United Kingdom's Second Hydrogen Allocation Round Boosts Low-Carbon Industrial Development
Key Ideas
  • The UK announces the selection of 27 projects under the Second Hydrogen Allocation Round to promote low-carbon hydrogen production and support industrial revitalization.
  • These projects aim to attract over £1bn in private sector investment by 2029, creating 700+ jobs in locations like Milford Haven and High Marnham.
  • Initiatives target energy-intensive sectors like ammonia, brick manufacturing, and clean power generation, emphasizing industrial decarbonization using renewable hydrogen.
  • The programme focuses on job creation, skills development, and establishing a national hydrogen supply chain, contributing to the UK's clean energy goals.
The United Kingdom has revealed its selection of 27 projects under the Second Hydrogen Allocation Round (HAR2) to advance low-carbon hydrogen production throughout the country. These initiatives are a part of the UK government’s Plan for Change, which aims to reinvigorate the nation’s industrial centers and curb emissions in high-intensity sectors. Building upon the previous funding for 11 projects, including the notable Whitelee Green Hydrogen in Scotland, these new developments are expected to draw in over £1bn of private sector investments by 2029. Currently, £400mn has already been invested, leading to the creation of more than 700 jobs in areas such as Milford Haven and High Marnham. These projects primarily focus on sectors like ammonia production, brick manufacturing, and clean power generation, with a strong emphasis on using hydrogen generated through electrolysis with renewable electricity to achieve large-scale industrial decarbonization. Notable beneficiaries from the first round include projects like the Bradford Low Carbon Project and the Cromarty Hydrogen Project in Scotland, both showcasing innovative electrolysis solutions powered by renewable sources. The HAR2 initiative not only highlights the commitment to revaluing technical trades in industrial regions but also offers opportunities for skill development and job creation in areas like apprenticeships, engineering, and maintenance operations. Moreover, the programme underscores the importance of establishing robust energy hubs and local supply chains across England, Scotland, and Wales. Industry Minister Sarah Jones emphasized that the HAR2 programme marks a significant step towards the commercial-scale deployment of hydrogen in the UK, supporting economic growth and the government's vision of transitioning towards clean energy.
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