To support the energy transition, governments are developing policies and regulations to help us move away from fossil fuels. This factsheet explains why creating a competitive green hydrogen market for shipping and aviation fuels will secure jobs and investment opportunities. These opportunities will then guarantee energy security and a just energy transition.

What are the opportunities?

• The transition away from fossil fuels creates an opportunity for secure jobs across the skills range from relatively low-skilled to highly-skilled professionals. Jobs could be created in geographically diverse areas, with a focus on decentralising outside main cities and towns, with better gender and minority equality across the supply chain. The transition could also reduce public health disparities around airports and ports, with a reduction in those affected who are part of low income or indigenous groups.

• The fossil fuel production industry is dominated by a few global companies, stifling development of new sectors. The energy transition presents new business opportunities for emerging companies, developers and cooperatives to be part of the new sustainable fuel industry.

• Maritime decarbonisation is set to be a trillion-dollar opportunity globally. The UK’s sustainable aviation fuel (SAF) industry could be worth £16.7 billion per year in exports by 2050, supporting approximately 130,000 highly paid jobs, indicative of the huge market opportunity. During the development of the industry, 6,500 well-paid jobs could be created across Scotland, Wales, North West England, Teesside and the Humber by 2035, adding £1 billion annually to the UK economy. Globally, investment in SAF can create or sustain an estimated 13.7 million jobs.

• As part of its growth plan, the EU strengthened its commitment to a more sustainable economy and society by implementing the European Green Deal (EGD). Employment is expected to expand by 1.2% over the next 10 years with the implementation of the EGD. This translates into an additional 2.5 million jobs in the EU.

• Harnessing these opportunities will support the UK and EU in becoming leaders in new and innovative technologies.

How to capture the opportunity

Filling the Green Hydrogen Gap

A “Green Hydrogen Gap” has been created because of a lack of policy supporting the production of green hydrogen, which is slowing down demand and discouraging investment. Policy to decarbonise shipping and aviation to date encourages non-solutions such as liquified natural gas (LNG) and biofuels. Investment in these fuels’ production will lead to stranded assets, as global choices for sustainable fuels will need to move away from the unsustainable LNG and biofuel supply chains. A successful energy transition needs robust renewable energy markets – one being a competitive domestic green hydrogen market. Increased training and job opportunities in the sector will help to create more green hydrogen and bring the price down. To further fill this gap, policymakers should:

• Adopt ambitious mandates for the use of green hydrogen and green hydrogen-derived fuels to drive demand, and therefore supply, creating a stable economy for these fuels.

• Adopt a cross-departmental approach to hydrogen policy, ensuring transport stakeholders are involved in decision-making on future uses of green hydrogen and direct air capture (DAC) technology, and that hydrogen strategies recognise its importance in decarbonising the aviation and shipping sectors.

 Filling in the skills gap and job creation

• A skills shortage has contributed to a shortage of aviation fuel.  In the US, it has recently been estimated that 20% of tankers transporting aviation fuel are parked due to a lack of qualified truck drivers, with low pay cited as exacerbating the skills shortage. This is a clear example of how a skills shortage can directly affect the industry.

• Key causes of skills shortages have been identified as: insufficient education, training and knowledge transfer for new/prospective entrants, a lack of motivational factors, poor skills retention of experienced workers, an aging workforce, and lack of interest from young, incoming workers desiring to enter environmentally sustainable industries.

• Setting in place ambitious mandates for sustainable fuels will spur production in the cheapest locations for production, often near ports, benefitting local communities and economies. Resultant job creation will cause surges in demand for housing, education, transport, and utilities in surrounding areas. creating induced jobs and multiplying economic benefits.

• Indirect jobs may also be created in those industries that produce goods and services used in the industry, such as steel production for wind turbine manufacturing (crucial to generating the renewable electricity needed for green hydrogen production).

• Investing in the green hydrogen industry provides an opportunity to create inclusive, fair growth across industries – particularly if the gender imbalance is addressed and upskilling occurs across all ages and stages of education. It is estimated that fewer than 2% of the global seafarer population are women. Globally, less than 10% of pilots and aviation engineers are women. Particularly through STEM education, women could be encouraged into the fuel production industry to address the gender imbalance.

• To upskill the current yet soon-to-be-defunct fossil fuel workforce, significant changes must occur. Policymakers must introduce changes to education by widely introducing STEM subjects at early stages, and vocational courses should be encouraged to enable more skilled workers to join the workforce. There should also be additional incentives for applicants from marginalised groups.

Global market insight

• The green hydrogen economy could provide 18% of the global energy demand, generate 30 million jobs by 2050 and generate $2.5 trillion annual revenue worldwide.

• In the EU, the green hydrogen economy could create as many as 5.4 million jobs by 2050.

• In the UK, 11 new green hydrogen production projects will invest around £400 million over the next three years, and create 700 jobs – representing the largest number of commercial-scale green hydrogen production projects announced at once anywhere in Europe.

Case study: Lhyfe

• Lhyfe is a producer and supplier of green hydrogen, headquartered in Nantes, France, with offices in the UK, Denmark, the Netherlands, Germany and Spain.

• As of January 2024, the company has one onshore production site in Bouin on the western coast of France, with two more in production across France and one in production in Germany.

• Lhyfe also has one offshore production unit under construction off western France, called SeaLhyfe.    

• Companies like Lhyfe will be contributing to the expected 50,000 to 150,000 jobs being created in the upcoming green hydrogen market in France.

Want to learn more? Read our Green Hydrogen Gap report here.*

* This factsheet draws on information and statistics included in the Green Hydrogen Gap report and supporting research conducted by Arup.