UK Government Advances Hydrogen Agenda with Shortlisted Projects
Key Ideas
- 27 successful projects have been shortlisted by the UK Government under Hydrogen Allocation Round 2 (HAR2), set to deliver 875MW of low-carbon hydrogen capacity by 2029.
- Projects will supply hydrogen to diverse sectors like power, glass manufacturing, brick-making, and sustainable aviation fuel.
- HAR2 follows lessons from past rounds, aiming to strengthen the UK's position in clean energy; revenue support will be provided through the Hydrogen Production Business Model (HPBM) over 15-year contracts.
- While funding specifics are undisclosed, the government warns that not all shortlisted projects may succeed, emphasizing the competitive nature of the selection process.
The UK Government has announced the selection of 27 projects under its Hydrogen Allocation Round 2 (HAR2), signaling a significant step in advancing the country's hydrogen agenda. These projects, with participation from companies like RWE, Uniper, and Centrica, are projected to collectively generate 875MW of low-carbon hydrogen capacity between 2026 and 2029. The initiative aims to cater to various industries such as power generation, glass manufacturing, brick-making, and sustainable aviation fuel.
Clare Jackson, CEO of Hydrogen UK, praised HAR2 for building upon past experiences and bolstering the UK's standing in the realm of clean energy. The funding for HAR2, although unspecified, will extend revenue support through the Hydrogen Production Business Model over 15-year contracts, mirroring the structure of HAR1.
However, the government cautioned that not all projects on the shortlist are guaranteed to receive funding, highlighting the competitiveness of the selection process. This approach stems from the prior delays faced by 11 hydrogen projects awarded funding in HAR1 back in December 2023. By December 2024, only three projects had finalized agreements for government revenue support, leading to adjustments in the available allocation.
Industry Minister Sarah Jones confirmed at the Hydrogen UK Annual Conference that the remaining contracts from HAR1 will be concluded by May. The announcement showcases the UK's commitment to driving sustainable development through hydrogen initiatives, with the government aiming to solidify its leadership in the clean energy landscape.
Topics
Power
Renewable Energy
Clean Energy
Funding
Business Model
Sustainable Development
Hydrogen Projects
UK Government
Hydrogen Allocation
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