The Hydrogen Taskforce has today released a report on the potential UK economic impact from deployment of Hydrogen by 2035. The Economic Impact Assessment (EIA) estimates the huge employment and economic benefits that hydrogen presents to the UK.
This report identifies significant potential for hydrogen to play an important role in the UK’s Green Recovery. The UK has a greater installed capacity of offshore wind than any other country in the world, with costs of new offshore wind falling by 50 per cent since 2015. There is significant potential for the value created by the roll-out of green hydrogen production to be realised across the UK, with the number of jobs associated with production of green hydrogen being particularly significant:
Other findings from the Economic Impact Assessment (EIA) include:
- Investing in hydrogen could unlock Ł18bn in cumulative GVA by 2035 and support 75,000 additional jobs;
- By 2035 around 11.3 TWh of additional hydrogen supply would be required annually to support end-use sectors;
- Estimated H2 supply in 2035 is 2.3 TWh of green hydrogen (electrolysis) and 9 TWh of blue hydrogen (ATR plus CCUS);
- Estimated H2 demand in 2035 is 1.5 TWh for transport, 4.7 TWh for heat, 4.8 TWh for industry, and 0.3 TWh for power generation.
This report estimates that by 2035 hydrogen supply (upstream) could unlock 28,200 jobs, including 11,239 jobs in electrolyser manufacturing and 9,847 jobs in ATR. Another 15,437 midstream jobs could be created in the storage, distribution and transmission of hydrogen across the UK. Downstream (end-use) activities would create a further 31,171 jobs across sectors such as vehicles, boilers and industrial equipment.
|Jobs||GVA, Ł bn||Metrics|
|2035 Upstream (Supply)|
Storage (salt caverns)
|2035 Downstream (Demand)|
Heat (Residential & Commercial)
The report concludes that the UK has an opportunity to build a world-leading hydrogen production industry, supplying domestic and European demand. The above EIA numbers are based on UK supply matching UK demand, and H2 export as a commodity was not included in the modelling. The projected annual H2 demand by 2035 of 11.2 TWh represents 0.33 million tonnes of hydrogen.
The Hydrogen Taskforce, which includes several SHFCA members, aims to secure a step-change in investment for hydrogen in the UK, across its many applications, to enable the UK to become a world leader in the applications and services of hydrogen. Further information about the Hydrogen Taskforce here and links to todays Hydrogen Taskforce reports:
Economic Impact Assessment Summary: https://www.hydrogentaskforce.co.uk/wp-content/uploads/2020/08/Hydrogen_Taskforce_EIA_Summary.pdf
Economic Impact Assessment Methodology: https://www.hydrogentaskforce.co.uk/wp-content/uploads/2020/08/EIA-Methodology-FINAL.pdf
Imperial College Consultants Review of the EIA: https://www.hydrogentaskforce.co.uk/wp-content/uploads/2020/08/H2-Taskforce-EIA-Academic-Revised-Analysis-Review.pdf