The UK’s first Hydrogen Allocation Round (HAR1) has finally crossed a critical threshold: ten green hydrogen projects selected for subsidies have now signed funding agreements with the government.
But while the milestone marks long-awaited momentum, analysts are questioning whether the delays incurred will compromise delivery timelines and investor confidence.
The projects — including three from Carlton Power in Cumbria, Devon, and Manchester, and EDF’s Tees Valley development — are part of a £2 billion ($2.7 billion) revenue support scheme designed to align the cost of green hydrogen with that of natural gas. Administered by the Low Carbon Contracts Company (LCCC), the Low Carbon Hydrogen Agreements (LCHAs) provide the financial framework intended to de-risk early hydrogen production investments.
Additional projects from GeoPura, Hygen and N-Gen, Hyro, Scottish Power, Storegga, and MorGen Energy round out the total of ten developments to have now reached the contracting stage. In total, they represent approximately 120 MW of electrolytic hydrogen production capacity — a modest but symbolic first wave for a sector still in its infancy.
However, the HAR1 process has been marred by over a year of delays. Originally, the LCHAs were scheduled to be signed by Q1 2024. The slippage in timelines, observers note, could impact project completion dates and undermine the credibility of the UK’s policy pipeline for hydrogen rollout.
Carlton Power’s inclusion of three geographically diverse projects positions it as a key player in early hydrogen deployment. Yet the expected commissioning of these plants by 2025 now appears increasingly optimistic, given that construction activities are only just being greenlit.
Complicating matters further is the situation around Marubeni Europower’s Hybont project in South Wales. Although selected for HAR1, the project has yet to sign a funding agreement, reportedly due to significant local opposition over its proximity to residential and commercial areas. This introduces a fresh variable: community acceptance, which may become a recurring hurdle as hydrogen infrastructure scales up across the country.
The emphasis on “shovel-ready” masks a broader concern: shovel-readiness does not guarantee commissioning within policy-relevant timeframes. The UK has legislated for up to 10 GW of low-carbon hydrogen production by 2030 — a figure that demands rapid deployment, not just contract signing.
While the HAR1 agreements represent a foundational moment for the UK’s hydrogen ambitions, their delayed rollout exposes the fragility of early-stage infrastructure planning — and suggests that hydrogen’s trajectory, much like the fuel itself, will require careful containment and sustained pressure to achieve its full potential.
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