The UK Government has selected 11 green hydrogen projects, totaling a capacity of 125MW, for significant revenue support. This selection follows the inaugural hydrogen allocation round (HAR1) launched in July 2022. These projects represent a major step in green hydrogen production, marking the UK’s position as a leader in Europe for commercial-scale green hydrogen initiatives.
The selected projects will benefit from over £2 billion in revenue support through the Hydrogen Production Business Model, which will be activated once the projects are operational. Additionally, over £90 million from the Net Zero Hydrogen Fund is earmarked to assist the construction of these initiatives.
A rigorous selection process ensured that the awarded projects are viable and offer value for money. The agreed weighted average strike price for these projects is £241/MWh (£175/MWh in 2012 prices), competitive with other emerging technologies like floating offshore wind and tidal stream.
The HAR1 was delivered on schedule, and the first projects are expected to be operational from 2025. This, combined with commitments to subsequent Hydrogen Allocation Rounds, provides the hydrogen sector with the certainty needed for further investment and development within the UK.
The government has worked closely with industry to support the commercial viability of pioneering hydrogen projects. The 11 selected projects, spread across 8 regions in England, Scotland, and Wales, are expected to deliver significant benefits, including:
- Investment of £413 million in private capital by the projects from 2024-2026, creating approximately 760 direct jobs during construction and operation.
- Significant expenditure across various hydrogen users, including industries and heavy transport facilities, to transition their operations to hydrogen and enhance long-term viability.
- Strengthened energy security, with these projects encouraging a-domain from imported fuels like natural gas and diesel to domestically produced hydrogen.
- A catalyst for the low-carbon hydrogen economy in the UK, contributing to the 2025 goal of up to 1GW of electrolytic hydrogen production capacity in operation or construction.
- Progress towards the government’s target of deploying up to 10GW of low-carbon hydrogen production capacity by 2030, potentially unlocking £11 billion in private investment and supporting over 12,000 jobs.
The government remains committed to achieving up to 1GW of electrolytic hydrogen in construction or operation by the end of 2025. The second hydrogen allocation round (HAR2) has also been launched, aiming to support up to 875MW capacity, contingent on project affordability and value.
Out of 17 projects in final negotiations, 15 submitted Best and Final Offers, totaling 243MW capacity. Four of these were not successful. Unsuccessful projects from HAR1 are encouraged to apply in HAR2 with more competitive proposals, as detailed in the HAR2 application guidance.
List of successful HAR1 projects
| Project Name | Lead Developer | Location | Capacity (MW) |
| Barrow Green Hydrogen | Carlton Power | North West | 21.0 |
| Bradford Low Carbon Hydrogen | Hygen | Yorkshire | 24.5 |
| Cromarty Hydrogen | Scottish Power and Storegga | Scotland | 10.6 |
| Green Hydrogen 3 | HYRO | South East | 10.6 |
| HyBont | Marubeni Europower | Wales | 5.2 |
| HyMarnham | JG Pears and GeoPura | East Midlands | 9.3 |
| Langage Green Hydrogen | Carlton Power | South West | 7.0 |
| Tees Green Hydrogen | EDF Renewables Hydrogen | North East | 5.2 |
| Trafford Green Hydrogen | Carlton Power | North West | 10.5 |
| West Wales Hydrogen | H2 Energy and Trafigura | Wales | 14.2 |
| Whitelee Green Hydrogen | Scottish Power | Scotland | 7.1 |
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