Low Carbon Hydrogen Supply 2 SBRI Competition - Expression of Interest

Descriptions

Background The c. £60m Low Carbon Hydrogen Supply 2 (HYS2) competition is the follow-on from the highly successful Low Carbon Hydrogen Supply (HS1)[1] competition and aims to accelerate the development of a wide range of innovative low-carbon hydrogen supply solutions to enable development of a hydrogen economy compatible with net-zero targets. It is proposed that the competition will be delivered via two streams. Stream 1 will be for market entry projects. Stream 2 will be for more mature projects that can proceed quickly and play into HMG's ambitious agenda to scale-up hydrogen use as well as potentially providing a pipeline of projects for the £240m Net Zero Hydrogen Fund. 1.https://www.gov.uk/government/publications/hydrogen-supply-competition Stream 1 is expected to run over two phases as outlined below: Stream 1: Phase 1 - Feasibility (up to £6m, TRL 4-6) -TRN: 5044/04/2021 It is proposed that Stream 1: Phase 1 will support development of feasibility studies, valued at up to £300k per project. This phase will support development of the project team's understanding of the core and ancillary technology, the performance of the technology, the market potential, the route to market (including competition) and costs and delivery plan for Phase 2. Funding will be split between four categories. •Category 1 - Low carbon hydrogen production - this Category will support projects that will have some residual direct emissions even when coupled with Carbon Capture Utilisation and Storage (CCUS). •Category 2 - Zero carbon hydrogen production - this Category will support projects that do not directly produce emissions. •Category 3 - Hydrogen storage and transport - this Category will support the development of novel hydrogen storage and transport/distribution solutions (including import/export). •Category 4 - Net zero hydrogen supply solutions - this Category will support solutions aiming to decarbonise the wider energy system. Stream 1: Phase 2 - Demonstration (up to £24m) It is envisaged that Stream 1: Phase 2 will down-select projects following Phase 1 and support demonstrations with up to £6m per project. This phase will support the physical demonstration of the technology, including build, trial, decommissioning and knowledge dissemination. Companies will also develop technical and business plans for market deployment. Stream 2 is expected to be run over a single phase as outlined below: Stream 2: Demonstration (up to £30m, TRL 6/7) - TRN: 5045/04/2021 It is proposed that Stream 2 supports projects across all four of the Stream 1 categories that are closer to market. This could support demonstration of projects with up to £10m per project available to demonstrate the hydrogen supply opportunities. This includes build, trial, decommissioning and knowledge dissemination. Incubation support will be available for successful small and medium sized enterprise (SME) awardees who are the lead partner in receipt of funding.