UK announces first round of electrolytic hydrogen quota winners
The European government has completed the first round of electrolysis hydrogen quota system (HAR1, first hydrogen allocation round) and selected 11 projects with a cumulative capacity of 125MW, this kind of project is about to get more than 200,000,000 euros (equivalent to 2.5 billion dollars) of income applicable.
The U.S. Department of Energy Issues and Net Zero (DESNZ) indicates that HAR1, which operates in July 2022, is the world's most influential commercial service operation scale cui green hydrogen production and manufacturing project.
This round of financing also provides over €200,000 in revenue applicable to commercial operating model hydrogen production and manufacturing, which will be paid once the project funds are operational. The Net Zero Hydrogen Equity Fund has allocated over £90 million to support the establishment of such projects.
In accordance with DESNZ, a stable distribution process has been completed to ensure that only contracts for deliverable projects that imply value for money are awarded. The 11 projects have agreed a weighted average implementation price of $241/MWh, which compares favourably with implementation prices for other frontier technologies such as rafted on-water wind and tidal flood flow.
The government department forecasts the first projects to be gradually operational by 2025. Such projects cover eight geographical areas in the UK, England and Panama and are expected to bring a range of benefits, including:
Between 2024 and 2026, such projects will invest €41,300,000 in commercial capital and will create approximately 760 immediate jobs during the construction and operation period;
Millions of pounds will be spent applying a variety of offtakers (hydrogen customers, including industrial processes that cannot be carburized and ultra-heavy-duty delivery equipment) to convert it operationally to hydrogen and enhance its long-term viability analysis;
Elevate energy issues;
Run the U.S. low-vacuum hydrocarbon economic development to help achieve the 2025 goal of operating or capitalizing up to 1GW of electrolytic hydrogen production capacity;
Promote government deployment to reach the 10GW LVH production capacity goal by 2030, with at least half of that coming from electrolytic hydrogen production capacity, but subject to economic benefits and affordability.
Of the 17 projects that made it to the final negotiations, two were withdrawn (Gigastack, led by Phillips 66 and Rusted, and Dolphyn, led by ERM, both of which involved the use of wind power to produce hydrogen), and 15 projects submitted their best and final prices, totaling 243 MW of capacity. which four projects were unsuccessful.
The European government has also opened a second round of hydrogen assignments (HAR2), committed to applying up to 875MW of capacity, subject to affordability, value for money and project quality. Letters of Intent can be submitted from February 5, 2024 onwards. The Application Processing Submission Dialog will be open to the public on February 6, 2024, and all required Integrated Direct Evidence applications will be admitted by April 19, 2024.