The announcement of the UK’s first three green hydrogen production projects – including one in West Wales – has been welcomed as “an important milestone”.
The government’s Low Carbon Contracts Company which manages contracts with low carbon electricity generators, has now signed the first three hydrogen production contracts under Hydrogen Allocation Round 1 (HAR-1). These are part of the 11 contracts offered in this initial allocation round for green hydrogen production.
These early projects known as West Wales, Cromarty and Whitelee, are the first of their kind and will have a combined capacity of 31.8, equivalent to more than two of the new generation of offshore wind turbines.
The West Wales Hydrogen project is at a former oil refinery site in Milford Haven. The Cromarty project is near Invergordon in Northeast Scotland and Whitelee is outside Glasgow.
The 11 projects in HAR-1 are expected to bring over £400 million in private investment committed by 2026, creating 700 jobs and driving economic growth.
OEUK described the announcement as “an important milestone in supporting the drive for a homegrown energy future”.
Enrique Cornejo, OEUK’s head of energy policy, said:
“Today’s announcement kickstarts the first green hydrogen production projects in the UK.
“These projects have been made possible by industry and government developing policy foundations such as the low carbon hydrogen standard and the hydrogen production business model. Mechanisms like this must continue to evolve and clear deployment timelines are essential to provide clarity to developers and investors.”
“If we are to meet our low carbon hydrogen production targets, we need the full project pipeline to materialise. This includes progressing the HAR-2 process for green hydrogen projects and providing a route to market for blue hydrogen involving natural gas and carbon capture, which currently lacks access to government support.”
“Both blue and green hydrogen projects are needed to scale up low carbon hydrogen production. The recent funding confirmation for the first carbon capture and storage clusters enables the first two blue hydrogen plants to start construction and today’s announcement also kickstarts the first green hydrogen production projects in the UK.”
Neil McDermott, Chief Executive at LCCC said:
“We are proud to sign the first three of these pioneering contracts under Hydrogen Allocation Round 1 (HAR1) that will enable the production of 31.8MW of low carbon hydrogen.
“This milestone signifies our commitment to accelerating Britain’s journey towards a Net Zero future and underscores our pivotal role in delivering transformative projects, utilising cutting-edge technology, that drives decarbonisation.
“We are eager to partner with our new stakeholders to deliver these groundbreaking projects.”
Clare Jackson, CEO at Hydrogen UK said:
“Signed contracts for these first three projects is a landmark achievement for the UK hydrogen sector. It demonstrates the confidence and commitment of both Government and industry in building a sustainable hydrogen sector.
“We look forward to maintaining this momentum and ensuring that the remaining eight projects progress swiftly. With full focus in January, we can build on these first projects and deliver a thriving hydrogen industry which will be vital for meeting the UK’s Net Zero targets, driving economic growth, and creating jobs.”