The first commercial-scale green hydrogen projects in the country have signed long-term contracts to fuel heavy industry with clean energy.
In an update to the hydrogen market, the government has confirmed that 10 projects from the first phase of its flagship hydrogen programme – Hydrogen Allocation Round (HAR1) – can begin construction.
This means construction across projects in South Wales, Bradford (North West), North Scotland and Teesside (North East). These schemes will support British industry to move away from using fossil fuels towards domestically-produced low-carbon hydrogen, reducing emissions heavy industry – such as steel, glass and heavy transport – ensuring decarbonisation is a route to reindustrialisation.
The HyMarnham project in Newark, Nottinghamshire has already started construction, transforming the old High Marnham coal-fired power station into a clean energy hub by using hydrogen to decarbonise waste disposal operations.
In addition, Cromarty Hydrogen Project in Northeast Scotland sees 3 5MW electrolysers – which use electricity to split water into hydrogen and oxygen – power local industrial users, including distilleries.
Taken together, the projects are expected to create over 700 jobs, including roles for apprentices, graduates, pipefitters and engineers.
They are also expected to bring in more than £400 million of private capital investment which has been committed between 2024 and 2026.
The update comes as Andrex and Kleenex producer Kimberly-Clark announced that it will be the first major consumer goods company in the UK to make a significant commitment to green hydrogen.
Kimberly-Clark, together with energy partners HYRO, Carlton Power, and Schroders Greencoat, will invest a combined £125 million into HAR1 projects at two plants in Barrow-in-Furness, Cumbria and Northfleet, Kent.
Minister for Industry, Sarah Jones, said:
“This government is rolling out hydrogen out at scale for the first time, with 10 of the first projects now shovel-ready to start powering businesses with clean, homegrown energy from Teesside to Devon.
“Hydrogen will help us cut industrial emissions and support Britain’s industrial renewal by creating thousands of jobs in our industrial heartlands as part of the Plan for Change.”
Neil McDermott, Chief Executive of Low Carbon Contracts Company (LCCC), said:
“LCCC is proud to have signed the UK’s first Low Carbon Hydrogen Agreements, supporting the development of projects under the Hydrogen Production Business Model.
“These agreements provide revenue stability for producers, and a clear signal that low-carbon hydrogen has a key role to play in the UK’s future energy system.
“We look forward to working closely with project developers to bring these projects into operation.”
Dan Howell, Managing Director at Kimberly-Clark UK & Ireland said:
“The government has also announced that it will consult on transmission-level hydrogen blending – assessing the economic and technical feasibility for hydrogen to be blended into the networks that are the backbone of Britain’s gas system, before it is safely transported into homes and businesses.
“Hydrogen transmission blending has the potential to reduce costs for hydrogen production projects and the wider energy system, and the consultation will also gather evidence to assess whether hydrogen blending could lower consumers’ energy bills.”
Clare Jackson, CEO of Hydrogen UK, said:
“Signing these contracts demonstrates the confidence and commitment of both the government and industry in building a sustainable hydrogen sector.
“Our members are at the forefront of this transition, and their projects will play a vital role in meeting the UK’s net-zero targets while driving economic growth and job creation.”
Dr Emma Guthrie, CEO of the Hydrogen Energy Association, said:
“This announcement marks a significant and encouraging milestone for the UK’s hydrogen sector.
“The signing of contracts for 10 projects under HAR1 provides vital momentum and confidence for industry and investors alike.”
Pierre de Raphélis-Soissan, CEO of Hynamics UK who are developing the Tees Green Hydrogen project, said:
“We are committed to advancing low carbon hydrogen solutions that not only support the UK’s energy transition but also contribute to a sustainable future for our communities.
“This achievement marks a significant milestone in the journey towards industrial decarbonisation within the Tees Valley region.”
Gareth Mills and Kevin Selleslags, on behalf of Bradford Low Carbon Hydrogen (BLCH) said:
“The scheme will not only help the area decarbonise with cleaner fuel but will vitally create around £120 million and support 125 jobs in the regional economy.”
Alistair Collins, Director at HyMarnham Power, said:
“As one of the first HAR1 projects now commissioning electrolyser systems, we’re proud to demonstrate what government support can unlock, real infrastructure, green hydrogen production and a tangible contribution to the UK’s net zero and energy security goals.”
Lucy Whitford, RES’ Managing Director, UK&I, said:
“Green hydrogen, created using British low carbon energy, will revolutionise how we power industry, helping the UK to build a globally competitive, zero carbon economy in the process.”
Image courtesy of the UK Government
