Hydrogen Allocation Round 2: market engagement
Read the full outcome
Detail of outcome
This government response summarises feedback received via the market engagement exercise and confirms:
- we have opened up the eligibility criteria to support additional non-electrolytic technologies, namely waste / biomass gasification and gas splitting producing solid carbon technologies
- the 4 evaluation criteria against which projects will be assessed:
- deliverability
- cost
- economic benefits and supply chain development
- wider electricity system impacts
- the role of CAPEX support
- how government will take projects forward to the Agreeing an Offer stage, alongside the possible use of portfolio factors such as capacity, location and/or operating model to shortlist projects in the event of oversubscription to the round
Alongside this response, we have published application guidance setting out the key criteria for HAR2:
Detail of feedback received
This 6-week industry engagement period on the proposed design and delivery of the second Hydrogen Allocation Round included:
- 3 workshops which were attended by 63 stakeholders
- this market engagement exercise which received 48 written responses
Original consultation
Consultation description
We鈥檙e seeking views on the proposed design of the second Hydrogen Allocation Round (HAR2) that will allocate funding to low carbon hydrogen projects.
HAR2 will award contracts of up to 750MW capacity (since increased to up to 875MW), subject to affordability and value for money. The aim is to deliver up to聽1GW聽of electrolytic hydrogen production capacity in construction or operation by 2025.
It seeks views and information on the following:
- proposed eligibility and evaluation criteria
- project requirements
- proposed delivery approach
- co-locating with a government-subsidised renewable electricity source
The document also sets out an indicative timeline for the round.
See the DESNZ consultation privacy notice.
Upcoming events
Launch briefing event, 25 May 2023
The Department for Energy Security and Net Zero will hold a launch briefing event on the HAR2 market engagement document and the call for evidence on competitive allocation.
The event is online via Teams, and takes place on Thursday聽25 May, 11.30-12.30.
Workshops
In addition we will hold 3 workshops to give you the opportunity to submit your views about the design of HAR2.
The workshops will focus on:
- eligibility and evaluation criteria
- the role of capital expenditure support (CAPEX)
- other topics within the market engagement document
All workshops will aim to cover all questions presented in the market engagement document, with the first workshop (8 June) focusing more on the market engagement questions on non-electrolytic technologies.
The registration deadline for all the workshops is 2 June, 11:59pm.
Register your interest for the workshops here:
- 8 June 2023:
- 13 June 2023:
- 20 June 2023:
The registration form asks for basic information about your project and whether you鈥檙e interested in applying, to help us plan resourcing for HAR2. We reserve the right to limit attendance where workshops are oversubscribed.
Documents
Updates to this page
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We have published the government response to this Market Engagement.
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First published.