Emerging Energy Technologies Fund - Hydrogen Innovation Scheme: form and guidance

Expression of interest form and guidance for the Hydrogen Innovation Scheme (HIS) to support innovative renewable hydrogen production, storage and distribution solutions as well as the development of test and demonstration facilities in Scotland.


Eligibility

You should read all the guidance in this section before starting an expression of interest form for the stream that is relevant to your project.

Eligibility criteria

To be eligible for funding from any of the funding streams projects must meet the following mandatory criteria:

  • ability to demonstrate that the project would not go ahead or would progress at a much slower rate without EETF Hydrogen Innovation Scheme funding
  • the application does not seek funding for retrospective work on this project
  • the project can demonstrate that the funding requested is within the specified funding limits
  • where the funding requested is less than 100% of the total project costs, the project can provide confirmation of other sources funding/finance to meet the total project costs
  • the project can demonstrate that it will be delivered by the specified project end dates
  • the lead applicant can confirm that only one application has been submitted for which they are acting as lead applicant (Applications for additional phases of projects may be considered in subsequent funding rounds)
  • if project consortium members are part of multiple applications, members can confirm that they would be able to deliver all projects if successful
  • ability to demonstrate the lead applicant’s commitment to the Fair Work criteria

Stream 1 - feasibility studies and demonstration

Applications for feasibility studies or demonstration must also meet the following criteria:

  • the proposal must fall within the scope of one of the three grant themes
  • the proposal/technology will be at Technology Readiness Level (TRL) 3-7 at the start of the project
  • the project must be carried out in Scotland
  • ability to demonstrate that the project is innovative and aims to solve a technology gap or industry challenge
  • the funding requested must not result in the applicant realising profit from conducting this specific research and development project activity
  • the proposal will need to be able to demonstrate the core purpose to be 'acquiring new knowledge' per the definition in HM Treasury guidance. Support is available to interpret guidance for defining a feasibility study or trial project, please email: EETF@gov.scot
  • projects are not allowed to apply for both feasibility and demonstration funding under Stream 1. They can only apply for feasibility or demonstration funding

Stream 1 offers up to £1.5 million funding for demonstration activity to develop, build and trial an innovative hydrogen solution. We would advise you to carefully consider the eligibility and assessment criteria for both funding streams to ensure you apply to the most applicable stream.

Stream 2 - test and demonstration facilities and equipment

Applications for capital funding for test and demonstration facilities must meet the following criteria:

  • the proposed project/facilities must be located in Scotland
  • ability to demonstrate that the proposal would add value to the hydrogen innovation ecosystem in Scotland and fills a gap that is not currently provided by another organisation
  • the potential to have a positive and significant impact on skills and supply chain in Scotland
  • the proposed project/facilities must be able to demonstrate their plans to meet delivery and staff costs without Scottish Government support e.g. via funds committed by project partners

Available funding and subsidy intensity levels are outlined below:

 

Type of application

Minimum grant threshold

Maximum grant threshold

Maximum subsidy intensity

Complete by

Stream 1

Feasibility study

£30,000

£150,000

Up to 100%

28/02/2024

Demonstration

£50,000

£1.5 million

Up to 50%

28/02/2026

Stream 2

Test and demonstration facilities

£100,000

£2 million

Up to 50%

28/02/2026

Stream 2 funding is available for all capital costs (e.g. construction or equipment) related to the development or growth of a hydrogen test and demonstration centre in Scotland. Please note, centres are expected to act as anchor locations for future hydrogen innovation activity in Scotland and so applicants to stream to 2 must demonstrate how their proposal will be of ongoing use and benefit to Scotland’s industry and academic community. The breakdown of requested funding will be assessed on this basis.

Additional information

Feasibility study:

We will consider applications for studies that are within eligible scope but are expected to be delivered beyond the designated completion date.

Test and demonstration facilities:

The total funding available for this funding stream is £5 million.

Projects must have installed and begun to operate (or be ready to operate) the test and demonstration facilities and therefore have drawn-down all capital funds by the designated completion date in the table above.

In the circumstances of an oversubscription to Stream 2, additional portfolio factors may be considered in evaluating projects, to ensure a balanced portfolio of projects is supported. These factors may include diversity of location and innovation approach.

Please note, if the project is successful, the offer of grant funding that is made may be lower than the amount requested in the application.

Who can apply

The EETF Hydrogen Innovation Scheme is open to all public and private sector applicants. Research and academic insititues can also apply.

Proposals will be welcomed from consortia or organisations. In the case of a consortia proposal, a lead applicant must be identified. The lead applicant will be responsible for all aspects of the management and delivery of the project. This includes accepting responsibility on behalf of the consortia for all offers of funding and any associated conditions of funding. 

Lead applicant

To lead a project your organisation must be an organisation of any size that operates in Scotland where the project will be carried out.

Third parties (for example, a consultancy) may prepare an application on behalf of the lead applicant. However, the grant provider will not have a legal relationship with or pay money to a third party, or anyone other than a lead applicant.

Consortia

To collaborate with the lead, an organisation can be a business of any size, a research organisation, RTO, an academic institution or a public sector organisation.

Each partner organisation must be invited to participate by the lead to collaborate on a project.

Projects can work with international partners, but over 50% of the funded project work (by value) must be conducted in Scotland. The physical demonstrators must be conducted in the Scotland.

Your project can include partners that do not receive any of the grant funding, for example non-UK businesses.

Subcontractors

Subcontractors are allowed in this competition and can be from anywhere in the world. We would expect subcontractor costs to be justified and appropriate to the total eligible project costs. You must make sure they are sufficiently qualified for their role and input a delivery chain map of all downstream partners with associated budget allocation.

International partners

International organisation applications

A Scottish partner must be the lead partner or at least 50% of the project based in Scotland.

Stream 1 - the project must be carried out in Scotland.

Stream 2 - the proposed project/facilities must be located in Scotland.

Lead applicant - to lead a project your organisation must be an organisation of any size that operates in Scotland where the project will be carried out.

Projects can work with international partners, but over 50% of the funded project work (by value) must be conducted in Scotland. The physical demonstrators must be conducted in the Scotland.

If you are an international partner looking to find a Scottish partner to collaborate with, please put in a request to EETF@gov.scot in the first instance who will assist with your enquiry.

Threshold for payments to be made to companies based outside of Scotland/the UK

We are unable to provide a threshold without seeing full project proposals and funding requirements. Please note that the lead applicant must be located in Scotland, or at least 50% of the project must be based in Scotland.

Contact

Email EETF@gov.scot for any enquiries.

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