UK Prime Minister Keir Starmer
UK backs low-carbon hubs with $28b funding pledge
Boost for CCUS and blue hydrogen projects as government confirms funding for HyNet and East Coast clusters
The UK government has committed to back the development of low-carbon hydrogen and CCUS with a funding package of up to £21.7b ($28.4b) over 25 years. The funding will be allocated across the country’s first two low-carbon clusters—HyNet and East Coast in northern England—which were prioritised by the previous government as “track one” projects. The funding is expected to be allocated mainly via CfDs, although these contracts have yet to be signed, a government official said. Private sector investment across the two hubs is expected to reach £8b, according to the government. “Today’s announcement will give industry the certainty it needs—committing to 25 years of funding in this groundbreaki
Also in this section
6 January 2026
Shifts in government policy and rising power demand will shape the clean hydrogen sector as it attempts to gain momentum following a sluggish performance in 2025
23 December 2025
Government backing and inflow of private capital point to breakthrough year for rising star of the country’s clean energy sector
19 December 2025
The hydrogen industry faces an important choice: coordinated co-evolution or patched-together piecemeal development. The way forward is integrated co-evolution, and freight corridors are a good example
10 December 2025
Project developer Meld Energy ready to accelerate 100MW project in Humber region after securing investment from energy transition arm of private equity firm Schroders Capital
