The UK government has selected 27 hydrogen-powered projects for its second Hydrogen Allocation Round (HAR2), advancing low-carbon hydrogen production across the nation. This effort supports the government’s Plan for Change, aiming to reduce carbon emissions while fostering job creation. The hydrogen sector is poised to attract over £1 billion ($1.28 billion) in private investment by 2029, building on £400 million already invested in regions like Milford Haven, Wales, and High Marnham, Nottinghamshire, which has created over 700 jobs in construction and operations.

The initiative is part of the government’s Plan for Change and aims to cut emissions while creating thousands of jobs.

These projects span various applications, including decarbonizing manufacturing for clean power, ammonia, glass production, and sustainable aviation fuel. UK Industry Minister Sarah Jones emphasized the initiative’s impact: “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.” HAR2 follows the success of HAR1 in December 2023, which allocated over £2 billion to 11 projects with a combined 124 megawatts (MW) of capacity, five of which have secured contracts.

Notable HAR1 projects include the Bradford low-carbon initiative by Hygen and Ryze, using a 10.6 MW electrolyser powered by renewable energy to serve the mobility sector, and the Cromarty project by Scottish Power and Storegga, which harnesses wind farm electricity for an 11 MW electrolyser to supply local industries like distilleries. Another standout is the Whitelee green hydrogen project in Scotland, set to provide hydrogen to the Inchdairnie whiskey distillery for sustainable whisky production by 2027.

Emma Guthrie, CEO of the Hydrogen Energy Association, praised the announcement: “This much-anticipated announcement brings vital clarity to the UK’s hydrogen sector, providing a crucial boost for projects that will drive forward the country’s low-carbon transition. The funding support offered through HAR2 gives our members and the wider industry the confidence to gear up for delivery, unlocking investment, creating jobs and driving economic growth.” The initiative strengthens the UK’s position in clean energy innovation and economic development.

In March 2025, the UK government also revealed plans to expedite grid connections for clean energy projects under its Plan for Change, targeting a clean power system by 2030. The HAR2 projects align with this vision, enhancing energy sustainability and supporting industries nationwide through hydrogen technology advancements.