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UK Government selects 27 hydrogen projects in the second allocation round


A fresh wave of hydrogen-powered projects has been shortlisted today, as announced by the UK government, paving the way for a major leap forward in cutting emissions and creating thousands of jobs in the UK’s industrial heartlands. These new initiatives are set to drive growth, forming a key part of the government’s Plan for Change.

Twenty-seven hydrogen projects have successfully advanced to the next stage of the Second Hydrogen Allocation Round (HAR2), marking a significant step in the UK’s push for low-carbon hydrogen production. The sector is poised to attract over £1 billion in private investment by 2029, reinforcing the government's vision of establishing the UK as a global clean energy powerhouse.

The UK has already seen £400 million of private investment in towns such as Milford Haven in Wales and High Marnham in Nottinghamshire, creating over 700 direct jobs in construction and operations. The government's continued backing of hydrogen promises to generate even more employment, with roles for apprentices, graduates, and skilled professionals like engineers, welders, and pipefitters.

The projects on today’s shortlist include a wide range of applications aimed at tackling the climate crisis. These involve decarbonising ammonia production, glass manufacturing, brick making, clean power generation, and sustainable aviation fuel production.

Industry Minister Sarah Jones commented: "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."

This builds on the success of the First Hydrogen Allocation Round, which saw 11 projects awarded over £2 billion in government funding, including a notable project in Scotland, where Whitelee Green Hydrogen will produce hydrogen for the Inchdairnie Whiskey distillery, aiming to distil whisky sustainably by 2027.

Stretching across England, Scotland, and Wales, these HAR2 projects demonstrate the government’s commitment to creating skilled jobs and establishing clean energy hubs throughout Great Britain. The selected projects could play a vital role in building strong supply chains and advancing the UK’s clean energy ambitions.

For her part, Dr Emma Guthrie, CEO of the Hydrogen Energy Association, 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. The funding support offered through HAR2 gives our members and the wider industry the confidence to gear up for delivery, unlocking investment, creating jobs, and driving economic growth.”

Finally, Clare Jackson, CEO of Hydrogen UK, added: “We’re thrilled to see many Hydrogen UK members succeed in the second Hydrogen Allocation Round, marking a crucial step for scaling electrolytic hydrogen. This progress builds on valuable lessons from past rounds and strengthens UK leadership in clean energy, reinforcing the sector’s crucial role in economic growth and energy security."

As these groundbreaking hydrogen projects move forward, they mark a pivotal moment in the UK’s journey towards energy security, clean energy leadership, and a sustainable future.

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