Net Zero Hydrogen Fund strandstrands 1 and strand2: Round 2 open to applications
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, willfunds 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 willprovides 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 willprovides 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 12
The firstsecond application round for strands 1 and 2,2 which opened inon 11 April 2022,2023:
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Round 21
AThe secondfirst application round for strands 1 and 22, willwhich openopened in springApril 2023.2022, Newhas competitionnow briefsclosed. forWe thesehave competitionspublished willthe be15 availablesuccessful here shortly.applicants.
Get support
UKRI Innovate UK willdelivers 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 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’.
Last updated
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NZHF Round 2, Strands 1 and 2 now open.
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Link added to successful projects for Round 1 Strands 1 and 2.
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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.
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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'.
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Closing date for Strand 1 changed to 23 June 2022.
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Latest set of questions added with responses.
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Latest clarification questions added.
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First published.