Submissions open for electrolytic hydrogen allocation round

Hydrogen

The government is calling for applications for its joint allocation round for electrolytic hydrogen projects.

Launched on 20 July, the 2022 HBM/NZHF Electrolytic Allocation Round is aiming to support at least 250MW, with projects able to apply for Hydrogen Business Model (HBM) revenue support only, or joint HBM revenue support and CAPEX support through the Net Zero Hydrogen Fund (NZHF). The deadline for submissions is 11:59PM on 7 September.

The government hopes the Electrolytic Allocation Round will help to contribute to a wide range of benefits by 2030, including progress towards the 2030 10GW ambition; emissions reductions under the fourth and fifth carbon budgets; decarbonisation of the existing UK hydrogen supply; and lower cost hydrogen production, driven by learning from early projects, mature markets and technology innovation.

Other potential benefits realised through the round could be an end to end hydrogen system with a diverse range of users; and the promotion of UK economic growth and opportunities, including jobs. The government is also hopeful that the process will provide system benefits, where electrolytic hydrogen production can help with balancing through offering flexible demand and energy storage to help integrate increasing levels of renewables.