The UK government has shortlisted 27 hydrogen-powered projects in its second hydrogen allocation round (HAR2). These projects are expected to support low-carbon hydrogen production in the UK. The hydrogen industry has the potential to attract over €1 billion of private sector investment into the UK by 2029.
Furthermore, the sector has already attracted €400 million of private sector investment in various towns and cities such as Milford Haven in Wales and High Marnham in Nottinghamshire. The shortlisted projects 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.
UK’s hydrogen sector is rapidly expanding. Earlier in October 2024, Essar Hydrogen secured UK government support for HyNet project. Essar Energy Transition (EET) Hydrogen is developing a large-scale, low-carbon hydrogen production hub at its Stanlow site. The said HyNet project is one of two ‘Track 1’ Clusters selected by the government for industrial decarbonisation. This hub will generate a total of 1,350 MW of hydrogen capacity, capturing approximately 2.5 million tonnes of carbon annually.
REGlobal’s Views: The HAR2 follows on the successful allocation of 11 projects and £2 billion in government funding in HAR1. These projects will help the country to achieve their targets to deliver up to 10 GW of low carbon hydrogen production capacity by 2030, with at least half of this from electrolytic hydrogen.
