The UK government has selected 27 hydrogen projects to move forward in the second round of its Hydrogen Allocation Programme (HAR2) to create a greener, more sustainable future
This new wave of hydrogen-powered projects hopes to decarbonise some of the UK’s most energy-intensive industries and promote economic growth, particularly in manufacturing communities.
These projects promise to cut emissions and create thousands of new jobs, strengthening the government’s ambitions to establish the UK as a global clean energy leader.
27 hydrogen projects selected to drive industrial decarbonisation
The 27 shortlisted projects represent a wide range of industries, from clean power generation to glass manufacturing, brick making, and the production of sustainable aviation fuel.
These initiatives will use low-carbon hydrogen to drive innovation in industries that traditionally contribute to high carbon emissions, positioning hydrogen as a key player in the UK’s transition to net zero. With an estimated £1 billion in private sector investment expected by 2029, this initiative signals a major commitment to climate action and industrial revitalisation.
Hydrogen, produced through a process known as electrolysis, where renewable energy splits water into hydrogen and oxygen, offers a zero-carbon fuel that can power everything from transport and public services to industrial operations.
This method provides a cleaner alternative to traditional energy sources and helps decarbonise industries like ammonia production and power generation, where emissions have been challenging to reduce.
Creating jobs and economic growth
The government’s backing for these projects represents an important moment in the UK’s energy transition, helping establish clean energy hubs across England, Scotland, and Wales.
The projects are expected to boost local economies, particularly in areas that have long been dependent on manufacturing.
New roles will emerge in fields ranging from construction and operations to highly skilled technical jobs, including engineers, welders, and pipefitters. Apprenticeships and graduate positions will also be available, providing a pathway for the next generation to contribute to the UK’s clean energy future.
The UK’s plan towards energy security and local economic resilience
The HAR2 initiative builds on the success of the first Hydrogen Allocation Round (HAR1), which saw £2 billion allocated to 11 projects across the UK, bringing green hydrogen into the mainstream. One project, the Whitelee Green Hydrogen facility in Scotland, will produce hydrogen to fuel the Inchdairnie Whiskey distillery, which plans to use clean energy to sustainably distil whisky by 2027.
The funding from HAR1 has already begun to make a lasting impact, with several projects in the early stages of construction and operations.
As part of the Plan for Change, these new hydrogen projects work with the UK government’s goal of achieving energy security and strengthening local economies. In addition to creating jobs, the hydrogen sector offers the potential to build strong supply chains, particularly in regions with a history of industrial activity.
With hydrogen playing an increasing role in the UK’s energy mix, this initiative is set to unlock many economic opportunities and ensure the country’s leadership in clean energy innovation.
Industry professionals have emphasised how this funding is an important step towards enhancing the UK’s hydrogen sector.
With the government’s backing, the hydrogen economy is set for rapid growth, helping to meet the country’s climate targets while boosting energy security.
By advancing these 27 projects, the UK is laying the foundation for a future powered by clean, green hydrogen.
