Hydrogen

(asked on 30th May 2025) - View Source

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what steps his Department is taking to help enable the scale-up of large-scale green hydrogen projects to commercial operation.


Answered by
Sarah Jones Portrait
Sarah Jones
Minister of State (Department for Energy Security and Net Zero)
This question was answered on 9th June 2025

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).

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