Call for evidence outcome

Price-based competitive allocation for low carbon hydrogen: call for evidence

From:: Department for Energy Security and Net Zero
Published: 17 May 2023
Last updated: 14 December 2023 — See all updates

Read the full outcome

Price-based competitive allocation for low carbon hydrogen production: summary of responses

PDF, 331 KB, 31 pages

Detail of outcome

This Call for Evidence on price-based competitive allocation for low carbon hydrogen sought views and evidence from industry on the market conditions required to transition to price-based competitive allocation of the Hydrogen Production Business Model.

We received 42 responses to this call from a range of stakeholders, and have published a summary of them. Alongside our own evidence gathering, we have used the responses to inform the development of the future policy framework for the Hydrogen Allocation Rounds.

The Hydrogen Production Delivery Roadmap, published alongside this document, sets out government’s plans for future Hydrogen Allocation Rounds including plans to move to annual allocation rounds out to 2030.

Original call for evidence

Call for evidence description

Update: 5 July 2023

Based on feedback we have decided to extend the deadline for this call for evidence by a week to 11 August 2023, to allow more time for responses.

In the British Energy Security Strategy, we set out our aim to run annual allocation rounds for electrolytic hydrogen, moving to price-based competition by 2025 as soon as legislation and market conditions allow.

The purpose of this call for evidence is to gather evidence to understand more about:

market conditions needed for the UK to transition to price-based competitive allocation for electrolytic projects and potentially other specified non-CCUS (carbon capture, usage and storage) technologies
the extent to which a price-based competitive allocation process could incentivise projects to support broader outcomes beyond cost reduction of low carbon hydrogen production:
- harnessing electricity system benefits
- economic benefits and supply chain development
- security of supply of hydrogen
how price-based competitive allocation should be designed

We welcome responses from anyone but expect this call for evidence to be of particular interest to:

those considering developing new electrolytic projects, and other non-CCUS low carbon hydrogen production projects in the United Kingdom
businesses involved in low carbon hydrogen production supply chains
electricity suppliers
consumer and environmental groups with an interest in low carbon hydrogen production
trade bodies with an interest in low carbon hydrogen and renewables sectors

See the DESNZ consultation privacy notice.

Launch briefing event, 25 May 2023

The Department for Energy Security and Net Zero held a launch briefing event on the HAR2 market engagement document and the call for evidence on competitive allocation.

The event was held online, and took place on Thursday 25 May, 11:30am to 12:30pm.

Documents