ESG Post

Regulators

Funding for UK’s largest low-carbon hydrogen production facility approved

Chancellor Rachel Reeves has confirmed funding for the construction of the UK’s largest hydrogen production facility in Bradford. The Bradford Low Carbon Hydrogen project, planned for the historic Birkshall gas storage site, stands as the largest among 11 green hydrogen initiatives that will share £2 billion from the government to advance hydrogen production and demand.

With planning permission already secured, the Bradford project is anticipated to inject £120 million into the local economy and create up to 125 new jobs. Once operational, it will be capable of producing 12.5 tonnes of hydrogen daily, effectively removing around 800 diesel-fuelled buses from West Yorkshire’s roads every day.

This initiative is being delivered by N-Gen and Hygen in a joint venture, with support from Bradford Council. The facility will feature hydrogen production, storage, dispensing, and refuelling capabilities, producing hydrogen through electrolysis—a process using low-carbon electricity to split water into hydrogen and oxygen.

The Birkshall site has a longstanding industrial history, previously housing three large gas holders that stored gas for the city’s homes and businesses for nearly a century. Now, its future is secured as a centre for hydrogen, a clean fuel that, when burned, emits no carbon. This shift supports decarbonisation across multiple sectors, including heavy transport like HGVs and buses, and can even serve as a replacement for natural gas in various industrial applications.

Bradford Council Leader Susan Hinchcliffe said, “The Bradford Low Carbon Hydrogen programme will play an important role in helping Bradford deliver on its climate change ambitions as well as bringing investment and green jobs to Bradford.”

Gareth Mills, Managing Director of N-Gen Energy, and Jamie Burns, Director of HYGEN Energy, released a joint statement sharing their excitement, noting that the Chancellor’s commitment marks a critical step toward advancing the hydrogen sector. “Our project, along with the other 10 receiving funding, will provide a boost to local economies and demonstrate the potential of hydrogen production at scale, as we look to move to locally produced, cleaner sources of energy and encourage more investment into the hydrogen industry.”

Tracy Brabin, Mayor of West Yorkshire, also praised the investment, emphasising its importance in achieving regional goals for sustainability and economic growth. She remarked, “This new investment will play a vital role in helping us achieve our ambitions of a greener, more secure region, with higher paid jobs and lower energy bills for future generations.”