The UK government has shortlisted a new wave of projects for its flagship green hydrogen support scheme.
The 27 green hydrogen projects have been selected for the next stage of the government’s second Hydrogen Allocation Round (HAR2).
The aim of the programme is to reduce emissions, create thousands of jobs in industrial heartlands and deliver on the government’s Plan for Change by unlocking growth.
The hydrogen industry has the potential to attract over £1bn of private sector investment into the UK by 2029, supporting the government’s mission to become a clean energy superpower.
It has already attracted £400m of private sector investment in towns and cities such as Milford Haven in Wales and High Marnham in Nottinghamshire, and is creating over 700 direct jobs in construction and operations.
Government support for hydrogen will help create thousands more jobs in the sector and help to reindustrialise the UK’s manufacturing regions.
This includes roles for apprentices, graduates and technically trained professionals, such as engineers, welders, skilled construction workers, pipefitters and operations specialists.
Today’s shortlist includes projects that could use hydrogen to help tackle the climate crisis by decarbonising their manufacturing and industrial practices, including ammonia production, new clean power generation, glass manufacturing, brick making, and sustainable aviation fuel production.
Industry Minister Sarah Jones (pictured) said: “We are deploying hydrogen at a commercial scale for the first time – not just investing in a technology – but investing in British jobs, our proud manufacturing communities and our energy security.
“From distilleries and sustainable aviation fuel to public transport and clean energy generation, hydrogen can power our everyday life and unlock clean energy growth across the country as part of our Plan for Change.”
Today’s announcement follows on from the first Hydrogen Allocation Round, which saw 11 projects totalling 124MW of production capacity being allocated over £2bn in government funding.
Hydrogen Energy Association chief executive Emma Guthrie said: “This much-anticipated announcement brings vital clarity to the UK’s hydrogen sector, providing a crucial boost for projects that will drive forward the country’s low-carbon transition.”
RenewableUK has also welcomed the government’s announcement of the HAR2 shortlist.
Director of future electricity systems Barnaby Wharton said: “Green hydrogen produced using electricity from wind can be stored and used whenever it’s needed, even when the wind doesn’t blow and the sun doesn’t shine, helping the government to achieve its clean power mission.”
Shortlisted projects include SSE and Equinor’s Aldbrough Hydrogen Pathfinder.
This would unite hydrogen production, storage and power generation in one location, at SSE Thermal and Equinor’s existing Aldbrough gas storage facility in East Yorkshire.
SSE Thermal managing director Finlay McCutcheon said: “The UK government has been clear on the importance of hydrogen to the UK’s net zero aspirations and its potential role in a clean power system.
“Aldbrough Hydrogen Pathfinder will help to showcase how individual aspects of the value chain interact, while also providing much needed electricity to the grid – and is the only realistic opportunity to have a 100% hydrogen-fired power station on the system by 2030.”
Also shortlisted is the Selms Muir Hydrogen hub in Scotland, a project being developed by European Energy and Hygen that will combine green hydrogen production with solar power.
Hygen chief executive Kevin Selleslags said: “Today’s announcement recognises the importance both of this scheme and of the role hydrogen will play in our journey to net zero.”
Two green hydrogen projects being developed by Lhyfe in Wallsend, North Tyneside, and Kemsley, Kent, have also been shortlisted.
Head of business development UK at Lhyfe Boris Davis said: “We are delighted that our Wallsend and Kemsley projects have been shortlisted, given the fiercely competitive nature of the process.
“This demonstrates the government’s confidence in Lhyfe’s ability to rapidly develop and operate high-capacity sites, and to meet the UK needs.”