UK Hydrogen | Hydrogen Allocation Round, HAR1
Budget, 30 October, 2024
UK Chancellor Rachel Reeves has confirmed ￡2bn ($2.6bn) of funding for 11 green hydrogen projects totalling 125MW of capacity.
"Today, I am providing funding for 11 new green hydrogen projects across England, Scotland and Wales. They will be amongst the first commercial scale projects anywhere in the world, including in Bridgend, East Renfrewshire and Barrow-in-Furness.
The UK Labour government has confirmed ￡2 billion of funding for 11 green hydrogen projects in its Autumn Budget.
Alongside changes to the?windfall tax?on North Sea oil and gas firms, Chancellor Reeves allocated funds for the?HAR1 projects, including two in Scotland.
ScottishPower, Carlton Power, EDF Renewables and?Storegga?were among the developers to win funding for their green hydrogen schemes.
But in the months following the HAR1 announcement, the UK hydrogen sector?raised concerns?about funding delays, regulatory hurdles and a lack of clarity around government policy.
As a result, so far none of the HAR1 projects have reached a final investment decision (FID) nearly a year later.
Budget signals for hydrogen sector
But with the UK government set to award up to 875 MW in capacity in the HAR2 round in the coming weeks, the sector was keen for signs of support in the budget.
Alongside HAR2 funding, the Chancellor also confirmed ￡5bn of the initial ￡8.3bn for GB Energy will be allocated to project investment with a particular focus on less established technology classes, potentially benefitting the hydrogen sector.
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The Treasury also confirmed a?Carbon Border Adjustment Mechanism?will come into effect from 2027, which could boost domestic production of hydrogen derivatives.
Meanwhile, the government also committed ￡27.8bn to the newly formed National Wealth Fund (NWF).
The government hopes this will lead to?nearly ￡70bn?in private investment, with target areas including ports, green steel and hydrogen production.
UK Hydrogen | HAR1, stay informed at the moderated focus-group; https://bit.ly/3HAV0uN
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Hydrogen Trainer and Advisor | Informing the energy transition.
3 周UK Chancellor Rachel Reeves has confirmed ￡2bn ($2.6bn) of funding for 11 green hydrogen projects totalling 125MW of capacity.