Decarbonised Gas Alliance – BEIS funding announcements

BEIS has announced new funding for hydrogen and low carbon steel production (

1. £100 million Low Carbon Hydrogen Production Fund (new funding):

The Fund aims to:
• Deploy low carbon hydrogen production capacity to enable greater use of hydrogen as a decarbonisation option across the energy system;
• Encourage future private sector investment in low carbon hydrogen to support scale up and market development that aligns with the UK’s clean growth objectives.

A consultation will be launched in 2020 on the shape of the Fund, with a view to launching it for project bids in 2021. We understand that it will not be limited to hydrogen production for clean steel, but will have broader hydrogen production application.

2. £250 million Clean Steel Fund (new funding):

The Fund aims to support the sector to:
• Transition to lower carbon iron and steel production through new technologies and processes, placing the sector on a pathway that is consistent with the UK Climate Change Act (net zero);
• Maximise longevity and resilience in the UK steel sector by building on longstanding expertise and skills and harnessing clean growth opportunities.

A call for evidence has been launched, which closes on 21 November, to inform the design of the Clean Steel Fund (

3. £40 million Hydrogen and Fuel Switching Innovation Fund (existing funding):

BEIS has also brought together the existing £20 million Hydrogen Supply programme and the existing £20 million Industrial Fuel Switching competition into a £40 million Hydrogen and Fuel Switching Innovation Fund, and has announced a further suite of 20 project funding awards (13 for hydrogen supply and 7 for industrial fuel switching).