A group of major UK companies are planning to build green hydrogen projects totalling 1 gigawatts (GW) of capacity by 2030, the so-called HySpeed consortium announced this week.

The consortium, made up of industry majors including, Centrica, Heidelberg, ITM Power, JCB, Johnson Matthey and National Gas, says Project HySpeed will see £6.5 billion ($8.6 billion) in combined investment. The consortium is led by HydraB Power, the holding company of firms such as Hygen, Ryze, Hycap and Wrightbus.

The initiative will involve building around 16 plants across the UK, according to the project’s website. Of these, 11 plants will be under 50 megawatts (MW) in size, two between 50 MW and 300 MW, and two over 300 MW. The hydrogen is planned to be supplied to mobility, manufacturing, green chemicals production, construction equipment, and industrial gas users through the gas grid.

“We are confident that we can achieve a strike price below £6/kilogram (kg),” a spokesperson for the consortium tells Kallanish.

The developers are eying production sites close to areas of “intense” industrial demand to minimise transportation costs, the spokesperson adds. While no specific sites have been selected, “coastal sites, and geographically prime locations such as the north of England and Scotland” are under consideration.

“The scale and ambition of this project has the potential to dramatically lower costs, making hydrogen roll-out affordable for government and the private sector alike,” comments Chris O’Shea, group ceo of energy giant Centrica.

Dennis Schulz, the ceo of ITM Power, adds a consortium approach between industry players is the “most effective pathway” to ramp up the UK’s green hydrogen economy.

The announcement comes on the heels of the UK government shortlisting 27 projects for the second round of its green hydrogen subsidy scheme.