UK Hydrogen Projects Secure Funding: A Step Towards Clean Energy Superpower
Key Ideas
  • Three green hydrogen projects in the UK, with a total capacity of 31.8MW, have secured funding through the Hydrogen Allocation Round 1 initiative for low-carbon hydrogen production.
  • The projects signed contracts with the Low Carbon Contracts Company, receiving revenue support through the Contract for Difference mechanism to ensure price stability.
  • Despite facing delays, the projects have been praised by industry leaders, demonstrating confidence and commitment from both the government and industry in the UK's hydrogen sector.
  • The projects received a strike price of £241/MWh, with over £90m allocated from the Net Zero Hydrogen Fund to support their construction, contributing to the goal of making Britain a clean energy superpower.
Three green hydrogen projects in the United Kingdom, totaling 31.8MW of capacity, have officially signed funding agreements under the UK's Hydrogen Allocation Round 1 (HAR1) initiative. The funding comes through the Contract for Difference (CfD) mechanism, providing revenue support and ensuring price stability to incentivize low-carbon hydrogen production. A total of 11 projects were selected for HAR1, representing £2bn in revenue support, with the remaining eight projects expected to receive contracts in early 2025. The three projects - Cromarty Hydrogen, Whitelee Green Hydrogen, and West Wales - have signed contracts with the Low Carbon Contracts Company (LCCC). They secured a strike price of £241/MWh and received over £90m from the Net Zero Hydrogen Fund for construction support. Industry Minister Sarah Jones highlighted the importance of these projects in making Britain a clean energy superpower. CEO of Hydrogen UK, Clare Jackson, praised the signed contracts as a landmark achievement for the UK hydrogen sector, showcasing confidence and commitment from both government and industry. However, the signing of the contracts faced delays, coming over 12 months after the projects were shortlisted for funding. Originally expected to be signed in Q1 2024, the delays have raised concerns within the industry. Despite the setbacks, the projects mark a significant step towards promoting low-carbon hydrogen production and advancing the UK's energy mix.
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