United Kingdom Electrolyzer Market Overview, 2030

The UK electrolyzer market is gaining strong momentum, anchored by the government’s commitment to deploying 10 gigawatts of low-carbon hydrogen production capacity by 2030, with at least 5 gigawatts sourced from electrolysis. This ambition underpins continued evolution, bolstered through strategic funding initiatives such as the Hydrogen Allocation Rounds initial rounds already mobilizing over £400 million for electrolytic projects and £960 million for the Green Industries Growth Accelerator, which strengthens domestic hydrogen supply chains and manufacturing capabilities. Regulatory clarity has been enhanced through the introduction of a Low Carbon Hydrogen Standard, ensuring that supported projects are emissions-compliant, while the granting of public override status to hydrogen infrastructure fast-tracks planning. Technologically, the UK market is seeing innovation in system architecture trailblazing high-pressure electrolyzers like the ultra-efficient GreeNH3 design can generate hydrogen at over 200 bar without compressors, improving efficiency by up to 20%. Energy integration is also a priority, with electrolyzers being paired with renewables to provide grid-balancing services and accommodate variability. Pilot installations such as the Tees Valley Hydrogen Transport Hub deploy electrolysis to power demonstration fleets and refueling stations, while design efficiencies are being pursued through modular electrolyzer units that allow scalable deployment and integration into industrial clusters. Energy efficiency is further supported through advancements in PEM stack designs by leading manufacturers like ITM Power and Ceres Power, which are targeting reduced precious-metal usage and enhanced operational flexibility.

According to the research report, ""United Kingdom Electrolyzer Market Overview, 2030,"" published by Bonafide Research, the United Kingdom Electrolyzer market is anticipated to add to more than USD 430 Million by 2025–30. The UK electrolyzer market is driven by pressing industrial decarbonization needs, export potential, and energy system resilience. Key market drivers include the need to reduce emissions in energy-intensive sectors such as chemicals, steel, and refining, particularly as reliance on imported gas grows. Supportive demand-side initiatives include the Renewable Transport Fuel Obligation, which now supports electrolytic hydrogen in transport applications, significant investment in maritime decarbonization through UK SHORE, and planned sustainable aviation fuel mandates recognizing hydrogen's role in aviation. Landmark projects validate market development, such as the Felixstowe port project, targeting 100 MW of electrolytic capacity by 2027 to decarbonize terminal operations and serve broader industrial clusters. Industrial champions include ITM Power, operating a gigafactory in Sheffield and launching the NEPTUNE V 5 MW electrolyzer, while Ceres Power is advancing solid oxide electrolyzer tech for distributed energy systems. Rising operational value is being unlocked through grid ancillary services and hydrogen blending trials efforts like HyDeploy demonstrate the viability of injecting up to 20% hydrogen into domestic gas networks without appliance changes. Geographically, industrial clusters in Teesside, Humberside, and Scotland are emerging as hydrogen hubs alongside the planned Kintore project in Scotland, which aims for 500 MW expanding to 3 GW, potentially becoming Europe's largest green hydrogen project. Research and development investment is sustained through the Net Zero Innovation Portfolio, funding offshore wind-to-hydrogen, heavy industry applications, and transport fuel development. Upgrading domestic supply chains through GIGA manufacturing investment and skills development ensures that as electrolyzer deployment expands, the UK can deliver infrastructure, uphold safety standards, and capitalize on export markets.

In the UK, the electrolyzer market is characterized by several technologies, each catering to distinct applications based on their operational characteristics. Alkaline Electrolyzers, one of the oldest and most established technologies, remain a prominent choice in the UK due to their cost-effectiveness and scalability. These electrolyzers use an alkaline solution typically potassium hydroxide to split water into hydrogen and oxygen. They are well-suited for large-scale applications in industries where consistent, high-volume hydrogen production is required. However, their slower response times and larger footprint limit their use in dynamic, renewable-based energy systems. In contrast, Proton Exchange Membrane (PEM) electrolyzers are gaining traction in the UK due to their ability to respond rapidly to fluctuations in renewable energy output, such as wind and solar power. PEM electrolyzers utilize a solid polymer electrolyte to conduct protons from the anode to the cathode, producing hydrogen with high purity. While they offer excellent flexibility and faster response times, the key challenge with PEM technology is its high cost, primarily due to the precious metal catalysts and shorter operational lifespans. The Solid Oxide Electrolyzer (SOEC) is another emerging technology in the UK, operating at high temperatures (typically 700-1,000°C) to produce hydrogen with high efficiency. SOECs are especially suited for integration into industrial processes where waste heat is available. However, the technology is still in the early stages of commercial deployment, with material stress and durability posing significant hurdles. Anion Exchange Membrane (AEM) electrolyzers are a promising technology that offers the potential to combine the cost-effectiveness of alkaline systems with the efficiency and compactness of PEM. AEM electrolyzers, though in the early development phase, are being closely monitored for their ability to offer flexible, low-cost hydrogen production solutions in the UK market.

The UK electrolyzer market is driven by several key applications, with Power-to-Gas (PtG) technology playing a pivotal role in the country's renewable energy transition. PtG systems use electrolyzers to convert excess renewable electricity into hydrogen, which can be stored and later used for various applications, such as electricity generation, or injected into the natural gas grid. As the UK aims to decarbonize its energy systems, the role of PtG in balancing grid supply and demand, while utilizing intermittent renewable sources like wind and solar, has gained prominence. In addition to PtG, the Energy Storage and Fueling for Fuel Cell Electric Vehicles (FCEVs) segment is also rapidly expanding in the UK. Hydrogen produced by electrolyzers is crucial for the development of a robust refueling infrastructure for FCEVs, especially as the country moves toward cleaner transportation. Government support, including subsidies for hydrogen refueling stations, further accelerates the adoption of electrolyzers for this purpose. The Industrial Gases sector also plays a significant role in the UK's electrolyzer market, as high-purity hydrogen produced through electrolysis is essential for various industrial processes, including chemical manufacturing, oil refining, and metal processing. The Steel Plants application, particularly in Direct Reduced Iron (DRI) processes, is gaining traction as the UK seeks to decarbonize its steel industry. Several pilot projects are exploring the use of hydrogen to replace carbon-intensive methods of steel production, thus reducing CO2 emissions. Furthermore, Electronics and Photovoltaics industries in the UK use ultra-pure hydrogen for manufacturing semiconductors and solar panels. The other emerging applications include hydrogen production for Sustainable Aviation Fuels (SAF), ammonia, and methanol production, driven by increasing global demand for low-carbon alternatives.


Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Electrolyzer Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Technology
• Alkaline Electrolyzer
• Proton Exchange Membrane (PEM)
• Solid Oxide Electrolyzer (SOE)
• Anion Exchange Membrane (AEM)

By Application
• Power Plants
• Energy Storage or Fueling for FCEV's
• Industrial Gases
• Power to Gas
• Steel Plant
• Electronics & Photovoltaics
• Others Show more