The UK’s fast-growing hydrogen sector is urging ministers to act swiftly to prevent further setbacks that industry leaders say are threatening investment, growth and thousands of potential hydrogen jobs.
In a joint appeal to senior government figures, the Hydrogen Energy Association (HEA) has called for immediate progress on key policy decisions, warning that continued delays to the government’s Hydrogen Allocation Rounds and the long-awaited refresh of the Hydrogen Strategy are undermining confidence at a crucial time for the global market.
Dr Emma Guthrie, CEO of HEA, explained: “Hydrogen is not a future opportunity – it is a present one. The UK has the capability, the projects and the people. What is missing is pace and coordination.
“The window to lead the global hydrogen economy is still open, but it is closing. Government action in the coming weeks will determine whether the UK captures this opportunity or cedes ground to competitors.”
Industry frustration grows over policy delays
At the centre of the concern are outstanding decisions linked to the second Hydrogen Allocation Round (HAR2), clarity on the third round (HAR3), and the broader update to the UK Hydrogen Strategy.
Developers and investors have been waiting for confirmation that would allow projects to move into construction and unlock supply chain activity.
According to the HEA, prolonged uncertainty is beginning to take its toll. Companies are hesitating over final investment decisions, international backers are exploring more predictable markets, and skilled workers are facing an unclear pipeline of work.
For a sector that depends heavily on long-term infrastructure planning, clarity from the government is essential.
Without firm signals on timelines and funding mechanisms, businesses argue that projects risk stalling altogether. That in turn could see capital and talent shift overseas, at a time when global competition in hydrogen is intensifying.
17,000 hydrogen jobs at stake by 2030
The stakes are high. Industry data compiled by the association suggests that under a supportive and stable policy framework, the sector could support around 17,000 hydrogen jobs across the UK by 2030. That figure represents a fourfold increase in employment compared with current levels.
These hydrogen jobs would span engineering, construction, manufacturing, infrastructure development and plant operations. The growth would not be limited to a single region, with clusters emerging around industrial hubs, ports and areas investing in clean energy innovation.
However, the HEA cautions that this projected expansion depends heavily on timely policy delivery. Faster decision-making, clear demand signals, and better coordination between government departments are seen as critical ingredients for unlocking private investment and moving projects from planning to reality.
The association has also submitted case studies to ministers highlighting projects already facing delays, alongside investment and employment opportunities that could be lost if momentum falters.
Global competition is intensifying
The warning comes at a pivotal moment. Countries across Europe, North America and Asia are accelerating their hydrogen strategies, backed by large-scale public funding and streamlined regulatory frameworks.
For the UK, which has positioned itself as a leader in offshore wind and clean energy innovation, hydrogen is widely viewed as the next frontier. It has the potential to decarbonise heavy industry, support flexible power generation and strengthen energy security.
But industry representatives argue that leadership cannot be assumed. In a market where investors can choose between jurisdictions, policy certainty is often the deciding factor.
Why growing the UK hydrogen industry is imperative
Expanding the hydrogen industry is about more than climate targets. It represents a strategic economic opportunity.
First, hydrogen jobs tend to be high-value, skilled roles that support local supply chains and advanced manufacturing.
Many align closely with expertise already found in the UK’s oil and gas, chemicals and heavy engineering sectors, offering a pathway for workforce transition as the country moves toward net zero.
Second, a strong domestic hydrogen market can reduce reliance on imported fuels. As geopolitical instability continues to shape global energy markets, producing low-carbon hydrogen at scale could bolster energy resilience and protect consumers from price shocks.
Third, the industry can stimulate regional growth. Hydrogen production and infrastructure projects are often anchored in industrial heartlands, helping to regenerate areas that have historically relied on carbon-intensive industries.
In short, hydrogen is an industrial strategy opportunity. Failing to nurture it risks losing both climate leadership and economic advantage.
A call for coordinated government action
The HEA is pressing for cross-departmental coordination to speed up progress on allocation rounds and finalise the Hydrogen Strategy refresh. Industry leaders argue that fragmented decision-making and slow timelines are holding back a sector ready to scale.
With global demand for clean hydrogen expected to rise sharply over the next decade, the coming months are seen as decisive.
The direction the government takes now could determine whether the UK becomes a hub for hydrogen jobs and investment, or watches that opportunity migrate elsewhere.
