UK announces new hydrogen power projects to boost growth

A new wave of hydrogen power projects have been shortlisted today to help cut emissions and create thousands of jobs in the UK’s industrial heartlands.

A total of 27 hydrogen power projects have been selected for the next stage of the Second Hydrogen Allocation Round (HAR2), supporting low-carbon hydrogen production in the UK.

The industry has the potential to attract over £1bn of private sector investment into the UK by 2029, supporting the government’s mission to become a clean energy superpower.

Government and industry support for hydrogen power

Hydrogen power will help deliver a new era of clean energy across the UK and decarbonise emission-intensive industries.

It has already attracted £400m of private sector investment in towns and cities such as Milford Haven in Wales and High Marnham in Nottinghamshire, creating over 700 direct jobs in construction and operations.

Government support for hydrogen will help create thousands more jobs in the sector and reindustrialise the UK’s proud manufacturing regions. This includes roles for apprentices, graduates and technically trained professionals, such as engineers, welders, skilled construction workers, pipefitters and operations specialists.

Today’s shortlist includes projects that could use hydrogen power to help tackle the climate crisis by decarbonising their manufacturing and industrial practices, including ammonia production, new clean power generation, glass manufacturing, brick making, and sustainable aviation fuel production.

Industry Minister Sarah Jones, said: “We are deploying hydrogen power 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.”

Driving net zero across critical industries

Green hydrogen is produced by using renewable energy to split water into hydrogen and oxygen, resulting in a zero-carbon fuel that can be used for power generation, transport and industrial processes.

This builds on the success of the First Hydrogen Allocation Round, which saw 11 projects being allocated over £2bn in government funding. One recipient, Whitelee Green Hydrogen in Scotland, will produce hydrogen for the Inchdairnie Whiskey distillery, which intends to distil whisky sustainably by 2027.

Stretching across England, Scotland, and Wales, this latest wave of shortlisted HAR2 projects showcases the government’s commitment to creating skilled jobs and establishing clean energy hubs across Great Britain.

The HAR2 shortlist could lead to projects that help support strong supply chains and the delivery of the clean energy superpower mission.

“This much-anticipated announcement brings vital clarity to the UK’s hydrogen power sector, providing a crucial boost for projects that will drive forward the country’s low-carbon transition,” explained Dr Emma Guthrie, CEO of the Hydrogen Energy Association.

“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.”

She concluded: “This is great news – not just for the hydrogen sector but for the UK’s ambition to become energy secure and a global leader in clean energy.”

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