Net Zero Hydrogen Fund strand 1 and strand 2 (update)

The Net Zero Hydrogen Fund (NZHF) aims to support the commercial deployment of new low carbon hydrogen production projects during the 2020s.

Net Zero Hydrogen Fund strand 1 spring 2022: questions raised with responses (updated 27 May 2022)

Net Zero Hydrogen Fund strand 2 spring 2022: questions raised with responses (updated 27 May 2022)

The Net Zero Hydrogen Fund (NZHF), worth up to £240 million, will fund the development and deployment of new low carbon hydrogen production to de-risk investment and reduce lifetime costs. Both strands are designed to support multiple low carbon hydrogen production technologies that meet the eligibility criteria.

Strand 1

Strand 1 will provide development expenditure (DEVEX) for front end engineering design (FEED) and post-FEED activities, aiming to build the pipeline of hydrogen production projects to measurably move these closer to deployment.

Strand 2

Strand 2 will provide capital expenditure (CAPEX) support for hydrogen production projects that do not require revenue support through the Hydrogen Business Model (HBM). Applicants for strand 2 must demonstrate how they will develop a credible project that will contribute to the at-scale production of low-carbon hydrogen by 2025.

Eligibility and how to apply

Strand 1

• Find out more and apply for Strand 1 competition brief.
• Strand 1 closes on 22 June 2022.

Strand 2

• Find out more and apply for Strand 2 Competition Brief.
• Find out more about the Hydrogen Emissions Calculator (Strand 2 applicants only).
• Strand 2 closes on 6 July 2022.

Get support

UKRI Innovate UK will deliver the Net Zero Hydrogen Fund on behalf of BEIS. For support please contact their customer service team.

Background

Prime Minister Boris Johnson’s 10 point plan set out our commitment to the £240 million Net Zero Hydrogen Fund to drive the growth of low carbon hydrogen. The UK hydrogen strategy, Net zero strategy, and most recent Energy security strategy and Hydrogen investment package built on this.

The investment package includes the government responses to the consultation package on the:

• Hydrogen Business Model
• Net Zero Hydrogen Fund
• Low Carbon Hydrogen Standard

The package paves the way for the opening of 2 new funding rounds for hydrogen, including the £240 million net zero hydrogen fund, which is now opens for applications, and the first electrolytic allocation round of the hydrogen business model. This allocation round will be held jointly with the net zero hydrogen fund and will open in summer.

We also published indicative heads of terms for the hydrogen business modeland the UK low carbon hydrogen standard guidance, which sets a maximum threshold for the amount of greenhouse gas emissions allowed in the production process for hydrogen to be considered ‘low carbon hydrogen’.