The UK government has shortlisted 27 low-carbon hydrogen projects under the Second Hydrogen Allocation Round (HAR2) issued today.
With pressure rising to accelerate decarbonisation and spur more investment into the hydrogen sector, the shortlist of projects covers manufacturing and industrial practices, ammonia production, new clean power generation, glass manufacturing, brick making, and sustainable aviation fuel production.
The industry has the potential to attract over £1bn of private sector investment into the UK by 2029, providing companies can be convinced the country has a consistent and supportive policy environment which will facilitate growth and offtake agreements.
Total funding for HAR2 was not released but it is expected to provide revenue support through the country’s Hydrogen Production Business Model over 15-year contracts, similar to HAR1, according to gasworld’s sister title, H2 View.
Industry Minister Sarah Jones, said the country would be “deploying hydrogen at a commercial scale for the first time – not just investing in a technology.”
Dr Emma Guthrie, CEO of the Hydrogen Energy Association, said the much-anticipated announcement has delivered vital clarity to the UK’s hydrogen sector, providing a crucial boost for projects that will drive forward the country’s low-carbon transition.
“The funding support offered through HAR2 gives our members and the wider industry the confidence to gear up for delivery, unlocking investment, creating jobs, and driving economic growth,” she said.
“This is great news – not just for the hydrogen sector but for the UK’s ambition to become energy secure and a global leader in clean energy.”
The First Hydrogen Allocation Round saw 11 projects being allocated over £2bn in government funding. One recipient, Whitelee Green Hydrogen in Scotland, will produce hydrogen for the Inchdairnie Whiskey distillery which intends to sustainably distil whisky by 2027.
Clare Jackson, CEO of Hydrogen UK, said the higher number of its members making the second round marked a crucial step for scaling electrolytic hydrogen.
“This progress builds on valuable lessons from past rounds and strengthens UK leadership in clean energy – reinforcing the sector’s crucial role in economic growth and energy security,” she said.
Tim Stedman, CEO, Storegga, the CO2 capture and storage solutions company, said, “We welcome the next stage of the HAR2 process. Our projects will support industrial decarbonisation and the government’s mission to build a low-carbon hydrogen economy by 2030.”
