UK Government's Green Hydrogen Push: Creating Jobs and Driving Economic Growth
Key Ideas
  • UK government shortlists 27 green hydrogen projects for funding support under Hydrogen Allocation Round 2 (HAR2), targeting potential private sector investment of nearly £1 billion by 2029.
  • The projects, spanning Scotland, Wales, and England, aim to create thousands of jobs in industrial sectors like ammonia production, power generation, and sustainable aviation fuel.
  • Industry minister Sarah Jones emphasizes the role of hydrogen in powering everyday life, clean energy growth, and investing in British jobs and energy security.
  • HAR2 follows the previous Hydrogen Allocation Round 1 (HAR1) and is part of a government goal to achieve up to 10 GW of low carbon hydrogen production capacity by 2030.
The UK government has shortlisted 27 green hydrogen projects for potential funding support as part of its Hydrogen Allocation Round 2 (HAR2). This includes projects in Scotland, Wales, and England, with a focus on decarbonizing various industrial practices. The projects aim to secure close to £1 billion in private sector investment by 2029 and create numerous jobs in the UK's industrial heartlands. The government's Industry minister, Sarah Jones, highlighted the significance of hydrogen in driving clean energy growth and investing in British jobs and energy security. The projects under HAR2 cover industries such as ammonia production, power generation, glass manufacturing, brick making, and sustainable aviation fuel production. The announcement of HAR2 follows the first Hydrogen Allocation Round (HAR1), where £2 billion in funding was awarded to 11 green hydrogen projects. The UK government aims to achieve up to 10 GW of low carbon hydrogen production capacity by 2030. The HAR process is part of the government's strategy to boost the hydrogen sector and support the transition to clean energy. Developers like RWE, Carlton Power, ScottishPower, Lhyfe, Statkraft, and a joint venture between SSE and Equinor have been shortlisted for HAR2 project funding. Scotland's Green Cat Hydrogen and ScottishPower, along with Norway's Statkraft, are among the developers shortlisted for various projects. The support offered through HAR2 is expected to boost confidence in UK projects, unlock investments, create jobs, and drive economic growth. Both industry and government officials see HAR2 as a crucial step in scaling electrolytic hydrogen and reinforcing the sector's role in economic growth and energy security. The UK government expects the emerging hydrogen sector to be a £7 billion annual opportunity for British businesses, while Scotland also sees hydrogen as a significant industrial opportunity.
ADVANCEH2

Our vision is to be the world's leading online platform for advancing the use of hydrogen as a critical piece needed to deliver net-zero initiatives and the promise of a clean H2 energy future.

© 2025 AdvanceH2, LLC. All rights reserved.