INSIGHTS / Blog

For many start-ups and spin-outs, grants serve as an essential resource, offering vital financial support that fuels their ability to pursue ambitious objectives, advance cutting-edge research, or spearhead transformative initiatives capable of disrupting entire industries.

From scientific exploration to product innovation, grants hold transformative potential, opening doors to goals that may otherwise seem unattainable.

Yet navigating the grant application process can feel overwhelming, particularly for newcomers. The dense requirements, intricate eligibility criteria, and fierce competition, especially for high-profile funding opportunities, often create an intimidating maze that appears to demand expert-level experience.

The encouraging reality? While securing grants may seem challenging, it’s far from insurmountable. By mastering the nuances of grant funding, from crafting compelling proposals to aligning with funder priorities, start-ups can demystify the journey, turning uncertainty into a strategic advantage and unlocking opportunities for growth and impact.

How do you identify the right grants or funding opportunities for your project?

Identifying grants and funding opportunities for a UK-based hydrogen technology start-up requires a targeted approach, leveraging the UK’s focus on clean energy and Net Zero goals. The UK government actively supports hydrogen innovation as part of its Net Zero Strategy and Hydrogen Strategy. Key programs include:

• Net Zero Hydrogen Fund (NZHF): Offers up to £240 million for hydrogen production projects (e.g., electrolytic and CCUS-enabled hydrogen).
• Industrial Energy Transformation Fund (IETF): Supports industrial decarbonization, including hydrogen adoption.
• Innovate UK Grants: Competitive funding for R&D projects (eg Innovate UK Smart Grants or sector-specific calls).
• Advanced Propulsion Centre (APC): Funds hydrogen applications in transport (eg fuel cells).
• Aerospace Technology Institute (ATI): Funds hydrogen applications in aerospace and aviation (eg SME Programme, Non-CO2 Programme).
• BEIS (Department for Energy Security and Net Zero): Regularly launches hydrogen-specific competitions.

Despite Brexit, some EU programmes remain accessible:

• Horizon Europe: UK startups can join consortia for hydrogen-related calls (eg Clean Hydrogen Partnership).
• European Investment Bank (EIB): Funds green hydrogen projects in the EU/EEA (if your project has a European nexus).
• Mission Innovation: Global initiatives like the Clean Hydrogen Mission offer collaborative funding.

Why collaborate with universities?

Collaborating with universities offers hydrogen start-ups significant strategic, technical, and financial advantages, particularly in a cutting-edge field like hydrogen technology. Universities house researchers working on hydrogen production, storage, fuel cells, and materials science. Their industrial collaborators can use advanced labs (eg testing electrolysers, hydrogen purity analysis) that start-ups often can’t afford independently.

For a hydrogen start-up, universities are not just partners, they’re force multipliers for innovation, funding, and growth. By bridging academia’s deep expertise with agility and market focus, start-ups can accelerate breakthroughs while minimising risks.

Moreover, with a university’s reputation and established track record, grant funding is more accessible for project consortiums with strong academic partners who are capable of closing knowledge gaps and tackling technical challenges.

What are the most common challenges when collaborating with academics, and how can they be addressed?

Collaborating with academics can be highly beneficial for a hydrogen tech start-up, but there are several common challenges that can arise.

Universities often have strict policies regarding IP ownership, which can create conflicts over licensing and commercialisation. This can be overcome with clear negotiation on both sides and clear upfront agreements (eg joint patents and licensing terms).

There are also cultural differences. Academic researchers are generally encouraged to publish findings, while start-ups may need to protect trade secrets. Therefore, it is important to use non-disclosure agreements (NDAs) and define what data can be published vs what must remain confidential.

Academics and entrepreneurs often have different communication styles and expectations. It is recommended that dedicated liaisons be assigned on both sides to facilitate clear, continuous communication and ensure alignment on goals.

How can applicants handle differences in priorities or timelines between academia and industry?

University bureaucracies can slow down project approvals, grant applications, and fund disbursement. Start-ups operate in a fast-paced, results-driven environment, whereas academia focuses on long-term research and publications. Handling differences in priorities and timelines between academia and industry is a common challenge in collaborative grant-funded projects.

Firstly, both sides should align goals early. A joint mission statement should be established that balances academic curiosity, such as advancing hydrogen storage science, with industry goals, such as developing a marketable prototype. The consortium must agree on metrics that satisfy both parties, such as academic publications and patent filings or prototype development and peer-reviewed validation.

Secondly, both sides should structure the project with milestones. Breaking the project into phases that cater to both timelines of academia-driven fundamental research and industry-driven prototyping and scaling is ideal. Sometimes, flexible deadlines help buffer time for academic research delays while setting hard deadlines for commercialisation steps such as investor demos.

During the project preparation, regular communication is vital. It’s a good idea to assign a project manager or translator who understands both academic and industry cultures, holds regular cross-functional meetings to track progress, addresses conflicts, adjusts priorities and uses collaborative platforms such as Slack or Trello to maintain transparency on tasks and timelines.

Collaboration requires compromise, but the synergies between academia and industry can drive innovation far beyond what either could achieve alone. By aligning incentives, communicating openly, and structuring projects flexibly, grant applicants can turn differences into strengths and deliver impactful results. By addressing these challenges proactively, hydrogen tech start-ups can build strong, productive relationships with academia, leveraging research expertise while staying focused on commercialisation.

Find out more about the Hydrogen & Sustainable Economy Accelerator