In a significant policy update, the UK’s energy regulator, OFGEM, has introduced new requirements for electricity suppliers to disclose comprehensive data to government-funded green hydrogen projects.
The new regulations stipulate that suppliers involved in the Hydrogen Allocation Rounds 1 and 2 (HAR1 and HAR2) must provide data to the Low Carbon Contract Company (LCCC). This data will help the LCCC verify that the energy supply contracts for these projects meet eligibility criteria for Power Purchase Agreements (PPAs) and comply with the LCHS. The standard mandates a maximum of 20g CO2 equivalent per megajoule of hydrogen or 2.4kg CO2 per kilogram of hydrogen, setting a high bar for environmental performance.
The UK Government has already selected 11 projects, totaling 125MW, for £2 billion of revenue support under HAR1. However, developers are still awaiting the go-ahead for final investment decisions, a process delayed by the upcoming general election. Despite these delays, the government has opened applications for HAR2, which aims to support projects up to 875MW. This move signals a robust commitment to expanding the nation’s green hydrogen infrastructure.
The timing of these new reporting requirements is critical as the UK gears up for a general election on July 4. The current Conservative Government had promised to finalize HAR1 contracts before the elections, but with the deadline looming, there remains uncertainty. Meanwhile, the Labour Party, gaining momentum, has pledged £500 million to bolster the green hydrogen sector, reflecting the growing political and economic importance of renewable energy in the UK’s future.
Comparing these developments with global standards, the UK’s LCHS is among the most rigorous. For instance, the European Union’s hydrogen strategy also emphasizes strict emissions limits but allows for higher thresholds in initial stages. The UK’s commitment to a maximum of 20g CO2 per megajoule sets a challenging precedent, potentially positioning the country as a leader in green hydrogen standards.
