All points on the rod are moving perpendicular to the magnetic field. Hence, all elementary small elements of the rod induce a small potential difference and the net potential difference in the rod is the integration of the potential differences along the rod.
Motional emf in a conductor moving perpendicular to the field is given by:
ε=Bvl
The potential difference across a small element of rod at a distance l from the center,
dε=Bv(dl)
But v=ωl
⇒dε=Blωdl
Hence total emf produced across the rod,
ε=∫₀ᴸB(lω)dl=1/2BωL²