Hydrogen storage and distribution supply chain: Collaborative R&D

Innovate UK, part of UK Research and Innovation, will work with industry to invest up to £4.35 million in innovation projects. As part of the Future Economy Net Zero Programme this competition will focus on the development of the hydrogen economy.

The aim of this competition is to develop new ways of delivering integrated hydrogen storage and distribution systems and the associated supply chains.

Your proposal must:

• innovate in the storage or distribution part of the hydrogen value chain
• integrate with at least one other part of the hydrogen value chain
• develop the supply chains for hydrogen storage and distribution

Eligibility

Your project must:

• have total costs of up to a maximum of £1 million
• start by 1 December 2023
• end by 31 May 2025
• last up to 18 months
• carry out all of its project work in the UK
• intend to exploit the results from or in the UK

To lead a project your organisation must:

• be a UK registered business of any size
• collaborate with other UK registered organisations
• be or involve at least one grant claiming micro, small or medium-sized enterprise (SME)

To collaborate with the lead, your organisation must be one of the following UK registered:

• business of any size
• academic institution
• charity
• not for profit
• public sector organisation
• research and technology organisation (RTO)

A business can only lead on one application but can be included as a collaborator in a further 2 applications. If a business is not leading an application, it can collaborate in any number of applications. An academic institution, research technology organisation (RTO), charity or public sector organisation can collaborate on any number of applications.

Scope

The aim of this competition is to develop new ways of delivering integrated hydrogen storage and distribution systems and the associated supply chains.

Your proposal must show how you will:

• develop new ways of delivering integrated hydrogen storage and distribution systems
• develop and reduce the associated cost of UK hydrogen supply chains associated with the storage and distribution of hydrogen
• push businesses towards commercialisation, accelerating adoption, reducing complexity and cost of hydrogen through demand-led innovation

Your project must demonstrate how it will work across and integrate multiple parts of the hydrogen value chain and tiers of the supply chain. You can include technology, business model development, safety and standardisation.

Your project must span two or more parts of the hydrogen value chain including:

• production
• storage
• distribution
• use

Your project must focus on storage and/or distribution.

You must demonstrate how you are developing the UK hydrogen supply chain within the focus area of innovation and how it has included multiple tiers of the hydrogen supply chain.

You can use hydrogen or its low carbon carriers, such as:

• low carbon ammonia
• low carbon methanol
• low carbon liquid organic hydrogen carriers

Projects focussing on a low carbon hydrogen carrier must demonstrate benefit to the development of the hydrogen economy in the UK.

You can develop innovation within different parts of hydrogen storage and distribution supply chain, including:

• physical infrastructure, for example tanks and pipes
• digital and optimisation infrastructure
• components and enabling technologies, for example valves, seals and fittings
• on-road distribution, for example tube trailers
• refuelling
• metering
• sensing
• separation
• compression
• materials
• blending and deblending

This list is not intended to be exhaustive.

You are encouraged to work across supply chain components to develop new ways of delivering integrated storage and distribution systems, to accelerate adoption, reduce the complexity and cost of hydrogen.

Your project can also consider and develop business models to:

• reduce the cost of capital
• attract private investment
• increase insurability
• revenue generation models
• develop the value proposition
• develop data for investors
• reduce risk for investors and insurers

Your project can also include aspects of hydrogen production for the purpose of developing an integrated project spanning two or more parts of the hydrogen value chain.

Where hydrogen production is included, this should not be the primary area of innovation within the project. At least 50% of your project costs must be for the storage and distribution elements of your project.

Your proposal must demonstrate a need by including an end customer, such as Tier 1 or original equipment manufacturer (OEM), within your consortium. They can be a funded partner or non-funded project adviser.

You must show evidence of how you have considered the end user of the hydrogen as part of the project. They can be a funded partner or non-funded project adviser.

If you intend or need to work with a transmission or distribution gas network, you must get in touch with Innovate UK before submission of your application. We will discuss your application and its relationship with the Ofgem Strategic Innovation Fund.

Briefing and support

Innovate UK KTN held an online briefing event on Thursday 16th February, 10am-1pm: click here to watch the recording.

We will also hold an in-person matchmaking workshop in Manchester on Tuesday 21st February, 10am-4pm. Register at the link below.

If you would like help to find a collaboration partner, contact Jenni McDonnell MBE from Innovate UK KTN’s energy team.