The UK governmen has revealed the progress in its hydrogen strategy with the culmination of the firts hydrogen allocation round (HAR1) initiated in July 2022. Following stringent selection processes, 11 successful projects, collectively boasting a capacity of 125MW, have been identified to receive contract offers.

This allocation round is set to inject over 2 billion pounds in revenue support over the next 15 years derived from the Hydrogen Production Business Model, strategically earmarked to commence disbursement upon the operationalization of these ventures. Additionally, a portion exceeding 90 million pounds from the Net Zero Hydrogen Fund has been allocated to support the construction phase of these projects.

Energy Security Secretary Claire Coutinho said that "the announcement represents the largest number of commercial scale green hydrogen production projects announced at once anywhere in Europe. These 11 major new hydrogen projects across the UK will create over 700 jobs and deliver new opportunities from Plymouth in England to Cromarty in Scotland."

The 11 projects have been agreed at a weighted average strike price of £241/MWh (£175/MWh in 2012 prices). This compares well to the strike prices of other nascent technologies such as floating offshore wind and tidal stream. The government ensured the timely implementation of HAR1, expecting the first projects to become operational from 2025.

Clare Jackson, CEO of Hydrogen UK, said that "the hydrogen industry welcomes the suite of announcements including the results of HAR1 negotiations that provide crucial support to first mover UK hydrogen projects, and will help kickstart domestic production. HAR1 and the various other documents including a thorough Update to the Market, the Hydrogen Production Delivery Roadmap and the Transport and Storage Networks Pathway are important steps forward for the UK’s hydrogen economy. We also welcome the positive decision on blending."

Here is the full list of projects: