The Hydrogen Energy Association’s (HEA) first state of the hydrogen nation report surveyed 142 businesses across the UK hydrogen value chain, with 49% saying government commitment is now “significantly or slightly weaker” than one year ago.

Just 2.5% perceived government commitment as “significantly stronger”.

The report acknowledged ambitious early support but said in the past year policy framework has become “fragmented”, and that demand-side signals remain weak.

Demand creation was identified as the greatest constraint on market development, with 81% of organisations saying that securing offtake is “somewhat or very difficult”.

Significant barriers to end-use integration included a lack of suitable infrastructure, uncertain supply costs, a lack of policy incentives, competing low-carbon options, and limited compatible equipment and vehicles.

Despite this, 84% of respondents expect their UK hydrogen investment to increase, and 51% expect demand to increase over the next 12 months.

Regarding government commitment, the HEA recommended an updated hydrogen roadmap and a focus on delivery.

It said demand can be addressed by developing support for long term adoption by end-users, such as emissions targets, mandates, and capex support for energy users.

The report’s findings come as the sector awaits an overdue refresh of the national hydrogen strategy, which the government promised would be delivered last autumn.

Players across the industry have warned the country is lagging behind other markets amid sluggish policy development.

Dr Emma Guthrie, Chief Executive of the HEA, said that by acting on the findings, the UK can “secure a leading position in the global hydrogen market”.

“This report comes at a pivotal moment. Hydrogen has moved from concept to concrete projects and investments, but the UK hydrogen economy is now at a crossroads,” she continued.