Net Zero Hydrogen Fund strand 1 and strand 2

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

RoundStrand 1

• Find out more and apply for Strand 1 competition brief.

• Strand 1 closed on 23 June 2022.

RoundStrand 2

A

• Find secondout applicationmore roundand apply for strandsStrand 12 andCompetition Brief.
• Find out more about the Hydrogen Emissions Calculator (Strand 2 willapplicants openonly).
• Strand in2 springcloses 2023.on New13 competitionJuly briefs2022 forat these11am. competitionsWe willhave beextended availablethe herestrand shortly.
  2 application window for an additional week.

Get support

UKRI Innovate UK will deliver the Net Zero Hydrogen Fund on behalf of theBEIS. Department for Energy Security and Net Zero. For support please contact their customer service team.

Background

ThePrime government’sMinister 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 pavedincludes 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 willis shortlynow openopens for Round 2 of applications, and the first electrolytic allocation round (HAR1),of jointlythe offeringhydrogen Hydrogenbusiness Productionmodel. BusinessThis Modelallocation (HPBM)round revenuewill andbe Netheld Zerojointly Hydrogenwith Fundthe (NZHF)net capexzero support,hydrogen forfund whichand wewill haveopen now published a shortlist. Government intends to launch the second allocation round (HAR2) in Q4 2023.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’.