UK Greenlights 10 New Hydrogen Projects as Government Seals Long-Term Contracts

Image Credit: Kimblerly-Clark

The UK government has officially greenlit ten commercial-scale green hydrogen projects, all of which have now signed long-term contracts under the Hydrogen Allocation Round 1 process. With these agreements in place, construction can begin in earnest, paving the way for over 700 new jobs nationwide.

This marks a significant milestone. For the first time, a wave of hydrogen initiatives has reached the "shovel-ready" stage. It’s a key step in the government's broader Plan for Change, reflecting its ambition to transform the UK into a global leader in clean energy.

These projects aren’t just theoretical. They’re set to supply low-carbon hydrogen to British businesses across a wide range of sectors, including waste management, steel production, transport, brewing, and even tissue manufacturing.

One project, HyMarnham in Newark, Nottinghamshire, has already broken ground. It’s turning the site of the old High Marnham coal-fired power station into a modern clean energy hub. In northeast Scotland, the Cromarty Hydrogen Project is set to become operational, with three 5MW electrolysers supplying hydrogen directly to local industries, including whisky distilleries.

Between 2024 and 2026, these ten ventures are expected to attract over £400 million in private investment. That capital injection will translate into hands-on roles for pipefitters and engineers, alongside opportunities for graduates and apprentices in industrial regions such as South Wales, North Scotland, Teesside, and Bradford.

UK Minister for Industry Sarah Jones said: “Hydrogen will help us cut industrial emissions and support Britain’s industrial renewal by creating thousands of jobs in our industrial heartlands as part of the Plan for Change.”

In another significant development, Kimberly-Clark has become the first major UK consumer goods manufacturer to commit to large-scale green hydrogen production. It is investing £125 million, in partnership with HYRO, Carlton Power, and Schroders Greencoat, into two HAR1 projects located in Cumbria and Kent.

Neil McDermott, chief executive of Low Carbon Contracts Company, said the agreements “provide revenue stability for producers, and a clear signal that low-carbon hydrogen has a key role to play in the UK’s future energy system".

Looking further ahead, the government also plans to launch a consultation on blending hydrogen at the transmission level. The goal is to gain a better understanding of how this might impact energy costs and support broader integration of the energy system.