Net Zero Hydrogen Fund strands 1 and 2: Round 2 open to applications

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:

• strand 1, closing 31 May 2023
• strand 2, closing 7 June 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 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’.