In a major leap towards its 2030 energy targets, the UK government has officially signed agreements with the first ten commercial-scale green hydrogen production projects under its Hydrogen Allocation Round 1 (HAR1). This move marks a critical shift from policy planning to practical implementation, establishing a foundation for the UK’s low-carbon hydrogen economy.
In a major leap towards its 2030 energy targets, the UK government has officially signed agreements with the first ten commercial-scale green hydrogen production projects under its Hydrogen Allocation Round 1 (HAR1). This move marks a critical shift from policy planning to practical implementation, establishing a foundation for the UK’s low-carbon hydrogen economy.
A Milestone in Funding and Scale
The programme represents a significant financial commitment. The selected projects will share access to a substantial support package:
£2 Billion in Revenue Support: Funded through the Hydrogen Production Business Model (HPBM), this provides a guaranteed price for the hydrogen produced over a 15-year period, de-risking investment and ensuring project viability.
Over £90 Million in Capital Grants: Awarded from the Net Zero Hydrogen Fund (NZHF), this funding supports the upfront costs of construction and development.
This government backing has already catalysed approximately £400 million in private investment committed between 2024 and 2026, demonstrating strong market confidence.
Strategic Project Locations and Economic Impact
The projects are spread across key industrial regions, often repurposing existing energy infrastructure:
Langage (Plymouth): Developing a 5 MW electrolysis facility.
Tees Green (Teeside): A key project in the emerging Teeside hydrogen cluster.
HyMarnham (Nottinghamshire): A 100 MW facility planned for the site of the former High Marnham coal-fired power station, symbolizing the energy transition.
Bradford Low Carbon Hydrogen: Another significant project contributing to regional decarbonization.
Collectively, these projects are estimated to create over 700 jobs during their construction and operational phases, providing a substantial boost to local economies.
The Path Forward
The success of HAR1 is a crucial test for the UK’s hydrogen ambitions. The combined capacity of these first projects will contribute significantly to the national goal of up to 10 GW of low-carbon hydrogen by 2030. This initiative not only accelerates decarbonization of industries like manufacturing and transport but also positions the UK as a leader in clean hydrogen technology and investment.