News
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.