New £8M hydrogen transport funding set to boost North East economy

Revolutionising the landscape of hydrogen-powered transport, an £8 million government competition is set to enhance the efficiency and environmental sustainability of journeys involving hydrogen-fueled airport vehicles and supermarket delivery trucks. This strategic initiative, aimed at propelling the North East’s economy and generating job opportunities, is poised to introduce groundbreaking advancements.

The Transport Secretary recently unveiled two victorious projects from the second phase of the competition, a move that fosters a conducive environment for businesses and innovators to pioneer hydrogen fuel-based technology for transport decarbonization.

ULEMCo, at the helm of one of the successful projects, will receive a portion of the £8 million funding to develop hydrogen-powered airport ground support vehicles, including runway sweepers and aeroplane tow trucks. These innovations will be situated at Teesside International Airport, contributing to the airport’s net-zero goal by 2030.

Element 2, leading another triumphant project, endeavours to establish new hydrogen refuelling stations, essential for scaling up hydrogen usage as fuel. This financial backing will facilitate the creation of four publicly accessible hydrogen refuelling stations, amplifying the UK’s refuelling infrastructure by 50%. This network will service various vehicles, encompassing airside vehicles and heavy goods vehicles (HGVs), even extending to supermarket delivery trucks.

Concurrently, this funding initiative allocates £300,000 directly to local colleges, fostering upskilling initiatives for the local workforce, thus nurturing specialised skills and talent pipelines. This robustly solidifies the Tees Valley’s reputation as a hydrogen hub.

Transport Secretary Mark Harper said: “Hydrogen technology has great potential to decarbonise transport and help grow the economy. Today’s winners illustrate the expertise the Tees Valley has as a pioneer in developing hydrogen tech. This investment will provide a further boost to the economy, creating skilled jobs and apprenticeships across the North East.”

This investment constitutes a significant stride towards decarbonizing complex vehicles like airside operations, which is crucial in attaining net-zero objectives. Hydrogen fuel cells, already employed in buses nationwide, emit zero harmful exhaust emissions. Increased hydrogen usage could catalyse economic growth, fostering an environmentally sustainable and globally resilient transport system while generating numerous skilled job opportunities.

This funding underscores the burgeoning hydrogen transport hub within the UK, a magnet for innovation, investment, and employment opportunities in the Tees Valley. The competition sought solutions to overcome the challenges associated with hydrogen technology scaling, including large-scale refuelling and greening the region’s supply chain through hydrogen-fueled vans and HGVs.

This marks the second round of government competition funding for the Tees Valley hydrogen transport hub, following the first round that focused on hydrogen-powered vehicle development. Notably, the Tees Valley region has reaped government funding and private investments since the hub’s launch in 2020, a momentum expected to generate over 12,000 jobs nationally and unlock more than £9 billion in private investments by 2030.