CHIP programme description

The Clean Hydrogen Innovation Programme (CHIP) is a multi-year Joint Industry Programme to accelerate the development and deployment of clean hydrogen in the UK through targeted innovation. Supported by the UK Government’s Department for Energy Security and Net Zero, CHIP convenes hydrogen industry players to: 

• Assess the key innovations needed to increase the cost-competitiveness of clean hydrogen.
• Undertake targeted research and development projects to stimulate the supply chain and accelerate deployment of clean hydrogen in the UK. 

Through this process, CHIP aims to drive down the end-to-end cost through collaborative innovation. 
Following an innovation needs assessment in early 2023, several technologies from across the hydrogen supply chain were prioritised for innovation as part of CHIP. In it’s first phase of innovation projects CHIP will tackle key uncertainties around three vital technologies in the hydrogen supply chain: compressors, purification and pipeline and tube trailer distribution. 

Project 1: Clarifying the compressor market 

There are currently multiple compressor solutions on the market for use with hydrogen, with solutions developed specifically for hydrogen applications and other adapted from natural gas applications. There is a need to understand the performance of current market ready compressor offerings, as well as where these technologies are best applied across the hydrogen landscape. Additionally, it is important to identify key trade off with use of hydrogen compressor technologies and innovation barriers and opportunities for these technologies. 

From the results of this project CHIP partners will gain a clear understanding of the hydrogen compressor technologies available to the UK market and their capabilities in use cases across the hydrogen supply chain. Through a gap assessment of how currently available compressor technologies meet use case needs across supply chain archetypes, this project will identify the key barriers and trade-offs associated with compressor technologies. This will highlight key areas where innovation projects for hydrogen compressor technologies can have market leading impact and inform future phases of CHIP.

Project 2: Hydrogen purification cost-benefit analysis 

Despite widespread emphasis placed on purity requirements of delivered hydrogen, there is little real understanding of where purification technologies will be needed throughout the supply chain to supply requisite purity for end-use applications as well as which technologies are needed on what scale to deliver this purity.

From the results of this project CHIP partners will gain a clearer understanding of the hydrogen purification technologies available to the UK market and the extent to which they meet the purification needs of the hydrogen supply chain. The cost implications and trade-offs associated with hydrogen purification will be explored to give a picture of the limitations and benefits of purification on the delivered cost of hydrogen. Through this work, key areas where innovation projects could have market leading impact will be highlighted and used to inform future phases of CHIP.

Project 3: Economic and carbon appraisal of hydrogen distribution routes and buffer storage 

With development of distributed hydrogen production, there are multiple pathways to connect hydrogen supply to demand. There are challenges understanding the economic feasibility and carbon impacts associated with distribution and buffer storage technologies. Additionally, there is a need to understand where buffer storage can effectively be integrated to hydrogen distribution chains to optimise the economics of moving hydrogen from supply to demand. 

From the results of this project CHIP partners will gain a clearer understanding of the cost and carbon implications of various distribution and storage arrangements. Non-economic considerations, such as health and safety and infrastructure constraints will also be considered to provide a fuller view of operational constraints. Through this work, key areas where innovation projects could have market leading impact will be highlighted and used to inform future phases of CHIP.

The closing date for clarification questions was 22 November 2023. Responses can be found in the clarification questions responses PDF below. 

The closing date to receive tender submissions is 15 December 2023, 23:59 GMT.

Contact: rob.bloom@carbontrust.com, hannah.cardiff@carbontrust.com.