Published date: 24 May 2021

Last edited date: 28 June 2021

Closed early engagement

Closing date: 28 June 2021

Contract summary


  • Hydrogen - 24111600

  • Design and execution of research and development - 73300000

Location of contract

United Kingdom

Procurement reference

TRN: 5044/04/2021 - Stream 1 or TRN: 5045/04/2021 - Stream 2

Published date

24 May 2021

Closing date

28 June 2021

Contract is suitable for SMEs?


Contract is suitable for VCSEs?




The c. £60m Low Carbon Hydrogen Supply 2 (HYS2) competition is the follow-on from the highly successful Low Carbon Hydrogen Supply (HS1)[1] competition and aims to accelerate the development of a wide range of innovative low-carbon hydrogen supply solutions to enable development of a hydrogen economy compatible with net-zero targets.

It is proposed that the competition will be delivered via two streams. Stream 1 will be for market entry projects. Stream 2 will be for more mature projects that can proceed quickly and play into HMG's ambitious agenda to scale-up hydrogen use as well as potentially providing a pipeline of projects for the £240m Net Zero Hydrogen Fund.


Stream 1 is expected to run over two phases as outlined below:

Stream 1: Phase 1 - Feasibility (up to £6m, TRL 4-6) -TRN: 5044/04/2021

It is proposed that Stream 1: Phase 1 will support development of feasibility studies, valued at up to £300k per project. This phase will support development of the project team's understanding of the core and ancillary technology, the performance of the technology, the market potential, the route to market (including competition) and costs and delivery plan for Phase 2. Funding will be split between four categories.

• Category 1 - Low carbon hydrogen production - this Category will support projects that will have some residual direct emissions even when coupled with Carbon Capture Utilisation and Storage (CCUS).
• Category 2 - Zero carbon hydrogen production - this Category will support projects that do not directly produce emissions.
• Category 3 - Hydrogen storage and transport - this Category will support the development of novel hydrogen storage and transport/distribution solutions (including import/export).
• Category 4 - Net zero hydrogen supply solutions - this Category will support solutions aiming to decarbonise the wider energy system.

Stream 1: Phase 2 - Demonstration (up to £24m)

It is envisaged that Stream 1: Phase 2 will down-select projects following Phase 1 and support demonstrations with up to £6m per project. This phase will support the physical demonstration of the technology, including build, trial, decommissioning and knowledge dissemination. Companies will also develop technical and business plans for market deployment.

Stream 2 is expected to be run over a single phase as outlined below:

Stream 2: Demonstration (up to £30m, TRL 6/7) - TRN: 5045/04/2021

It is proposed that Stream 2 supports projects across all four of the Stream 1 categories that are closer to market. This could support demonstration of projects with up to £10m per project available to demonstrate the hydrogen supply opportunities. This includes build, trial, decommissioning and knowledge dissemination.

Incubation support will be available for successful small and medium sized enterprise (SME) awardees who are the lead partner in receipt of funding.

More information

Additional text

Expression of Interest

The purpose of this EOI is to raise early awareness of the competition and to gauge the level of interest. If you may be interested in applying to the competition, please complete the Low Carbon Hydrogen Supply 2 Competition EOI Form to express interest. We will then ensure you are notified once further details are available.

A virtual Stakeholder Engagement Day is proposed to be held on 8 June 2021 to provide applicants the opportunity to understand more about the competition and to ask questions. To secure a place, please mention this in the Low Carbon Hydrogen Supply 2 Competition EOI Form. This is located at:

EOI and attendee details must be provided by 12 noon on 7 June 2021.

We encourage any comments on the proposed competition approach at the Stakeholder Engagement Day.

If you experience any issues when completing the Low Carbon Hydrogen Supply 2 Competition EOI Form, please contact us by email at

Potential bidders will not be prejudiced by any response to this EOI, or by failure to respond. This EOI does not formally signify the beginning of a procurement and does not constitute a commitment by BEIS to undertake a procurement exercise. In the event that BEIS decides to formally procure any contract as described, a separate notice will be issued.

Further information, once available, will also be available at

About the buyer

Contact name

Philip Cohen, Gordon Birkett and Manthan Pravin


1 Victoria Street



Closing date: 28 June 2021