Green hydrogen is produced through electrolysis of water using renewable electricity rather than blue hydrogen extracted from fossil fuels.

Under the new deal to produce clean energy, the Government has agreed a guaranted price for the gas in return for a £400m investment in new plants over three years by project backers.

This represents the largest number of commercial scale green hydrogen production projects announced at once anywhere in Europe, helping to place the country at the forefront of this emerging industry.

The projects will create more than 700 construction jobs and deliver 125MW of new hydrogen for businesses.

Among these, Sofidel paper mill in Port Talbot, South Wales and InchDairnie Distillery in Scotland will both switch to hydrogen power.

PD Ports in Teesside will use hydrogen to replace diesel in their vehicle fleet decarbonising port operations from 2026.