Skip to main content

20 June 2025

Ofgem supports East Coast Hydrogen programme with £96 million announced in funding

Ofgem supports East Coast Hydrogen programme with £96 million announced in funding

Today, Ofgem has announced that it is awarding £96 million to continue funding the pioneering project, East Coast Hydrogen.

East Coast Hydrogen is a nationally significant infrastructure programme. By repurposing or building new pipelines, the programme aims to establish a reliable hydrogen network that transports the low-carbon energy source across the Northeast, the Humber, Yorkshire and the East Midlands.  

There are many legacy industries across the UK that cannot simplify electricity – such as ceramics, chemicals, and cement. Hydrogen is critical for these sectors as being a clean energy source that can support energy-intensive regions, and in doing so, protect jobs and local industries.  

This funding awarded for East Coast Hydrogen will help National Gas take the next step forward with Project Union. Project Union is the network’s initiative to connect the industrial clusters of Teesside and Humber with a repurposed, 1,500 mile hydrogen connection, and has proven feasible to carry 100% hydrogen. Sitting on the east coast, its development will form the integral foundation of the wider East Coast Hydrogen project – and become a regional blueprint of what a national energy transition to a core hydrogen network could look like.

The wider East Coast Hydrogen initiative is a partnership led by National Gas, Cadent, Northern Gas Networks, and more than 120 industry partners, and supports the progress of the UK’s hydrogen network and aligns with the UK Government’s ambitions to develop a world-leading hydrogen economy and reach net zero by 2050.

Jon Butterworth, Chief Executive Officer at National Gas, said: “This funding marks a crucial step in building the infrastructure needed to unlock the UK’s hydrogen economy at scale.

“At National Gas, we’re committed to enabling the UK’s transition to a low-carbon energy system that is secure, cost-effective, and future-ready. Project Union, our plan to create a 1,500-mile core hydrogen network across Great Britain, will start in the East Coast and this funding will support that ambition.

By repurposing existing infrastructure, we will connect hydrogen production, storage, and demand, helping to deliver flexible electricity, decarbonise industry, and protect jobs in some of the UK’s most energy-intensive regions.”

Steve Fraser, Chief Executive Officer at Cadent, said: “This funding marks a major milestone and is very welcome news: not just in terms of this specific project, but for the UK’s entire energy transition. Ofgem’s support will allow our partnership to forge ahead with the vital planning and engagement work that is needed to fully realise this important project.

East Coast Hydrogen is exactly the type of pioneering partnership that’s needed on the path towards achieving net zero.  It not only lays the foundations for the creation of a new low-carbon network, but it will also protect jobs, support industry, and help deliver on national ambitions for growth via the creation of new green skills and jobs, with the benefits being felt right across the country.”

Mark Horsley, Chief Executive at Northern Gas Networks, said: “Our East Coast Hydrogen partnership represents a clear route to driving growth for regional economies, job creation and decarbonisation support for industries that otherwise would find it difficult to meet net zero targets.

“This funding is essential to determining the technical work needed to build hydrogen infrastructure, in order to understand how a hydrogen network can be operational in time to meet government net zero plans.”

Ofgem’s decision signals confidence in the region’s ability to help lead the UK’s hydrogen transition and opens the door to thousands of jobs and future investment in key industrial heartlands.

East Coast Hydrogen is expected to move into the delivery phase later this decade, with the aim of starting hydrogen flows from the early 2030s.

It brings together over 120 organisations across key sectors including hydrogen producers, power generators, industry, energy networks, airports and hospitals. 

From decarbonising industry to reducing the carbon footprint of everyday products and services, the shared ambition is to build a hydrogen economy that reduces emissions and generates secure energy, economic growth and new domestic jobs.

Darren Hall, Raw Materials Buyer at Verallia UK, said: “As a significant energy user with ambitious decarbonisation plans, we’re delighted to hear East Coast Hydrogen has secured its next phase.

"Verallia UK Ltd is a critical cog in the food supply chain, supplying glass packaging in to the food and beverage industry in the UK and abroad. We see the East Coast Hydrogen network playing a critical role in supporting those plans and ensuring glass is a sustainable packaging choice for the future.”

This award follows a series of recent Government announcements outlining their commitment to creating a prosperous clean energy economy. This includes their Infrastructure Strategy, and £9.4 billion investment in carbon capture projects and £500 million investment  in hydrogen networks, both in the Spending Review.

For East Coast Hydrogen, these are all necessary parts to help ensure that the gas transmission network and gas distribution networks can work at pace to deliver the transformation needed. 

Find out more here: www.eastcoasthydrogen.co.uk

Share: