IGEM responds to UK Government Autumn Budget – Hydrogen Investment

The Institution of Gas Engineers and Managers (IGEM) welcome the UK Government's continued commitment to hydrogen development as outlined in the Autumn Budget 2024. The allocation of significant funding to support electrolytic hydrogen production contracts across the country marks a positive step toward achieving the UK’s Net Zero targets and highlights the government’s recognition of hydrogen as a critical component in decarbonising industry and in doing so, creating high quality jobs and economic growth. The announcement reaffirms the strategic role hydrogen plays in the clean energy transition, aligning with IGEM’s longstanding advocacy for gas sector innovation.

Key aspects of the budgetary provisions include funding for the first green hydrogen production contracts and an increase in budget to accelerate the associated grid infrastructure. With specific funding earmarked for port infrastructure to support floating offshore wind, and parallel commitments in carbon capture, usage, and storage (CCUS) clusters, this budget underpins the necessary integration of hydrogen and renewable energy to advance decarbonisation across various industrial applications. 

IGEM’s industrial connections research highlights the scale of the industrial decarbonisation challenge, identifying 67,000 industrial connections to the gas grid across the UK which share the same pipes as homes, commercial buildings and power generation. Today’s announcements underscore the value of gas network decarbonisation and the application of sustainable gases in supporting industry; creating opportunities for cleaner, hydrogen-powered processes that pave the way for long-term industrial decarbonisation. 

As the hydrogen economy evolves, IGEM urge the government to continue its close collaboration with industry stakeholders, ensuring that technical standards and safety frameworks keep pace with rapid advancements. Through strategic support and regulatory clarity, the UK can solidify its position as a leader in hydrogen technology, delivering sustainable energy solutions and maximising environmental, economic and social benefits. IGEM remain committed to working alongside the government to achieve these ambitions, offering technical expertise and leadership in standard-setting as the gas industry navigates this transition.