Major boost for green UK hydrogen

C&I Issue 1, 2024

Read time: 1 min


The UK government is to back 11 major green hydrogen projects with £2bn in funding over the next 15 years.

The investment is said to represent the largest number of commercial scale green hydrogen projects announced at the same time across Europe. Hydrogen suppliers will receive a guaranteed price from the government for the energy they supply.

The successful projects in the current funding round are set to invest over £400m in the next three years, generating over 700 jobs across the UK and delivering 125MW of new hydrogen.

The government’s ambition is that the investment will speed up the deployment of up to 10GW of low carbon production capacity by 2030. A second round of funding has also been opened together with a roadmap for future allocation rounds in 2025 and 2026. The plan includes the boosting of hydrogen capacity to a total of 1.5GW across these rounds with funding to help deliver up to 4GW of CCUS-enabled, or blue, hydrogen and 6GW of green hydrogen by 2030.

One of the first projects to receive the funding, and for which planning permission has already been granted, will be a plant to be built by H2 Energy Europe on the site of the decommissioned Milford Haven oil refinery in West Wales. It will use power from both new and existing offshore and onshore wind farms. The final investment decision is expected in Q1 2024, with commissioning scheduled for 2026.

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