SSE notes about the announcement from the UK government on contracts awarded for new low-carbon H₂ production. While disappointed that our projects were not successful at this stage, we welcome this critical step towards a H₂ economy. As outlined in the government’s updated H₂ strategy, this must now be supported by the development of H₂ transport and storage infrastructure.

Through its Net Zero H₂ Fund and the H₂ Business Model, Government articulated an ambition to support up to 250 MW of green H₂ production projects in H₂ Allocation Round 1, with contracts announced for 125 MW.

Following negotiations, two green H₂ projects from SSE were not selected for support at this stage. Aldbrough H₂ Pathfinder, which seeks to unite H₂ production, storage and power generation, and Gordonbush H₂—which would demonstrate the value in co-locating H₂ production with wind—will continue to be developed by SSE and will have further opportunities to seek support.

Alongside this announcement, government has launched its H₂ Allocation Round 2 (HAR2), published a consultation on H₂ to power and started market engagement for the first round of H₂ Transport and Storage Business Models. These are important steps in both kickstarting and establishing the framework for a low-carbon H₂ economy.

Catherine Raw, Group Executive Committee lead for H₂ and Managing Director of SSE Thermal said, “We know how crucial it is to scale up H₂ production capacity this decade and it is encouraging to see green H₂ projects being brought forward. While we are disappointed that we couldn’t reach agreement with Government at this stage, we remain fully committed to our projects. In particular, Aldbrough H₂ Pathfinder offers significant strategic benefit as it will highlight the interactions between production, storage and power generation with the learnings underpinning the development of a H₂ economy.

“The announcement also underlines the importance of HAR2 and of the need to bring forward blue H₂ production if Government is to meet its 2030 target of producing 10 GW of low-carbon H₂ annually. Both green and blue H₂ have a huge role to play in delivering a net zero power system and decarbonizing industry, and we will continue to do our part in bringing forward world-leading projects.”