Hydrogen Gas in the UK: Supply, Quantities and Costs

by | Mar 6, 2025

The UK is actively developing its hydrogen economy, with numerous projects and suppliers providing hydrogen gas for industrial applications, fuel cell electric vehicles (FCEVs), and internal combustion engines (ICEs) running on hydrogen.

This article provides an overview of the current availability of hydrogen gas in the UK, focusing on large-scale industrial supply, production capacities, and cost considerations for significant daily requirements.

Hydrogen Production and Key Suppliers in the UK

Several major industrial gas suppliers and hydrogen production projects are operational or in development across the UK, ensuring a steady supply of hydrogen gas.

  • BOC (Linde Group)

    BOC is the largest supplier of industrial gases in the UK and operates multiple hydrogen production facilities:
    • Teesside: The largest independent hydrogen production plant in the UK, supplying industries via a dedicated pipeline.
    • St Helens: Supplies hydrogen through a direct pipeline.
    • Port Talbot (Margam): Steam methane reforming (SMR) plant supplying Tata Steel and merchant supply via tube trailers.
    • Newport, Barry, and Trostre: Additional SMR plants supporting industrial customers.
  • Air Liquide

    Air Liquide operates hydrogen production facilities worldwide and has been actively expanding its hydrogen capabilities. Air Liquide’s global expertise includes large-scale electrolysis and SMR plants that could support UK supply needs. Their Lighthouse Green Fuels project is one of the first projects underway in the UK aiming to convert biogenic and non-biogenic solid wastes and residues into sustainable aviation fuels (SAF) on a large scale, however, specific Hydrogen production is still under development.

  • ITM Power

    Based in Sheffield, ITM Power specialises in electrolysers producing green hydrogen. Their projects align with the UK’s net-zero targets and contribute significantly to the hydrogen supply chain.

  • HyNet North West

    This project will deliver blue hydrogen production at a scale of 350 MW, expected to be operational by 2027, and will provide hydrogen via a dedicated pipeline.

  • H2Teesside

    BP’s H2Teesside project aims to produce 1.2 GW of blue hydrogen, supplying industrial consumers in the Teesside area. Johnson Matthey’s LCH™ technology was selected for bp’s H2Teesside project, which aims to be one of the UK’s largest low-carbon (blue) hydrogen facilities. 
    H2Teesside targets 1.2GW of hydrogen production by 2030 – over 10% of the UK Government’s hydrogen target of 10GW by 2030. 

  • Hydrogen Humber (Saltend)

    Equinor’s 600 MW low-carbon hydrogen project is set to provide large-scale hydrogen for industrial use in the Humber region.

  • South Wales Industrial Cluster (SWIC)

    A consortium working on hydrogen production and carbon capture for industrial decarbonisation in South Wales.

Hydrogen Supply and Quantities

For industrial applications, FCEVs, and hydrogen ICE vehicles, large-scale hydrogen supply is available from multiple sources:

  • BOC (Linde) Pipelines:

    Direct pipeline supply for major industrial hubs in Teesside, South Wales, and St Helens.

  • Merchant Supply (Tube Trailers):

    Available for transport to off-grid industrial sites, with typical deliveries exceeding 1,000 kg per trailer.

  • On-Site Production:

    Technologies like Suiso’s microwave-driven pyrolysis generators can produce up to 1,000 kg per day per unit, allowing scalable on-site generation.

For a requirement of a few thousand kg per day, multiple options exist:

  • Dedicated Pipeline Supply:

    Feasible for industries near major hydrogen production hubs (e.g., Teesside, Port Talbot, or the upcoming HyNet and Humber projects).

  • Multiple Tube Trailer Deliveries:

    For off-pipeline customers, hydrogen can be transported via high-pressure tube trailers, each capable of delivering around 1,000–1,200 kg.

  • Electrolysis-Based Production:

    Large-scale electrolysers, such as those provided by ITM Power, can generate green hydrogen on-site at industrial facilities.

Cost Considerations

Hydrogen pricing varies based on production methods and delivery logistics:

  • Blue Hydrogen (from SMR with Carbon Capture):

    Estimated cost between £2.50–£4.50 per kg.

  • Green Hydrogen (Electrolysis):

    Costs range from £5–£8 per kg, influenced by electricity prices.

  • Delivered Hydrogen via Tube Trailers:

    Costs include compression, storage, and transport, typically adding an extra £1–£2 per kg for logistics.

The UK has a growing hydrogen production infrastructure, with key suppliers and emerging projects ensuring availability for industrial applications, FCEVs, and hydrogen ICE vehicles. Companies requiring 5,000 kg per day can access supply through dedicated pipelines, bulk deliveries, or on-site generation, with costs varying based on the production method and logistics. As the UK’s hydrogen economy expands, more cost-effective and scalable supply solutions are expected to become available, further supporting industrial decarbonisation and clean transportation initiatives.

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