Scottish Government Emerging Energy Technologies Fund - Hydrogen Innovation Scheme

The Hydrogen Innovation Scheme is a £10 million capital funding stream of the Emerging Energy Technologies Fund, to be delivered over 4 years from 2022/23 – 2025/26.

EETF HIS is designed to support the development and demonstration of renewable hydrogen technologies and products needed to support the Scottish Government’s ambition of 5GW installed hydrogen production capacity by 2030.

The objectives of the scheme are:

• to support innovation in hydrogen production, storage and distribution technology to reduce the cost of hydrogen produced in Scotland
• to enable Scottish companies not currently active in the hydrogen sector to transition or diversify their operations to help anchor the hydrogen supply chain in Scotland
• to encourage collaboration between the private sector and academia
• to attract additional investment in Scottish hydrogen innovation activity
• to support Scottish companies to partner internationally to drive innovation and build and export Scottish capability/expertise
• to support the development and use of Scotland’s world-class test and demonstration facilities

The EETF Hydrogen Innovation Scheme is split into two streams. Stream 1 and Stream 2:

• Stream 1 will provide funding for feasibility studies or technical demonstration of hydrogen production, distribution or storage solutions at Technology Readiness Levels (TRL) 3 to 7
• Stream 2 will provide support for the development of test and demonstration facilities and equipment in Scotland

Stream 1: feasibility studies or technical demonstration

In stream 1, projects must be targeted at developing new products/solutions, improving versions or qualities of existing products/solutions, or discovering or developing new or more efficient processes of production. They will need to be able to demonstrate the core purpose to be ‘acquiring new knowledge’ per the definition in HM Treasury guidance. You can find the consolidated budgeting guidance here for capital projects.

To be eligible for funding, projects must fall within one of the three themes below:

1. Renewable Hydrogen production

Projects that support the low-cost, efficient and durable production of renewable hydrogen.

For example:

• optimisation of production technologies
• high temperature processes
• use of sea water or poor quality water
• desalination efficiency
• new materials

2. Hydrogen storage and distribution

Projects that support efficient, low-cost short, medium and long term hydrogen storage and distribution both within Scotland and for export e.g. novel hydrogen storage and distribution solutions, component innovation to reduce distribution costs, optimisation of hydrogen carrier options for export.

3. Integration

Projects that support the efficient integration of hydrogen into our energy system.

For example:

• novel solutions to improve the efficiency and optimisation of hydrogen production on the grid and as a balancing mechanism to renewable energy
• to optimise capture and use of waste heat, hydrogen separation technology, improved controls, leak detection, safety systems

Projects developing innovative solutions for end-use applications are not eligible for this first funding call.

Stream 2: development of test and demonstration facilities and equipment

Stream 2 supports the growth of Scotland’s hydrogen innovation ecosystem. It will provide capital funding to support the development of test and demonstration centres in Scotland that will act as centres for future hydrogen innovation.

This funding could cover the purchase of equipment or construction of facilities.

Eligibility and funding available is detailed here.

Stream 1 feasibility studies: £30k-£150k, up to 100% of cost can be covered, must be completed by 28th February 2024.

Stream 1 demonstration: £50k-£1.5m, up to 50% of cost can be covered, must be completed by 28th February 2026.

Stream 2 test and demonstration facilities: £100k-£2m, up to 50% of cost can be covered, must be completed by 28th February 2026.

The EETF Hydrogen Innovation Scheme is open to all public and private sector applicants. Proposals will be welcomed from consortia or organisations. To lead a project your organisation must be an organisation of any size that operates in Scotland where the project will be carried out. To collaborate with the lead, an organisation can be a business of any size, a research organisation, RTO, an academic institution or a public sector organisation.

Deadlines

Deadline for submission of all expressions of interest is 13 August 2022 at 17:00. Expressions of interest submitted after this deadline may still be considered but are not guaranteed to be included within the 22/23 funding window.

Stream 1 feasibility and demonstration – final application forms must be completed and submitted to EETF@gov.scot no later than 17:00 on 31 October 2022. No exception to submission dates can be negotiated.

Stream 2 test and demonstration facilities – final application forms must be completed and submitted to EETF@gov.scot no later than 17:00 on 30 September 2022. No exception to submission dates can be negotiated.