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Hydrogen Business Model and Net Zero Hydrogen Fund: market engagement on electrolytic allocation

We're seeking views on our proposed approach to allocating Hydrogen Business Model and Net Zero Hydrogen Fund support through a joint allocation process for electrolytic hydrogen projects.

Last fetched 03 May 2026 · gov.uk
Detail

This market engagement document sets out our proposed approach to a joint Hydrogen Business Model and Net Zero Hydrogen Fund allocation process for electrolytic hydrogen projects. This is with a view to developing and refining our proposals ahead of launching the first allocation round.

The document includes:

  • an indicative timeline
  • proposed eligibility and evaluation criteria
  • a proposed approach to agreeing an offer of support with shortlisted projects

Please use this opportunity both to express your views, and also to provide an indication of your likely interest in applying: this will help us plan resourcing for the proposed upcoming allocation round.

We expect this to be of interest to developers and investors in electrolytic hydrogen projects that require revenue support through the Hydrogen Business Model and capital grant support through the Net Zero Hydrogen Fund.

Net Zero Hydrogen Fund

Hydrogen projects that are not seeking revenue support through the Hydrogen Business Model but would still like to apply for capital expenditure (CAPEX) support should instead look to the Net Zero Hydrogen Fund (Strand 2) which opens for applications on 25 April. The Net Zero Hydrogen Fund is also inviting bids from projects seeking development expenditure (DEVEX).

Our BEIS Hydrogen Funding Landscape Infographic provides further information on funding opportunities.

Upcoming events

The Net Zero Hydrogen Fund opens Monday 25 April.

Our delivery partners are holding an online briefing event for potential applicants on Tuesday 26 April, 9.30-11.30am. It will focus on strands 1 and 2, development expenditure (DEVEX) and capital expenditure (CAPEX) support for projects that don’t need revenue support through the hydrogen business model. Find out more and register

BEIS is hosting an online event on Thursday, 21 April, 3-4pm, to provide an overview of the government responses to the consultation package. Register for the event.

Projects that wish to apply for revenue support through the Hydrogen Business Model, in addition to Net Zero Hydrogen Fund funding, will need to apply through the joint allocation round. We will hold 2 identical online workshops:

We ask for basic information about your project and whether you’re interested in applying, to help us plan resourcing for the proposed upcoming allocation round. We reserve the right to limit attendance where workshops are oversubscribed.

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