The proposed Low Carbon Hydrogen Supply 2 Competition aims to support innovation in the supply of hydrogen, reducing the costs of supplying hydrogen, bringing new solutions to the market, and ensuring that the UK continues to develop world leading hydrogen technologies for a future hydrogen economy. It follows on from the first Low Carbon Hydrogen Supply Competition. The competition forms part of the Net Zero Innovation Portfolio (NZIP).

Up to £60 million will be competitively awarded to projects that can help develop a wide range of innovative low-carbon hydrogen supply solutions.

It is proposed that the competition will be delivered via two streams.

Stream 1

Stream 1 is expected to run over two phases.

Phase 1 will support the development of feasibility studies with technology readiness levels between 4 and 6, valued at up to £300,000 per project.

Phase 2 will down select projects from Phase 1 and support demonstrations at up to £6 million per project.

Funding will be split between four categories.

Category 1: low carbon hydrogen production

This category will support projects that will have some residual direct emissions even when coupled with Carbon Capture Utilisation and Storage (CCUS).

Category 2: zero carbon hydrogen production

This category will support projects that do not directly produce emissions.

Category 3: hydrogen storage and transport

This category will support the development of novel hydrogen storage and transport/distribution solutions (including import/export).

Category 4: net zero hydrogen supply solutions

This category will support solutions aiming to decarbonise the wider energy system.

It is envisaged that Stream 1: Phase 2 will down-select projects following Phase 1 and support demonstrations with up to £6 million per project. This phase will support the physical demonstration of the technology, including build, trial, decommissioning and knowledge dissemination. Companies will also develop technical and business plans for market deployment.

Stream 2

It is proposed that Stream 2 supports projects across all four of the Stream 1 categories that are closer to market, with technology readiness levels between 6 and 7. This could support demonstration of projects with up to £10m per project available to demonstrate the hydrogen supply opportunities. This includes build, trial, decommissioning and knowledge dissemination.

Incubation support will be available for successful small and medium sized enterprise (SME) awardees who are the lead partner in receipt of funding.

Stakeholder Engagement Day: 8 June 2021

A virtual Stakeholder Engagement Day is proposed to be held on 8 June 2021 to provide applicants the opportunity to understand more about the competition and to ask questions.

To secure a place, please select this option in the expression of interest form. You must register for the event by noon on 7 June 2021.