UK Green Hydrogen Projects Secure Subsidy Agreements After Delays
The UK government has finalized long-term contracts for ten commercial-scale green hydrogen production projects under the first Hydrogen Allocation Round (HAR1), following over a year of delays. These projects, selected for a share of £2bn ($2.7bn) in revenue support, include developments by Carlton Power (three projects in Cumbria, Devon, and Manchester), EDF’s Tees Valley project, and others like GeoPura, Hygen and N-Gen, Hyro, Scottish Power, Storegga, and MorGen Energy. Combined, they are expected to bring around 120MW of green hydrogen production online, unlocking over £400m in private investment and creating 700 jobs. The agreements, signed with the Low-Carbon Contracts Company, provide revenue stability through Low-Carbon Hydrogen Agreements (LCHAs), aligning the cost of green hydrogen with natural gas. However, Marubeni Europower’s Hybont project in South Wales has yet to finalize subsidies, facing public opposition due to its site proximity.
Key Takeaway: The signing of these contracts marks a significant step forward for the UK’s green hydrogen sector, providing much-needed momentum and confidence for industry and investors, despite delays and challenges faced by some projects.
Relevance: This development involves top companies like EDF and emerging players like GeoPura, aligning with UK government strategies to achieve net zero by 2050, supported by subsidies and investment mechanisms like revenue sharing agreements.
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