Twenty-seven hydrogen projects have been selected for the next stage of the Second Hydrogen Allocation Round (HAR2), supporting low-carbon hydrogen production in the UK.
The UK Government said the industry has the potential to attract more than £1 billion of private sector investment into the UK by 2029, supporting the government’s mission to become a clean energy superpower.
The shortlist includes projects that could use hydrogen to help tackle the climate crisis by decarbonising their manufacturing and industrial practices, including ammonia production, new clean power generation, glass manufacturing, brick making, and sustainable aviation fuel production.
A large number of schemes involve green hydrogen, which 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.
It builds on the success of 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, the latest wave of shortlisted HAR2 projects aims to showcase 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, the government added.
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, our proud manufacturing communities and our energy security.
“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.”
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.
“This is great news – not just for the hydrogen sector but for the UK’s ambition to become energy secure and a global leader in clean energy.”
Clare Jackson, CEO of Hydrogen UK, said:
“We’re thrilled to see many Hydrogen UK members succeed in the second Hydrogen Allocation Round, marking a crucial step for scaling electrolytic hydrogen.
“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.
