(London / UK) – Following a second call for proposals from the UK government for hydrogen projects (HAR2, Second Hydrogen Allocation Round), 27 applicants have advanced to the next phase. The list, now published, includes projects that could use the energy carrier "to address the climate crisis by decarbonizing their manufacturing and industrial processes," according to the Department for Energy. These include ammonia production, electricity generation, glass and brick manufacturing, and the sustainable production of aviation fuel.
Shortlist is no guarantee for funding
DESNZ has shortlisted 27 companies for funding for their hydrogen projects. These are now moving through the second phase of the tender process. © Department for Energy Security and Net Zero (DESNZ)
The projects span England, Scotland, and Wales. Among the listed companies are Hygen Energy Holdings Ltd, Hynamics Limited UK, RWE Generation UK Plc, Carlton Power Ltd, Scottish Power, Lhyfe SA, and European Energy UK Ltd. However, the list does not include details of the projects or information on their size. Inclusion on the shortlist does not mean that funding is already secured for any of the shortlisted projects. The ministry stated that there is no guarantee of government support and, similar to the first hydrogen allocation round (HAR1), it is "unlikely that all projects will be successful."
Companies must work out details
Those wishing to advance in the allocation process must pass a rigorous due diligence review. Decisions on which plans will be successful are made based on, among other things, investment, electricity costs, and value for money. The selected companies must now continue to work on this and demonstrate their competitiveness. Further information will be provided "in due course."
Nevertheless, this "highly anticipated announcement brings clarity to the UK hydrogen sector," says Emma Guthrie, Executive Director of the Hydrogen Energy Association. "The financial support offered gives the industry the confidence it needs to prepare for implementation, unlock investment, create jobs, and drive economic growth."
The industry has the potential to attract over £2029 billion in private sector investment to the UK by 400. Towns such as Milford Haven in Wales and High Marnham in Nottinghamshire have already seen £700 million in private sector investment, creating over XNUMX direct jobs in construction and operations.
Sketch of Hygen's planned hydrogen center and refueling facility in Bradford, UK. Hygen was awarded the project in the first UK funding round (HAR1) and received planning permission in April 2024. The company is on the most recent shortlist with two other projects. © Hygen Energy Ltd.
As part of the first hydrogen allocation round (HAR1), the government selected eleven projects in December 2023 with a total production capacity of 124 megawatts. For example, the Low Carbon project in Bradford , West Yorkshire, will use renewable electricity to operate a 10,6-megawatt alkaline electrolyzer. Developed jointly by Hygen Energy Ltd. and Ryze on the site of a former natural gas storage facility owned by Northern Gas Networks, the project is intended to supply the mobility sector. Anchor customers include the vehicle manufacturer Wrightbus and JC Bamford Excavators Ltd. (JCB).
The Cromarty Hydrogen Project in northeast Scotland is being developed by Scottish Power plc, a subsidiary of Spanish utility Iberdrola SA, and Storegga. It will use electricity from nearby wind farms to power an 11-megawatt electrolyzer, supplying hydrogen to local industries, including distilleries.
Photo above
RWE Generation UK Plc has two projects on the UK Department of Energy's shortlist. Among them is "Pembroke Green Hydrogen 1" in Wales: a 100-megawatt electrolyzer that will produce approximately two tons of hydrogen per hour. According to a December announcement, the site is RWE-owned land near RWE's Pembroke power station. The plant will have a direct pipeline connection. © Graphic: RWE Generation UK Plc
