Ashurst Advises UK Government on Landmark Hydrogen Contracts

Global law firm Ashurst continues to advise the Department for Energy Security and Net Zero (DESNZ), as the first three of eleven landmark low carbon hydrogen production contracts under Hydrogen Allocation Round 1 (HAR1) are signed. The remaining contracts are expected to be signed in early 2025.

The private sector signatories to the contracts – the Cromarty, Whitelee and West Wales projects – represent first-of-a-kind, low carbon hydrogen production projects in Great Britain and, once operational, will have a combined capacity of 31.8MW, enabling clean hydrogen production while reducing emissions across key industries.

HAR1 is the largest single allocation of such contracts at commercial scale announced simultaneously in the UK and Europe, and Ashurst has been advising DESNZ on the wider low carbon hydrogen programme (of which HAR1 is a key part) since 2022.

Commenting, partner Anthony Johnson said: “We’re delighted to be advising DESNZ on the successful signing of these first three landmark low carbon hydrogen production contracts.

“The UK Government’s low carbon hydrogen programme will play a pivotal role in advancing the UK’s journey to Net Zero, so this is an extremely exciting programme to be supporting.”

Partners Anthony Johnson and Harvey Weaver are leading the Ashurst team who is advising DESNZ in relation to HAR1 and the associated low carbon hydrogen production contracts.

This follows the closing of UK’s first CCUS projects, announced earlier in December 2024.

This latest updates comes after The East Coast Cluster in Teesside – a scheme that will capture and store carbon emissions from industries in the region – announced at the end of last year that it is set to start construction in mid-2025.

Ashurst has been advising the UK Government on the development and implementation of the CCUS programme since 2020.

Philip Vernon, partner at Ashurst, said at the time: “We are very pleased to have advised DESNZ on bringing these first two East Coast Cluster projects to close – this is the culmination of years of work with DESNZ to help develop business models for private sector investment.”

The Ashurst team advising DESNZ on the different aspects of the CCUS programme are being led by partners Philip Vernon, Anthony Johnson, Harvey Weaver and Alex Biles.