Seventeen hydrogen projects to negotiate with the UK government

21 August 2023 | Muriel Cozier

The UK government has shortlisted 17 green hydrogen projects for possible funding as part of its Hydrogen Business Model/Net Zero Hydrogen Fund.

The projects, which total 262MW of capacity, have been invited to negotiations as well as a continued due diligence process to receive funding from the Net Zero Hydrogen fund. The £240 million fund supports commercial deployment of hydrogen production across the UK as part of the government’s wider decarbonisation strategy.

The government said in its notice that it is aiming for contracts to be awarded in the final quarter of this year, with the first projects becoming operational in 2025.

‘Progressing to negotiations does not guarantee contract award, as we continue to assess whether projects are deliverable, affordable and represent value for money. Any decision to award support will only be made subject to the government being comfortable with the application of subsidy control requirements and any balance sheet implications,’ the Department for Energy Security & Net Zero said.

One of the projects making the cut is HyGreen Teesside, being developed by BP Alternative Energy Investments. Located in the Northeast of England, it is planned as one of the UK’s largest green hydrogen facilities. With an initial 80MW of green hydrogen production planned, the project will have potential to reach 500MW by 2030, representing some 5% of the UK government’s hydrogen target of 10GW. In addition, the completed project will provide 100 new jobs, along with 660 during the construction.

The full list of projects invited to negotiations:

Project Name Lead Developer Location
Aldbrough Hydrogen Pathfinder SSE Thermal Yorkshire
Barrow Green Hydrogen Carlton Power North West
Bradford Low Carbon Hydrogen Hygen Yorkshire
Cheshire Green Hydrogen Progressive Energy Net Zero North West
Cromarty Hydrogen Project Pale Blue Dot Energy Scotland
Gordonbush Hydrogen Project (GBH2) SSE Renewables Scotland
Green Hydrogen 1 RES and Octopus Renewables Scotland
Green Hydrogen 2 RES and Octopus Renewables Wales
Green Hydrogen 3 RES and Octopus Renewables South East
H2 Production Plant at High Marnham JG Pears East Midlands
HyBont Marubeni Europower Wales
HyGreen Teesside BP Alternative Energy Investments North East
Langage Green Hydrogen Carlton Power South West
Tees Green Hydrogen EDF Renewables Hydrogen North East
Trafford Green Hydrogen Carlton Power North West
West Wales Hydrogen Project – Phase 1 H2 Energy and Trafigura Wales
Whitelee Green Hydrogen Scottish Power Scotland

UK Head of Hydrogen at BP, Matt Williamson, said ‘HyGreen Teesside has the potential to help transform energy use, the economy and skills in the region. At BP we’re backing hydrogen to help Teesside and the UK decarbonise industry and mobility.’

Also invited to negotiations is the HyBont Project, which is being developed by Marubeni Europower. Located in Bridgend, Wales, the project incorporates a green hydrogen production and refuelling facility, partially powered by a dedicated solar farm and onshore wind farm. The green hydrogen will be used as fuel in the transport sector, and is being assessed as the source for a district heating system, contributing to the decarbonisation of Bridgend.

In a separate development, BP Ventures has said that it is leading a $12.5 million Series A investment in Advanced Ionics, which is developing a new type of electrolyser. The investment will help facilitate the initial deployment of Advanced Ionics’ Symbion water vapour electrolyser technology for heavy industry. Water vapour electrolysers could address two of the main obstacles to expanding green hydrogen – cost and electricity requirements.

The technology is being demonstrated through a pilot programme with energy company Repsol Foundation. Other investors include Clean Energy Ventures, Mitsubishi Heavy Industries and GVP Climate.

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