Authors: Dr Hamed Kalantari, Dr Sube Singh, and Professor Alok Choudhary



The UK is making rapid progress toward its 2050 net-zero targets, with hydrogen playing a key role in its overall net-zero strategy. As part of our HI-Act research initiative, we recently hosted a stakeholder workshop titled ‘UK Hydrogen Supply Chain: Capabilities, Readiness, and Strategic Challenges’ at WMG, University of Warwick, on 15 January 2025. The event brought together hydrogen industry experts to evaluate the sector’s capabilities, industry readiness, and potential collaborations to enhance hydrogen adoption in the UK.



Understanding the UK Hydrogen Supply Chain

The UK hydrogen market is expanding rapidly due to government targets for net-zero emissions and increasing demand for renewable energy. By 2030, the UK aims to produce 10 GW of low-carbon hydrogen, encompassing both green and blue hydrogen. While the country has strong industrial and scientific capabilities, it faces significant challenges, including infrastructure limitations, financial constraints, and global competition.



Our research adopted a comprehensive approach to assess the UK’s hydrogen supply chain, combining desk-based research and synthesising stakeholder views and feedback. We mapped the UK hydrogen supply chain to evaluate dependencies, from raw materials for production, distribution, storage, and end users ‘ applications through to analysing to the manufacture of critical components such as electrolysers and fuel cells.

Our analysis categorised UK company capabilities into three key segments: infrastructure project developers and service providers, end-product manufacturers, and component suppliers. We gathered data to showcase the UK’s capability in these areas, including companies, their competencies and location etc. We presented a supply chain map showcasing the UK’s Hydrogen Supply Base capability.



To gauge supply chain readiness, we applied four key criteria: Industry Specialisation, Suitable Manufacturers, R&D Capability, and Global Competitiveness.

This assessment provided a framework to evaluate the UK’s standing in various aspects of the hydrogen industry, from supply chain security to long-term growth scenarios. Stakeholder insights, gathered through focus group discussions with over 50 industry representatives, further validated our findings and helped refine our readiness scoring approach.



Key Takeaways from the Stakeholder Workshop

The workshop at WMG served as a platform for in-depth discussions and brainstorming, knowledge sharing and panel discussions on hydrogen technologies, policies, and industry challenges. Key highlights included:



  • 1. Keynote Speeches Professor Sara Walker introduced the HI-ACT project and its focus on cutting-edge hydrogen technologies. She highlighted breakthroughs in renewable hydrogen production and discussed opportunities for cross-industry collaboration


2. Panel Discussion: Challenges and Opportunities

A panel of industry experts examined critical aspects of the UK hydrogen economy, highlighting:

  • Infrastructure Readiness: The need for substantial investments in refuelling stations and large-scale storage to ensure hydrogen supply stability.
  • Policy and Regulation: The role of clear regulatory frameworks in fostering hydrogen adoption and creating a stable market environment.
  • Financial Incentives: The necessity of government funding to support hydrogen innovation and new market entrants, especially for SMEs.

Technological and Public Perception Barriers: Strategies for overcoming cost constraints, increasing public confidence, and raising awareness about hydrogen’s benefits



  • 3. Breakout Sessions: Deep-Dive into Hydrogen Supply Chains
  • Participants engaged in focused discussions across four key hydrogen sectors:


  • Hydrogen Production (Led by Dr. Hamed Kalantari): This session examined UK capabilities in electrolysers, carbon capture, reformer packages, and power electronics. A detailed SWOT analysis was conducted to highlight areas of competitive advantage, current gaps, and potential risks for future expansion.


  • Hydrogen Storage and Distribution (Led by Dr. Sube Singh): Experts analysed compressed storage tanks, hydrogen pipelines, salt cavern storage, and refuelling stations. Discussions focused on the importance of expanding infrastructure and the need for investment in hydrogen storage solutions to prevent supply chain disruptions.


  • Hydrogen End-Use Applications (Led by Dr. Alok): This session explored applications in gas turbines, fuel cell electric vehicles (FCEVs), industrial burners, and sensors. It identified key areas where innovation is needed to improve efficiency and reduce costs, enabling widespread adoption.
  • Hydrogen Technology Roadmap (Led by Dr. Salman Farrukh): Attendees examined how collaboration between industry and academia can accelerate hydrogen adoption. The discussion emphasized setting clear performance indicators (KPIs) and aligning research priorities with emerging regulatory requirements.



4. Rapid-Fire Industry Presentations

The workshop concluded with insights from leading industry representatives:

Prof. David Wimpenny (Manufacturing Technology Centre): Highlighted supply chain challenges, particularly in securing a stable supply of critical raw materials and components.

Debra Jones (Innovate UK Business Connect): Shared strategies for fostering SME partnerships in the hydrogen sector and unlocking funding opportunities.


