4 months ago - 4 mins read

UK greenlights 10 hydrogen projects, unlocking £400m investment and 700 jobs

July 24, 2025
By Matt Lister, Editor
HyMarnham green hydrogen project. (Illustrative image: GeoPura)
HyMarnham green hydrogen project. (Illustrative image: GeoPura)

Ten projects under the government’s flagship Hydrogen Allocation Round (HAR1) have now signed contracts, giving the green light for construction to begin and unlocking over £400 million in private capital alongside 700 new jobs across the country.

From the Tees Valley to South Wales, Bradford to Devon, these first-of-their-kind deals are backed by the Low Carbon Hydrogen Agreement – the UK’s long-term support model for clean hydrogen producers.

Projects will access up to £2 billion in revenue support over 15 years and £90 million in capital funding via the Net Zero Hydrogen Fund.

And while these are just the first 10 of many, they represent the UK’s most tangible step yet towards industrial-scale green hydrogen.

Electrolysers replace coal, and bus fuel beats boiler fuel

The 10 successful projects span a wide range of end uses – from decarbonising tissue production for Kimberly-Clark to fuelling waste incinerators, distilleries, glass factories, and buses. All will use renewable electricity to generate green hydrogen, much of it from wind.

One of the first sites to break ground is HyMarnham, where JG Pears and GeoPura are repurposing the old High Marnham coal-fired power station into a clean hydrogen hub in Nottinghamshire.

In the North East, Tees Green Hydrogen, developed by EDF and Hynamics, will supply clean hydrogen to sustainable aviation fuel (SAF) production, marking a future-facing use case for the UK’s offshore wind power.

Further north, the Cromarty Hydrogen Project in Scotland will use three 5MW electrolysers to supply industrial users, including distilleries – replacing fossil fuel heat with green molecules.

Meanwhile, Bradford Low Carbon Hydrogen, the largest of the ten, is being developed by Hygen and Ryze and will provide clean fuel to mobility users including JCB and Wrightbus. The £120 million project is expected to support 125 jobs.

Kimberly-Clark to use green hydrogen at Barrow and Northfleet plants

In a major industrial signal, Kimberly-Clark – the firm behind Andrex and Kleenex – has confirmed it will become the first UK consumer goods manufacturer to adopt green hydrogen at scale.

In partnership with HYRO, Carlton Power and Schroders Greencoat, the company will invest £125 million across two HAR1 projects in Barrow-in-Furness and Northfleet, replacing fossil fuels in industrial boilers with hydrogen.

Dan Howell, Managing Director of Kimberly-Clark UK & Ireland, said the move shows manufacturers can “overcome the technical challenge and adopt green hydrogen at scale”.

Full list of signed HAR1 projects

ProjectDeveloper(s)LocationEnd use
CromartyScottish Power & StoreggaNE ScotlandDistilleries, local industry
Bradford Low Carbon HydrogenHygen & RyzeBradfordMobility: JCB, Wrightbus
West Wales HydrogenMorGen & TrafiguraMilford HavenIndustrial (gas facilities)
HyMarnhamJG Pears & GeoPuraNottinghamshireWaste, remote power
Whitelee Green HydrogenScottish PowerGlasgow areaDistilleries, transport
Green Hydrogen 3 (Northfleet)HYROKentKimberly-Clark tissue plant
TraffordCarlton PowerManchesterLocal industrial users
BarrowCarlton PowerCumbriaKimberly-Clark tissue plant
LangageCarlton PowerPlymouthMinerals processing
Tees Green HydrogenEDF & HynamicsTeessideSustainable Aviation Fuel

A further 11th HAR1 project is still undergoing final contract readiness checks, the government said.

Transmission blending and next phase funding

The announcement follows last year’s £500 million commitment to build the UK’s first hydrogen transport and storage infrastructure – connecting production sites to heavy industry and power generation.

The government has also launched a consultation on hydrogen blending at the transmission level – assessing whether small volumes of hydrogen could be introduced into the gas network to lower system-wide emissions and reduce costs for early hydrogen projects.

Clare Jackson, CEO of Hydrogen UK, said the HAR1 contracts demonstrated a “clear commitment from both government and industry” to building a sustainable hydrogen sector.

Clean hydrogen, real jobs

Minister for Industry Sarah Jones said the projects would support “Britain’s industrial renewal” by cutting emissions and creating long-term jobs in heavy industry and engineering.

Roles will span apprentices, graduates, pipefitters and technical engineers – a clear boost for the UK’s clean energy skills base.

Many of the sites, including Bradford and HyMarnham, are located on or near legacy fossil sites – showing how old energy infrastructure is being redeployed for a cleaner future.

As Gareth Mills and Kevin Selleslags, from the Bradford Low Carbon Hydrogen project put it: “We’re transforming Birkshall from a former fossil fuel gas site to a flagship low carbon hydrogen production facility and fuelling station… supporting 125 jobs and £120 million for the regional economy.”

What’s next?

The second Hydrogen Allocation Round – HAR2 – is already underway, with results expected later in 2025. The government has previously committed to supporting up to 1GW of electrolytic hydrogen capacity across HAR1 and HAR2 combined.

With global interest in hydrogen rising and momentum now gathering at home, the UK’s long-term vision for a hydrogen economy is starting to take physical shape – pipe by pipe, project by project.