As the UK accelerates its hydrogen ambitions, a new private-sector initiative is positioning itself to play a pivotal role in bridging the country’s production gap.
A consortium led by Jo Bamford — heir to the JCB fortune and a central figure in the UK hydrogen industry — has unveiled Project Hyspeed, a proposal to deliver 1GW of green hydrogen production capacity by 2030. The announcement lands at a moment when industry stakeholders are warning that the UK risks falling behind international competitors unless it rapidly scales up both project approvals and supportive policy frameworks.
Comprised of major industrial names including Centrica, Heidelberg, ITM Power, JCB, Johnson Matthey, and National Gas, the consortium has submitted formal proposals to the UK Government. According to its filings, Project Hyspeed aims to produce green hydrogen at a projected strike price of £5.96/kg ($7.84/kg), underpinned by economies of scale, aggregated procurement, optimised power purchasing agreements, and low-cost financing structures. This is a significant step down from the £9.50/kg ($12.50/kg) subsidy-equivalent strike price awarded under the government’s first Hydrogen Allocation Round (HAR1), indicating an aggressive commercialisation strategy that hinges on cost-down through consolidation and market coordination.
Company materials suggest the scheme would involve deploying approximately 16 plants across the UK, with capacities ranging from sub-50MW to over 300MW, though specific sites have yet to be disclosed. The proposed infrastructure would service a cross-sector demand base spanning mobility applications, green chemical manufacturing, industrial gas supply, off-grid construction equipment, and injection into the UK’s existing gas networks.
Financially, Project Hyspeed forecasts £6.5 billion ($8.55 billion) in private investment alongside the creation of at least 12,150 domestic jobs. The initiative claims it would abate one million tonnes of CO₂ emissions annually — an increasingly critical metric as the UK faces scrutiny over the pace of its Net Zero delivery relative to its legally binding 2050 climate targets.
The project arrives as the UK Government concludes its second Hydrogen Allocation Round (HAR2), having shortlisted 765MW of green hydrogen capacity. However, that capacity still falls short of the government’s broader 5GW low-carbon hydrogen production target for 2030, raising concerns over whether national policy support and permitting processes are scaling fast enough to meet declared ambitions.
Despite the scale and ambition of Project Hyspeed, material uncertainties remain. The consortium has yet to confirm pre-selected sites or grid connection agreements, and the cost assumptions behind the £5.96/kg strike price rely heavily on favourable power purchase agreements and access to low-cost financing, both of which are sensitive to broader market conditions and regulatory support.
Moreover, the UK hydrogen sector has spent the past year urging the government to expedite market mechanisms, particularly in response to competitive incentives now available in the US (via the Inflation Reduction Act) and the EU’s Hydrogen Bank auctions. Without comparable policy levers, projects like Hyspeed could struggle to secure long-term offtake agreements at commercially viable terms.
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