The aim of the Net Zero Hydrogen Fund (NZHF) is to provide capital expenditure (CAPEX) and development expenditure (DEVEX). This will support the commercial deployment of new low carbon hydrogen production projects during the 2020s.
This is to ensure the UK has a diverse and secure decarbonised energy system fit for meeting our ambition of 10GW low carbon hydrogen production by 2030, and commitment to reach net zero by 2050.
The NZHF will deliver up to £240 million via four strands as follows:
Strand 1: Development Expenditure (DEVEX) support for front end engineering design (FEED) and post-FEED studies, to grow the future pipeline of hydrogen projects in the UK. (This strand)
Strand 2: Capital expenditure (CAPEX) for projects that do not require a hydrogen specific business model. These are low carbon hydrogen projects that can deploy on the basis of capital expenditure support and are able to start construction rapidly.
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.
This competition relates to Strand 1 only.
Strand 2 is being delivered through a separate competition.
Strands 3 and 4 will be delivered by BEIS.
Your proposal for strand 1 must demonstrate how you will develop a credible project that will contribute to the at-scale production of low carbon hydrogen by 2025. Funded projects must support the delivery of the 10GW production target by 2030 set out in the Energy Security Strategy.
Hydrogen production projects will be able to apply for co-funding through Strand 1 if they require DEVEX support for the cost of front end engineering design (FEED) or post-FEED expenditures, or both. Where appropriate, support will also be available for FEED and post-FEED costs for associated on-site transport and storage infrastructure.
Your project’s total grant request must be between £80,000 and £15million.
Your project must:
To lead a project or work alone your organisation must be a UK registered business of any size
Academic institutions, research and technology organisations (RTOs), public sector organisations or charities cannot lead or work alone.
To collaborate with the lead, your organisation must be one of the following UK registered:
Each partner organisation must be invited into the Innovation Funding Service by the lead to collaborate on a project. Once accepted, partners will be asked to login or to create an account and enter their own project costs into the Innovation Funding Service.
Your project can include partners that do not receive any of this competition’s funding, for example non-UK businesses. Their costs will count towards the total project costs.
Subcontractors are allowed in this competition.
This competition will support development expenditure (DEVEX) costs for front end engineering design (FEED) and post-FEED studies. The aim is to build the pipeline of hydrogen production projects and measurably move them closer to deployment. This competition supports multiple hydrogen production pathways.
Your project must address low carbon hydrogen production opportunities and must focus on FEED studies, post-FEED studies or both.
FEED studies can include:
Post-FEED and pre-final investment decision (pre-FID) studies can include:
These lists are not exhaustive
We want to fund a portfolio of projects, across this competition, based on:
This will support the twin-track approach to hydrogen production as outlined in the UK Hydrogen Strategy.