North East to benefit from new funding for hydrogen transport

Date: Friday 04 August 2023

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Airports and supermarket deliveries could become greener and more efficient thanks to a £8 million government competition to support hydrogen-powered transport in the North East, grow the economy and create jobs.

The Transport Secretary has announced 2 winning projects of the second phase of the competition, encouraging more businesses and innovators to develop new technology that uses hydrogen fuel to accelerate transport decarbonisation.

One project led by ULEMCo, receiving a share of the £8 million funding, will develop hydrogen-powered airport ground-based support vehicles, such as tow trucks for aeroplanes and sweepers to clean runways. This will be based at Teesside international airport, which will help the airport reach its goal of being net zero by 2030.

Another of the winning projects led by Element 2 aims to create new hydrogen refuelling stations, helping to provide the infrastructure needed to scale up the use of hydrogen as a fuel. This funding will create 4 new publicly accessible hydrogen refuelling stations, increasing the number of refuelling stations in the UK by 50%. These will be used to fuel a range of vehicles, from airside vehicles to heavy goods vehicles (HGVs), including supermarket delivery trucks.

The announcement also confirms £300,000 delivered directly to colleges in the area to support upskilling the local workforce and foster a specialised skills base and pipeline of talent, further cementing the Tees Valley’s status as the home of hydrogen.

This funding brings the UK closer to decarbonising some of the heavier and more complex vehicles, such as airside operations, which will be essential in reaching net zero. Already used in buses across the country, hydrogen fuel cells create no harmful exhaust emissions. Greater use of hydrogen could help grow the UK economy with a transport system that is resilient to global energy prices, environmentally friendly and could see the creation of thousands of skilled jobs.

The funding also marks the continued growth of the UK’s only hydrogen transport hub, attracting even more innovation, investment and jobs to the Tees Valley. The competition invited ideas on how to overcome some of the challenges of scaling-up hydrogen technology, such as refuelling on a large scale and making the region’s supply chain greener with hydrogen-fuelled vans and HGVs.

Phil Forster, Managing Director of Teesside International Airport, said:

"We’re working hard to make Teesside an airport people can be proud of – and that doesn’t just mean flying to the destinations people love. It’s about acting responsibly, for the good of our local people and businesses and the future of our planet.

"This hydrogen refuelling station does just that, by proving this new technology is safe and reliable, and can be used across all sorts of applications. This makes it clear Teesside is helping to pioneer both the aviation industry and the clean energy sector."

This is the second round of government competition funding for the Tees Valley hydrogen transport hub following the first round, which focused on developing hydrogen-powered vehicles.

The first competition saw over £2.6 million awarded to various winners to deploy 21 hydrogen-powered vehicles. One of the winners was Toyota, which provided hydrogen vehicles for local police forces, and Hydrogen Vehicle Systems, which developed a hydrogen-powered van for large supermarkets to deliver largescale groceries.

Since the Hub was launched in 2020, the Tees Valley region has benefited from millions in government funding and private investment. Recent forecasts have estimated that by 2030, the hydrogen sector could support over 12,000 jobs nationally and unlock over £9 billion in private investment.

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