UK's Second Hydrogen Allocation Round Shortlist: A Diverse Range of Low-Carbon Projects
Key Ideas
- The UK government shortlisted 27 low-carbon hydrogen projects under the Second Hydrogen Allocation Round (HAR2) to drive decarbonisation across various sectors.
- The projects cover areas like manufacturing, ammonia production, clean power generation, glass and brick manufacturing, and sustainable aviation fuel production.
- The industry aims to attract over £1bn of private sector investment by 2029, with funding expected to support growth through 15-year contracts under the Hydrogen Production Business Model.
- Industry leaders and associations have expressed optimism, citing the funding as a boost for the hydrogen sector and crucial for the UK's low-carbon transition and energy security goals.
The UK government has announced the shortlisting of 27 low-carbon hydrogen projects under the Second Hydrogen Allocation Round (HAR2) in a move to advance decarbonisation efforts. The selected projects span a diverse range of sectors including manufacturing, ammonia production, clean power generation, glass manufacturing, brick making, and sustainable aviation fuel production. These projects are anticipated to attract significant private sector investment, potentially exceeding £1 billion by 2029, contingent on a consistent and supportive policy environment. The funding for HAR2 is set to provide revenue support through 15-year contracts under the Hydrogen Production Business Model.
The announcement received positive feedback from industry stakeholders. Industry Minister Sarah Jones highlighted the significance of deploying hydrogen at a commercial scale for the first time, emphasizing practical investments in the technology. Dr. Emma Guthrie, CEO of the Hydrogen Energy Association, hailed the announcement for providing clarity to the UK's hydrogen sector, expressing confidence in driving the low-carbon transition through enhanced investment, job creation, and economic growth.
The successful First Hydrogen Allocation Round allocated over £2 billion to 11 projects, with notable initiatives like Whitelee Green Hydrogen in Scotland focusing on sustainable whisky production. The continuation of the allocation rounds signifies progress in electrolytic hydrogen scaling, reinforcing the UK's leadership in clean energy and its pivotal role in economic growth and energy security.
Key industry figures, including Clare Jackson from Hydrogen UK and Tim Stedman from Storegga, welcomed the development, underlining the importance of supporting industrial decarbonisation and the government's vision for establishing a low-carbon hydrogen economy by 2030. The ongoing support and investments in hydrogen projects reflect a positive outlook on the sector's potential to drive sustainable growth and environmental benefits in the UK.
Topics
Green Hydrogen
Clean Energy
Energy Transition
Job Creation
Carbon Reduction
Government Support
Economic Growth
Industry Development
Private Sector Investment
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