Hydrogen Business Model and Net Zero Hydrogen Fund Electrolytic Allocation Round 2022
Revenue and capital expenditure support available for low carbon hydrogen production projects
The Department for Business, Energy & Industrial Strategy (BEIS) has launched a call for submissions to the 2022 Hydrogen Business Model and Net Zero Hydrogen Fund Electrolytic Allocation Round.
Hydrogen will play a vital role in delivering the United Kingdom’s commitment to reach net zero by 2050.
The UK is aiming to develop up to 10GW of low carbon hydrogen generation by 2030, subject to affordability and value for money, with the intention that at least half of this will be from electrolytic hydrogen, drawing on the scale up of UK offshore wind, other renewables, and new nuclear.
The Energy Security Strategy sets out the ambition to support up to 1GW of electrolytic hydrogen being in construction or operational by 2025. BEIS aims to run yearly electrolytic allocation rounds for the Hydrogen Business Model (HBM) and move to price-competitive allocations by 2025 as soon as market conditions and legislation allow.
BEIS hopes to support at least 250MW via this first allocation round. BEIS proposes that projects can apply for HBM revenue support only, or they can apply for joint HBM revenue support and capital expenditure support through the Net Zero Hydrogen Fund (NZHF).
Eligibility and scope
Low carbon hydrogen production facilities should be located entirely in the UK, and the application should be made by a UK registered business. Only new build low carbon hydrogen production facilities are eligible to apply in this round.
Projects must use core production technology that has been tested in a commercial environment, with a technology readiness level of 7 or more.
Find more information for applicants including full eligibility details and how to apply.
To be considered you must submit an Expression of Interest on behalf of your project by Wednesday 7 September 2022.
Final application documents will then need to be submitted by Wednesday 12 October 2022.
Online engagement sessions
BEIS is hosting engagement sessions to ensure projects have a clear understanding of government’s criteria and objectives in the Electrolytic Allocation Round and how to complete an application, on:
- Thursday 25 August 2022, 9.30am to 11.00am
- Wednesday 31 August 2022, 9.30am to 11.00am
- Monday 5 September 2022, 9.30am to 11.00am
Sign up for any of these sessions.
First published 15 August 2022