Notice

Net Zero Hydrogen Fund strands 1 and 2: Round 2 (closed to applications)

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

From:
Department for Energy Security and Net Zero
Published
18 May 2022
Last updated
27 February 2024 — See all updates

Documents

Net Zero Hydrogen Fund: Strand 1 Development Expenditure Round 2 (link to Innovation Funding Service page)

https://apply-for-innovation-funding.service.gov.uk/competition/1540/overview/9c2c00ea-5749-42af-abd5-c7026d0e4f64

Strand 1 clarification questions (updated 19 May 2023)

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Net Zero Hydrogen Fund: Strand 2 Capital Expenditure Round 2 (link to Innovation Funding Service)

https://apply-for-innovation-funding.service.gov.uk/competition/1541/overview/51b5d1d1-dc76-494c-9cb3-2b1dacf41199

Strand 2 clarification questions (updated 19 May 2023)

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Cost Annex for question 12, NZHF Strand 2 competition

MS Excel Spreadsheet, 178 KB

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Details

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 in April 2023 and is now closed. We have published details of the 7 successful applicants

Round 1

The first application round for strands 1 and 2 opened in April 2022 and is now closed. We have published details of 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

In 2021, the government’s 10 point plan for a green industrial revolution 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 and the first electrolytic allocation round (HAR1), jointly offering Hydrogen Production Business Model (HPBM) revenue and Net Zero Hydrogen Fund (NZHF) CAPEX support. We announced 11 successful applicants to HAR1 and the second allocation round (HAR2) launched in December 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’.

Updates to this page

Published 18 May 2022
Last updated 27 February 2024 + show all updates

  1. Link added to successful Round 2 applicants.

  2. Added latest clarification questions.

  3. Added clarification questions received to date for Strands 1 and 2.

  4. NZHF Round 2, Strands 1 and 2 now open.

  5. Link added to successful projects for Round 1 Strands 1 and 2.

  6. 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.

  7. 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'.

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

  9. Latest set of questions added with responses.

  10. Latest clarification questions added.

  11. First published.

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