Hydrogen UK has unveiled its “Driving Demand” report during a briefing hosted at Penspen’s London HQ. The document outlines practical steps to stimulate end-user demand in key hard-to-electrify sectors—ensuring hydrogen moves beyond hype into real-world deployment.
🔗 Read the full report on Hydrogen Central
⛰️ Hurdles
💸 Economic barriers: High upfront costs, unclear long-term price signals, and limited carbon pricing are inhibiting adoption.
❓ Policy uncertainty: A refreshed UK Hydrogen Strategy with clear demand-side provisions is overdue—stalling offtaker confidence.
🔗 Infrastructure gaps: Without pipelines, storage, and refuelling hubs, users can’t scale hydrogen use across industry and transport.
🔬 Tech readiness: Of the 100+ hydrogen projects underway in the UK, fewer than 30 have actual hydrogen use—real-world deployment is still catching up.
🌱 Opportunities
🏗 Industrial decarbonisation: The report pinpoints key sectors—chemicals, steel, cement, ceramics—where hydrogen is mission‑critical.
🚢 Heavy transport & shipping: For HGVs, shipping, and off-road machinery, hydrogen offers a vital low-carbon alternative.
⚡ Power & storage: Seasonal storage and off-grid power applications stand to benefit from hydrogen’s flexibility
✈️ Aviation & SAF: Green hydrogen’s role in sustainable aviation fuels is growing—an emerging demand pool.
💡 Your Move
📊 Review the report: Understand which sectors (e.g. chemicals, shipping, power) are priority targets for hydrogen demand.
🏭 Plan for uptake: If you’re in heavy industry or transport, start drafting hydrogen-ready sourcing or pilot plans.
🤝 Partner with policymakers: Engage in consultations on demand-side incentives, mandates, and infrastructure strategies.
🧠 Track strategy refresh: Keep tabs on the updated UK Hydrogen Strategy—users need visibility on incentives and timelines.
🦁 Muzaffar’s Comment
“Now’s the moment to shift gears—from supply-led hype to demand-side action. If we want a live hydrogen economy, we’ve got to build clarity on contracts, incentives, and infrastructure. Let’s turn policy into pipeline, and potential into projects.”
🦉 Sameer’s Comment
“I’m curious—and a bit doubtful. The production side’s ramping up fast, but where are the actual users? Without clear mandates, price signals, or refineries lined up, this risks stalling. Still, if the government gets serious, it could unlock billions in investment.”
