A shortlist of UK hydrogen projects was announced 7 April as part of a government push to boost hydrogen production. Hydrogen Allocation Round 2 (HAR2) received over 80 applications and the 27 selected projects will be placed across the UK.
As OEUK’s Hydrogen Insight report highlighted last week, clear and consistent action is essential to develop the UK low-carbon hydrogen sector.
Commenting on the announcement, OEUK Sustainability & Policy Director Mike Tholen said:
'The UK has all the ingredients for a successful hydrogen sector, but progress has been slow, partly due to uncertain demand and partly from a lack of investor confidence.
'The shortlist announcement has been long overdue, with industry having to wait nearly twelve months. Today’s news is a step towards building out the UK’s low carbon hydrogen sector and provides some further clarity.
'The UK has the people, projects, and potential to make hydrogen a part of our energy future – but without urgent action, that opportunity could slip through our fingers.
'This latest announcement is a positive step, and these projects are helping to decarbonise industries across the UK. We look forward to further momentum with the expected signing of the remaining HAR1 projects.
'With the consultation on the long-term funding mechanism closing this week, it’s crucial that the final design is robust and sustainable to support this growing project pipeline.'
OEUK’s key recommendations:
- Prioritise the deployment hydrogen into industries where it can make the biggest impact in decarbonising sectors, such as high-temperature manufacturing processes.
- Commit to realistic, deliverable deployment targets to attract investment and build confidence in the sector.
- Ensure funding mechanisms for hydrogen business models, such as the proposed Gas Shipper Obligation, are fair and proportionate whilst balancing the need to preserve energy security, reduce energy costs and deliver net zero objectives.
- Policies must recognise the critical importance of domestic gas production in delivering the scale of low carbon hydrogen supplies needed to create this new market.
Source: OEUK
