Oil & Gas News – Early January 2025
Estimated reading time 1 minute
The Low Carbon Contracts Company (LCCC) has signed the first three contracts for hydrogen production projects in the UK, kickstarting the nation’s low-carbon hydrogen economy.
With a combined capacity of 31.8 megawatts (MW), these contracts are part of the UK Government’s strategy to support clean hydrogen production, reduce emissions and foster regional economic development.
These contracts fall under the Hydrogen Production Business Model Scheme’s Allocation Round 1 (HAR1), the UK’s first structured framework to provide long-term revenue support for hydrogen producers. This framework, adapted from the successful Contracts for Difference (CfD) scheme for renewable electricity, is designed to lower investment risks and accelerate the development of the hydrogen economy.
