Hydrogen ambitions vs. grid realities: Is the UK ready for the challenge?

In recent years, hydrogen has captured the imagination of policymakers and industry leaders alike. The UK government’s hydrogen strategy sets a target of 10 gigawatts of hydrogen production capacity by 2030, with at least half being green hydrogen derived from renewable energy. This aligns with global trends; the International Energy Agency (IEA) projects hydrogen will account for 10% of total final energy consumption by 2050. 

Media outlets have amplified the hype, celebrating hydrogen as a “silver bullet” for achieving net-zero targets. However, Lashford tempers this optimism with pragmatic insight:

Hydrogen is a vital part of the low-carbon economy, but its role is still evolving. We’re seeing plenty of interest from developers, but the market is in its infancy, and significant infrastructure challenges remain.

The grid conundrum

Hydrogen production through electrolysis — the process of splitting water into hydrogen and oxygen — is highly energy-intensive. A single 20-megawatt electrolyser, for instance, demands grid connections costing millions of pounds and a consistent supply of renewable electricity. Lashford notes that the location of hydrogen facilities is often dictated by proximity to ports, freight hubs, and industrial zones, areas that are already grappling with grid constraints:

Ports are a good example. They’re critical nodes for hydrogen distribution, but they’re also struggling to electrify their core operations. Adding hydrogen production to the mix exacerbates these challenges.

One of the largest barriers is the lack of a cohesive regulatory framework. While the government has outlined ambitious goals, the path to achieving them remains unclear. Developers face a “chicken-and-the-egg” scenario: substantial investment in hydrogen infrastructure is needed to create demand, but that demand won’t materialise without a reliable and affordable hydrogen supply. Another hurdle is the economic feasibility of green hydrogen. Lashford explains that, at present, renewable energy developers often find it more profitable to sell electricity directly to the grid rather than channel it into hydrogen production. This economic reality limits the pace of development.

Why the hype?

Despite these challenges, hydrogen continues to generate significant interest. Lashford notes that the gas industry views hydrogen as a practical solution to transition toward greener operations while maintaining and expanding their networks. This alignment of interests has led to active lobbying efforts and subsequent government support. Hydrogen's versatility also contributes to its appeal, offering a low-carbon alternative for sectors where electrification alone may not suffice, such as heavy transport and maritime shipping. 'It's not perfect,' Lashford acknowledges, 'but for certain applications, it's the best option we have.'

Lashford believes that collaboration across sectors is key to overcoming these challenges.

Government subsidies, grid upgrades, and innovative partnerships are essential.

Initiatives such as co-locating electrolysers with renewable energy sources—as seen in pilot projects in Sweden and Scotland—offer promising models. These setups reduce transmission losses and improve the financial viability of green hydrogen. Vattenfall itself is exploring such approaches, drawing on its expertise in renewable energy.

Our consultancy helps developers navigate grid constraints and identify viable project locations. We’re also working on making grid connections more cost-effective for hydrogen developers.

Looking ahead

Despite the obstacles, Lashford remains quietly optimistic. However, she emphasises the need for a balanced approach:

Hydrogen has tremendous potential, particularly for long-distance transport and heavy industry where battery solutions fall short. Hydrogen will likely be part of a hybrid energy system. It’s not a standalone solution but a critical piece of the puzzle.

As the UK races toward its 2030 targets, the success of its hydrogen ambitions hinges on tackling systemic challenges head-on. Only through pragmatic planning and robust cross-sector collaboration can we bridge the gap between ambition and action, turning the vision of a hydrogen-powered future into a transformative reality.

Find out more about grid connections for hydrogen projects.