The UK government has shortlisted 27 hydrogen-powered projects in its second Hydrogen Allocation Round (HAR2).
The selected projects will boost low-carbon hydrogen production within the UK.
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The initiative is part of the government’s Plan for Change and aims to cut carbon emissions while creating thousands of jobs.
The UK’s hydrogen sector has the potential to attract more than £1bn ($1.28bn) of private sector investment by 2029.
The sector has already drawn £400m of private sector investment into areas such as Milford Haven in Wales and High Marnham in Nottinghamshire, generating more than 700 direct jobs in construction and operations.
The shortlisted projects cover a range of hydrogen applications: decarbonising manufacturing processes in industries such as clean power generation, ammonia production, and glass manufacturing to generating sustainable aviation fuel.
UK Industry Minister Sarah Jones stated: “We are deploying hydrogen at a commercial scale for the first time – not just investing in a technology – but investing in British jobs, our proud manufacturing communities and our energy security.”
The latest allocation round builds on the success of HAR1 in December 2023, which allocated more than £2bn in government funding to 11 projects totalling 124MW of production capacity.
Of the initial 11 projects announced under HAR1, five have already signed contracts.
Among them are the Bradford low-carbon project and the Cromarty hydrogen project. The Bradford project, developed by Hygen and Ryze, will utilise a 10.6MW alkaline electrolyser powered by renewable electricity to supply the mobility sector.
The Cromarty project, a collaboration between Scottish Power and Storegga, will leverage electricity from adjacent wind farms to power an 11MW electrolyser, providing hydrogen to local industries, including distilleries.
The Whitelee green hydrogen project in Scotland will supply hydrogen to the Inchdairnie whiskey distillery, aiming for sustainable whisky distillation by 2027.
Hydrogen Energy Association CEO Emma Guthrie stated: “This much-anticipated announcement brings vital clarity to the UK’s hydrogen sector, providing a crucial boost for projects that will drive forward the country’s low-carbon transition.
“The funding support offered through HAR2 gives our members and the wider industry the confidence to gear up for delivery, unlocking investment, creating jobs and driving economic growth.”
In March 2025, the UK government announced that it will fast-track grid connections for clean energy projects under its Plan for Change, targeting clean power by 2030.
