The UK government has announced the shortlist for the second Hydrogen Allocation Round (HAR2), featuring 27 green hydrogen projects aimed at decarbonising industrial practices and contributing to the country’s clean energy goals. These projects will now move to the next stage of the government’s flagship green hydrogen support programme.
The primary objective of the scheme is to reduce emissions, create thousands of jobs, and unlock economic growth in the UK’s industrial heartlands. The hydrogen industry has the potential to attract over £1 billion in private sector investment by 2029, advancing the UK’s ambition to become a global clean energy leader.
The projects selected in HAR2 span various sectors, including ammonia production, clean power generation, glass manufacturing, brick making, and the production of sustainable aviation fuel. The government highlighted the positive impact these projects will have on local economies, particularly in towns such as Milford Haven in Wales and High Marnham in Nottinghamshire, where hydrogen initiatives have already created over 700 direct jobs in construction and operations.
Government support for these hydrogen projects is expected to foster additional employment opportunities, including apprenticeships and technical roles such as engineers, welders, pipefitters, and operations specialists. The projects are located across England, Scotland, and Wales.
Industry Minister Sarah Jones emphasized the broader economic and societal benefits of hydrogen deployment, stating: “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.”
The HAR2 shortlist builds upon the success of the first Hydrogen Allocation Round, which saw £2 billion allocated to 11 projects with a combined production capacity of 124MW. Emma Guthrie, Chief Executive of the Hydrogen Energy Association, welcomed the announcement, noting that the funding support provided through HAR2 will help unlock investment and create jobs in the low-carbon sector.
“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,” said Guthrie. “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.”
Clare Jackson, Chief Executive of Hydrogen UK, also praised the progress made, highlighting the role of electrolytic hydrogen in scaling up the sector. “We’re thrilled to see many Hydrogen UK members succeed in the second Hydrogen Allocation Round, marking a crucial step for scaling electrolytic hydrogen,” she said.
RenewableUK also welcomed the announcement, with Barnaby Wharton, Director of Future Electricity Systems, stating: “This is great news as the second round of new hydrogen projects will accelerate the development of an innovative new industry creating jobs all over the country, as well as adding crucial flexibility into our clean power system to strengthen the UK’s energy security.”
The HAR2 initiative forms part of the UK government’s broader strategy to increase the deployment of green hydrogen and promote energy security, with hydrogen playing a key role in ensuring the country’s clean energy future.
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