationally determined contribution (NDC): an 81% reduction in emissions by 2035, compared to 1990 levels. 

Starmer framed this target not only as a contribution to the global climate fight, but as a unique opportunity for the UK’s economy, aiming to create jobs, revitalise areas currently dependent on fossil fuels, and reinforce national security by achieving climate stability.

While this commitment is certainly at the upper end – with Starmer and others urging other global leaders to join the UK in offering more ambitious targets early doors – how is the UK actually faring in achieving it?

So far, the UK has made good progress by meeting and even exceeding interim carbon budgets, and is also set to overachieve on Carbon Budget 4 between 2023 to 2027.

However, the challenges in accelerating the transition in key sectors such as transportation, heating and industry cannot be underestimated if it is to actually achieve 81% in little over a decade. 

Hydrogen’s part to play in achieving Net Zero 

Achieving this new target will require substantial and rapid progress in a number of fields, a key one being clean hydrogen production.

As a versatile and sustainable energy solution, hydrogen is rapidly emerging as a major player in the global energy transition. It not only has the potential to fight climate change and decarbonise multiple sectors – particularly those that are difficult to electrify, such as heavy industry and transport – but also to enhance energy security and foster economic growth and innovation globally.

Unfortunately, as of now, it only represents a very small fraction of global hydrogen production, with 98% coming from fossil fuels. However, as the cost competitiveness of clean hydrogen increases and deadlines to decarbonisation edge closer, demand for grey hydrogen is expected to plummet.

 In fact, by 2050, clean hydrogen could make up 73–100% of total hydrogen demand, with only a small fraction being met by grey hydrogen. But to achieve this, there is a lot of work to be done from all corners of the world. 

But which countries are leading in this field and what lessons can the UK learn from them to improve its own hydrogen strategy to ensure it remains a key player in the clean energy transition?

Global leaders in the hydrogen race 

As of now, the green hydrogen race is heating up, with several countries making significant strides, pouring billions into hydrogen production, infrastructure and technology. 

Along with the likes of North America, China, South Korea and The Netherlands, some of the key ones that come to mind include:

• Australia: With abundant renewable energy resources and a fantastic vision for energy diversification, Australia  is investing heavily in green hydrogen infrastructure. One example is the Australian Renewable Energy Hub, which, once operational, will be one of the world’s largest green hydrogen production facilities. With a projected investment value of approximately AUD $30 billion, this project not only aims to produce around 1.6 million tonnes of renewables-based hydrogen annually, but shows what substantial financial backing from a consortium of companies and investors – as well as help from the Australian Government – can do for the hydrogen revolution.
• Germany: Focused on industrial-scale hydrogen projects, this country is also a clear leader in this field, backed by ambitious renewable energy policies, significant government investment and strategic infrastructure development. With billions of euros allocated to support its National Hydrogen Strategy, Germany is building a robust network of hydrogen pipelines and refuelling stations. The German government has also prioritised international collaboration and innovation in hydrogen research. ThyssenKrupp’s Nucera project – focused on producing electrolysers – is a prime example of this, having received $746 million in government backing this year. 
• Japan: With a clear focus on energy security, Japan – which relies heavily on energy imports – has been at the forefront of green hydrogen technology for years. The Fukushima Hydrogen Energy Research Field (FH2R), for example, which uses solar power to produce hydrogen, is one of the largest hydrogen production plants in the world. They’re also heavily investing in hydrogen fuel cell technology, which is key to building a hydrogen economy. Japan’s Toyota has created Mirai, one of the first mass-produced hydrogen fuel cell vehicles (FCVs) in the world, with its fuel cells generating electricity through a chemical reaction between hydrogen and oxygen, producing only water vapour as a byproduct. The country has also recently updated its Basic Hydrogen Strategy to further promote green hydrogen initiatives, seeing the government commit around $98.8 billion over the next five years toward nine core technologies, including fuel cells and water electrolysis. 

Lessons the UK can learn:

The UK’s approach to hydrogen, in comparison, has been arguably more cautious. In fact there are some key themes driving success in Australia, Germany and Japan’s green hydrogen strategies where the UK might need to catch up — including:

• Massive financial investment and government support: One of the most obvious commonalities across Australia, Germany and Japan is their heavy investment in hydrogen production, infrastructure and innovation. For the UK, matching this level of financial backing and commitment is crucial for hydrogen sector growth,  scalability and competitiveness. At the moment – while it’s certainly increased over recent years – it remains far more conservative in comparison.
• Strategic infrastructure development: Both Germany and Australia are building robust hydrogen infrastructure. While the UK recently announced plans for the first allocation rounds of the hydrogen transport and storage business models in 2024 – a major step forward in the delivery of critical hydrogen infrastructure – it still lacks large-scale infrastructure for green hydrogen production and transport, which is vital for integrating hydrogen into the economy.
• Collaboration and partnerships: Germany and Japan have shown success through collaboration, both domestically and internationally, to accelerate hydrogen technology. It’s an ideal way to share innovation and resource pooling and something the UK could benefit from doing more of.
• Export potential: The UK Government has said it is “exploring opportunities to export hydrogen”, including from the UK to continental Europe. However, the UK is behind in establishing infrastructure and trade deals at the same scale as Australia, for example, who has been actively working on establishing green hydrogen export trade deals as part of its strategy to become a global leader in the green hydrogen market. ​​

What the UK is doing well

On the positive side, the UK has made some great progress since the publication of the UK Hydrogen Strategy, supporting hydrogen hubs and clusters such as the HyNet North West to move it closer to its hydrogen targets. And these are targets that, much like its Net Zero goals, are highly ambitious; to achieve 10 GW of hydrogen production capacity by 2030, with at least half from green hydrogen. 

While climate targets like these can seem abstract, experts say they’re important, serving as an investment signal to investors. Shortly after Starmer announced the UK’s new emissions reduction target, Erwin Jackson, policy director with the Investor Group on Climate Change, said: “The fundamental point is if you want to be prosperous as an economy you have to have a strong target because if you don’t investors will take their capital elsewhere.” 

The UK is also a country that boasts world-leading talent and innovations in combating the impacts of climate change. In fact, there are lots of exciting developments coming from the UK around lowering the capital and operating costs of electrolysers, so that green hydrogen production is cheaper than fossil-based hydrogen. Innovations in manufacturing processes, material selection, system integration and scale-up are all working to drive cost reductions across the entire value chain.

At Bramble Energy, for example, we are currently working on integrating printed circuit board (PCB) manufacturing techniques with AEM technology to create a more compact, efficient and less expensive electrolyser that allows reliable manufacturing at scale.

However, without continued government support and, more importantly, essential investment, innovation levels cannot be sustained. And this is where the UK needs to catch up, learn from international leaders and accelerate its hydrogen strategy – or risk falling behind in the global race.