Hydrogen industry to add £3.4 billion to North West by 2030

The development of hydrogen infrastructure in the North West could boost the regional economy by £3.4 billion by 2030 and create 11,500 jobs according to a new report from the North West Hydrogen Alliance (NWHA).

The NWHA’s economic impact assessment report has sought to understand the economic effects of hydrogen activity in the region (including production, infrastructure and end use).

Hydrogen production is estimated to have the greatest impact on employment and GVA. Thousands of jobs will also be created in construction, manufacturing and engineering for building essential hydrogen infrastructure; wider employment impacts are also to be found in professional services and business roles.

The NWHA has previously identified that the region could produce a fifth of the UK’s low carbon hydrogen target by 2030. The North West is home HyNet North West, a government-backed decarbonisation cluster focused on hydrogen production and carbon capture and storage in Cheshire. Projects already underway including green hydrogen production, hydrogen buses, trials of hydrogen in industry and salt cavern hydrogen storage, the North West is set to be the first region to develop a hydrogen market in the UK. Manchester Airport is also set to be connected via a direct pipeline to production facilities at Ellesmere Port.

Dave Richardson, Interim Chair of the NWHA and Decarbonisation Solutions Director at Costain said:

“The North West stands to benefit hugely from leading the charge on hydrogen. The regional economy is set for a £3.4bn boost with thousands of jobs created in production, infrastructure development and end-use by 2030.

“With projects like HPP1, HyNet and Trafford Green Hydrogen currently underway, there’s already plenty of opportunities to get involved in the net zero transition, whether you’re starting out in your career or looking to transfer skills honed in other sectors. Developing a hydrogen economy will also help safeguard many thousand more jobs as industry in the region switches to this low carbon fuel on their decarbonisation journey.”

The full NWHA Economic Impact Assessment 2024 report is available to read online here.