Net Zero Hydrogen Fund: Strand 1 Development Expenditure Round 2 (UK)

Deadline: 31-May-23

Innovate UK is accepting applications for the Net Zero Hydrogen Fund: Strand 1 Development Expenditure (Round 2) to 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 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 they will reserve the right to reject their 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, performance guarantees
• environmental impacts and mitigation.

Funding Information

• Your project’s total grant request must be between £80,000 and £10 million.
• 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)

Eligibility Criteria

• Lead organisation
  • To lead a project or work alone your organisation must be a UK registered business of any size.
  • You will not be permitted to change your company structure or the lead organisation after you have submitted your application. Doing so may disqualify you from the competition.
  • Academic institutions, research and technology organisations (RTOs), public sector organisations or charities cannot lead or work alone.
  • More information on the different types of organisation can be found in their Funding rules.
• Project team
  • To collaborate with the lead, your organisation must be one of the following UK registered:
    • business of any size
    • academic institution
    • charity
    • not for profit
    • public sector organisation
    • research and technology organisation (RTO)
• Each partner organisation must be invited into the Innovation Funding Service by the lead to collaborate on a project. Once accepted, partners will be asked to login or to create an account and enter their own project costs into the Innovation Funding Service.

Ineligible

• They 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 the low carbon hydrogen standard
  • have total grant requests or timescales outside the specified range and have not been approved in advance by Innovate UK
• They cannot fund projects that are:
  • dependent on export performance, for example giving a subsidy to a baker on the condition that it exports a certain quantity of bread to another country
  • dependent on domestic inputs usage, for example giving a subsidy to a baker on the condition that it uses 50% UK flour in their product
• They will not fund the following costs for projects:
  • deposits on long lead items
  • grid connection fees
  • buying physical equipment or services necessary to deliver your project
  • financial and banking advisory costs
  • legal advisory costs
  • regulatory support costs
  • tax advisory costs
  • insurance advisory costs
  • commercial advisory costs.

For more information, visit Innovate UK.