Hydrogen Business Model and Net Zero Hydrogen Fund: market engagement on electrolytic allocation
Read the full outcome
Detail of outcome
This government response summarises feedback received via the market engagement exercise and confirms:
- the eligibility criteria which projects must meet in order to be eligible for the 2022 Hydrogen Business Model (HBM) / Net Zero Hydrogen Fund (NZHF) Electrolytic Allocation Round
- the evaluation criteria which projects will be assessed against
- how government may use portfolio factors and integration checks to shortlist projects in the event of oversubscription to the round
- what the Agreeing an offer stage will include
Alongside this response, we have published the guidance setting out the key criteria for the 2022 Hydrogen Business Model (HBM) / Net Zero Hydrogen Fund (NZHF) Electrolytic Allocation Round. This is a key first step to kickstart the electrolytic hydrogen market in the UK.
Detail of feedback received
We ran a 4 week engagement period with industry on our proposed Hydrogen Business Model / Net Zero Hydrogen Fund Electrolytic Allocation process between 8 April 2022 and 6 May 2022. It included:
- 2 workshops which were attended by over 100 stakeholders
- this market engagement exercise which received 39 written responses
Original consultation
Consultation description
This market engagement document sets out our proposed approach to a joint Hydrogen Business Model and Net Zero Hydrogen Fund allocation process for electrolytic hydrogen projects. This is with a view to developing and refining our proposals ahead of launching the first allocation round.
The document includes:
- an indicative timeline
- proposed eligibility and evaluation criteria
- a proposed approach to agreeing an offer of support with shortlisted projects
Please use this opportunity both to express your views, and also to provide an indication of your likely interest in applying: this will help us plan resourcing for the proposed upcoming allocation round.
We expect this to be of interest to developers and investors in electrolytic hydrogen projects that require revenue support through the Hydrogen Business Model and capital grant support through the Net Zero Hydrogen Fund.
Net Zero Hydrogen Fund
Hydrogen projects that are not seeking revenue support through the Hydrogen Business Model but would still like to apply for capital expenditure (CAPEX) support should instead look to the Net Zero Hydrogen Fund (Strand 2) which opens for applications on 25 April. The Net Zero Hydrogen Fund is also inviting bids from projects seeking development expenditure (DEVEX).
Our BEIS Hydrogen Funding Landscape Infographic provides further information on funding opportunities.
Upcoming events
The Net Zero Hydrogen Fund opens Monday 25 April.
Our delivery partners are holding an online briefing event for potential applicants on Tuesday 26 April, 9.30-11.30am. It will focus on strands 1 and 2, development expenditure (DEVEX) and capital expenditure (CAPEX) support for projects that don’t need revenue support through the hydrogen business model. Find out more and register
BEIS is hosting an online event on Thursday, 21 April, 3-4pm, to provide an overview of the government responses to the consultation package. Register for the event.
Projects that wish to apply for revenue support through the Hydrogen Business Model, in addition to Net Zero Hydrogen Fund funding, will need to apply through the joint allocation round. We will hold 2 identical online workshops:
- Workshop 1, Thursday 21 April 2022: register your interest in attending by Tuesday 19 April 2022
- Workshop 2, Thursday 28 April 2022: register your interest in attending by Thursday 21 April 2022
We ask for basic information about your project and whether you’re interested in applying, to help us plan resourcing for the proposed upcoming allocation round. We reserve the right to limit attendance where workshops are oversubscribed.
Documents
Updates to this page
Published 8 April 2022Last updated 20 July 2022 + show all updates
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Government response published.
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First published.