HySupply winners to receive government funding for hydrogen supply innovation

The goverment of the UK will grant $74.3 million (£60 m) to HySupply competition winners to provide funding for projects to develop innovative low-carbon hydrogen supply solutions.

The UK Department for Business, Energy and Industrial Strategy revealed in a statement that 28 projects will receive a share of the £60 million funding. The funding is to support innovation in the supply of hydrogen, making it more viable.

This funding has been awarded after a competitive bidding process to companies that demonstrated their potential to develop feasible low-carbon hydrogen supply solutions.

This funding is also to help position the UK as a world leader in this emerging industry.

28 projects across the UK, including Scotland, Wales, and the north of England, received funding through the Low Carbon Hydrogen Supply 2 (HySupply 2) competition.

This is to support research and innovation in producing and transporting hydrogen, making it a more viable and affordable fuel for energy-intensive sectors which rely on expensive fossil fuels.

It will also drive the UK hydrogen industry forward, reducing costs, bringing new solutions to the market, and ensuring that the UK continues to develop world-leading hydrogen technologies here at home.

Among the 28 winning HySupply 2 projects are:

• ITM Power based in Yorkshire has been awarded more than £9.2 million ($11.3 m) to build a next-generation five-megawatt electrolyser stack, an industrial tool which separates hydrogen from oxygen in a vat of water using electricity. ITM is seeking to bring the lowest-cost green hydrogen solution to the market.
• Cadent Gas Limited in the West Midlands received £296,174 ($366,810) for feasibility work focusing on how to purify hydrogen that has been through the gas grid to make it suitable for use in vehicles like lorries.
• The National Nuclear Laboratory in Cumbria received £242,619 (300,456) to review and model processes that can use the heat from nuclear reactors to produce hydrogen.

In the British Energy Security Strategy published in April, the government committed to boosting UK hydrogen capacity up to ten gigawatts by 2030. This would make the UK less dependent on importing expensive fossil fuels in the future.

Business and energy secretary Kwasi Kwarteng said: “The British Energy Security Strategy made clear that we are backing hydrogen not just as a viable source of clean, affordable homegrown energy but as an emerging industry of the future in which the UK can lead the world.”

“This funding will accelerate the development of this exciting new industry, helping position us as a hydrogen superpower on the global stage.”

This competition is part of the Net Zero Innovation Portfolio, a fund to accelerate the commercialisation of low-carbon technologies, systems, and business models.

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