Hydrogen projects secure funding in HAR2

The industry has the potential to attract over £1 billion of private sector investment into the UK by 2029, supporting the government’s mission to increase clean energy usage.

Hydrogen will help deliver clean energy across the UK and decarbonise emission-intensive industries. It has already attracted £400 million of private sector investment in towns and cities such as Milford Haven, Wales and High Marnham, Nottinghamshire, England, and is creating over 700 direct jobs in construction and operations.

Government support for hydrogen will help create thousands more jobs in the sector and reindustrialise the UK’s manufacturing regions. This includes roles for apprentices, graduates, and technically trained professionals, such as engineers, welders, skilled construction workers, pipefitters, and operations specialists.

The shortlist includes projects that could use hydrogen to help tackle the climate crisis by decarbonising manufacturing and industrial practices, including ammonia production, new clean power generation, glass manufacturing, brick making, and sustainable aviation fuel (SAF) production.

Industry Minister, Sarah Jones, said: “We are deploying hydrogen at a commercial scale for the first time – not just investing in a technology – but investing in British jobs, manufacturing communities, and our energy security. From distilleries and SAF 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.”

Green hydrogen is produced by using renewable energy to split water into hydrogen and oxygen, resulting in a zero-carbon fuel that can be used for power generation, transport, and industrial processes.

This builds on the First Hydrogen Allocation Round which saw 11 projects being allocated over £2 billion 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.

Stretching across England, Scotland, and Wales, this latest wave of shortlisted HAR2 projects showcases the government’s commitment to create skilled jobs and establish clean energy hubs across Great Britain. The HAR2 shortlist could lead to projects that help support strong supply chains and the delivery of the clean energy superpower mission.

Dr Emma Guthrie, CEO of the Hydrogen Energy Association, said: “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. 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.”

Clare Jackson, CEO of Hydrogen UK, said: “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.”

Case studies

In December 2023, the government announced an initial 11 projects from the First Hydrogen Allocation Round (HAR1), totalling 124 MW of production capacity.

Five of these projects have signed contracts, including the Bradford Low Carbon project in Yorkshire, England, and the Cromarty Hydrogen Project in northeast Scotland.

The Bradford Low Carbon project, England, will use renewable electricity to power a 10.6 MW alkaline electrolyser. Being developed by Hygen and Ryze, it will supply the mobility sector, including JCB diggers and Wrightbus.

The Cromarty Hydrogen Project, Scotland, is being developed by Scottish Power and Storegga. It will use electricity from nearby wind farms to power an 11 MW electrolyser, supplying hydrogen to local industries, including distilleries.

Read the article online at: https://www.globalhydrogenreview.com/hydrogen/07042025/hydrogen-projects-secure-funding-in-har2/