Net Zero Hydrogen Fund IUK Competitions

Closing Date: 22/06/2022

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

The Net Zero Hydrogen Fund (NZHF) is providing capital and development expenditure to support the commercial deployment of new low carbon hydrogen production projects during the 2020s. The aim is to ensure the UK has a diverse and secure decarbonised energy system, fit for meeting the ambition of 10GW low carbon hydrogen production by 2030, and the Government’s 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)
  • Strand 2: Capital expenditure (CAPEX)
  • 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.

Strand 1 Development Expenditure (DEVEX)

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. IUK will fund industrial research projects to support preparation for deployment. Projects must address low carbon hydrogen production opportunities and must focus on FEED studies, post-FEED studies or both.

Strand 2 Capital expenditure (CAPEX)

This competition will provide capital expenditure (CAPEX) to support low carbon projects to take a Final Investment Decision (FID) and begin deployment in the early 2020s. Projects must not require support from a hydrogen business model (these projects are covered in Strands 3 and 4 of the NZHF). This competition supports multiple hydrogen production pathways. IUK will fund capital projects which do not require support from a Hydrogen Business Model. Projects project must address low carbon hydrogen production opportunities and must focus on construction of new low carbon hydrogen production facilities.

Strands 3 and 4 will be delivered by BEIS.

Funding body Department for Business, Energy & Industrial Strategy (BEIS)
Maximum value £30,000,000
Reference ID S48427
Category Business Support
Energy
Environment
Research & Development
Fund or call Fund