The UK government has revealed its plans to host annual green hydrogen bids until 2025, announcing the upcoming second renewable hydrogen auction, HAR2, which is set to commence later this year. The Department of Energy Security and Carbon Neutrality (DESNZ) initiated the first auction, HAR1, in July of last year, resulting in the selection of 20 projects with a combined capacity of 408 MW of hydrolysis facilities. These projects have now progressed to the final round, with DESNZ aiming to finalize a successful project contract by the fourth quarter of 2023 after conducting due diligence. In addition, DESNZ is preparing to announce the Low Carbon Hydrogen Agreement (LCHA), which will offer subsidies to hydrogen producers to bridge the cost gap between low carbon and high carbon alternative fuels. Looking ahead, the UK government plans to initiate HAR2 at the end of this year and evaluate economic feasibility and value for money to potentially sign a contract of up to 750 MW by 2025, transitioning to a focus on price competition. Notably, the proposal requires the carbon dioxide emissions intensity during hydrogen production to be no higher than 20g (2.4kgCO2e/kgH2).
[월간수소경제 정다슬 기자] The UK government announced on the 2nd that it plans to hold green hydrogen bids every year until 2025, and announced that the second renewable hydrogen auction, HAR2, will start later this year.
The UK’s Department of Energy Security and Carbon Neutrality (DESNZ) launched its first renewable hydrogen auction, HAR1, in July last year, and selected 20 projects with a total capacity of 408 MW of hydrolysis facilities to reach the final round in March this year.
“We will shortly announce the final HAR1 project, with ongoing due diligence, with the aim of concluding a successful project contract in the fourth quarter of 2023,” DESNZ said.
In addition, DESNZ added, “We will shortly be announcing the Low Carbon Hydrogen Agreement (LCHA), which provides subsidies to hydrogen producers to bridge the cost gap between low carbon and high carbon alternative fuels.”
Meanwhile, “We intend to start the second HAR2 at the end of this year and consider economic feasibility and value for money with the aim of signing a contract of up to 750MW in 2025.” ), we intend to switch to price competition.”
For this green hydrogen proposal, the intensity of carbon dioxide emissions produced during the production of hydrogen must be less than 20g (2.4kgCO2e/kgH2).
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