After significant delays, the UK government confirmed Wednesday that ten of the 11 green hydrogen projects selected for funding under the first hydrogen allocation round (HAR1) have now signed funding agreements.
The scheme provides green hydrogen developers a strike price of £241/megawatt-hour ($326.1/MWh). The selected projects are expected to receive over £2 billion in revenue support across 15 years, Kallanish notes.
Although winners were first announced in December 2023, there have been significant delays in awarding the contracts, with the first three contracts signed just last December.
“This government is rolling out hydrogen at scale for the first time, with ten of the first projects now shovel-ready to start powering businesses with clean, homegrown energy from Teesside to Devon,” comments UK industry minister Sarah Jones.
The projects that have signed the Low-Carbon Hydrogen Agreements (LCHA) with the government-owned Low-Carbon Contracts Company include EDF’s Tees Green hydrogen project in Teeside. The project has an initial capacity of 7.5 megawatts (MW), potentially scaling up to 300 MW. Three projects of Carlton Power and Scottish Power’s Cromarty Hydrogen Project in northeast Scotland have also signed the contracts.
Marubeni Europower’s 5.2-MW HyBont project in Wales is the only HAR1 winner yet to sign a funding contract.
Emma Guthrie, chief executive of the Hydrogen Energy Association, called the signing of the contracts a “significant and encouraging milestone” for the UK’s hydrogen sector, adding that it provides “vital momentum and confidence for industry and investors alike.”
Trade body Hydrogen UK welcomed the announcement, with ceo Clare Jackson noting the decision “demonstrates the confidence and commitment of both the government and industry in building a sustainable hydrogen sector.”
Meanwhile, earlier this year, London shortlisted 27 projects for the second Hydrogen Allocation Round (HAR2), with winners expected to be announced in early 2026. The government also plans to publish its “revamped” hydrogen strategy, which would be “evidence-led, impact-focused, and designed to fast-track delivery” in autumn this year, it said in a market update published Wednesday.
