HEA warns UK hydrogen delays risk investment flight and job losses

The organisation’s joint letter to the Department of Energy Security and Net Zero said that without intervention it risks lagging behind international competitors.

The letter called for “rapid progression” of the long-awaited Hydrogen Strategy Refresh and the publication of project outcomes of the second Hydrogen Allocation Round (HAR2).

Dr Emma Guthrie, CEO of HEA, stressed the sector’s readiness to “invest, build, and deliver” and said that delays to HAR initiatives are eroding investor confidence and pushing capital and skill elsewhere.

The organisation highlighted faster decision-making, clearer demand signalling, and better alignment across departments as crucial improvements identified in its recently published state of the hydrogen nation report.

“Cross-ministerial coordination is essential to unlock private investment, protect UK jobs and keep hydrogen on track to play its role in growth, energy security, and decarbonisation”, Guthrie continued.

The HEA also presented the government with case studies exemplifying investment and job creation being put at risk.

The UK government’s HAR schemes have been disjointed out of the gate.

Ten projects selected for subsidies in HAR1 signed funding agreements in July 2025 after over a year of delays.

Meanwhile, HAR2 is somewhat in limbo with the final selection out of 27 projects, shortlisted in April 2025, remaining unnamed.

HEA joins companies, unions, and bosses urging the government to act to unlock demand and investment.

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