First Wave of Hydrogen Projects Secures Contracts
10 projects from the first phase of the government’s flagship hydrogen programme can begin construction.
- Spades in the ground as 10 of the UK’s first commercial-scale green hydrogen projects sign contracts, boosting growth as part of Plan for Change
- homegrown, green hydrogen to fuel range of British business and industry with clean power, from tissue manufacturing and waste disposal to breweries and bus services
- projects to unlock more than 700 good jobs across Britain in the clean energy industries of the future, while delivering on clean energy mission and industrial strategy
Skilled jobs will be created in Britain’s industrial heartlands, as the first commercial-scale green hydrogen projects in the country sign long-term contracts to fuel heavy industry with clean, homegrown energy.
In an update to the hydrogen market, the government has confirmed that 10 projects from the first phase of its flagship hydrogen programme – Hydrogen Allocation Round (HAR1) – can begin construction, supporting the government’s mission to become a clean energy superpower.
This means spades can now enter the ground across the country in a major boost to the UK’s hydrogen industry, creating highly skilled jobs in industrial cities and regions such as South Wales, Bradford (North West), North Scotland and Teesside (North East).
These projects will support British industry to move away from using fossil fuels towards domestically-produced low-carbon hydrogen, reducing emissions heavy industry – such as steel, glass and heavy transport – ensuring decarbonisation is a route to reindustrialisation.
The HyMarnham project in Newark, Nottinghamshire has already started construction. The project is transforming the old High Marnham coal-fired power station into a clean energy hub by using hydrogen to decarbonise waste disposal operations.
Cromarty Hydrogen Project in Northeast Scotland is another of the 10 projects. The project’s 3 5MW electrolysers – which use electricity to split water into hydrogen and oxygen – will power local industrial users, including distilleries.
Taken together, the projects are expected to create over 700 jobs, including roles for apprentices, graduates, pipefitters and engineers. They are also expected to bring in over £400 million of private capital investment which has been committed between 2024 and 2026 – driving economic growth and British innovation through the Plan for Change.
The update comes as Andrex and Kleenex producer Kimberly-Clark announces that it will be the first major consumer goods company in the UK to make a significant commitment to green hydrogen. Kimberly-Clark, together with energy partners HYRO, Carlton Power, and Schroders Greencoat, will invest a combined £125 million into HAR1 projects at two plants in Barrow-in-Furness, Cumbria and Northfleet, Kent.
Minister for Industry, Sarah Jones, said:
This government is rolling out hydrogen out at scale for the first time, with 10 of the first projects now shovel-ready to start powering businesses with clean, homegrown energy from Teesside to Devon.
Hydrogen will help us cut industrial emissions and support Britain’s industrial renewal by creating thousands of jobs in our industrial heartlands as part of the Plan for Change.
Neil McDermott, Chief Executive of Low Carbon Contracts Company (LCCC), said:
LCCC is proud to have signed the UK’s first Low Carbon Hydrogen Agreements, supporting the development of projects under the Hydrogen Production Business Model.
These agreements provide revenue stability for producers, and a clear signal that low-carbon hydrogen has a key role to play in the UK’s future energy system.
We look forward to working closely with project developers to bring these projects into operation.
Dan Howell, Managing Director at Kimberly-Clark UK & Ireland said:
We are delighted to be the first UK consumer goods manufacturer to really embrace green hydrogen, showing that manufacturing industries can take the lead and overcome the technical challenge and adopt green hydrogen at scale. This initiative builds on the investments and progress we’ve already made with innovative technologies for our business, our consumers and our customers.
Today’s announcement follows the Spending Review which saw an extra £500 million confirmed for the first ever hydrogen transport and storage network as part of Britain’s industrial renewal, connecting hydrogen producers with vital end users, including power stations and industry for the first time.
The government has also announced that it will consult on transmission-level hydrogen blending – assessing the economic and technical feasibility for hydrogen to be blended into the networks that are the backbone of Britain’s gas system, before it is safely transported into homes and businesses.
Hydrogen transmission blending has the potential to reduce costs for hydrogen production projects and the wider energy system, and the consultation will also gather evidence to assess whether hydrogen blending could lower consumers’ energy bills.
Clare Jackson, CEO of Hydrogen UK, said:
Signing these contracts demonstrates the confidence and commitment of both the government and industry in building a sustainable hydrogen sector.
Our members are at the forefront of this transition, and their projects will play a vital role in meeting the UK’s net-zero targets while driving economic growth and job creation.
Dr Emma Guthrie, CEO of the Hydrogen Energy Association, said:
This announcement marks a significant and encouraging milestone for the UK’s hydrogen sector.
The signing of contracts for 10 projects under HAR1 provides vital momentum and confidence for industry and investors alike.
We look forward to seeing these projects move into the next phase, helping to scale up the UK’s low carbon hydrogen economy.
Pierre de Raphélis-Soissan, CEO of Hynamics UK who are developing the Tees Green Hydrogen project, said:
We are delighted that Tees Green Hydrogen has successfully signed a contract as part of the Hydrogen Allocation Round.
We are committed to advancing low carbon hydrogen solutions that not only support the UK’s energy transition but also contribute to a sustainable future for our communities.
This achievement marks a significant milestone in the journey towards industrial decarbonisation within the Tees Valley region.
Gareth Mills and Kevin Selleslags, on behalf of Bradford Low Carbon Hydrogen (BLCH) said:
Signing our contract to take the largest HAR 1 project forward is a significant step.
Thanks to the government’s investment, we’re able to continue to progress our plans to transform Birkshall from a former fossil fuel gas site powering Bradford’s homes and businesses to a flagship low carbon hydrogen production facility and fuelling station.
The scheme will not only help the area decarbonise with cleaner fuel but will vitally create around £120 million and support 125 jobs in the regional economy.
Alistair Collins, Director at HyMarnham Power, said:
As one of the first HAR1 projects now commissioning electrolyser systems, we’re proud to demonstrate what government support can unlock, real infrastructure, green hydrogen production and a tangible contribution to the UK’s net zero and energy security goals.
Lucy Whitford, RES’ Managing Director, UK&I, said:
Green hydrogen, created using British low carbon energy, will revolutionise how we power industry, helping the UK to build a globally competitive, zero carbon economy in the process.
We are proud of the success of HYRO’s Northfleet project, which will show how we can make green hydrogen a reality.
Notes
HAR1 projects are expected to access over £2 billion over 15 years in revenue support from the Hydrogen Production Business Model and over £90 million in capital expenditure support via the Net Zero Hydrogen Fund.
https://www.gov.uk/government/news/jobs-unlocked-as-first-wave-of-hydrogen-projects-sign-contracts