19 May 2022

Winners of £60 million government competition to develop hydrogen as the superfuel of the future unveiled

FOR IMMEDIATE RELEASE: HySupply 2 competition winners to receive government funding for innovation in hydrogen supply

  • £60 million competition will support innovation in the supply of hydrogen, making new superfuel more viable
  • Funding will help position UK as world leader in this emerging industry, boosting long term growth and helping produce more clean, affordable, homegrown energy
  • 28 projects in all four nations of the UK to receive share of funding – powering forward an industry expected to create around 12,000 jobs

Companies at the cutting edge of hydrogen innovation will benefit from up to £60 million of government funding,  backing UK development of hydrogen as an affordable, clean, homegrown energy source.

The funding has been awarded to 28 projects across the UK, including Scotland, Wales and the north of England and working across a range of different sectors and technologies through the Low Carbon Hydrogen Supply 2 (HySupply 2) competition.

This will support research and innovation in producing and transporting hydrogen, making it a more viable and affordable fuel for powering industry, including energy-intensive sectors which rely on expensive fossil fuels.

It will also drive the UK hydrogen industry forward, reducing costs, bringing new solutions to the market, and ensuring that the UK continues to develop world-leading hydrogen technologies here at home.

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. Building on their findings from the first Hydrogen Supply programme, ITM are seeking to bring the lowest-cost green hydrogen solution to the market.
  • 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 like 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.

In the British Energy Security Strategy published in April, the government committed to boosting UK hydrogen capacity up to 10 GW by 2030. This could create around 12,000 jobs across the UK as well as increasing domestic energy supply, making the UK less dependent on importing expensive fossil fuels in the future.

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.”

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

A study commissioned by BEIS in 2018 demonstrated that innovation in the hydrogen production process could reduce the cost of producing hydrogen considerably. Funding from HySupply 2 will help industry players to realise this goal.

This 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.

Hydrogen is a clean energy source produced by separating it from other elements in water or fossil fuels to create a gas or liquid that can be used as a fuel. It has immense potential for industry, heating homes and various forms of transport.

Notes to editors

  • Funding for HySupply 2 comes from the Net Zero Innovation Portfolio.
  • Funding for Stream 1 winning companies will be awarded in two phases.
  • Stream 1 Phase 1 will support the development of feasibility studies to test how ready technologies are, with companies receiving up to £300,000 per project. Stream 1 Phase 2 will later select projects from the Phase 1 group and support demonstrations of the new technology at up to £6 million per project.
  • Funding for Stream 2 has all been awarded through this initial allocation.
  • The competition will support 28 projects. Stream 1 Phase 1 and Stream 2 respectively will support 23 projects (with 21 unique lead organisations) and 5 projects (5 lead organisations) bringing their ideas closer to the marketplace.
  • Stream 1 feasibility support funding will go to 21 lead organisations across the UK, including innovators based in Scotland, Wales, Northern Ireland, and in several English regions.  
  • A virtual Stakeholder Engagement Day was held on 8 June 2021 to provide an opportunity to understand more about the competition and to ask questions.
  • The competition webpages can be found at:

Stream 2 demonstration projects

Project name

Summary of activity

Lead Organisation

Location of lead organisation (and trial location if it is elsewhere)


ITM Power will build its first 4th generation 5MW electrolyser stack

ITM Power Trading Ltd

Yorkshire and the Humber

SHyLO: Solid Hydrogen at Low pressures

Design and build a modular hydrogen storage solution with the H2GO Power reactor

H2GO Power

Greater London (Scotland)

Hydrogen Turbine 1

Electrolysis physically and computationally integrated with offshore wind turbine

Vattenfall Wind Power Ltd

Greater London (Scotland)

ERM Dolphyn ­ Commercial Scale Demonstration

Electrolysis at a floating offshore wind turbine

Environmental Resources Management Ltd.

