UK Green Hydrogen Market Overview

The UK Green Hydrogen Market reached USD 55.6 Million in 2024 and is projected to reach USD 830.8 Million by 2033, exhibiting a strong CAGR of 35.04% during 2025–2033. Market growth is driven by the UK government’s commitment to net-zero goals, rapid decarbonization efforts across industrial sectors, technological advances in electrolysis, and increasing integration of renewable energy sources. Rising demand from transport applications and strategic partnerships for large-scale hydrogen projects further support market expansion.

Study Assumption Years

Base Year: 2024
Historical Period: 2019–2024
Forecast Period: 2025–2033

UK Green Hydrogen Market Key Takeaways

• Current Market Size (2024): USD 55.6 Million
• CAGR (2025–2033): 35.04%
• The UK aims to achieve net-zero emissions by 2050, supported by strong policy incentives
• UK Hydrogen Strategy targets 5 GW low-carbon hydrogen production capacity by 2030
• High-emission sectors such as steel and refining increasingly adopt green hydrogen
• Technological advances in electrolysis enhance efficiency and cost competitiveness
• Rising carbon pricing encourages industries to transition to green hydrogen

Market Growth Factors

The UK government promises to reach net-zero emissions by 2050 and will have a big part in the growth of the UK green hydrogen sector. Stronger policies and financial incentives will make green hydrogen technologies deploy and be accepted faster. The UK Hydrogen Strategy outlines how the UK will produce low carbon hydrogen to a capacity up to 5 GW by 2030. The Government also will help so hydrogen projects overcome commercial hurdles through the £240 Million Net Zero Hydrogen Fund. The Government also will invest in research, hydrogen-ready infrastructure, and the electricity grid.

Industrial decarbonization initiatives represent a major market driver as well. Energy-intensive sectors such as steel, chemicals and oil refining have begun replacing fossil fuels with hydrogen in high-temperature processes difficult to electrify. The UK government's Industrial Decarbonisation Strategy sets a target for cutting emissions from the most polluting industrial clusters by two thirds by 2035. Green hydrogen will enable key functions. Increasing carbon prices will provide incentives to help industry switch to green hydrogen, which reduces compliance costs while ensuring international competitiveness.

Electrolyzer technology and renewable generation are expected to improve the UK's capability in the future. With increasing electrolyzer efficiency, operating improvements on electrolyzers, and an increase in offshore wind, the price of green hydrogen in the UK may fall. The transport sector demand, the available hydrogen vehicle and refueling infrastructure incentives, and major partnerships between international energy companies and the UK government accelerated the market and the path to commercialization, showing their long-term commitment to hydrogen.

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UK Green Hydrogen Market Segmentation:

Technology Insights

• Proton Exchange Membrane Electrolyzer
• Alkaline Electrolyzer
• Others

Application Insights

• Power Generation
• Transport
• Others

Distribution Channel Insights

• Pipeline
• Cargo

Regional Insights

The UK green hydrogen market is analyzed across London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and other regions. The source does not specify a dominant region or provide numerical market share data, but it offers comprehensive coverage of all major hydrogen-related economic zones.

Recent Developments & News

• In March 2024, RWE secured a large land option in north-east England to develop a green hydrogen plant featuring a 260-megawatt electric electrolyzer capable of producing up to five tonnes of hydrogen per hour.
• In March 2023, Lhyfe and Centrica signed an MoU to jointly develop the UK’s first offshore renewable green hydrogen production initiative, accelerating national clean-energy transition goals.

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