Low Carbon Contracts Company (LCCC) has inked three hydrogen production contracts under Hydrogen Allocation Round 1 (HAR1). This is part of the British government’s Hydrogen Production Business Model. There are eleven contracts in total and the remaining contacts are expected to be signed early next year. This initial agreement covers the Cromarty, Whitelee, and West Wales projects with a combined operational capacity of 31.8 MW.
The Hydrogen Production Business Model is a structured, government-backed framework that provides long-term revenue support for hydrogen producers. It reduces investment risks and accelerates the development of the hydrogen economy. This business model builds on the success of the Contracts for Difference (CfD) scheme.
Furthermore, under HAR1 these contracts comprise eleven electrolytic hydrogen projects. This is one of the largest single allocations of such projects at a commercial scale in Europe. This will significantly contribute to decarbonising critical industries, supporting regional economic growth, and advancing the UK’s journey to net zero.
