Net Zero Hydrogen Fund Competitions

News article

Development and capital funding for businesses undertaking projects in the UK for new low carbon hydrogen production facilities

The Department for Business, Energy and Industrial Strategy (BEIS) has launched The Net Zero Hydrogen Fund (NZHF), worth up to £240 million.

The NZHF will provide capital and development expenditure to support the commercial deployment of new low carbon hydrogen production projects. The aim is to ensure the UK has a diverse and secure decarbonised energy system to meet the Government's ambitions of reaching net zero by 2050 and 10 gigawatts of low carbon hydrogen production by 2030.

The first two strands of the programme will be delivered by Innovate UK.

Strand 1 - Development Expenditure (DEVEX)

This competition will support DEVEX costs for front end engineering design (FEED) and post-FEED studies, aiming to build the pipeline of hydrogen production projects and measurably move them closer to deployment. The competition supports multiple hydrogen production pathways. Industrial research projects will be funded to support preparation for deployment.

Strand 1 applications will stay open until 11:00 on Wednesday 22 June 2022.

Find out more about NZHF Strand 1 and how to apply.

Strand 2 - Capital expenditure (CAPEX)

This competition will provide CAPEX to support low carbon projects to take a Final Investment Decision (FID). Projects must not require support from a hydrogen business model. The competition supports multiple hydrogen production pathways. Capital projects which do not require support from a Hydrogen Business Model will be funded. Projects project must address low carbon hydrogen production opportunities and must focus on construction of new low carbon hydrogen production facilities.

Strand 2 applications will stay open until 11:00 on Wednesday 6 July 2022.

Find out more about NZHF Strand 2 and how to apply.

Eligibility

The competitions are open to single applicants and collaborations, carrying out projects in the UK. To lead a project or work alone the organisation must be a UK registered business of any size. Companies involved in the construction of low carbon hydrogen production projects, and those that are looking for development support for low carbon hydrogen production projects, will qualify.

To collaborate with the lead, applicants must be a UK registered business of any size, academic institution, research and technology organisation (RTO), charity, not-for-profit or public sector organisation.

Strands 3 and 4 will be delivered by BEIS:

  • Strand 3: CAPEX for projects that require a hydrogen business model (HBM) and sit outside of the Phase 2 cluster sequencing process.
  • Strand 4: CAPEX for carbon capture usage and storage (CCUS) enabled projects that require a hydrogen specific business model and are part of the Phase 2 cluster sequencing process.

Net Zero Hydrogen Fund Briefing Event

Innovate UK and KTN will be hosting an online competition briefing webinar on behalf of BEIS at on 09:30 26 April 2022 to share details of strands 1 and 2 of the NZHF - find out more and register to attend.


First published 22 April 2022