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The United Kingdom has committed more than £2 billion ($2.53 billion) in funding to 11 Green Hydrogen projects across England, Wales, and Scotland. Under a Schedules for Difference-style mechanism, the 125MW of winning projects in the first Hydrogen Allocation Round (HAR1) would get a strike price of £241/MWh over 15 years, with the precise subsidy from the government dependent on the natural gas price.
UK's Department for Energy Security and Net Zero (DESNZ) informed that HAR1 was launched in July 2022, representing the biggest number of commercial-scale green hydrogen production projects announced at the same time anywhere in Europe. Developers won't receive these subsidies until their projects start producing hydrogen, but more than £90 million has already been given from the separate Net Zero Hydrogen Fund to fund their construction.
"Today's funding commitment represents a monumental step forward in helping producers deliver a fuel of the future today, backing businesses to go greener," said Lord Callanan. "This will be crucial for meeting our net zero targets and will benefit people across the UK through job and investment opportunities." minister for energy efficiency and green finance.
The government also announced a second Hydrogen Allocation Round (HAR2) for up to 875MW of green hydrogen — "subject to sustainability and value for investment". This could help the UK meet its goal of achieving up to 1GW of electrolytic hydrogen production plants operational or under development by 2025."
According to DESNZ, a thorough allocation procedure was carried out to guarantee that contracts are granted solely to deliverable projects that offer good value for money. The eleven projects were agreed upon at a weighted average strike price of £241/MWh, which is competitive with the strike costs of other emerging technologies such as floating offshore wind and tidal streams.
Read more here- https://www.offshore-energy.biz/uk-reveals-winners-of-first-hydrogen-allocation-round/
