The Low Carbon Contracts Company (LCCC) has announced the signing of the first three of eleven hydrogen production contracts under Hydrogen Allocation Round 1 (HAR1). This is part of the Government's Hydrogen Production Business Model with the remaining contracts due to be signed early in the New Year.

The Cromarty, Whitelee and West Wales projects represent first-of-a-kind hydrogen contracts in Great Britain and once operational, will have a combined capacity of 31.8MW.

The Hydrogen Production Business Model builds on the Contracts for Difference (CfD) scheme, adapting it to a new sector and technology. As one of the first structured, government-backed frameworks globally, the Hydrogen Production Business Model provides long-term revenue support for hydrogen producers, reducing investment risks and accelerating the development of the hydrogen economy.

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.”

LCCC is a government-owned entity, led by an independent board, with a mission to accelerate net-zero through facilitating low carbon investment.

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