Policy record
Hydrogen Allocation Rounds (HAR) — Auction Mechanism
Hydrogen Allocation Rounds (HAR) — Auction Mechanism policy record on H2Prism, with its status, summary, checked official source, and record date.
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8 sourced values · 0 earlier records
JurisdictionGBR
Legal statusin_force
Instrumentauction
Effective2022-07-01
Policy details
SummaryCompetitive allocation rounds through which low-carbon hydrogen producers bid for 15-year HPBM revenue support contracts; bids are assessed on cost competitiveness, deliverability, and value for money, with HAR rounds running annually from 2022 through to 2030.
Key thresholdsHAR1 (2022): capacity cap 250 MW, electrolytic only, 11 projects awarded 125 MW at £241/MWh H2 weighted average. HAR2 (2024 applications): up to 875 MW, electrolytic primary focus plus gas-splitting and biomass/waste gasification; 27 shortlisted projects as of April 2025; awards targeted early 2026. HAR3 and HAR4 (2025–2026): up to 1.5 GW combined. Projects must be operational between 2026–2029 to meet 1 GW by 2025 interim milestone (revised to 2026 in practice). Maximum CAPEX grant intensity under parallel NZHF Strand 2: 20% of construction costs.
Support valueHAR1 overall portfolio: >£2 billion in revenue support. HAR2 budget not publicly disclosed; strike prices to be determined by competitive bidding.
Practical implicationWith HAR1 awarding only half the targeted capacity and HAR2 shortlisting 27 projects for awards expected in early 2026, developers face a long lead time from application to contract — securing grid connection, planning, and off-take agreements before HAR submission is critical.
Official source
| Source | Publisher | Checked |
|---|---|---|
| Open official source ↗ | www.gov.uk | 2026-08-31T17:47:03Z |