The UK government has shortlisted 27 hydrogen projects for the next stage of the Second Hydrogen Allocation Round (HAR2).
The HARs are a government funding mechanism that supports low-carbon hydrogen production in the UK, a sector which the government says has the potential to attract more than £1 billion of private sector investment into the by 2029.
The shortlist includes projects that could use hydrogen to help tackle climate change by decarbonising manufacturing and chemical production in areas such as ammonia production, glass manufacturing and sustainable aviation fuel production.
The 27 projects are spread across the UK and the government says that its investment shows its commitment to creating skilled jobs and establishing clean energy hubs across the country. The HAR2 shortlist could also lead to projects that help support strong supply chains and the delivery of the ‘clean energy superpower mission,’ the government said.
The 27 projects are:
• Aldbrough Hydrogen Pathfinder
• Bardon Hill Hydrogen
• Binn Ecpark Hydrogen Facility
• Creca Hydrogen Facility
• Fawley Green Hydrogen
• Grangemouth Green Hydrogen
• Green Hydroge 5
• Grenian Hydrogen St Helens
• Harper Lane Hydrogen
• Hartlebury Green Hydrogen
• Humber H2ub
• Irvine Green Hydrogen Project
• Lhyfe Kemsley
• Lhyfe Wallsend
• Magor Net Zero
• Pembroke Green Hydrogen 1
• Selmus Muir Hydrogen
• Shetland Hydrogen Project 1
• Singleton Birch Kilns
• South Tees Net Zero
• St Austell Green Hydrogen
• Strathallan Hydrogen Facility
• Tees Green Hydrogen Phase 2
• Teesside Green Hydrogen
• Tyseley 10MW
• Walsall Green Hydroge
• Whitelee Green Hydrogen Phase 2
Launched in December 2023, HAR2 allocates 875 MW of capacity for projects that will be operational between 2026 and 2029. HAR2 also builds on the successes of the First Hydrogen Allocation Round (HAR1), which saw 11 projects being allocated more than £2 billion in government funding. These projects represent a total of 124MW of production capacity. Of the 11 projects, five have signed contracts including the Cromarty Hydrogen project which is being developed by Scottish Power and Storegga. The project will use electricity from local wind farms to power an 11 MW electrolyser, supplying hydrogen to local industries, including distilleries.
Dr Gavin Catto, CEO of Green Cat Hydrogen, lead developer of Creca Hydrogen Facility, one of the 27 shortlisted projects, said: “This shortlisting represents a huge milestone for both the nation’s rapidly growing hydrogen industry, and Green Cat Hydrogen (GCH) as a dynamic, engineering-led team. It recognises both the highly investible nature of the domestic hydrogen sector and GCH’s commitment to supporting Scotland and the wider UK’s role as a leader in the green hydrogen space.”
Dr Emma Guthrue, CEO of the Hydrogen Energy Association said, “The funding 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.”
The government adds that it conducted a ‘comprehensive assessment process' to produce its shortlist of projects, and notes that a project’s inclusion on the shortlist does not guarantee government support: "Similar to the First Hydrogen Allocation Round (HAR1), it is unlikely that all projects will be successful. As such being on the shortlist does not imply availability of funding for any of the shortlisted projects.”
The government says that it has four strategic objectives underpinning HAR2, these being:
• Kickstarting the low carbon hydrogen economy, helping meet the ambition of up to 1GW of electrolytic hydrogen capacity in operation or construction by 2025, and helping to grow hydrogen supply chains.
• Supporting projects to deploy at scale, and advancing government’s ambition to deploy up to 10GW of low carbon hydrogen production capacity by 2030, subject to affordability and value for money, with at least half from electrolytic hydrogen production capacity.
• Establishing the frameworks to put the market on a path to deliver cost reductions and value for money, supporting the market to transition to a future price-based competitive allocation regime.
• Delivering carbon savings to allow the UK to meet net zero commitments.
Further reading:
• Carbon management, hydrogen and cleantech projects get €4.8 billion net zero funding boost
• Carbon capture and storage: Decarbonising Teesside
• Hydrogen-powered flight: Filling the gaps in materials knowledge
Visit Blog