Lhyfe’s Green Hydrogen Production Projects Shortlisted by UK Government

Decarbonization Lhyfe’s Green Hydrogen Production Projects Shortlisted by UK Government

2025-04-09 Source: Press release Lhyfe 2 min Reading Time

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Both of Lhyfe’s 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.

Newcastle/UK – Lhyfe has recently announced 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 (HAR2), 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 decarbonization 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.

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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.

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.”

The implementation of these projects is subject to final agreements with the UK Government, the granting of operational and environmental permits, building permits, and to a financial investment decision.

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