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Net Zero Hydrogen Fund: Strand 1 Development Expenditure Round 2

Fund Name

Net Zero Hydrogen Fund: Strand 1 Development Expenditure Round 2

Project Length

6-17 months

Project Value

£80k - £10m

Deadline

31.05.2023

This competition will support development expenditure (DEVEX) costs for front-end engineering design (FEED) and post-FEED studies. The aim is to build the pipeline of hydrogen production projects and measurably move them closer to deployment.

There are two strands to this competition – this strand and Net Zero Hydrogen Fund: Strand 2 Capital Expenditure Round 2.

Check Your Eligibility

Fund details

This competition supports the following hydrogen production pathways as listed in the Low Carbon Hydrogen Standard Version 2 (LCHS v2):

  • electrolysis
  • natural gas reforming, with carbon capture and storage (CCUS)
  • biomass or waste conversion to hydrogen, with or without CCUS

If a CCUS-enabled project is unable to access a track-1 or track-2 cluster, including any expanded track-1 clusters, then Innovate UK will reserve the right to reject the application on the basis that the project does not have a clear route to market.

Your project must address low-carbon hydrogen production opportunities and must focus on FEED studies, post-FEED studies or both.

FEED studies can include:

  • equipment definition, for example, equipment data sheets, specifications
  • equipment pricing, for example, bid lists, bid packages
  • plant layout and model, for example, plot plan
  • material quantification, for example, material take-off, physical drawings
  • engineering, procurement and construction (EPC) and execution planning, for example, EPC schedule, contract plan
  • cost estimation, for example, capital costs, operating costs
  • commercial proposal, for example, cost, schedule, and performance guarantees
  • environmental impacts and mitigation

Post-FEED and pre-final investment decision (pre-FID) studies can include:

  • refinement of the outputs of FEED, particularly the cost estimates
  • planning applications

These lists are not exhaustive.

Hydrogen production projects will be able to apply for co-funding through this strand if they require DEVEX support for the cost of front-end engineering design (FEED), post-FEED expenditures, or both. Where appropriate, support will also be available for FEED and post-FEED costs for associated on-site transport and storage infrastructure.

Portfolio approach

Innovate UK want to fund a portfolio of projects, across this competition, based on:

  • geographical location
  • project scale and replicability
  • project cost and funding available
  • project timescales
  • hydrogen production technology type
  • hydrogen production commercial readiness
  • alignment with and contribution to wider cross-economy decarbonisation
  • environmental impacts
  • use of additional low-carbon electricity
  • affordability considerations, for example, the longer-term cost to the taxpayer
  • projects awarded funding through related BEIS and UKRI competitions
  • off-taker type
  • additionality of electricity and wider system benefits

This will support the twin-track approach to hydrogen production as outlined in the UK Hydrogen Strategy.

Innovate UK will not fund projects that:

  • do not focus on low carbon hydrogen production at scale and the immediate supply chains
  • produce hydrogen that is not compliant with thlow-carbonon hydrogen standard
  • have total grant requests or timescales outside the specified range and have not been approved in advance by Innovate UK

Eligibility

Your project must:

  • have a total grant request of between £80,000 and £10 million
  • start by 1 November 2023
  • end by 31 March 2025
  • last between 6 and 17 months
  • carry out all of its project work in the UK
  • intend to exploit the results from or in the UK and be able to demonstrate relevant commercial engagement
  • be using core technology that has been tested in a commercial environment, Technology Readiness Level (TRL) 7 or more
  • meet the Low Carbon Hydrogen Standard Version 2 (LCHS v2)

Up to £45 million is available for projects across strands 1 and 2 for this round of the competition. Funding will be in the form of a grant.

Talk to us today if you would like to apply for this opportunity.

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