UK secures landmark deal for green hydrogen, securing $12 per kg supply for 15 years through pioneering production agreements.

The UK government has signed its first subsidized green hydrogen production contracts, guaranteeing a price of $12 per kilogram (kg) for 15 years. The contracts, considered a “landmark” in the UK’s low-carbon transition, will support the development of three hydrogen projects. The agreements aim to promote the production and use of hydrogen, a key component in the government’s plans to reach net zero emissions by 2050. Industry minister highlighted the importance of hydrogen, stating it must be “at the heart” of growth plans. The UK’s Hydrogen Strategy has been updated to reflect the new contracts, which will support the development of hydrogen-fired power plants. The subsidized deals will help to stimulate the growth of the UK’s hydrogen industry, with the aim of reducing emissions and promoting sustainable development.