Hydrogen will play a vital role in delivering the UK’s commitment to reach net zero by 2050.
The UK is aiming to develop up to 10GW of low carbon hydrogen generation by 2030, subject to affordability and value for money (VfM), with the intention that at least half of this will be from electrolytic hydrogen, drawing on the scale up of UK offshore wind, other renewables, and new nuclear.
The Energy Security Strategy set out our ambition to support up to 1GW of electrolytic hydrogen being in construction or operational by 2025. We aim to run yearly electrolytic allocation rounds for the Hydrogen Business Model (HBM) and move to price-competitive allocations by 2025 as soon as market conditions and legislation allow.
This guidance details our proposed approach for the first joint Hydrogen Business Model and Net Zero Hydrogen Fund allocation round. We hope to support at least 250MW via the first allocation round, although we retain the right to allocate less if we do not see sufficient projects coming forward that meet our eligibility criteria and present VfM to government.
For the 2022 HBM / NZHF Electrolytic Allocation Round, we proposed that projects could apply for HBM revenue support only, or they could apply for joint HBM revenue support and CAPEX support through the Net Zero Hydrogen Fund (NZHF).
Eligibility and scope
Low carbon hydrogen production facilities should be located entirely in the UK, and the application should be made by a UK registered business. Only new build low carbon hydrogen production facilities were eligible to apply in this round.
Projects must use core production technology that has been tested in a commercial environment, with a TRL of 7 or more.
The application guidance contains the full eligibility details.
Applications
The 2022 round is now closed to applications.
Engagement sessions
We held engagement sessions to ensure projects had a clear understanding of government’s criteria and objectives in the Electrolytic Allocation Round.
Contact
Contact electrolytic.allocation@energysecurity.gov.ukelectrolytic.allocation@beis.gov.uk if you have any questions relating to this competition.
