Policy record
Net Zero Hydrogen Fund (NZHF) — Strand 1 (DEVEX) and Strand 2 (CAPEX)
JurisdictionGBR
Legal statusexpired
RelevanceCore
InstrumentRd funding
Effective2022-01-01
Policy details
SummaryA £240 million capital grant programme (2022–2025) administered by UKRI Innovate UK on behalf of DESNZ, providing two strands of support: Strand 1 funds development expenditure (FEED and post-FEED studies) to grow the project pipeline; Strand 2 provides capital expenditure grants for projects that can deploy without needing the full HPBM revenue support model.
Key thresholdsTotal fund: up to £240 million (2022–2025). Strand 2 CAPEX: maximum grant funding intensity 20% of eligible construction costs. Projects must meet the Low Carbon Hydrogen Standard (20 gCO2e/MJLHV). Projects eligible under Strand 2 are those that can reach construction rapidly without hydrogen-specific revenue support. Round 2 of both strands was open; programme closed to new applications by 2025.
Support valueUp to £240 million total across the fund period; Strand 2 CAPEX maximum 20% of project construction costs per project.
Practical implicationThe NZHF is now closed to new applications, so developers no longer have access to this capital grant route and must rely on the HPBM/HAR revenue support mechanism or the CCUS-enabled hydrogen business model for public funding.
Official source
9 sourced values · 0 earlier records
| Source | Publisher | Link checked |
|---|---|---|
| Open official source ↗ | www.gov.uk |