Hydrogen’s role in a clean power economy
Think tank: Green Alliance
Author(s): Sophie O'Connell; Will Car; Liam Hardy
December 11, 2025
This report from UK think tank Green Alliance outlines the current state of the UK’s hydrogen economy and the factors that will shape its future.
Hydrogen has been dubbed critical for a low carbon economy, but it’s no panacea for achieving net zero. While it can be used as a fuel or ingredient for many industrial processes with close to zero lifecycle emissions when made with renewable electricity, directly electrifying processes wherever possible will always be more efficient and cost effective.
In this report, we outline the current state of the UK’s hydrogen economy and the factors that will shape its future. We explain how hydrogen is produced (grey, blue and green), the challenges of transport, storage and leakage, and how the government’s Hydrogen Production Business Model works to stimulate domestic production. We present a hierarchy of hydrogen uses, identifying where it’s genuinely necessary and where electrification should be prioritised instead.