U.K. Shortlists New Wave of Hydrogen Projects

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--A new wave of hydrogen projects has been shortlisted by the U.K. government as it continues its drive to commercialise the technology.

The government has chosen 27 hydrogen projects in its Second Hydrogen Allocation Round (HAR2), with a combined 765 megawatts (MW) of production capacity that will be deployed between 2026 and 2029. The projects range across a number of sectors, including ammonia production, clean power generation, glass manufacturing, brick making and sustainable aviation fuel production. The sector has already attracted £400 million (US$533 million) of private sector investment across the U.K,. and the current crop of projects has the potential to attract up to £1 billion in investment, according to the government. Not all of the 27 projects are expected to make it through the next evaluation stage to the funding support phase. This First Hydrogen Allocation Round (HAR1) saw 11 projects being allocated more than £2 billion (US$2.67 billion) in government funding.

Industry Minister Sarah Jones said: "We are deploying hydrogen at a commercial scale for the first time -- not just investing in a technology -- but investing in British jobs, our proud manufacturing communities and our energy security. From distilleries and sustainable aviation fuel to public transport and clean energy generation, hydrogen can power our everyday life and unlock clean energy growth across the country as part of our Plan for Change."

Geographically, Scotland is home to most of the second-round projects with eight in total which will account for more than a third of the 765 MW capacity. The largest Scottish project on the list is a planned green hydrogen plant at the U.K.'s largest refining complex at Grangemouth in Scotland, owned by U.K. chemical major INEOS Limited (London, England). German energy company RWE AG (Essen, Germany) wants to construct a 200-MW plant adjacent to the INEOS facility, and the hydrogen produced will be piped a short distance to the site. Initial capacity would allow for the production of up to 3.6 tonnes of hydrogen per hour, with ambitions for potential expansion to 600 MW at a later date. It will be powered by renewable energy produced in Scotland, and RWE said it hopes to have the plant operational by 2029. For additional information, see May 27, 2024, article - RWE Plans Green Hydrogen for Grangemouth Refinery.

The fledgling hydrogen sector is also expected to benefit going forward from the government's pledge of almost £22 billion (US$28.8 billion) in funding for the country's two leading carbon capture and storage (CCS) initiatives in the north of England: the East Coast Cluster initiative in the Teesside and Humber regions of northeast England and the HyNet initiative in the Merseyside area of northwest England and north Wales. Carbon capture and transport and hydrogen production projects are planned across both initiatives, and across a variety of industries that include manufacturing, steelmaking, shipping, chemicals, refining and cement making. For additional information, see October 14, 2024, article - U.K. Pledges $28 Billion to Build Carbon Capture Industry. Industrial Info is tracking 51 projects under the Hynet umbrella worth US$2.7 billion in investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).