Price-based competitive allocation for low carbon hydrogen: call for evidence
Read the full outcome
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
Updates to this page
Last updated 14 December 2023 + show all updates
-
Summary of responses published.
-
We have extended the deadline to 11 August 2023 to allow more time for responses.
-
First published.