Hydrogen Allocation Round 2 (HAR2): due diligence and cost assurance
A cost-reduction challenge to projects shortlisted for the Hydrogen Allocation Round 2, and guidance / forms for the due diligence and cost assurance process.
Documents
Details
These templates and guidance are for projects shortlisted for the next stage of the HAR2 process.
Cost challenge: guidance for shortlisted projects on being cost competitive
The Cost Challenge document sets out a cost-reduction challenge. This underscores the government’s commitment to driving down hydrogen production costs and ensuring the affordability of hydrogen through the HAR programme.
Shortlisted projects should show clear and measurable plans to achieve as low a hydrogen production cost as possible, taking in to account project configuration. They should aim to achieve lower average hydrogen production costs than in HAR1.
Due diligence and cost assurance guidance and supporting documents
A shortlisted project will need to pass a rigorous due diligence stage in order to progress to the next stage of the allocation process. Our decisions on which projects will be successful will be based on value for money and affordability.
The due diligence and cost assurance guidance is for projects participating in the process. Alongside it we have published:
- Request for Information (RFI) template - this is to check the progress made since the original submission and gather more information to address any areas of concern highlighted during previous assessments
- Financial Statement Form – financial information which will be used alongside information in the RFI template to understand the financial health of the entity/(ies) being assessed
- Project Datasheet (April 2025) - key information about the project, including estimated production costs, offtaker information and hydrogen production volumes