April 07, 2025 [Renewables Now]- The UK government announced today it has shortlisted 27 electrolytic hydrogen projects to progress to the next stage of the Second Hydrogen Allocation Round (HAR2), its main mechanism of supporting low-carbon hydrogen production through revenue funding.
The list includes projects that plan to use hydrogen to decarbonise manufacturing and industrial practices, such as ammonia production, new clean power generation, glass manufacturing, brick making, and sustainable aviation fuel production.
“From distilleries and sustainable aviation fuel to public transport and clean energy generation, hydrogen can power our everyday life and unlock clean energy growth across the country as part of our Plan for Change,” stated Industry Minister Sarah Jones.
The shortlisted projects are located across England, Scotland, and Wales and include schemes led by developers Hygen Energy Holdings Ltd, Hynamics Limited UK, RWE Generation UK Plc, Carlton Power Ltd, ScottishPower, Lhyfe SA, European Energy UK Ltd, among others. They will now need to go through a due diligence stage.
“This much-anticipated announcement brings vital clarity to the UK’s hydrogen sector, providing a crucial boost for projects that will drive forward the country’s low-carbon transition,” commented Emma Guthrie, CEO of the Hydrogen Energy Association.
“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,” said Clare Jackson, CEO of Hydrogen UK.
HAR2 closed for applications in the spring of 2024. The government has said it hopes to support up to 875 MW through this round.
Under the First Hydrogen Allocation Round (HAR1), 11 projects totalling 124 MW of production capacity were allocated over GBP 2 billion (USD 2.6bn/EUR 2.4bn) in government funding. Five of the HAR1 projects have signed their contracts, including the Bradford Low Carbon project in Yorkshire and the Cromarty Hydrogen Project in northeast Scotland, the government said.
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