The UK’s planned £500 million regional hydrogen transport and storage network was first announced in June 2025. It has since progressed from policy concept to early-stage system design, forming an important backbone of the country’s hydrogen economy. Backed by the UK government’s Spending Review, the initiative aims to connect hydrogen producers with industrial users across key clusters such as the Humber, Teesside, and Merseyside. As of 2026, detailed business models for transport and storage are being finalized, with allocation rounds expected to begin in 2026 and first operations targeted for 2031. Once operational, the hydrogen transport and storage network will serve as the missing infrastructure link between production and large-scale hydrogen demand in the UK – supporting projects such as Sheffield electrolyser factory expansion in South Yorkshire and the Whitelee Green Hydrogen Project in Glasgow.

Why UK’s First Regional Hydrogen Transport and Storage Network is Important?

This project addresses the single biggest problem in hydrogen deployment: the lack of transport and storage infrastructure.

Without pipelines and storage, hydrogen production remains stranded and industrial demand cannot scale. Investment risk for projects needing it also remains high.

Project Timeline

Development Progress (2025 – 2026)

• £500m government funding confirmed in June 2025
• Policy framework embedded in Energy Act and hydrogen strategy
• Early market engagement with developers

Current Status as of 2026

• Business models under development:
• Transport through regulated asset base (RAB)
• Storage through cap-and-floor subsidy model
• Allocation rounds planned for 2026
• Strategic planning led by National Energy System Operator
• Final Investment Decision (FID) expected before end of current Parliament
• First operations expected by 2031

Fact Sheet for UK Regional Hydrogen Transport and Storage Network

Investment: £500 million in public funding

Announcement: June 2025

Scope: Pipelines and storage including salt caverns

Coverage: Industrial clusters in Humber, Teesside, Merseyside

Purpose: Connect hydrogen production to end users

Business Models:

• Transport: RAB model
• Storage: Cap-and-floor mechanism

Allocation Rounds: Starting 2026

First Operations: 2031

Current Status: Pre-FID, policy and commercial structuring phase ongoing

Who is behind the development of UK’s First Regional Hydrogen Transport and Storage Network

Government Lead

• Department for Energy Security and Net Zero

Strategic Planning

• National Energy System Operator

Regulatory & Market Framework

• Ofgem

Industry & Advisory Partners

• Hydrogen Energy Association
• Hydrogen UK

£500 Million Investment Planned for UK’s First Regional Hydrogen Transport and Storage Network

Reported June 14, 2025 – The government of UK has just confirmed that more than £500 million will be released for developing UK’s First Regional Hydrogen Transport and Storage Network. This is aimed at creating thousands of skilled clean energy jobs in the regions of Merseyside, Teesside and the Humber.

This announcement is part of a wider Plan for Change strategy that intends to position Britain as a clean energy superpower and cut its general dependence on volatile fossil fuel markets.

Overview of UK’s First Regional Hydrogen Transport and Storage Network

Funding: more than £500 million government funding confirmed for hydrogen infrastructure.

Network components and infrastructure:

• Regional networks: The initial focus on the project is on creating regional networks. This is particularly in industrial heartlands such as Merseyside, Teesside, and the Humber.
• Pipelines: there will be the development of new dedicated hydrogen pipelines. Also, existing natural gas pipelines will be repurposed for hydrogen transport (e.g., Project Union by National Gas Transmission wants to set up a 2,000km hydrogen backbone by repurposing existing infrastructure).

Storage:

• Underground storage: geological formations will be utilized such as the salt caverns. For example HyNet is repurposing salt caverns in Cheshire for hydrogen storage. Additionally, the UK has significant potential for large-scale underground hydrogen storage.
• Above-ground storage: Specialist tanks and vessels for smaller volumes will be erected. These are deemed suitable for both industrial use and refueling stations.

Also read: Essar Energy Transition to build the UK’s Largest Hydrogen Plant

Significance of the Funding

The new funding will boost the development of the UK’s first regional hydrogen transport and storage network. The network is expected to link producers with industrial users and power stations.

Energy secretary Ed Miliband stated that the investment is foreseen to “deliver jobs and energy security for Britain” and “bring in the investment that is needed across the country to deliver our Plan for Change”.

Additionally, the government stated that the investment placed will also support hydrogen’s role in decarbonising hard-to-abate sectors such as iron, steel, chemicals and heavy transport and also enable long-term energy storage for periods of peak demand.

The announcement made by the UK government builds on previous support for low-carbon hydrogen production. This is expected to be achieved through the Hydrogen Allocation Rounds (HAR) which includes £2 billion allocated to 11 projects under the first HAR.

Also read: Xlink Pauses UK-Morocco Undersea Cable Construction

Furthermore, Hydrogen UK head of policy Brett Ryan welcomed the announcement by UK government, calling networks “critical for a secure and resilient hydrogen sector”.

Also, Dr Emma Guthrie who is the CEO of the Hydrogen Energy Association, mentioned that the plan would “galvanise the UK’s regional hydrogen hubs” and support the “creation of skilled sector areas like Merseyside, Teesside and the Humber”.

Private Investment in UK’s Hydrogen Sector

The hydrogen sector has already attracted a total of £400 million of private investment across the UK. This includes projects in Milford Haven and High Marnham.

Lastly, in addition to hydrogen, the Spending Review confirmed financing for new nuclear and fusion developments. Additionally, it confirmed the support for the Acorn and Viking carbon capture projects.

Also read: Construction to begin soon on largest blue hydrogen plant in UK