HAR2 is a public auction system that supports the production of low-carbon or renewable hydrogen.
Both facilities will supply green hydrogen to industrial users and transport operators in their region, contributing to decarbonisation efforts and the growth of the UK’s hydrogen economy.
Kemsley: this 80 MW onsite plant is positioned in the North of Kemsley in Kent. It plans to produce up to 32 tonnes of green hydrogen per day, primarily for an industrial player in the region Wallsend: the 20 MW facility is located on the site of the historic Neptune Bank Power Station in North Tyneside. It is to produce up to 8 tonnes of green hydrogen per day
As part of the HAR2 mechanism, the winners will receive public financial support in the form of a Contract for Difference, a mechanism that guarantees them in the long term a fixed price for the hydrogen produced.
Boris Davis, head of business development UK at Lhyfe, said: “We are delighted that our Wallsend and Kemsley projects have been shortlisted, given the fiercely competitive nature of the process. This demonstrates the government's confidence in Lhyfe’s ability to rapidly develop and operate high-capacity sites, and to meet the UK needs. We look forward to working with the Department for Energy Security and Net Zero (DESNZ) to progress at pace to the next stage and ultimately get the production sites up and running.”
The implementation of these projects is subject to final agreements with the UK government, the granting of operational and environmental permits and building permits, and a financial investment decision.