Seventeen Hydrogen Projects Advance in UK Government Subsidy Scheme
Posted 28/08/2023 11:30
A multitude of hydrogen projects have been selected to move forward to the next stage of a UK Government subsidy support scheme, marking a significant step toward the UK's hydrogen goals. After undergoing due diligence, 17 initiatives, collectively contributing 262 megawatts (MW), have been invited by Westminster to engage in negotiations for funding through the Hydrogen Business Model (HBM) process. Notable participants include BP, which lauds the milestone's accomplishment, and Storegga, expressing positivity about the development.
These projects aim to achieve first operation in 2025 and support the UK Government's target of having 10 GW of low carbon hydrogen generation capacity by 2030. The first 1 GW is planned to be in construction or operational by 2025. The HBM process seeks to back projects capable of generating 10 GW of low carbon hydrogen by 2030.
One standout project is the Cromarty Hydrogen Project by Storegga, in partnership with ScottishPower. The initiative aims to decarbonize Scotland's whisky sector, potentially producing up to 110,000kg of green hydrogen per day, with applications spanning distilleries, transport, and industrial sectors.
BP's HyGreen Teesside project, set to become one of the UK's largest green hydrogen facilities, also advances. Targeting an initial 80 MW of production with potential for growth to 500 MW by 2030, this endeavor has the capacity to transform energy usage, the economy, and regional skills.
While these projects make significant strides, a second round of the HBM process is scheduled to launch in Q4 of this year, with up to 750 MW of capacity to be awarded in early 2025. Projects excluded from the initial round are encouraged to consider submitting bids.
Of the 17 chosen projects, four are situated in Scotland, indicating the nation's significant contributions to the UK's hydrogen future. This progress underscores the growing momentum of hydrogen technology as a crucial aspect of the UK's decarbonization efforts.