Hydrogen Allocation Round 1 (HAR1)
DESNZ · DESNZ_0334_2324-Q3
Department page: Department for Energy Security and Net Zero
| Data as at | Rating | End date | Whole-life cost |
|---|---|---|---|
| March 2024 | Amber (the department's own assessment) | 30 June 2042 | £2,366m (price basis not stated) |
| March 2025 | Amber (the department's own assessment) | 30 June 2042 | £2,366m (price basis not stated) |
| March 2026 | Amber (the department's own assessment) | 30 June 2042 | £2,461.71m (in 2024/25 prices) |
Each year’s cost is shown with its price basis. Costs are not compared between years: the March 2024 and March 2025 reports state no price basis, and from March 2026 costs are in 2024/25 prices.
The department’s commentary
This is the department’s own commentary. It may use different prices from the table above, so its figures may not match.
March 2026
Rating: Compared to financial year 24/25 Q4, the NISTA/SRO Delivery Confidence Assessment (DCA) rating at 25/26 Q4 remained at Amber. This is primarily due to the following factors: 11 Projects have signed contracts. Although 1 project withdrew (Whitelee), the remaining 10 projects continue to progress to either reach FID and subsequently COD or are imminently about to reach COD (HyMarnham April 2026). Remaining projects are expected to reach COD between August 2027 and August 2029 but this is due to external factors to DESNZ. These timeframes are also subject to projects individual circumstances and may change. There have been some projects requiring NZHF grant funding in the next financial year as opposed to 25/26 and relevant documentation has been completed to account for this. We are working with projects and LCCC to ensure DESNZ can support the continual progression of projects to reach COD.
Schedule: Compared to financial year 24/25-Q4, the project's end-date at 25/26-Q4 remains as 2042
Cost: WLC are £2461.71m in Real Prices 24/25 as calculated by NISTA based on £2366m (DESNZ Real Prices Calendar Year 2023)
March 2025
Rating: Compared to financial year 23/24-Q4, the Infrastructure Project Authority's Delivery Confidence Assessment rating at 24/25-Q4 remained at AMBER. This is primarily due to the following factors‚ All 11 projects announced in Dec-23 remain in the process. The counterparty - Low Carbon Contracts Company (LCCC) is in the process of offering contracts to producers. Four projects have been agreed and contracts have been signed. For the remaining seven projects, we expect contract signature to take place by April/May. The first project is expected to reach commercial operational delivery by June 2025. The HAR1 funding mechanism, the Gas Shipper remains a key delivery enabler. The GSO consultation was published in January 2025 and the consultation period will close on 9 April 2025. DESNZ anticipate publishing the government response in December 2025 and expect the GSO to be operational in 2027.
Schedule: Compared to financial year 23/24-Q4, the project's end-date at 24/25-Q4 remained at 30/06/2042. This is primarily due to the following factors‚ All 11 successful projects remain in the process and contracts are expected to be signed by Spring 2025..
Cost: Compared to financial year 23/24-Q4, the project's departmentally agreed Whole Life Cost at 24/25-Q4 (measured in £m) remained at 2366. This is primarily due to the following factors‚ HAR1 is on track to deliver the outcomes, costs profile and benefits as agreed through the Full Business Case in Nov-23 which includes: HPBM lifetime costs, NZHF lifetime Capital Expenditure and LCCC counterparty costs. Future counterparty spend is subject to DESNZ business planning process.
Source: NISTA Annual Report 2024-25 (data)
March 2024
Rating: The Senior Responsible Owner's Delivery Confidence Assessment rating at 23/24-Q4 is Amber. This is primarily due to the following factors. All 11 projects announced in Dec-23 remain in the process. The counterparty - Low Carbon Contracts Company (LCCC) is expected to offer contracts to successful projects from Summer 2024. The HAR1 scheme was published on the subsidy control transparency database on 13/02, detailing the whole life costs, and maximum amount given under this scheme. One month challenge window passed on 13/03 with no challenges being raised. Lessons learnt sessions have been completed across the last quarter on the key project phases to inform future allocation rounds and HAR1 delivery phase.
Schedule: The project's end-date at 23/24-Q4 is 2042-06-30. This is primarily due to the following factors. All 11 successful projects remain in the process and contracts are expected to be signed from Summer 2024.
Cost: The project's departmental-agree Whole Life Cost at 23/24-Q4 is 2366m. This is primarily due to the following factors. HAR1 is on track to deliver the outcomes, costs profile and benefits as agreed through the Full Business Case in Nov-23 which includes: HPBM lifetime costs, NZHF lifetime Capital Expenditure, LCCC counterparty costs from FY 22/23 - 24/25. Future counterparty spend is subject to DESNZ business planning process.
Source: IPA Annual Report 2023-24 (data)
Names, figures, dates, ratings and commentary are as the department reported them. Where a rating, cost or date is withheld, the file’s wording is shown. Every major project →