North West (Wales)

Tyseley Ammonia to Green Hydrogen

Ammonia to hydrogen conversion

Gemserv Limited

West Midlands


Stream 1 feasibility projects


Project name

Summary of activity

Lead organisation

Location of lead

Category 1: Low Carbon Hydrogen Production

RECYCLE: REthinking low Carbon hYdrogen production by Chemical Looping rEforming

Auto-thermal reforming with Carbon Capture

University of Manchester

North West

H2Upgrade – Distributed and flexible H2 production with waste streams

Chemical looping to convert waste streams to hydrogen

University of Cambridge

East of England

Microwave Energy System for Distributed Hydrogen Production from Natural Gas with Very Low CO2 Emissions

Microwave powered hydrocarbon to hydrogen and solid carbon

Suiso Limited


Small-scale hydrogen production utilising a waste company's SRF feedstock to power its own commercial fleet.

Gasification of solid recovered fuel

Compact Syngas Solutions Limited


Production of low carbon hydrogen from high carbon heavy fuel oil via gasification with carbon capture and storage

Gasification of fossil fuel products with carbon capture

Essar Oil UK Ltd

North West

Category 2: Zero Carbon Hydrogen Production

Optimising Green Ammonia Production powered by intermittent renewable energy sources

Green ammonia from intermittent power

Science and Technology Facilities Council (part of UKRI Research and Innovation)

South East

Printed Circuit Board Electrolyser

Anion exchange membrane electrolyser

Bramble Energy

South East



Power to ammonia


Supercritical Solutions Ltd

Greater London

Low Cost Production of Green Hydrogen Gas using Enhanced Recirculating Gas Reactor Technology

Sulphur iodine cycle using thermo-cyclic H2 generator


Northern Ireland

Tetronics Hydrogen Plasmolysis

Combining electrolysis and thermolysis to perform plasmolysis

Tetronics Technologies Limited

South West

Nuclear Hydrogen Co-Generation Feasibility Study

Nuclear powered high temperature electrolysis and thermochemical water splitting

Frazer-Nash Consultancy


Category 3: Hydrogen Storage and Transport

Monolithic MOFs for enhanced cryo-adsorbed hydrogen storage

Metal organic frameworks for hydrogen storage

Immaterial Ltd

East of England


Metal hydrides for hydrogen storage


Yorkshire and the Humber

Bulk Scale Storage and Transportation of Hydrogen using LOHC

Liquid organic hydrogen carriers

Environmental Resources Management Limited

Greater London

Optimised Hydrogen Liquefaction

Reducing the power demand for liquifying hydrogen

Gasconsult Limited

Greater London

Safe and distributed underground storage of Green Hydrogen in conjunction with storage of power and interseasonal heat

Underground hydrogen store

Gravitricity Ltd


Low Cost Production of Liquid Hydrogen Fuel Carrier Using Enhanced Recirculating Gas Reactor Technology

Re-circulating gas reactor to produce syngas from green hydrogen and CO2 from air, and convert to E-fuel (e.g. hydrocarbon)


Northern Ireland

Category 4: Net Zero Hydrogen Supply Solutions

ERM HyProducer: Use of LOHC for Bunkering Hydrogen at Scale

Marine vessels tankage system for liquid organic hydrogen carriers


Environmental Resources Management Limited

Greater London

HyTN - Hydrogen from Thermochemical and Nuclear

Review and modelling nuclear thermochemical processes for hydrogen

National Nuclear Laboratory

North West

Dragonfly Valve: Zero-Emission Flow Control for the Hydrogen Supply Chain.

Valves for hydrogen transport pipes

Actuation Lab

South West


Repurposing the gas grid

Cadent Gas Limited

West Midlands

100MW Green Hydrogen Hub Design

AI and systems design to make electrolysers grid-matching

Emerald Green Power Ltd

South West

System design and integration for the offshore production of Green Hydrogen (H2) using Floating Wind Farms (FWFs)

Developing an integrated system for hydrogen production at floating wind farms


BPP Technical Services Limited

Greater London

Contact Information