On Friday 14 November, Ofgem announced an additional £107 million of funding for two new projects, adding to £57 million confirmed in June for Project Union: East Coast.  

Together, these investments will unlock the development of more than 50% of National Gas’ proposed core hydrogen network, known as ‘Project Union’, into the detailed engineering design phase.

Project Union seeks to repurpose existing natural gas pipelines, and build new pipelines where required, to create up to a 1500-mile new core hydrogen network for Britain.  

The two new projects will lay the groundwork to connect regional hydrogen industrial clusters in the North of Scotland, including Grangemouth, and the North East and North West of England. Funding for the East Coast section was announced in June and will connect critical industries across Teesside and the Humber region. 

Ian Radley, Chief Commercial Officer at National Gas, said: 

“This is a hugely significant moment for Britain’s hydrogen journey. With Ofgem’s support, we’re moving from discussion to delivery – taking significant strides towards building Britain’s core hydrogen network.”   

“Project Union will unlock significant investment, create a critical pathway for hard-to-electrify heavy industries to decarbonise, and safeguard jobs - all while advancing the Government’s clean energy ambitions and strengthening Britain’s energy security.  

“Hydrogen will sit alongside electrification as a vital part of a cleaner, more resilient energy system – and this funding shows that future becoming a reality.” 

The need for a core hydrogen network was clearly identified by the Climate Change Committee, the Second National Infrastructure Assessment and in the Government’s Hydrogen Transport and Storage Networks Pathway. 

Early analysis commissioned by National Gas indicates that Project Union could support around 3,100 jobs at peak construction and deliver £300 million in annual direct gross value added (GVA) to the economy.  

Project Union will enable access to cost-effective, low-carbon hydrogen across the Great Britain, helping decarbonise industry, power generation and transport, while bolstering Britain’s energy security. 

As the UK accelerates investment in electricity networks, this announcement demonstrates that hydrogen transport and storage infrastructure is also moving forward - complementing electrification and ensuring the UK has a diverse, resilient, and secure energy system for the long term. 

The energy industry has welcomed the funding announcement.

Brett Ryan, Head of Policy and Analysis at Hydrogen UK, said: 

"Ofgem's decision to fund a further two of National Gas' Project Union projects is excellent news for the hydrogen industry and a major boost to the UK's hydrogen future. It marks a significant step in the development of key hydrogen transmission pipelines in the North West and linking St Fergus to Teesside. 

"This funding underscores the crucial role hydrogen will play in the UK's energy mix and in delivering economic growth across the country. We look forward to seeing the projects develop and showcase hydrogen's potential for supporting UK energy infrastructure." 

By linking hydrogen production with end-use demand in industrial clusters, the project will help attract private investment, drive innovation, and develop new regional skills in engineering, manufacturing, and clean-energy services.  

Nick Stapley, Hydrogen Business Development Manager at global energy investor, RWE Generation, said: 

“RWE supports Ofgem’s decision in awarding FEED funding to National Gas for Project Union: St. Fergus to Teesside and Project Union: North West projects. These projects are crucial in connecting the large important industrial clusters of HyNet, Teesside and Grangemouth and additionally, key offtakers and inland industrial regions alongside the pipeline routes. 

“RWE’s view is that a hydrogen backbone pipeline network is essential and necessary for an inclusive and successful hydrogen economy. Enabling the connection between hydrogen production, demand and storage, plus other distribution networks, creates a landscape for hydrogen uptake to be accelerated; it is inclusive for all hydrogen offtakers irrespective of size and geography.” 

Gavin Catto, CEO of Scotland-based green hydrogen project developer, Green Cat Hydrogen, said: 

“This is a valuable step towards facilitating the transport of green hydrogen from supply centres to demand centres. System benefits can then be realised by utilising otherwise curtailed and/or constrained renewable generation in Scotland, and making the resulting green hydrogen available to high energy demand centres like Teesside. There, it can effectively decarbonise hard-to-electrify industries. Projects like these will help establish Scotland - and the UK - as global leaders in the green hydrogen economy, encouraging investment and creating high skilled jobs.” 

Matt Hindle, Head of Net Zero and Sustainability, WW Utilities, said:

"We welcome the news that National Gas have been awarded £164 million in funding from Ofgem for the next phase of Project Union. The North West leg of the project supports WWU's proposed HyLine Gogledd, a dedicated 35km hydrogen pipeline in North Wales. HyLine Gogledd would stretch from Deeside to Wrexham, enabling local industries to access hydrogen at scale - in turn supporting their decarbonisation aims, especially where alternative technologies aren't suitable.

"Our regions and industries need to the right options to reduce emissions and develop economically, with joined up plans to unlock these benefits. Support from the development of Project Union will help HyLine Gogledd deliver the North East Wales Industrial Decarbonisation Plan and Local Area Energy Plans. By connecting dispersed industry with GW-scale low-carbon hydrogen production by 2035 it could remove up to 27MtCO2/y of emissions, which will be critical for the region's net zero aims."  

The announcement reflects Britain’s ambition to build world-class hydrogen infrastructure - supporting up to 10 GW of low-carbon hydrogen production by 2030 and a sector capable of delivering tens of thousands of jobs and billions in annual economic value.  

By progressing Project Union, Ofgem and National Gas are taking a crucial step towards building Britain’s core hydrogen network which will connect hydrogen producers, storage, and consumers across key regions, unlock industrial decarbonisation at scale, and strengthen energy security and flexibility within the UK’s future net zero system. 

Note: The figures quoted in this article are adjusted for inflation to today’s prices. The Ofgem Final Determination funding awards are in 18/19 prices.