Author: PPD Team Date: 09/04/2025
The UK government has shortlisted 27 hydrogen-powered projects in its second Hydrogen Allocation Round (HAR2) to scale low-carbon hydrogen production. These projects are expected to play a key role in decarbonising industries like ammonia production, clean power, glass and brick manufacturing, and sustainable aviation fuel.
Together, the selected projects could help attract over €1 billion (around £850 million) in private sector investment by 2029. The sector has already drawn €400 million, or about £340 million, into towns and cities such as Milford Haven and High Marnham. These investments have generated more than 700 direct jobs.
HAR2 is part of the UK’s Plan for Change, targeting net zero emissions and energy security. Industry Minister Sarah Jones said the country is deploying hydrogen at commercial scale, backing both jobs and industrial decarbonisation.
The latest round builds on HAR1, launched in December 2023, which committed over £2 billion to 11 projects with a total of 124 MW in capacity. Five of these projects have signed contracts, including the Bradford and Cromarty hydrogen projects.
The Bradford project uses a 10.6 MW alkaline electrolyser powered by renewable energy to support the mobility sector. The Cromarty project, by Scottish Power and Storegga, will operate an 11 MW electrolyser with electricity from nearby wind farms to supply local industries.
In Scotland, the Whitelee green hydrogen project plans to supply hydrogen to the Inchdairnie whiskey distillery by 2027, promoting sustainable distillation.