French clean hydrogen investment firm Hy24 has entered into an exclusive partnership with Hynamics, a wholly owned subsidiary of EDF, to explore the development and financing of the proposed Fawley Green Hydrogen Project in southern England.
The ambitious 120MW project, which is already being considered for government subsidies under the UK’s Hydrogen Allocation Round (HAR), represents a major step forward for the UK’s green hydrogen economy. It would be located adjacent to ExxonMobil’s Fawley refinery, the country’s largest, which supplies more than 20% of the UK’s aviation fuel, including around a quarter of the fuel used by Heathrow Airport. Heathrow is directly connected to the refinery via pipeline infrastructure.
The project has an estimated capital cost of approximately £300 million ($407.6 million), and is expected to reach final investment decision (FID) in 2026. If successful, first hydrogen production is targeted for as early as 2029, aligning with the UK government’s mid-term decarbonisation goals.
The project has received provisional backing under the UK government’s Hydrogen Allocation Round 2 (HAR2), which provides long-term revenue support through the Hydrogen Production Business Model. This mechanism guarantees a fixed price for clean hydrogen over a 15-year contract period, helping to de-risk investments in early-stage hydrogen infrastructure.
Offtake agreements for the low-carbon hydrogen produced at Fawley are expected to include key industrial players and aviation-related infrastructure. Chief among them is ExxonMobil, whose adjacent refinery could use the hydrogen to decarbonise its operations. Additionally, Heathrow Airport is also considered a strategic downstream offtaker, potentially using green hydrogen-derived fuels in its broader decarbonisation plans for aviation.
Hy24, which specialises in large-scale hydrogen investments, and Hynamics, EDF’s low-carbon hydrogen business, will jointly lead project development, financial structuring, and coordination with public and private sector stakeholders. The partnership marks a significant milestone in scaling up green hydrogen production in the UK, in alignment with national and European climate targets.
Subject to final approvals and regulatory processes, the Fawley Green Hydrogen Project could play a key role in reducing emissions across sectors that are traditionally difficult to decarbonise, particularly heavy industry and aviation.
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