Notice

Net Zero Hydrogen Fund strand 1 and strand 2

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

Documents

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

Strand 1

Strand 1 closed on 23 June 2022. Due to an error on the Innovation Funding Service (IFS) that affected certain user accounts, Innovate UK made the decision to extend the competition deadline by 24 hours to 11am on 23 June 2022.

Strand 2

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:

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 model and 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’.

Published 18 May 2022
Last updated 5 July 2022 + show all updates
  1. We've updated the strand 2 responses to reflect that we have extended the application window for an additional week. It will now close at 11am on 13 July 2022. Projects must end by 31 March 2025. We've also clarified the responses on CAPEX.

  2. Questions and responses added for Strand 1 under 'Eligibility' and 'How to apply'. Questions and responses added for Strand 2 under 'General', 'Eligibility', 'How to apply' and 'Low carbon hydrogen standard and Hydrogen emissions calculator'.

  3. Closing date for Strand 1 changed to 23 June 2022.

  4. Latest set of questions added with responses.

  5. Latest clarification questions added.

  6. First published.