Hydrogen Allocation Rounds
The Hydrogen Allocation Rounds allocate revenue support through the Hydrogen Production Business Model (HPBM) to hydrogen production facilities across the UK.
The Hydrogen Allocation Rounds (HARs) are a government funding mechanism to support low carbon hydrogen production across the UK.
Our ambition is to have up to 1GW of electrolytic hydrogen production capacity in construction or operation by 2025, and by 2030 we aim to deliver up to 10GW of low carbon hydrogen production capacity by 2030, subject to affordability and value for money.
A HAR allocates Hydrogen Production Business Model (HPBM) revenue support funding to successful projects, to overcome the operating cost gap between low carbon hydrogen and high carbon counterfactual fuels.
UK projects that meet the eligibility criteria of each allocation round can apply to receive Hydrogen Production Business Model support over a 15-year period. Successful projects are awarded and sign a Low Carbon Hydrogen Agreement (LCHA).
Delivery partners
The Low Carbon Contracts Company (LCCC) is a private company owned by DESNZ. The LCCC is the counterparty to the contracts awarded in Hydrogen Allocation Rounds. Its primary role will be to:
- issue the contracts
- manage them during the construction and delivery phases
- make HPBM payments
Hydrogen Allocation Round 3 (HAR3)
Hydrogen Allocation Round 2 (HAR2)
Hydrogen Allocation Round 1 (HAR1)
Evaluation of Allocation Rounds
To ensure learning and accountability, government evaluates its policies.
We completed a Process Evaluation of the HAR1 stages up to the notification of shortlisting. The evaluation captures feedback about the design and delivery of HAR1 and helped inform the design of HAR2.
We will add future process, impact and value for money evaluations here.
Cluster Sequencing Process
Eligible CCS-enabled low carbon hydrogen projects may apply for revenue support via the Cluster Sequencing Process.