In a major move to accelerate the energy transition and reinvigorate industry, the Department for Energy Security and Net Zero of the United Kingdom announced on 7 April the selection of 27 hydrogen projects advancing to the next stage of its flagship Hydrogen Allocation Round 2 (HAR2). The initiative forms part of the UK’s Plan for Change, aiming to mobilise over 1 billion pounds in private investment by 2029 and deliver large-scale job creation and emissions reduction.

“We are deploying hydrogen at a commercial scale for the first time – not just investing in a technology, but investing in British jobs, our proud manufacturing communities and our energy security,” states Industry Minister Sarah Jones.

The shortlisted projects will support the decarbonisation of carbon-intensive sectors such as clean power generation, sustainable aviation fuel, glass, brick and ammonia production. According to the minister, “hydrogen can power our everyday life and unlock clean energy growth across the country.”

From national strategy to local industry

Green hydrogen – produced by using renewable electricity to split water into hydrogen and oxygen – is emerging as a central pillar of the UK’s net-zero strategy. Its versatility makes it suitable for use in transport, energy and heavy industry.

This new wave builds on the Hydrogen Allocation Round 1 (HAR1), launched in 2023, which allocated over 2 billion pounds in government funding to 11 projects, totalling 124 MW of production capacity. These include the Bradford Low Carbon project in Yorkshire, which supplies mobility operators such as JCB and Wrightbus, and the Cromarty Hydrogen Project in Scotland, which is powered by nearby wind farms to serve local distilleries.

Scotland steps up as a green hydrogen leader

Out of the 27 projects, eight are based in Scotland, reinforcing its position as a key player in the UK’s hydrogen economy. According to Colin Palmer, Director of Offshore at Scottish Renewables, this shortlist represents “a significant milestone for the future of green hydrogen.”

“This investment is a positive signal of intent from the UK Government, providing much needed certainty for developers and building confidence that UK hydrogen has a pivotal role to play in our efforts to tackle climate change,” Palmer asserts. He also emphasises hydrogen’s potential for energy storage, especially given Scotland’s strong pipeline of onshore and offshore renewables.

These projects are expected to deliver emissions cuts and economic growth, creating jobs across a wide spectrum of technical disciplines – from engineers and welders to construction workers and operations staff.

Technical employment and regional reindustrialisation

The private sector has already committed over 400 million pounds to hydrogen ventures in towns such as Milford Haven (Wales) and High Marnham (Nottinghamshire), generating more than 700 direct jobs in construction and operations. HAR2 is set to expand this footprint across multiple regions.

Job opportunities span a wide range of roles, including apprentices, graduates, engineers, welders, pipefitters and site technicians. The scope also includes the upskilling of local communities through long-term industrial programmes.

“This long-awaited announcement brings vital clarity to the UK’s hydrogen sector,” says Emma Guthrie, CEO of the Hydrogen Energy Association. “The funding support offered through HAR2 gives our members and the wider industry the confidence to gear up for delivery, unlocking investment, creating jobs and driving economic growth.”

Scaling up and boosting investor confidence

The industry has welcomed the programme’s continuity and the opportunity to learn from previous rounds. Clare Jackson, CEO of Hydrogen UK, notes: “We’re thrilled to see many of our members succeed in the second Hydrogen Allocation Round. This marks a crucial step for scaling electrolytic hydrogen.”

She adds that this momentum “reinforces UK leadership in clean energy and the sector’s role in delivering economic growth and energy security.”

HAR2 also demonstrates the government’s commitment to strengthening domestic supply chains and establishing clean energy hubs that combine innovation, skilled labour and technology transfer.

Hydrogen Allocation Round 2 (HAR2) shortlisted projects: