UK| The UK government is preparing a second €69.8M tender for a low-carbon hydrogen supply solutions

21 June 2021

The UK government is preparing a second tender aims to provide funding for projects that can help develop a wide range of innovative low-carbon hydrogen supply solutions. According to an information published on the Department for Business, Energy and Industrial Strategy (BEIS) website up to £60 million (€69.8 / $82.8 million) will be made available to fund feasibility studies and demonstration projects.

The 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 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.

UK government proposes that the competition will be delivered via 2 streams.

Stream 1

Stream 1: Phase 1 – Feasibility (up to £6 million, technology readiness level: 4 to 6)

It is proposed that Stream 1: Phase 1 will support development of feasibility studies, valued at up to £300,000 per project. This phase will support development of the project team’s understanding of the core and ancillary technology, the performance of the technology, the market potential, the route to market (including competition) and costs and delivery plan for Phase 2.

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.

Stream 1: Phase 2 – Demonstration (up to £24 million)

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 is expected to be run over a single phase as outlined below.

Stream 2

Stream 2: Demonstration (up to £30 million, technology readiness level: 6 and 7)

It is proposed that Stream 2 supports projects across all four of the Stream 1 categories that are closer to market. 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.

Expression of interest

The Expression of Interest window has now closed, but it is still possible to apply for this competition even if you have not expressed an interest.

Contact: nzip.hydrogen@beis.gov.uk

 


Author: KS / Source: UK Government / Photo: Unsplash