The Hydrogen Allocation Round 1 (HAR1) is the UK government's flagship program to accelerate the development of low-carbon hydrogen production capacity. Launched in 2022, HAR1 represents a critical step in the UK's journey toward net-zero emissions by 2050.
Purpose and Objectives
HAR1 was designed to:
- Stimulate Investment: Provide long-term revenue support to make hydrogen production projects financially viable
- Scale Production: Support the development of large-scale hydrogen production facilities
- Decarbonize Industry: Enable industrial sectors to transition from fossil fuels to clean hydrogen
- Build Supply Chains: Create a foundation for a domestic hydrogen economy with associated infrastructure
- Meet Targets: Support the UK's goal of 10 GW of low-carbon hydrogen production capacity by 2030
How HAR1 Works
The HAR1 scheme operates through a competitive allocation process:
- Application Phase: Projects submit detailed proposals including technical specifications, financial models, and development timelines
- Evaluation: Government assesses projects based on criteria including value for money, technical feasibility, and strategic importance
- Shortlisting: Promising projects are shortlisted for contract negotiations
- Contract Award: Selected projects receive long-term revenue support contracts (typically 15 years)
- Development: Projects proceed to construction and operation with government support
Support Mechanism
HAR1 uses a Contract for Difference (CfD) style mechanism, where:
- Projects receive a guaranteed price for hydrogen production
- The difference between the market price and the strike price is subsidized
- This provides revenue certainty and reduces investment risk
- Support is typically provided for 15 years from project start
Project Types
HAR1 supports both:
- Green Hydrogen: Produced via electrolysis using renewable electricity (wind, solar)
- Blue Hydrogen: Produced from natural gas with carbon capture and storage (CCS)
Both pathways are eligible, reflecting the UK's strategy to rapidly scale hydrogen production using available technologies while transitioning toward fully renewable production.
Strategic Importance
HAR1 is strategically important because:
- It represents the UK's first major commitment to scaling hydrogen production
- It demonstrates government support for the hydrogen economy
- It creates a template for future allocation rounds (HAR2, HAR3, etc.)
- It positions the UK as a leader in hydrogen development
- It enables industrial clusters to decarbonize using hydrogen
Current Status
As of November 2025, HAR1 has:
- Selected 11 projects for contract awards (projects are shown in the interactive map below)
- 10 projects have signed contracts (signed in July 2025)
- HyBont has not yet signed its contract
- Total supported capacity of approximately 125 MW
- Projects located across England, Scotland, and Wales
- 2 projects paused in September 2025: Cromarty Hydrogen and Whitelee Green Hydrogen (both by ScottishPower)
- Storegga is actively seeking new partners to move Cromarty Hydrogen forward
Key Takeaway
HAR1 is the foundation of the UK's hydrogen economy, providing the first wave of large-scale production capacity needed to decarbonize industry and create a sustainable hydrogen supply chain.