HySupply 2 competition winners to receive £60M government funding

Companies at the forefront of hydrogen development will get up to £60 million in government financing, bolstering the UK’s development of hydrogen as a cost-effective, clean, and domestic energy source.

The Low Carbon Hydrogen Supply 2 (HySupply 2) competition has given funds to 28 projects across the UK, including Scotland, Wales, and the north of England, that are working in a variety of industries and technologies.

This will help fund research and development in the production and transportation of hydrogen, making it a more feasible and economical fuel for industry, especially energy-intensive industries that rely on expensive fossil fuels.

It will also propel the UK hydrogen sector forward by lowering prices, introducing innovative solutions, and ensuring that the UK continues to develop world-leading hydrogen technology right here at home.

The following projects are among the 28 HySupply 2 winners:

ITM Power, located in Yorkshire, has been granted over £9.2 million to create a next-generation 5MW electrolyzer stack, an industrial instrument that uses electricity to separate hydrogen from oxygen in a vat of water. ITM is working to deliver the lowest-cost green hydrogen solution to the market, based on their insights from the inaugural Hydrogen Supply initiative.

Cadent Gas Limited in the West Midlands will receive £296,174 for feasibility work on purifying hydrogen that has passed through the gas system so that it may be used in vehicles such as trucks.

The National Nuclear Laboratory in Cumbria will receive £242,619 to examine and simulate technologies for producing hydrogen using the heat from nuclear reactors.

The government pledged in April’s British Energy Security Strategy to increase hydrogen capacity in the UK to 10 GW by 2030. This might result in the creation of about 12,000 jobs across the UK, as well as an increase in local energy supplies, reducing the UK’s future reliance on expensive fossil fuel imports.

Kwasi Kwarteng, the Minister of Business and Energy, said: “The British Energy Security Strategy makes it plain that we support hydrogen as a future sector in which the UK can lead the world, not only as a feasible source of clean, inexpensive indigenous energy. This financing will help us position ourselves as a worldwide hydrogen superpower by speeding up the development of this fascinating new sector.”

The Net Zero Innovation Portfolio is a fund dedicated to accelerating the commercialization of low-carbon technologies, systems, and business models.

In 2018, BEIS commissioned research that found that innovation in the hydrogen production process might significantly cut the cost of manufacturing hydrogen. HySupply 2 funding will assist industry players in achieving this aim.

Following a competitive bidding procedure, this cash was provided to firms who proved their ability to build practical and creative low-carbon hydrogen supply options.

Hydrogen is a clean energy source that is created by isolating it from other components in water or fossil fuels to generate a gas or liquid that can be burned. It has enormous possibilities for industry, home heating, and transportation.