UK Hydrogen Land Grab Begins as Hygen Buys HyBont

Hygen’s HyBont deal shows UK hydrogen moving from pilots to a fight for real assets, customers, and operational control

20 Jan 2026

Hygen Energy has acquired the HyBont low-carbon hydrogen production and refuelling project in Bridgend, Wales, from Japanese trading group Marubeni, highlighting a change in Europe’s hydrogen sector from early-stage trials to competition for operating assets.

The deal gives Hygen control of a project aimed at supplying hydrogen to bus and freight fleets and to industrial users seeking to cut emissions. These customers are seen as among the most viable sources of near-term demand, given the limits of battery electrification for heavy vehicles and some industrial processes.

HyBont is designed to combine hydrogen production with local refuelling infrastructure, a model intended to secure predictable offtake and reduce reliance on future network build-out. Hygen said the site is its first hydrogen project in Wales and western England.

The project has been awarded support under the UK government’s Hydrogen Allocation Round 1 programme, which provides revenue backing to selected producers. Such support has become central to the sector, as developers seek to bridge the gap between policy targets and projects that lenders and customers are willing to commit to over the long term.

The transaction points to a broader shift in the hydrogen market. Early development was dominated by feasibility studies and demonstration schemes. As public funding frameworks have taken shape, attention has moved to ownership of production sites, refuelling corridors and locations close to end users. Control of infrastructure is increasingly shaping where hydrogen vehicles are deployed and which regions develop into early hubs.

Marubeni’s decision to sell also reflects a reassessment by some diversified investors of hydrogen assets against internal risk and return thresholds. Specialist developers, by contrast, are moving to consolidate projects and take them through construction and operation.

Challenges remain. Hydrogen developments still face delays linked to planning consent, power connections and securing binding customer contracts. Even with subsidies, producers must deliver fuel at prices that fleet operators and industrial buyers can absorb.

The HyBont acquisition suggests that the next phase of the UK hydrogen market will be driven less by ambition and more by execution, as companies compete to turn supported projects into working supply.