Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what steps he is taking to increase the production of green hydrogen to support the transition to net zero.

The Hydrogen Production Business Model (HPBM) incentivises investment in new low carbon hydrogen production and encourages users to switch to low carbon hydrogen by making it a price competitive decarbonisation option.

In the Autumn Budget, we confirmed support for 11 green hydrogen projects from the first Hydrogen Allocation Round (HAR1), which comprised £90 million in capital grant support through the Net Zero Hydrogen Fund and c. £2.3bn revenue support through the HBPM once projects are operational and over a 15 year period.

Following this, on 7 April 2025 the Government announced a shortlist of 27 projects across England, Scotland and Wales that have been invited to the next stage of the Second Hydrogen Allocation Round (HAR2).