Smart Transport

Government’s cash boost for hydrogen innovation projects

Business Secretary Kwasi Kwarteng

A total of 28 hydrogen innovation projects in the UK are set to receive a cash injection as part of the Government’s Low Carbon Hydrogen Supply 2 (HySupply 2) competition.

The winners, announced today, will benefit from a total of £60 million of Government funding which will be used to support innovation in the supply of hydrogen, with the aim of making it more viable.

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.”

Among the 28 winning HySupply 2 projects are:

  • ITM Power based in Yorkshire, which has been awarded more than £9.2 million to build a next generation 5MW electrolyser stack, an industrial tool which separates hydrogen from oxygen in a vat of water using electricity.
  • Cadent Gas Limited in the West Midlands, which will receive £296,174 for feasibility work focusing on how to purify hydrogen that has been through the gas grid to make it suitable for use in vehicles such as lorries.
  • The National Nuclear Laboratory in Cumbria, which will receive £242,619 to review and model processes that can use the heat from nuclear reactors to produce hydrogen.

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

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

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