United Kingdom – UK government has pledged £2 billion in funding for 11 major electrolytic hydrogen projects.
The funding will be distributed over the next 15 years through the Hydrogen Allocation Round (HAR1) scheme. Under this initiative, suppliers of hydrogen will receive a government-guaranteed price for the hydrogen they produce, following the Hydrogen Production Business Model. The guaranteed price, set at a weighted average strike price of £241/MWh (£175/MWh in 2012 prices), will become effective once the projects become operational.
The Department for Energy Security and Net Zero (DESNZ) projects that the HAR1 scheme will lead to the creation of over 125MW of capacity and generate approximately 700 jobs, contributing to the establishment of a “world-leading hydrogen industry” from the south-west of England to the Highlands.
Developers involved in these projects have committed to investing over £400 million in the next three years, reflecting the private sector’s confidence in the future viability and scalability of green hydrogen.
Scotland’s success in HAR1
Several projects have been identified across the UK, with notable mentions in Scotland. The 10.6MW Cromarty Hydrogen scheme, backed by ScottishPower and Storegga, has received government support. Additionally, the Whitelee hydrogen project, situated at ScottishPower’s wind farm of the same name, has secured backing, further enhancing Scotland’s role in the green hydrogen landscape.
Energy Security Secretary Claire Coutinho emphasized the economic potential of hydrogen, stating that it could unlock over 12,000 jobs and attract up to £11 billion in investment by 2030. The commitment to the 11 major hydrogen projects positions the UK at the forefront of Europe’s green hydrogen production initiatives.
As part of the UK’s broader strategy, the government aims to deploy up to 10GW of low-carbon hydrogen production capacity, encompassing both blue and green hydrogen, by 2030.
While 17 projects initially entered negotiations, with a combined capacity of 243MW, not all were successful. However, DESNZ encouraged unsuccessful projects to consider reapplying in the next rounds, with HAR2 expected to follow, along with future allocation rounds in 2025 and 2026.
