Net Zero Hydrogen Fund – Strand 1: Development Expenditure (DEVEX)

The aim of the Net Zero Hydrogen Fund (NZHF) is to provide capital expenditure (CAPEX) and development expenditure (DEVEX). This will support the commercial deployment of new low carbon hydrogen production projects during the 2020s.

This is to ensure the UK has a diverse and secure decarbonised energy system fit for meeting our ambition of 10GW low carbon hydrogen production by 2030, and commitment to reach net zero by 2050.

Your proposal for strand 1 must demonstrate how you will develop a credible project that will contribute to the at-scale production of low carbon hydrogen by 2025. Funded projects must support the delivery of the 10GW production target by 2030 set out in the Energy Security Strategy.

Hydrogen production projects will be able to apply for co-funding through Strand 1 if they require DEVEX support for the cost of front end engineering design (FEED) or 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.

If your project requires capital expenditure, it may be more appropriate to apply for strand 2: click here for details of strand 2 (CAPEX). If you are unsure which is more appropriate, watch the recording of the Innovate UK KTN briefing from 26th April or contact Steffan Eldred.

Your project must:

• have a total grant request of between £80,000 and £15 million
• start by 1 January 2023
• end by 31 March 2024
• last between 6 and 15 months
• carry out all of its project work in the UK
• intend to exploit the results from or in the UK
• meet the Draft Low Carbon Hydrogen Standard
• be using core technology that has been tested in a commercial environment, Technology Readiness Level (TRL) 7 or more

To lead a project or work alone your organisation must be a UK registered business of any size. Any UK registered organisation can collaborate.

A business can lead on up to 2 applications, which must be materially different, and can be included as a collaborator in a further 2 applications. An academic institution or a research and technology organisation (RTO), charity, not for profit or public sector organisation can collaborate on any number of applications.

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. This competition supports multiple hydrogen production pathways.

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

Click here watch the recording of Innovate UK KTN’s briefing event held on Tuesday 26th April.

If you want help to find a project partner, contact Steffan Eldred, our Hydrogen expert.