The United Kingdom has selected 11 green hydrogen projects with a total combined capacity of 125 MW in its first Hydrogen Allocation Round (HAR1), a government GBP2.5bn (€2.91bn) fund to be committed over the next 15 years. The awarded projects were selected under a strike price of GBP241/MWh (€280/MWh), and they should receive a guaranteed price from the government for the clean energy they supply of about GBP9.49/kg (€11.05/kg) of H2 for 15 years, with the exact subsidy from the government depending on the natural gas price under a Contracts for Difference-style scheme.
The revenue support is expected to start as soon as the projects become operational and in return for it, the projects are expected to invest over GBP400m (€465m) in the next three years, to deliver 125 MW of new hydrogen for businesses and to create more than 700 jobs in local communities across the UK. The British government has also opened a new second round of funding that companies can apply for to support their projects and published a production roadmap, which sets out the government’s plan for future allocation rounds in 2025 and 2026.
The United Kingdom has a target to reach net zero emissions by 2050, and it aims to generate 5 GW of low carbon hydrogen production capacity by 2030.
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