Strategic Outlook for the UK Hydrogen Supply Chain

Our insights from the workshop, combined with insights from Hydrogen UK and HII on the hydrogen supply chain strategy further emphasise key areas that require immediate attention:



  • Investment in Infrastructure: Large-scale hydrogen storage and refuelling infrastructure are critical to scaling hydrogen adoption. Without significant investment, supply chain bottlenecks will persist, delaying commercial viability.


  • Supply Chain Resilience: Strengthening domestic manufacturing for essential hydrogen components, such as electrolysers and fuel cells, can reduce reliance on imports and enhance national energy security.


  • Policy and Market Development: Clear policy frameworks and financial incentives are essential to encourage private investment and ensure a competitive UK hydrogen sector. Policymakers must align regulations with industry growth to prevent market fragmentation.


  • Skills and Workforce Development: Training initiatives and university-industry collaborations must focus on equipping the workforce with hydrogen-related technical skills. The UK needs a long-term strategy to address potential skill shortages in engineering, maintenance, and digital technologies related to hydrogen systems.



Export Opportunities: The UK can position itself as a global leader by leveraging its strengths in offshore wind energy to produce green hydrogen for international markets. Creating a robust export strategy will allow UK firms to compete in the growing global hydrogen economy.

Our research and workshop findings highlights the UK’s strengths in hydrogen adoption, including:

Significant technological advancements in electrolysis and carbon capture

A skilled workforce and strong R&D capabilities

A leading role in offshore wind energy, which complements hydrogen production



However, challenges continues the areas including:

  • High production costs and supply chain constraints
  • Limited domestic manufacturing of key hydrogen components, leading to reliance on international supply chains
  • Global competition from regions with stronger financial incentives (EU, US, and Asia), making it challenging for UK firms to scale operations


  • Insufficient consumer awareness regarding hydrogen’s benefits, limiting public and business engagement

Opportunities for growth include transforming existing gas networks, expanding workforce training, and fostering industry collaboration to strengthen the supply chain. Additionally, the UK has the potential to lead in electrolysis and hydrogen storage technologies by leveraging its research capabilities to meet global hydrogen demand.



Conclusion: Shaping the Future of the UK Hydrogen Supply Chain

The UK stands at a crucial juncture in its hydrogen journey. While it has made significant progress in production and technology, infrastructure development, financial support, and strategic policy alignment will be essential to sustaining its progress. Our research, complemented by insights from the Hydrogen UK and HII, provides a roadmap for addressing these challenges and ensuring the UK remains a leader in the global hydrogen economy.


As we move forward, industry, academia, and policymakers must work together to strengthen the hydrogen supply chain and drive innovation. The UK has the expertise and resources—now is the time to act.



Shuai Yao, Modassar Chaudry

Cardiff University



HI-ACT is developing a set of Hydrogen and Alternative Liquid Fuels (HALF) Use Cases with WP1 “The Way Forward”.  We are building on existing global and national research trial and demonstration projects, building Use Cases that look at specific situations in which HALF will be used and integrated.  One such Use Case is looking at the South Wales Industrial Cluster. Working closely with one of our key stakeholders, Net Zero Industrial Wales, Dr Shuai Yao and Dr Modassar Chaudry are conducting research looking at the integration of hydrogen in a large regional cluster.  This blog highlights some of their current work.



South Wales is the second biggest industrial and power emitter of carbon in the UK, with over 16m tonnes of CO2e per annum. The South Wales Industrial Cluster (SWIC) project brings together various disparate sectors in South Wales that are crucial for decarbonisation and the development of a hydrogen economy. The aim is to develop a world leading, truly sustainable industrial cluster, befitting the societal needs of 2030 and beyond.



Figure 1 illustrates that SWIC covers a large geographic area with various industries such as energy, oil refining, paper, nickel, chemicals, LNG imports, steel, and cement. Also highlighted are key areas for development which includes the production of hydrogen, transport and the capture and use of CO2.

Figure 1. South Wales Industrial Cluster (SWIC) map (South Wales Industrial Cluster (SWIC) https://www.swic.cymru/)

System modelling



South Wales and SWIC in general represent an ideal and high potential use-case for evaluating the impact of electrification on regional grids and the role of hydrogen. A model of the South Wales distribution networks will be developed, based on which the impact of electrification and the role of hydrogen will be quantified. This model and analysis will provide inputs for the whole-system, integrated planning and operation of electricity, gas, hydrogen, and district heating infrastructure to help reduce costs and support local regeneration.

