IGEM welcome UK Government’s commitment to hydrogen across its industrial, infrastructure and investment strategies

IGEM welcomes the UK Government’s Industrial Strategy, the 2025 Spending Review and the 10-Year Infrastructure Strategy for their strong alignment on decarbonising Britain’s industrial future and our energy system - with particular recognition of the gas sector’s role in delivering net zero and a secure, low-carbon industrial future. 

We applaud the clear policy backing for hydrogen and carbon capture, usage and storage (CCUS) technology as outlined across these key policies. With commitments to hydrogen and CCUS sector plans, reaffirming substantial funding for CCUS Track 2 clusters, announcing £500 million for regional hydrogen transport and storage networks such as HyNet and pledging £725 billion for public infrastructure investment (including energy systems), the government has offered much needed clarity for investors and momentum in the development of a hydrogen economy. This is further reinforced by Ofgem's announcement of £96m in new funding for the next phase of the East Coast Hydrogen pipeline network.  
 
We are particularly encouraged by the government’s emphasis on skills being a key to success and the importance of engineering and technical skills - ensuring the current workforce is supported through the transition and the next generation of engineers are equipped to lead the development of hydrogen infrastructure.  
 
However, for the gas sector to deliver its full potential in this transition, further policy clarity is needed in key areas. This includes a clear roadmap and policy framework for hydrogen integration across the gas network and regulatory reform to enable hydrogen blending and repurposing of existing gas assets. 

IGEM is disappointed by the notable absence of policy focus on biomethane and hybrid heating systems - both of which represent pragmatic and existing pathways to accelerate decarbonisation while maintaining system resilience and consumer affordability.  

Biomethane is a proven, grid-compatible renewable gas that already contributes to decarbonising heat and transport. It can be deployed at scale using existing infrastructure and has the potential to reduce lifecycle emissions significantly. The lack of a clear biomethane trajectory, whether through incentive frameworks, volume targets or integration into industrial decarbonisation, is a missed opportunity. 

Hybrid heating systems, which pair gas boilers with heat pumps, offer an optimised approach for hard-to-treat buildings and rural homes. By operating flexibly, they help balance grid demand, reduce peak electricity needs and offer consumers a cost-effective entry point into low-carbon heating. The Strategies’ exclusive emphasis on full electrification overlooks this proven transitional option. 

To further drive investment and fully realise the benefits of a balanced, resilient energy transition, we urge Government to bring forward a clear policy framework for hydrogen blending into the gas network, support mechanisms to grow UK biomethane supply and integrate hybrid heating systems into low-carbon heat policy - alongside hydrogen production and CCUS plans. 

IGEM is committed to supporting the UK in achieving its climate targets through engineering excellence and skills development. We look forward to continuing our collaboration with government, industry and regulators to ensure the future gas system is safe, decarbonised and offers a secure and resilient pathway to net zero.