One of the UK’s most ambitious hydrogen infrastructure programmes has taken a significant step forward today (20th June 2025) with £96 million Ofgem funding confirmed to support its next phase.

East Coast Hydrogen will repurpose and build new gas pipelines to deliver clean hydrogen at scale across the North East, the Humber region, Yorkshire, and the East Midlands – a critical step on the UK’s journey to clean, secure energy.

East Coast Hydrogen will play a key role in helping power generation and heavy industry across the East Coast transition from natural gas – replacing it with low-carbon hydrogen to protect jobs, keep the lights on, and deliver the infrastructure needed to support the UK’s future hydrogen economy.

Ofgem has now confirmed its support for East Coast Hydrogen – a partnership led by National Gas, Cadent, and Northern Gas Networks – by awarding around £96 million in funding to carry out engineering, planning, and public consultation on proposals. This follows the £500 million announced by Government last week for regional hydrogen transport and storage networks as part of the Spending Review.

It will pave the way for delivery of a hydrogen-ready pipeline network which is expected to be delivered over the next decade and make a major contribution to the UK’s decarbonisation efforts.

This latest funding ensures work can continue at pace on the infrastructure needed to deliver that transformation.

Jon Butterworth, Chief Executive Officer at National Gas, said:
“This funding marks a crucial step in building the infrastructure needed to unlock the UK’s hydrogen economy at scale.

“At National Gas, we’re committed to enabling the UK’s transition to a low-carbon energy system that is secure, cost-effective, and future-ready. Project Union, our plan to create a 1,500-mile core hydrogen network across Great Britain, will start in the East Coast and this funding will support that ambition.

By repurposing existing infrastructure, we will connect hydrogen production, storage, and demand, helping to deliver flexible electricity, decarbonise industry, and protect jobs in some of the UK’s most energy-intensive regions.”

Steve Fraser, Chief Executive Officer at Cadent, said:
“This funding marks a major milestone and is very welcome news: not just in terms of this specific project, but for the UK’s entire energy transition. Ofgem’s support will allow our partnership to forge ahead with the vital planning and engagement work that is needed to fully realise this important project.

East Coast Hydrogen is exactly the type of pioneering partnership that’s needed on the path towards achieving net zero.  It not only lays the foundations for the creation of a new low-carbon network, but it will also protect jobs, support industry, and help deliver on national ambitions for growth via the creation of new green skills and jobs, with the benefits being felt right across the country.”

Mark Horsley, Chief Executive at Northern Gas Networks, said:
“Our East Coast Hydrogen partnership represents a clear route to driving growth for regional economies, job creation and decarbonisation support for industries that otherwise would find it difficult to meet net zero targets.

“This funding is essential to determining the technical work needed to build hydrogen infrastructure, in order to understand how a hydrogen network can be operational in time to meet government net zero plans.”

Ofgem’s decision signals confidence in the region’s ability to help lead the UK’s hydrogen transition and opens the door to thousands of jobs and future investment in key industrial heartlands.

East Coast Hydrogen is expected to move into the delivery phase later this decade, with the aim of starting hydrogen flows from the early 2030s.

It brings together over 120 organisations across key sectors including hydrogen producers, power generators, industry, energy networks, airports and hospitals.

From decarbonising industry to reducing the carbon footprint of everyday products and services, the shared ambition is to build a hydrogen economy that reduces emissions and generates secure energy, economic growth and new domestic jobs.

Darren Hall, Raw Materials Buyer at Verallia UK, said:
“As a significant energy user with ambitious decarbonisation plans, we’re delighted to hear East Coast Hydrogen has secured its next phase.

"Verallia UK Ltd is a critical cog in the food supply chain, supplying glass packaging in to the food and beverage industry in the UK and abroad. We see the East Coast Hydrogen network playing a critical role in supporting those plans and ensuring glass is a sustainable packaging choice for the future.”

About East Coast Hydrogen

East Coast Hydrogen is a nationally significant infrastructure programme that aims to build a reliable hydrogen pipeline network across the Northeast, the Humber, Yorkshire and the East Midlands. This is the first stage of a proposed core hydrogen network for the UK.

East Coast Hydrogen is a partnership led by National Gas, Cadent and Northern Gas Networks and is backed by more than 120 organisation members from across the public and private sectors.

Together, they are working to support the UK Government’s ambitions for a world-leading hydrogen economy, helping to secure the UK’s energy future and reduce emissions from some of the country’s biggest energy users.

Ofgem’s RIIO-2 funding is allocated via the Net Zero Pre-construction Work and Small Net Zero Projects (NZASP) re-opener mechanism (Special Condition (SpC) 3.9 of NGN’s Gas Transporter licence) which allows Gas Distribution and Gas Transmission network companies to recover costs for undertaking early design, development, general pre-construction work, and net zero facilitation capital projects that will enable the achievement of Net Zero Carbon Targets.

(Ofgem Final Determination of £71.3m in funding is in 2018/2019 pricing, it is adjusted to £96m in 2025/26 price base.)