The H2 plans for Redcar might be over but there’s hope for other green H2 projects.
Not long after the UK Government confirmed that plans for a proposed hydrogen project for homes in Redcar would not be going ahead, it announced its support for 11 other green hydrogen projects.
The government scrapped the Redcar plans after residents protested.
The proposed hydrogen project for the seaside town would have replaced home gas supplies with hydrogen. Redcar was the second and remaining area bidding to host the pilot project after these same plans fell through in Ellesmere Port, back in July.
Just like residents in Ellesmere Port, the majority of residents in Redcar were against the trial, with people concerned about safety and costs associated with the project. Some were worried that replacing home gas with hydrogen would be more explosive and generate more harmful nitrogen oxide than the natural gas currently used.
Ultimately, the residents against the hydrogen project campaigned to be allowed to opt out of the pilot, and the government scrapped the plans.
The failed hydrogen project is slowing down the UK Government’s support for green H2.
Though the pilot low-carbon hydrogen project never got off the ground, the UK is still pushing forward with other green hydrogen projects.
In fact, the UK Government has selected 11 green hydrogen projects for £2 billion ($2.5 billion) of revenue support. Totaling 125 megawatts of capacity, these selected projects, under the first hydrogen allocation round (HAR1), will receive the revenue support from the Hydrogen Production Business Model.
Each H2 project will begin receiving revenue support once they become operational. The first is expected in 2025.
1GW of electrolytic H2 by the end of 2025.
Commenting on the announced support for the projects, the government said, “We remain committed to our ambition of having up to 1GW of electrolytic hydrogen in construction or operation by the end of 2025.”
Additionally, the government launched the second hydrogen allocation round (HAR2). The goal of this round is to fund up to a total of 875 megawatts of projects.
The hope is that the hydrogen project funding will give developers, investors and supply chain participants the confidence to commit to backing H2 projects in the UK.
