Published 18 May 2022
Last updated 30 March 2023 — See all updates
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 22
June 2022)
Net Zero Hydrogen Fund
strand 2 spring 2022: questions raised with responses (updated 22
June 2022)
Details
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
Round 1
The first application round for strands 1 and 2, which opened in
April 2022, has now closed. We have published the 15 successful
applicants.
Round 2
A second application round for strands 1 and 2 will open in
spring 2023. New competition briefs for these competitions will
be available here shortly.
Get support
UKRI Innovate UK
will deliver the Net Zero Hydrogen Fund on behalf of the
Department for Energy Security and Net Zero. For support please
contact their customer
service team.
Background
The government’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,
Energy security
strategy and Hydrogen investment
package built on this.
The package paved the way for the opening of 2 new funding rounds
for hydrogen, including the £240 million net zero hydrogen fund,
which will shortly open for Round 2 of applications, and the
first electrolytic allocation round (HAR1), jointly offering
Hydrogen Production Business Model (HPBM) revenue and Net Zero
Hydrogen Fund (NZHF) capex support, for
which we have now published a shortlist. Government intends to
launch the second allocation round (HAR2) in Q4 2023.
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’.
