Net Zero Hydrogen Fund – Strand 2 – Capital expenditure (CAPEX)

Funding source


Available funding

Project length

Link to apply

Net Zero Hydrogen Fund (NZHF)

13 July 2022, 10:00:00

up to £30 million

6 to 27 months

Net Zero Hydrogen Fund – Strand 2 – Capital expenditure (CAPEX)


The objective of the funding is to ensure the UK has a diverse and secure decarbonised energy system fit for meeting the UK’s ambition of up to 10 GW of low carbon hydrogen production by 2030, and a commitment to reach net-zero by 2050.
Your project must not require support from a hydrogen business model (these projects are covered in Strands 3 and 4 of the NZHF). This competition supports multiple hydrogen production pathways where projects address low carbon hydrogen production opportunities. Projects must focus on construction of new low carbon hydrogen production facilities.
The expectation for credible projects is to utilise one of the following hydrogen production types:
• Electrolysis
• Methane reforming
• Gasification

Preference will be given to establishing a portfolio of projects, across the competition, based on:
• Geographical location
• Project scale and replicability
• Project cost and funding available
• Project timescales
• Hydrogen production technology type
• Hydrogen production commercial readiness
• Alignment with and contribution to wider cross-economy decarbonisation
• Environmental impacts
• Use of additional low carbon electricity
• Affordability considerations, for example, longer term cost to the taxpayer
• Projects awarded funding through related BEIS and UKRI competitions
• Offtaker type

This will support the twin-track approach to hydrogen production as outlined in the UK Hydrogen Strategy.