Published 18 May 2022
Last updated 11 April 2023 — See all updates
Net Zero
Hydrogen Fund: Strand 1 Development Expenditure Round 2 (link to
Innovation Funding Service page)
Net Zero
Hydrogen Fund: Strand 2 Capital Expenditure Round 2 (link to
Innovation Funding Service)
Cost Annex for question 12, NZHF
Strand 2 competition
Details
The Net Zero Hydrogen Fund (NZHF), worth up to £240
million, funds 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 provides 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 provides 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 2
The second application round for strands 1 and 2 opened on 11
April 2023:
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.
Get support
UKRI Innovate UK
delivers 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’.
