Calls for Clarity over Future of Humber Hydrogen Project

East Riding Liberal Democrat Environment Spokesperson, Cllr Phil Redshaw, has called on the Government to provide urgent clarity regarding the future funding of hydrogen and carbon capture projects in the Humber region following the Autumn Budget.

​While welcoming the confirmation that development funding for the Viking Carbon Capture and Storage (CCS) cluster will be maintained, Cllr Phil Redshaw warned that a wider £500 million reduction in national hydrogen capital grant funding raises serious questions about the region’s ability to attract long-term investment.

​The Humber has positioned itself to become Britain’s premier hydrogen industrial cluster. According to research commissioned by the Humber Hydrogen Partnership, the proposed network could safeguard up to 4,000 existing jobs in critical industries such as steel and chemicals, support more than 54,000 construction jobs, sustain approximately 900 operational roles, and generate up to 700 apprenticeships over the project's lifetime.

​Highlighting the region's unique positioning, Cllr Redshaw emphasised that the Humber possesses the essential foundations to lead the UK’s energy transition.

​“The Humber has a genuine opportunity to lead the UK’s transition to a lower-carbon industrial economy,” said Cllr Redshaw. “We have the existing industrial base, skilled workforce, ports and infrastructure to make this happen. Protecting Viking’s development funding is welcome, but we shouldn’t overlook the wider implications of reducing hydrogen capital grants by £500 million nationally.”

​Cllr Redshaw noted that industrial transformation hinges on policy stability and sustained economic backing, pointing out that altered funding structures could deter private sector involvement.

​“These projects require long-term confidence,” Cllr Redshaw stated. “Businesses need to know that the infrastructure will be there before they commit the substantial investment needed to transform their operations. Replacing grants with loans or equity investment may provide an alternative, but it is not necessarily the same proposition for investors.”

​Addressing international competitiveness, Redshaw warned against administrative inertia and policy shifts that could send capital elsewhere.

​“Before the Budget, industry leaders were making clear that delays and uncertainty risked driving investment, skills and jobs towards competing international markets. Those concerns haven’t disappeared,” he said.

​Redshaw stressed that the stakes extend far beyond environmental targets, framing the funding debate around regional prosperity and industrial preservation.

​“This is about much more than meeting Net Zero targets. It is about protecting thousands of existing industrial jobs, creating opportunities for young people through apprenticeships, attracting new businesses and ensuring the Humber remains a major centre of British manufacturing.”

​To secure the region's trajectory, Cllr Redshaw urged immediate action from ministers to restore investor confidence before momentum stalls.

​“I want to see the Government set out a clear timetable and funding plan for the Humber’s hydrogen infrastructure, including the transport and storage network,”  “We cannot afford to see years of planning and investment aspirations fail to translate into projects on the ground. We must not allow uncertainty over Government support to undermine this opportunity before it has properly begun. Confidence, once lost, is very difficult to restore.” Said Cllr Phil Redshaw 

​In addition to infrastructure guarantees, Cllr Redshaw highlighted the necessity of local workforce preparation, calling for close collaboration between the region’s colleges, training providers, and local businesses to ensure the local workforce is equipped with the skills required for future high-tech investment.