The Strategic Spatial Energy Plan (SSEP) will start from a baseline, comprising network and generation included in the Clean Power 2030 Action Plan, and projects which have regulatory funding. Regulatory funding includes contracts for difference, capacity market contracts, interconnector cap and floor arrangements, funding designation through the nuclear Regulated Asset Base model or merchant interconnector approvals.

When developing the SSEP, the National Energy System Operator is considering deliverability by analysing the practical ability of developers to deliver the pathways and technology volumes recommended by the SSEP.

We understand the importance of providing clarity to businesses across the hydrogen sector, including investors and companies that may transition to hydrogen.

We plan to publish the Hydrogen Strategy, alongside a package of other policy documents, as soon as possible. This will set out Government’s vision and objectives for hydrogen, and how we intend to work with industry to continue to transform ambition into action.

In the meantime, we remain focused on delivery and are supporting projects currently in the pipeline. Successful HAR1 projects are moving to final investment decision, construction and operation phases, and a proposed funding package of £86.5m has been agreed to support ITM’s electrolyser manufacturing expansion in Sheffield.

We recognise that hydrogen will play an important but focused role in decarbonising hard‑to‑electrify industrial sectors, particularly within industrial clusters where shared transport and storage infrastructure can be developed efficiently.

The Hydrogen Production Business Model incentivises investment in new low carbon hydrogen production and encourages users to switch to low carbon hydrogen by making it a price competitive decarbonisation option.

Hydrogen has the potential to support decarbonisation and economic growth across the UK, including through low carbon dispatchable power and inter-seasonal energy storage, to help balance a renewables-based power system.

We are progressing the design of the hydrogen transport and storage business models and the first allocation round. Over the past few months, my department has held workshops for industry to present proposals for the business model design, and draft eligibility and assessment criteria for the competition.

We understand the importance of providing clarity to businesses across the hydrogen sector, including investors.

We plan to publish the Hydrogen Strategy, alongside a package of other policy documents, as soon as possible. This will set out Government’s vision and objectives for hydrogen, and how we intend to work with industry to continue to transform ambition into action.

In the meantime, we remain focused on delivery and are supporting projects currently in the pipeline. Successful HAR1 projects are moving to final investment decision, construction and operation phases, and a proposed funding package of £86.5m has been agreed to support ITM’s electrolyser manufacturing expansion in Sheffield.

We are working hard across government to start the Invite to Offer stage of the second Hydrogen Allocation Round (HAR2) as soon as possible and will be in touch with projects when this commences. Contract awards for successful projects will follow shortly afterwards.

We understand that many projects are at critical stages, and that certainty is important to support business planning, resource management and engagement with third parties.

We are working hard across government to start the Invite to Offer stage of the second Hydrogen Allocation Round (HAR2) as soon as possible and will be in touch with projects when this commences. Contract awards for successful projects will follow shortly afterwards.

We understand that many projects are at critical stages, and that certainty is important to support business planning, resource management and engagement with third parties.

The renewed Hydrogen Strategy will set out Government’s vision and objectives for hydrogen, and how we intend to work together with industry to continue to transform ambition into action. Our understanding of where hydrogen can deliver the greatest value in our energy system has matured and our strategy will set this out.

We’re now firmly in delivery mode, supporting projects that will create real jobs and growth across the UK, while contributing to the Government’s ambition to make the UK a clean energy superpower.

We plan to publish a renewed Hydrogen Strategy, alongside a package of other hydrogen policy documents as soon as possible.

We understand the importance of providing clarity to businesses across the hydrogen sector, including investors. Hydrogen is backed in the Industrial Strategy Clean Energy Industries Sector Plan as a frontier technology, with a public finance offer designed to crowd private investment into UK supply chains.

We plan to publish the Hydrogen Strategy, alongside a package of other hydrogen policy documents, as soon as possible this year. The renewed strategy will set out Government’s vision and objectives for hydrogen, and how we intend to work with industry to continue to transform ambition into action.

In the meantime, we remain focused on delivery, with projects that were successful in HAR1 now moving to the final investment decision and our recent investment in UK electrolyser manufacturing with ITM Power in South Yorkshire.

The 2024 Clean Power Action Plan identified the need for low carbon dispatchable generation technologies, such as hydrogen to power, which can replicate the role of unabated gas and provide a secure supply of electricity to support intermittent renewable generation.

For example, when combined with domestic electrolytic hydrogen production, hydrogen to power can make efficient use of otherwise curtailed electricity during periods of excess renewable generation.

Hydrogen to power can complement our renewables-based future and can be deployed at times of low renewable output or peak demand, helping to support energy security.

Growth is the number one mission of this Government, and growing the UK hydrogen sector will help create good jobs, attract investment, strengthen energy security and cut emissions. Through the first Hydrogen Allocation Round, we have already supported 11 projects expected to create over 600 direct jobs and attract over £400 million of private investment. More broadly, hydrogen is backed in the Clean Energy Industries Sector Plan as a frontier technology, with a wider public finance offer designed to crowd private investment into sustainable UK supply chains.

We have published a Cost Challenge Document which advises shortlisted projects in Hydrogen Allocation Round 2 on achieving cost-competitiveness during the due diligence stage. Projects must demonstrate value for money and justify costs across key components, with an aim to achieve lower average hydrogen production costs than seen in Hydrogen Allocation Round 1.

Hydrogen Allocation Round (HAR) 2 is currently a live round. We are working hard across government to start the Invite to Offer stage of HAR2 as soon as possible and will be in touch with projects when this commences. We understand that many projects are at critical stages, and that certainty is important to support business planning, resource management and engagement with third parties.