The UK government has confirmed that 10 commercial-scale green hydrogen projects have signed long-term contracts under its first Hydrogen Allocation Round (HAR1), enabling construction to begin and supporting more than 700 jobs across the country.
The move marks a significant step in the UK’s efforts to scale up its low-carbon hydrogen sector, as part of broader plans to decarbonise industry and promote energy transition. The contracts are expected to unlock over £400 million in private investment between 2024 and 2026.
The projects span several sectors including steel, waste management, brewing, tissue production, and transport. Locations include industrial centres in South Wales, North Scotland, Teesside, and Bradford.
Construction is already underway at the HyMarnham project in Newark, Nottinghamshire, where a former coal-fired power station is being repurposed into a clean energy hub. In Scotland, the Cromarty Hydrogen Project is set to deploy three 5MW electrolysers to supply hydrogen to local industries, including distilleries.
“These projects provide revenue stability for producers, and a clear signal that low-carbon hydrogen has a key role to play in the UK’s future energy system,” said Neil McDermott, chief executive of the Low Carbon Contracts Company.
UK Industry Minister Sarah Jones said the contracts are part of the government’s “Plan for Change,” aimed at reducing industrial emissions and supporting job creation. “Hydrogen will help us cut industrial emissions and support Britain’s industrial renewal by creating thousands of jobs in our industrial heartlands,” she said.
Among the participating companies is Kimberly-Clark, which has committed £125 million to two HAR1-backed projects in Cumbria and Kent. The consumer goods firm will partner with HYRO, Carlton Power, and Schroders Greencoat to integrate green hydrogen into its operations, becoming the first major UK manufacturer in the sector to adopt the fuel at scale.
The government also announced a forthcoming consultation on hydrogen blending at the transmission level, aimed at assessing its impact on energy costs and grid integration.
