A Government contract for our groundbreaking hydrogen production facility in Bradford has been signed by N-Gen and joint venture partner Hygen Energy.

The contract, called a Low Carbon Hydrogen Agreement, provides Bradford Low Carbon Hydrogen with government subsidies to enable the hydrogen produced to be sold at a rate which is comparable to fossil fuels, such as diesel, for 15 years.  Bradford Low Carbon Hydrogen is the largest of 11 schemes in the Government’s first Hydrogen Allocation Round, which provides a total of £2 billion of funding to stimulate hydrogen production.

The flagship low carbon hydrogen production facility and fueling station, to be built off Bowling Back Lane in Bradford, will give companies in the area and operators of heavy vehicles access to hydrogen, a cleaner energy source, from 2027. The facility will produce up to 12.5 tons of hydrogen per day, enough to power 800 buses and is estimated to be worth £120 million to the local economy and create up to 125 jobs.

Hydrogen is a multi-purpose fuel which does not produce carbon when burned, making it compatible with plans for decarbonization. It can be used as a replacement for natural gas in heating and industrial processes, and for replacing diesel in heavy goods vehicles including buses, trains and lorries.

Hydrogen production secures the future of the Birkshall site, off Bowling Back Lane, which has a rich heritage stretching back almost 100 years. It was previously home to three large gas holders, with the site producing and storing gas for use by Bradford’s homes and businesses.

The site will comprise hydrogen production, storage and refuelling, with the hydrogen produced through a process known as electrolysis, which uses electricity to split water into hydrogen and oxygen.

A joint statement from our Managing Director Gareth Mills and Kevin Selleslags, HYGEN CEO, said: “We are thrilled to reach the milestone of signing the low carbon hydrogen agreement, which takes us a step closer to offering the region’s businesses and heavy transport the opportunity to decarbonize with cleaner, locally produced hydrogen at a competitive price. We’re excited to move to the next phase of building this trailblazing facility.”

Bradford Council supports the project and believes, as West Yorkshire’s only planned hydrogen production plant, it will play an important role in helping the area deliver on its climate change ambitions.

 Cllr Susan Hinchcliffe, Leader of Bradford Council said: ‘We’re really pleased to see the private sector working with the Government to bring new industry to Bradford.  I’m delighted that the contract has now been signed. The scheme will help us bring investment and green jobs to Bradford as well as delivering on our climate change ambitions.”

Tracy Brabin, Mayor of West Yorkshire, said: “We’ve declared a climate emergency in West Yorkshire, and we’re committed to net zero by 2038, so I’m delighted that one of the UK’s biggest hydrogen production facilities is right here in Bradford. This investment will play a vital role in helping us achieve our ambitions of a greener, more secure region, with higher paid jobs and lower energy bills for future generations.”

Minister for Industry, Sarah Jones, said: “This government is rolling out hydrogen out at scale for the first time, with ten of the first projects now shovel-ready to start powering businesses with clean, homegrown energy from Teesside to Devon.

“Hydrogen will help us cut industrial emissions and support Britain’s industrial renewal by creating thousands of jobs in our industrial heartlands as part of the Plan for Change.”

Neil McDermott, Chief Executive of the Low Carbon Contracts Company (LCCC), the government owned company that provides the contracts to subsidize hydrogen projects, said: “Signing this Low Carbon Hydrogen Agreement is a key milestone, not only for the Bradford project, but for the development of a thriving hydrogen economy across the UK. Hydrogen has a vital role to play in our transition to net zero, particularly in decarbonizing sectors that are difficult to electrify, such as heavy transport and industry.

Through our delivery of the Government’s Hydrogen Business Model, LCCC is proud to provide long-term revenue support that gives investors the confidence to back pioneering projects like this one. We look forward to working with the Bradford team as the project goes from strength to strength, bringing clean energy, economic opportunity and innovation to the region.”