DESNZ has confirmed that ten projects from the first phase of its flagship Hydrogen Allocation Round (HAR1) programme. The commitment mans that the projects can begin construction.

The approves projects include the HyMarnham project in Newark, Nottinghamshire that has already started construction transforming the old High Marnham coal-fired power station using hydrogen to decarbonise waste disposal operations and the Cromarty Hydrogen Project in Northeast Scotland will create three 5MW electrolysers to help will power local industrial users, including distilleries.
The news comes as Andrex and Kleenex producer Kimberly-Clark has announced 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 £125m into HAR1 projects at two plants in Barrow-in-Furness, Cumbria and Northfleet, Kent.

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.

The announcement follows the Spending Review which saw an extra £500m confirmed for the first ever hydrogen transport and storage network, 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 into Britain’s gas system, before it is 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.

HAR1 projects are expected to access over £2bn over 15 years in revenue support from the Hydrogen Production Business Model and over £90m in capital expenditure support via the Net Zero Hydrogen Fund.

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