UK Green Hydrogen Market

UK Green Hydrogen Market Overview:

The UK green hydrogen market is projected to exhibit a growth rate (CAGR) of 36.50% during 2024-2032. The market is driven by the implementation of various government policies and incentives, the decarbonization of industrial sectors, rapid advancements in electrolysis technology, burgeoning integration of green hydrogen with renewable energy sources, and the growing demand in the transport sector.

UK Green Hydrogen Market Trends:

Government Policies and Incentives

The UK government's commitment to achieving net-zero emissions by 2050 has encouraged the imposition of policies and incentives that promote green hydrogen. These policies include substantial funding for research and development (R&D), subsidies for hydrogen production projects, and tax incentives for companies that are majorly investing in green hydrogen technologies. For example, the UK Hydrogen Strategy outlines a comprehensive plan to create a thriving hydrogen economy, with a target of 5 GW of low-carbon hydrogen production capacity by 2030. This strategy also includes various funding mechanisms, such as the £240 million Net Zero Hydrogen Fund, which will support the commercial deployment of new low-carbon hydrogen production projects. Additionally, the UK government's policies have extended to regulatory frameworks that make it possible for the inclusion of hydrogen into the energy system. For example, the UK is working on creating hydrogen-ready infrastructure and updating gas network regulations to accommodate hydrogen blending.

Decarbonization of Industrial Sectors

Industries such as steel manufacturing, chemical production, and refining are among the largest contributors to carbon emissions. The adoption of green hydrogen as a replacement for fossil fuels in these sectors is a major driver for this market in the UK. Green hydrogen is known to serve as a clean energy source for high-temperature industrial processes, which are challenging to electrify. Also, the government has been creating initiatives, like the Industrial Decarbonisation Strategy, to lower emissions from industrial clusters by at least two-thirds by 2035. Moreover, the price of carbon is rising which is pushing industries to switch to lower-emission alternatives to reduce their financial liabilities that have been associated with carbon emissions. Aside from this, green hydrogen's inclusion not only helps industries achieve compliance with stringent environmental regulations but also positions them as leaders in sustainable practices, which can enhance their competitiveness in the global market.

UK Green Hydrogen Market News:

• In March 2024, energy major RWE acquired a large land option in the north-east of England for a new green hydrogen plant. The company plans to build an electrolyzer with a maximum capacity of 260 megawatts electric (MWe) that, when complete, will be able to produce up to five tonnes of green hydrogen per hour.
• In March 2023, Lhyfe and Centrica agreed to jointly develop offshore renewable green hydrogen in the UK in a first for the country. The companies have signed a memorandum of understanding (MoU) that could accelerate green hydrogen as part of the energy transition in the UK.

UK Green Hydrogen Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2024-2032. Our report has categorized the market based on technology, application, and distribution channel.

Technology Insights:

• Proton Exchange Membrane Electrolyzer
• Alkaline Electrolyzer
• Others
   

The report has provided a detailed breakup and analysis of the market based on the technology. This includes proton exchange membrane electrolyzer, alkaline electrolyzer, and others.

Application Insights: 

• Power Generation
• Transport
• Others
   

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes power generation, transport, and others.

Distribution Channel Insights:

• Pipeline
• Cargo
   

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes pipeline and cargo.

Regional Insights: 

• London
• South East
• North West
• East of England
• South West
• Scotland
• West Midlands
• Yorkshire and The Humber
• East Midlands
• Others 
   

The report has also provided a comprehensive analysis of all the major regional markets, which include London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and Others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

UK Green Hydrogen Market Report Coverage:

Key Questions Answered in This Report:

• How has the UK green hydrogen market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the UK green hydrogen market?
• What is the breakup of the UK green hydrogen market on the basis of technology?
• What is the breakup of the UK green hydrogen market on the basis of application?
• What is the breakup of the UK green hydrogen market on the basis of distribution channel?
• What are the various stages in the value chain of the UK green hydrogen market? 
• What are the key driving factors and challenges in the UK green hydrogen?
• What is the structure of the UK green hydrogen market and who are the key players?
• What is the degree of competition in the UK green hydrogen market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the UK green hydrogen market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the UK green hydrogen market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the UK green hydrogen industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.