Trade organisation Hydrogen UK has launched a new report, ‘Driving Demand’, said to be a pragmatic intervention into the UK’s decarbonisation and industrial strategy. The report’s purpose is to dispel the myth that hydrogen is a silver bullet for every climate challenge, and instead makes the case for targeted, strategic deployment in hard-to-electrify sectors that urgently need a viable alternative to fossil fuels. 

The report warns that with over £20 billion in private investment ready for deployment, the UK risks falling behind unless action is taken to stimulate hydrogen demand, matching the policy effort already invested in production. “We don’t need hydrogen everywhere. But where we do need it, we need it badly,” said Clare Jackson, CEO of Hydrogen UK. “This report is a call to get serious about demand. We’ve done a great job kickstarting production but now we need to consider the perspective of those that are going to be using hydrogen.”

The report identifies the sectors where hydrogen is not just useful but essential. These include power generation and seasonal energy storage, as well as grid resilience and as an alternative to diesel and HVO off-grid, foundational industries like chemicals, steel, refining, ceramics, cement, and glass, where conditions make electrification infeasible. The report also mentions heavy transport and shipping, where battery range and refuelling times present obstacles to electrification, and aviation, through sustainable fuels made from hydrogen and CO₂.

The report further highlights four key barriers to hydrogen deployment across the UK – economics, policy uncertainty, infrastructure, and technology demonstration. All of these are making it nearly impossible for offtakers to secure contracts. “Hydrogen producers are being asked to march in step before they’ve learned to crawl,” says the report.