The Hydrogen Economy: Unlocking Value Beyond Energy

The UK’s hydrogen economy is rapidly moving from ambition to execution. Recent reporting highlights the UK’s growing momentum behind large-scale hydrogen infrastructure, including proposals for a national pipeline network designed to connect production hubs with industrial demand. At the centre of this shift is a clear objective: decarbonise heavy industry while maintaining operational continuity and economic viability.

For asset-intensive sectors, this transition presents both opportunity and complexity.

From Infrastructure to Asset Class

Hydrogen is no longer just an energy conversation, it is becoming an infrastructure story. Projects such as “Project Union,” a proposed hydrogen backbone for the UK, aim to repurpose and expand existing gas networks into a nationwide distribution system.

This evolution has direct implications for asset valuation. As traditional fossil-fuel infrastructure is reassessed, its future worth increasingly depends on adaptability. Pipelines, storage facilities, and industrial equipment are no longer valued solely on current use, but on their potential for conversion, integration, or obsolescence.

At Hickman Shearer, we are seeing a clear shift:

• Assets with conversion potential (e.g. gas infrastructure adaptable to hydrogen) are gaining strategic value
• Equipment tied to legacy fuels without transition pathways risks accelerated depreciation
• Emerging hydrogen-specific technologies are entering the valuation landscape with limited historical benchmarks

Valuation, therefore, becomes both a technical and strategic exercise, grounded in market insight, but forward-looking in its assumptions.

The Commercial Reality: Cost, Risk, and Lifespan

While hydrogen presents a compelling route to net zero, the commercial model is still maturing. Infrastructure investment is significant, and long-term returns rely on policy support, demand certainty, and technological standardisation.

This creates a nuanced valuation environment.

Assets must now be assessed not only on condition and market comparables, but on:

• Regulatory alignment (is the asset future-compliant?)
• Technological relevance (will it integrate into hydrogen systems?)
• Residual life in a decarbonising economy

For lenders, investors, and operators, understanding these factors is critical. Overvaluation of stranded assets, or undervaluation of transitional ones, can materially impact financial decisions.

Insights from LAMA: Hydrogen in Practice

These themes were echoed at the recent LAMA conference, where hydrogen took centre stage as a key enabler of industrial decarbonisation. What emerged clearly was that hydrogen is not a singular solution, but part of a broader ecosystem involving electrification, carbon capture, and circular asset strategies.

A recurring insight was the importance of asset longevity.

Extending the usable life of existing equipment, through refurbishment, repurposing, or resale, was positioned not only as a sustainability win, but a commercial imperative. This aligns closely with Hickman Shearer’s role in supporting the circular economy through specialist auctions and asset intelligence.

In a hydrogen-led future, the question is not simply “what is this asset worth today?” but: “What role can this asset play in tomorrow’s energy system?”

Circular Economy Meets Energy Transition

There is a natural intersection between hydrogen adoption and circular asset management.

As industries upgrade or transition their operations, significant volumes of equipment will enter the secondary market. Managed effectively, this creates:

• Liquidity for businesses investing in new technologies
• Extended life cycles for high-value machinery
• Reduced environmental impact through reuse rather than replacement

Auctions and secondary sales are therefore not just transactional, they are enablers of transition.

For example, broadcast, manufacturing, and transport sectors are already navigating similar shifts. The same principles apply: assets that are redeployed intelligently retain value, while those left idle quickly become liabilities.

A Market in Transition Requires Valuation Leadership

The hydrogen economy is advancing, but it is not yet uniform. Regional infrastructure gaps, evolving standards, and varying adoption rates mean that asset values will differ significantly across sectors and geographies.

This is where robust, insight-led valuation becomes essential.

At Hickman Shearer, our approach is grounded in:

• Real-time market data
• Sector-specific expertise
• A deep understanding of asset lifecycle dynamics

In emerging markets like hydrogen, this ensures valuations reflect not just current conditions, but future potential.

Looking Ahead

Hydrogen’s role in the UK’s net zero strategy is becoming clearer: it will be critical for decarbonising hard-to-abate sectors and supporting industrial resilience. However, its success will depend on more than infrastructure investment, it will require a parallel evolution in how assets are valued, managed, and redeployed.

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