Methodology

The South Wale DFES (Distribution Future Energy Scenarios) dataset will be firstly processed to project the electric demand at each PSS (Primary Substation) across three scenarios: Consumer Transformation, System Transformation, and Leading the Way, up to year 2050. At the same time, the rated capacity of each PSS will be extracted from the substation capacity map. By comparing the projected electric demand with the rated capacity of substations, the load factors of each PSS, along with their total required additional capacities to accommodate load growths across three scenarios, can be obtained. With the inclusion of economic parameters, the total cost of expanding the capacity of PSSs to meet the increasing demand can be further estimated. 



The topology and parameters of the Swansea North BSP (Bulk Supply Point) will be extracted from the NGED (National Grid Electricity Distribution) LTDS (Long Term Development Statement) 2023 for the case study. Based on this information, a simulation model of the Swansea North BSP will be built with MATPOWER. This model, combined with the projected electric demand at each PSS, will be used to perform power flow analysis to identify violations in bus voltages and line loading across the system. 



In the Consumer Transformation scenario, the net zero emissions target is achieved through a high level of electrification. Conversely, the System Transformation scenario features a lower level of electrification but higher engagement with hydrogen. The role of hydrogen in mitigating the impacts of electrification on regional distribution grids will be evaluated by comparing the outcomes in both scenarios. 



Summary of upcoming work

The study will be used to evaluate the effects of increasing electrification in South Wales on regional power grids and will explore hydrogen’s potential role in mitigating these impacts, based on real-life data from the National Grid Electricity Distribution and the Distribution Future Energy Scenarios.

Power flow tools will be employed in the evaluation to analyse substation capacity shortage, network operational constraints including voltage and line loading violations, and the economic implications of upgrading the existing system to meet future demand growth.

Success! HI-ACT features in published Government Article

Our director Professor Sara Walker was successfully published in the October edition of the Open Access Government. This prestigious digital publication provides a platform for sharing extensive insights on key public policy areas worldwide from health and social care, COVID-19, research and innovation, technology, government, environment and energy. 


As the name suggests, the Open Access Government is an open access journal ensuring anyone can read, download, copy, distribute, print, search, or cite the articles. Published quarterly, previous publications have included authors and contributors such as government ministers, European commissioners, members of the European Parliament, industry associations and charities. 


This particular edition, found here published on October 25th, encompasses 217 articles across 524 pages and focuses on a wide range of subjects across health innovation and technology, artificial intelligence, welfare and public policy, agriculture, energy and transport.


On page 494, link here, Professor Sara Walker uses the double page spread to set out how hydrogen may play a significant role for decarbonising the UKs energy transition. Prof Walker outlines the possible size of hydrogen demand in the UK, especially for sectors which are hard to electrify such as the energy intensive steel industry. 


Sara continues by emphasising the need for whole systems thinking and integration of energy systems, which has never been greater…cue HI-ACT! 

 

HI-ACT will develop forward-thinking hydrogen (and associated fuel) technology roadmaps; assess the supply chain availability and security; and quantify the opportunities, risks and dependencies of different use cases. 

We hope the article reaches new European and international audiences with the Open Access Government as it is a trusted source of information and parliament across the globe.

Reach out to us if you have read the article and would like to join us as we embark on this exciting journey or to find out more.  


To read the article and get in touch, click the links below: 

Website: www.hi-act.ac.uk 

Twitter: @HIACT_ 

Email: HIACT@newcastle.ac.uk 

Sign up to our mailing list: https://forms.office.com/r/MB9e6yynxE  

LinkedIn: https://www.linkedin.com/company/hiact/  

HI-ACT animated video: https://youtu.be/nh84fBG1Aus?si=yAb8n8SBoAWD8iAQ  

HI-ACT Interview: https://youtu.be/LcZJtWHm8K0?si=Cj8xGgBg_AHkqHoA  

To view the article which contains all DOI information, click on the following web-based link: https://doi.org/10.56367/OAG-040-11114  

To view the full publication, please click on the following link: Open Access Government (pagesuite-professional.co.uk) 

If you wish to cite this article, please use the reference the below: 

Sara Louise Walker (2023), “The role of hydrogen in the energy transition”, Open Access Government October 2023, pp.494-495. Available at https://www.openaccessgovernment.org/article/the-role-of-hydrogen-in-the-energy-transition/168304/. 

  

Professor Sara Walker joins Mark Fawcett on the ‘Careers Unwrapped’ podcast

In this episode of Careers Unwrapped, host Mark Fawcett is joined by Sara Walker, Director for the Newcastle University Centre of Research Excellence in Energy.  Join them as they:

  • Delve into Sara’s journey from Physics teacher to Energy Professor
  • Discuss dealing with pressure from external organisations
  • Explore what it means to be a woman in STEM
  • Highlight the multidisciplinary aspects of the energy sector
  • Examine the current and future demand for green jobs


And much more!