The UK government has announced its shortlist of 20 green hydrogen projects for the first round of revenue support from the Hydrogen Business Model scheme. The 20 projects total 408MW in capacity—although only 250MW will be awarded funding.

The government plans to award contracts for Q4 this year, with first production from projects expected by 2025.

The majority of shortlisted projects will be located in Yorkshire or the northwest of England, with five in Scotland and three in Wales.

The government has also announced a list of 15 projects that will receive a combined £37.9mn from the Net Zero Hydrogen Fund. The fund, which is worth up to £240mn, covers development costs as well as capex for projects that will not require revenue support through the Hydrogen Business Model scheme.

250MW – Capacity that will be awarded support through the Hydrogen Business Model

Applicants for capex support have had to demonstrate their projects will contribute to large-scale hydrogen production by 2025, when the government targets 1GW of capacity.

Thirteen of the projects explicitly plan to produce or use green hydrogen. These include six in England—including a 100MW hub at the port of Felixstowe—four in Scotland, two in Northern Ireland and one in Wales.

Two blue hydrogen projects, both in England, have also secured funding: the Hynet Hydrogen Production Plant, the second 1GW plant developed by Vertex—a joint venture between refiner Essar Oil and clean energy developer Progressive Energy; and infrastructure firm Kellas Midstream’s H2NorthEast project in Teesside.

“We welcome the positive steps the government has taken today to support the UK’s energy security and net-zero future, including progress on a range of individual projects in the hydrogen sector across the country. However, today’s announcements do not go as far as the UK hydrogen industry had hoped, or match industry’s ambitious plans for the future of our hydrogen economy,” says Clare Jackson, CEO of trade association Hydrogen UK.

“Private sector investment will not wait forever. We look forward to further positive and concrete steps from the government as soon as possible, including on business models,” she adds.

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Author: Polly Martin