BEIS Hydrogen Supply Competition
Fund Name: Hydrogen Supply Competition
Project Length: Phase 1 should be complete by July 2019
Project Value: Share of £20m
The Programme will seek to identify and demonstrate bulk low carbon hydrogen supply solutions, which have the potential to be replicated at significant scale in identical or similar applications, that can meet the challenges of supplying the gas grid, industry, power, transport and upgrading our import terminals to be able to handle hydrogen (or hydrogen carrier). The Programme will be technology-neutral, however, it will take a portfolio approach to funding a range of solutions.
Phase 1, Feasibility studies (total budget of up to £5m, up to £500k contract for each study)
- An assessment of the market size and export opportunities for the technology for bulk low carbon hydrogen supply.
- A detailed engineering design for each hydrogen supply solution, against which an assessment could be made on a number of metrics. These are likely to include: capital and operating costs, process risks (reliability), the availability and the impact of variable demand, the hydrogen quality, the potential to mitigate greenhouse gases, the build rate, and how the process could be scaled. Process modelling or small-scale trials may also be required to verify the design, the use of modelling or demonstration to support the hydrogen supply solution will be assessed under criterion 4: project financing.
- A detailed development plan for each solution describing the key development steps to commercialisation, including the key barriers and risks. This should include a detailed focus on the component(s) to be piloted in Phase 2. Each step will be costed.
- A detailed assessment of the business plan on how the process will continue to be
developed after the funding for the pilot ends.
Phase 2, Pilot demonstration (total budget of up to £15m, up to £7.5m contract for each
Phase 2 is for projects that have been down-selected from Phase 1, based on the information contained in their Feasibility Study. This phase will result in the implementation and demonstration of a hydrogen supply solution and will consider applications to pilot key components or further develop the design of the new hydrogen supply solutions. A pilot demonstration is not limited to a physical demonstration and may only be for part(s) of the process. This could include detailed process modelling or engineering design. The Phase 2 demonstration projects will be selected based on the feasibility studies submitted for Phase 1 – no completely new applicants will be able to enter the Competition at Phase 2, although some variation in project partners may be permitted.
- BEIS expects to fund projects that will result in the accelerated development of a novel bulk ow carbon-hydrogen supply solution which will enable lower system costs compared with the existing solutions at Technology Readiness Levels (TRLs) 4 to 7.
- The activities for any feasibility study or demonstration project procured in this competition must be conducted largely in the UK.
- Phase 1 Feasibility Studies should be completed by July 2019
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