Hydrogen Allocation Round 2
The second Hydrogen Allocation Round (HAR2), which will allocate Hydrogen Production Business Model support, is now open to applications.
Documents
Details
Update: 9 April 2024
We have published the latest clarification questions.
Update: 27 March 2024
We have updated the Application Guidance so that before moving to the evaluation of deliverability, DESNZ will apply a pass/ fail threshold in respect of projects’ maturity level.
To ensure consistency between the Application Guidance and the Online Application Form, we have amended the Application Guidance so that projects are only required to upload the Hydrogen Emissions Calculator for the first year of operation unless they expect a major shift in inputs within the first 3 years of operation.
Update: 14 March 2024
In order to ensure completeness and improve the clarity of the data submitted in Project Datasheets (Annex A) we have made a number of changes to the datasheet templates.
To make sure the templates meet reporting needs of all electrolytic production technologies, we have added new sections to Annex A1 - Project Datasheet (Electrolytic) that will allow us to more accurately capture information relevant to Solid Oxide Electrolysis projects.
We have also reviewed guidance sections and improved labelling to ensure we provide clear instructions on the type of data required in each section.
Please use the new versions of the templates when submitting your HAR2 applications.
The UK aims to develop up to 10GW of low carbon hydrogen by 2030, subject to affordability and value for money (VfM), with the intention that at least half of this will be from electrolytic hydrogen. Our ambition is to support up to 1GW of electrolytic hydrogen being in construction or operational by 2025.
To achieve this we plan to run yearly allocation rounds for the Hydrogen Production Business Model (HPBM).
The Hydrogen Allocation Round 2 (HAR2) market engagement government response confirms the design and delivery for this second round.
We hope to support up to 875MW of low carbon hydrogen through HAR2, but we retain the right to allocate less if not enough projects apply that meet our eligibility criteria or that provide sufficient VfM.
Application guidance and supporting documents
The Application Guidance contains detailed guidance for projects looking to apply to HAR2 for HPBM revenue support. Alongside the guidance we have published:
- Project Application Form – a series of key questions relating to the detail of the project submission, which along with the Project Datasheet will form the primary basis for government to undertake the eligibility check and score projects on the basis of evaluation criteria
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Annex A (3 versions) - Project Datasheet: requires information regarding the eligibility and evaluation criteria for HAR2. Complete the version relevant to your production technology type:
- Annex A1 - electrolytic
- Annex A2 - gasification/ pyrolysis of biomass/ wastes
- Annex A3 - gas splitting producing solid carbon production technologies
- Annex B - References Matrix: - reference all evidence submitted alongside your Project Application Form and completed templates, noting which application questions the evidence supports
Engagement sessions
We are holding a Competition Briefing Webinar to share details of HAR2 and the application process:
- register to join the Competition Briefing Webinar, 18 December 2023, 10.30-11.30 am
We will also hold 2 engagement sessions (both covering the same content) to provide information about the application form and supporting templates:
- Engagement Session, Monday 15 January 2024, 2.00-3.30 pm
- Engagement Session, Monday 22 January 2024, 2.30-4.00 pm
Register your interest to receive a link to join your preferred session.
There will be a final engagement session in February 2024 which will focus on the HAR2 process and criteria. We will share the invitation to this session with you once you have submitted your Expression of Interest - see How to apply.
How to apply
Submit an Expression of Interest
To be considered for an application to HAR2, you (as project representative) must submit an Expression of Interest (EoI) on behalf of your project:
- submit your Expression of Interest by 11:59 pm on 5 February 2024
Once you have submitted your EoI, you will be given access to the Online Application Form and the final engagement session (see Engagement sessions).
See Section 2.2 of the HAR2 Application Guidance for further information.
Submit your application
You (as project representative) must submit your application, with all the required supporting evidence, by 23:59 on 19 April 2024.
The application submission window will open at 00.01 on 6 February 2024. Applications submitted before this date will not be considered.
Update: 22 December 2023
The Hydrogen Production Revenue Support (Directions, Eligibility and Counterparty) Regulations 2023 (“the Regulations”) came into force on 20 December 2023.
Following this, the Secretary of State repeats the invitation for HAR2, issued on 14 December 2023, and advises potential applicants that, following revision of the UK Low Carbon Hydrogen Standard applicable for the purposes of the Regulations, submissions will be assessed against version 3 of the Standard. This aligns the requirements in the Regulations and the HAR2 application guidance, which sets out that in order to be eligible to apply, projects must demonstrate how hydrogen production proposals are capable of meeting the requirements of version 3 of the Standard.
Contact
Contact HAR2@energysecurity.gov.uk if you have questions relating to this competition.
Last updated 9 April 2024 + show all updates
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Latest clarification questions added.
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Application Guidance updated: before moving to the evaluation of deliverability, DESNZ will apply a pass/fail threshold in respect of projects’ maturity level; projects need only upload the Hydrogen Emissions Calculator for the first year of operation, unless they expect a major shift in inputs within the first 3 years of operation (changed to be consistent with Application form).
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Latest clarification questions added.
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Annex A Project Datasheets have been updated to improve the clarity of the data submitted: new sections have been added to Annex A1 - Project Datasheet (Electrolytic), and guidance sections reviewed / labelling improved. Please use the new versions of the templates when submitting your HAR2 applications. Latest clarification questions added.
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Added latest clarification questions.
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Added latest clarification questions.
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Latest clarification questions with responses added.
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Added clarification questions.
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Updated in relation to the Hydrogen Production Revenue Support (Directions, Eligibility and Counterparty) Regulations 2023, which came into force on 20 December 2023.
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First published.