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
25 February 2026
Low-carbon hydrogen and ammonia development is advancing much more slowly and unevenly than once expected, with high costs and policy uncertainty thinning investment. Meanwhile, surging energy demand is reinforcing the role of natural gas and LNG as the backbone of the global energy system, panellists at LNG2026 said
18 February 2026
Norwegian energy company has dropped a major hydrogen project and paused its CCS expansion plans as demand fails to materialise
4 February 2026
Europe’s largest electrolyser manufacturers are losing patience with policymakers as sluggish growth in the green hydrogen sector undermines their decision to expand production capacity
2 February 2026
As a fertiliser feedstock, it is indispensable, but ammonia’s potential as a carbon-free energy carrier is also making it central to global decarbonisation strategies
