The UK Government has shortlisted 27 successful projects under its Hydrogen Allocation Round 2 (HAR2), expected to deliver a combined 765MW of low-carbon hydrogen production capacity for deployment between 2026 and 2029.
The projects, which include initiatives from RWE, Uniper and Centrica, among others, are expected to supply hydrogen for the power, glass manufacturing, brick-making and sustainable aviation fuel (SAF) sectors.
The 27 shortlisted projects reportedly represent 765MW of production capacity, although 23% of the selected initiatives have yet to disclose their planned electrolyser sizes. HAR2 was originally planned to support 875MW.
Geographically, the shortlist spans the UK, with Scotland standing out – home to eight of the 27 projects. Among those with published capacity data, Scottish projects account for 35% of the total 765MW.
However, in an online statement, the government stressed that it’s “unlikely that all projects will be successful.” It added, “As such being on the shortlist does not imply availability of funding for any of the shortlisted projects.”
In terms of developers, RWE leads the pack, responsible for 41% of the disclosed capacity, driven primarily by its 200MW Grangemouth Green Hydrogen project and 100MW Pembroke Green Hydrogen initiative. Uniper and Green Cat Hydrogen follow, contributing 14% and 9% of the total, respectively.
French hydrogen producer Lhyfe will deliver 100MW of combined capacity via its North Tyneside and Kent projects. Boris Davis, Head of Business Development UK at Lhyfe, said he will work with the Department for Energy Security and Net Zero (DESNZ) to “progress at pace to the next stage and ultimately get the production sites up and running.”
Clare Jackson, CEO of Hydrogen UK, claimed HAR2 “builds on valuable lessons from past rounds and strengthens UK leadership in clean energy.”
The exact total funding amount for HAR2 has not been specified. Nevertheless, it is expected to provide revenue support through the Hydrogen Production Business Model (HPBM) over 15-year contracts, similar to HAR1.
The eventual winners will receive public financial support in the form of a Contract for Difference (CfD), a mechanism guaranteeing them in the long-term a fixed price for the hydrogen produced.
In December 2023, the government announced £2bn ($2.6bn) in funding for 11 hydrogen projects for HAR1, offering a combined capacity of 125MW – although delays in critical agreements left them in limbo for a year.
By December 2024, three projects totalling 31.8MW of capacity officially signed agreements for government revenue support.
Additionally, the projects selected under HAR1 ultimately secured less funding than the total available allocation.
At the Hydrogen UK Annual Conference in Birmingham last week (April 2), Industry Minister Sarah Jones confirmed that the remaining eight HAR1 contracts will be finalised by May.
Confirmed HAR2 projects:
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