Green and renewable hydrogen producer Lhyfe has announced that it has been shortlisted under the UK Government’s Hydrogen Allocation Round 2 (HAR2) – a public auction system to support the production of low-carbon, renewable hydrogen – for the company’s planned green hydrogen projects in Wallsend and Kemsley.

The facilities at both locations will contribute to decarbonisation efforts and the growth of the UK’s hydrogen economy by supplying green hydrogen to industrial users and transport operators in each region.

The 80 MW Kemsley plant will produce about 32 t of green hydrogen power every day, and the Wallsend 20 MW facility will produce about 8 t of green hydrogen every day.

As part of the HAR2, which guarantees a long-term fixed price for hydrogen produced, the winners will receive public financial support in the form of a Contract for Difference.

“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,” says Lhyfe UK business development head Boris Davis.

Through its Lhyfe UK subsidiary, Lhyfe aims to meet the increasing demand from British companies aiming to reduce their reliance on natural gas and other fossil fuels.

With UK government support for its projects, as well as its proven unique expertise on operational or under construction sites in France and Germany, Lhyfe aims to become a major supplier of green hydrogen in the UK, boosting the country’s energy security and creating new economic opportunities.

In 2024, the group made more than 470 deliveries to almost 50 clients in eight European countries, relying on its nearly 70-strong container fleet – one of the largest modern bulk hydrogen transport fleets in Europe, which boasts a 99% service rate.

The implementation of the Wallsend and Kemsley projects is subject to final agreements with the UK government, the granting of operational and environmental permits, building permits, and financial investment decision.