Energy security and regional growth are often treated as separate goals. In reality, they can reinforce each other. As the UK builds a cleaner energy system, the Humber and the North East are well placed to become national hubs for low-carbon hydrogen.
By turning industrial strengths, deep-water ports and offshore expertise into skilled jobs, hydrogen generation and storage can bring long-term income for local communities. Hydrogen is not a silver bullet, but it can decarbonise parts of the economy that are hard to electrify including some industrial processes and heavy transport. It can be produced domestically, stored, and used when needed, reducing exposure to volatile global fuel markets and strengthening resilience when demand is high and the wind is low.
Humber
In the Humber, the prize is clear. The region is a vital industrial cluster and gateway for trade. Decarbonising industry while attracting new investment is a major opportunity and hydrogen is central to that pathway. Ministers have now greenlit early-stage plans to secure the Humber’s position as a clean energy powerhouse, backing a partnership including the Hull and East Yorkshire Combined Authority, the University of Hull, the Humber Energy Board, Humber Freeport, CATCH UK and the University of Lincoln to progress to the next stage of the Local Innovation Partnership Fund. The endorsement is intended to help unlock up to £30 million of national investment for a portfolio of clean energy projects, creating safe conditions for hydrogen production, storage, distribution and use to scale faster. For funders and finance teams, the case for investment will hinge on robust business cases, clear ownership of spend and the control environment that gives confidence money is being deployed as intended.
North East
The North East has a similarly strong proposition. With a manufacturing base, world-class research and a coastline long shaped by energy and maritime activity, the region is accelerating hydrogen ambitions. Initiatives are exploring hydrogen for industrial heat, transport and port-side uses, alongside the transition of skills from traditional energy into low-carbon roles. Done well, this can anchor supply chains that keep more value in the region therefore creating demand for technicians, project managers, apprentices, engineers and the finance and assurance professionals who help projects get built.
In both areas, the economic impact is about more than a few flagship plants. A hydrogen economy needs planning, grid connections, safety assurance, procurement, training, storage, distribution and end users willing to switch. Those building blocks also bring new requirements for finance: disciplined procurement, contract management, segregation of duties and audit trails that stand up to scrutiny. Each step creates jobs, helps SMEs grow and generates income through supply-chain activity, business rates and exports of expertise. It can also strengthen careers, giving young people a reason to stay and experienced workers a pathway to retrain locally.
Offshore wind
Hydrogen becomes even more powerful when combined with offshore wind, particularly the Siemens wind turbine manufacturing already established in the region. Offshore wind is a cornerstone of the UK’s clean power future, and the North’s coastal manufacturing and servicing ecosystem is a national asset. Producing hydrogen from surplus renewable electricity can help manage peaks and troughs in generation. Put simply: turbines generate clean power, and hydrogen helps store and use that power when and where it is needed, reinforcing UK energy security which is on everyone’s minds at the moment.
To capture this opportunity, we need pace and certainty. Investors respond to clear signals: consistent policy, timely decisions and credible long-term demand. They also need confidence in the numbers, transparent reporting, realistic assumptions and effective financial controls that reduce delivery and fraud risk across complex programmes. Progress therefore relies on enabling infrastructure, from power connections and storage where relevant, to port upgrades and planning capacity. It also relies on building the skills pipeline, from apprenticeships to mid-career conversion, with colleges and training providers at the heart of delivery.
As ICAEW’s Regional Director, I see how investable projects depend on rigorous governance, strong controls and transparent reporting, especially for complex infrastructure. Businesses in the Humber and the North East have the know-how to lead, but progress will be fastest if public and private sectors align around deliverable pipelines of work. With hydrogen supporting industry and heavy transport, and Siemens-backed wind manufacturing underpinning renewables at scale, our regions can help secure the UK’s energy future, while creating prosperity on our doorstep.
Written by: Kim Johnston, ICAEW Regional Director