Lhyfe has revealed that that both of its planned green hydrogen production projects in Wallsend, North Tyneside, and Kemsley, Kent, have been shortlisted under the UK Government’s Hydrogen Allocation Round 2 - a public auction system to support the production of low-carbon or renewable hydrogen.
Both facilities plan to supply green hydrogen to industrial users and transport operators in their region, contributing to decarbonisation efforts and the growth of the UK’s hydrogen economy.
Kemsley: this 80 MW onsite plant is strategically positioned in the North of Kemsley (Kent). It plans to produce up to 32 tonnes of green hydrogen per day, primarily for an industrial player in the region
Wallsend: the 20 MW facility is located on the site of the historic Neptune Bank Power Station (Wallsend, North Tyneside). It plans to produce up to 8 tonnes of green hydrogen per day.
As part of the HAR2 mechanism, the winners will receive public financial support in the form of a Contract for Difference (CfD), a mechanism that guarantees them in the very long term a fixed price for the hydrogen produced, thereby enhancing the visibility and bankability of the projects.
Lhyfe is a producer and supplier of green, renewable hydrogen throughout Europe. Its hydrogen is produced by water electrolysis, at production sites powered by renewable electricity.
Boris Davis, head of business development UK at Lhyfe, said: “We are delighted that our Wallsend and Kemsley projects have been shortlisted, given the fiercely competitive nature of the process. This demonstrates the government's confidence in Lhyfe’s ability to rapidly develop and operate high-capacity sites, and to meet the UK needs.
“We look forward to working with the Department for Energy Security and Net Zero (DESNZ) to progress at pace to the next stage and ultimately get the production sites up and running.”
Lhyfe green hydrogen projects shortlisted for further funding
