The UK has adopted a cluster-based approach to hydrogen development, targeting industrial decarbonization through regionally coordinated initiatives that integrate hydrogen production with carbon capture, utilization, and storage (CCUS). This strategy prioritizes high-emission industrial zones, leveraging existing infrastructure and shared resources to scale low-carbon hydrogen while reducing costs. Two flagship projects, HyNet in the Northwest and the East Coast Cluster in Teesside and Humberside, exemplify this model, focusing on repurposing industrial hubs for hydrogen and CCUS deployment.

HyNet, centered around Liverpool and Manchester, is one of the UK’s most advanced hydrogen clusters. It aims to decarbonize industries such as chemicals, refining, and cement by replacing fossil fuels with low-carbon hydrogen. The project will initially produce hydrogen via steam methane reforming (SMR) coupled with CCUS, capturing over 90% of CO2 emissions. By 2030, HyNet plans to deliver up to 4.5 GW of hydrogen capacity, supplying industries and blending hydrogen into the local gas grid. The captured CO2 will be transported and stored offshore in depleted gas fields in Liverpool Bay, with a projected storage capacity of 10 million tonnes annually by 2030. Key industrial partners include CF Fertilisers, Essar Oil UK, and Pilkington Glass, which will transition processes to hydrogen, cutting regional emissions by 25%.

Similarly, the East Coast Cluster combines the Teesside and Humberside industrial regions, two of the UK’s largest CO2 emitters. This cluster will deploy hydrogen and CCUS to decarbonize steel, chemicals, and power generation. The project includes the Teesside Hydrogen CO2 Capture and Storage initiative, which plans to produce 1 GW of hydrogen by 2030, scaling to 5 GW by 2040. CO2 will be stored beneath the North Sea, with an estimated capacity of 27 million tonnes per year. Major participants like BP, Equinor, and SSE Thermal are developing blue hydrogen plants, while industries such as British Steel and Sabic will integrate hydrogen into their operations. The cluster aims to reduce emissions by 50% in Teesside and Humberside by 2030.

A critical enabler of these clusters is the integration of CCUS infrastructure. Both HyNet and the East Coast Cluster utilize shared CO2 transport and storage networks to reduce costs and improve efficiency. For example, HyNet’s CO2 pipeline network will connect multiple industrial sites to offshore storage, avoiding the need for individual capture solutions. The East Coast Cluster’s integrated system will link Teesside and Humberside via pipelines, creating a unified CCUS backbone. This approach minimizes infrastructure duplication and lowers the cost per tonne of CO2 stored, making decarbonization economically viable for heavy industries.

Industrial decarbonization is the primary driver of these clusters. In HyNet, hydrogen will replace natural gas in high-temperature processes at factories and refineries, while in the East Coast Cluster, it will fuel steelmaking and chemical production. For instance, British Steel’s Scunthorpe plant is exploring hydrogen-based direct reduced iron (DRI) technology to replace coke in steelmaking, potentially cutting emissions by 80%. Similarly, chemical plants in both clusters will use hydrogen as a feedstock for ammonia and methanol production, reducing reliance on fossil-derived inputs.

The UK government has supported these clusters through funding mechanisms such as the Industrial Decarbonisation Challenge and the CCS Infrastructure Fund. HyNet and the East Coast Cluster were selected as the first two CCUS-enabled hydrogen hubs under the UK’s Ten Point Plan for a Green Industrial Revolution. This backing ensures accelerated development, with both clusters expected to be operational by the mid-2020s. Policy frameworks like the Low-Carbon Hydrogen Standard also provide clarity on emissions thresholds for hydrogen production, ensuring that cluster projects meet stringent decarbonization criteria.

Challenges remain, particularly in scaling infrastructure and securing long-term investment. Building hydrogen pipelines and CCUS networks requires significant capital, and industries must commit to offtake agreements to justify production capacity. However, the cluster model mitigates these risks by aggregating demand across multiple users, creating a more stable market for low-carbon hydrogen. For example, HyNet’s phased rollout allows incremental expansion based on industrial demand, reducing financial exposure.

The UK’s cluster strategy aligns with global trends in regional hydrogen economies, such as the Port of Rotterdam’s hydrogen hub and Germany’s GET H2 initiative. By concentrating efforts on industrial zones, the UK maximizes emission reductions while fostering local economic growth. The HyNet and East Coast Cluster projects are expected to create thousands of jobs in construction, operations, and supply chains, reinforcing the government’s levelling-up agenda.

Looking ahead, these clusters will serve as blueprints for future hydrogen deployments. Lessons learned from HyNet and the East Coast Cluster will inform the development of additional hubs, such as the Scottish Cluster centered around Aberdeen. The focus on industrial decarbonization and CCUS integration ensures that hydrogen adoption is both practical and impactful, addressing the hardest-to-abate sectors first. As these projects progress, they will demonstrate the feasibility of large-scale hydrogen economies, setting a benchmark for other nations pursuing similar pathways. The UK’s approach underscores the importance of targeted, collaborative solutions in achieving net-zero industrial emissions.