UK government is injecting £2 billion in funding into 11 major green hydrogen projects across the country, signaling a significant step towards establishing a robust hydrogen industry.

The announcement, made by Energy Security Secretary Claire Coutinho, is part of the hydrogen allocation round (HAR1) scheme, designed to accelerate the development of commercial-scale green hydrogen production.

The hydrogen projects, backed by government funding, aim to create over 125 MW of capacity and generate more than 700 jobs, spanning from the south-west of England to the Highlands. This funding is expected to unlock a total investment of over £400 million in the next three years, demonstrating a commitment to fostering a world-leading hydrogen sector in the UK.

Claire Coutinho emphasized that hydrogen presents a massive economic opportunity for the UK, with the potential to unlock over 12,000 jobs and attract up to £11 billion in investment by 2030. The projects are aligned with the UK’s ambitious goal of deploying up to 10 GW of low-carbon hydrogen production capacity, both blue and green, by the end of the decade.

The hydrogen projects will utilize the Hydrogen Production Business Model, wherein suppliers will receive a guaranteed price from the government for the hydrogen they supply. This mechanism, with a weighted average strike price of £241/MWh (£175/MWh in 2012 prices), will come into effect once the projects become operational. The selected projects involve electrolytic hydrogen production, contributing to the UK’s efforts to explore and expand green hydrogen technologies.

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