Hydrogen Transport Programme Prospective Bidders Webinar 20 September 2017

Transcription

1 Hydrogen Transport Programme Prospective Bidders Webinar 20 September 2017 Suki Dhadar & Leo Dando-Ladenis (OLEV) Fiona Twisse & Kirsty Povey (Ricardo) David Hart & Adam Chase (E4tech)

2 2 Agenda Time Presentation By 1430 Welcome Fiona Twisse, Ricardo 1435 Address from OLEV Suki Dhadar, OLEV 1440 Introduction to HTP Suki Dhadar, OLEV 1450 Overview of the programme: - Eligibility criteria Adam Chase, E4tech Evaluation process Fiona Twisse, Ricardo 1510 Q&A Expert Panel, chaired by David Hart, E4tech 1550 Summarising key points Fiona Twisse, Ricardo

3 3 Welcome & Introductions Slide & webinar audio recording available from: Housekeeping how to ask the questions for the Q&A session

4 4 Any questions? Submit your question in writing using the panel on the right. Attendee control panel If your panel is minimised, click the orange button to expand it. Welcome to the CRC Compliance Webinar Type your question here Successful CRC Compliance webinar

5 5 Welcome & Introductions Introducing the panel; Suki Dhadar, (OLEV) Fiona Twisse, Project Manager (Ricardo) David Hart, Technical Lead (E4tech) Adam Chase, Assessment Panel (E4tech) Ricardo Energy & Environment has over 20 years experience in designing and implementing technology support schemes for a range of UK Government customers, and has world-leading expertise in assessing and monitoring hydrogen projects at the R&D and commercial deployment level. E4tech has extensive experience in the area of hydrogen energy generally, and hydrogen infrastructure specifically, gathered over 15 years in the industry. Our expertise in hydrogen includes in-depth technology assessment for companies, investors and governments; techno-economic analysis of infrastructure options for hydrogen refuelling; analysis of business cases for specific hydrogen storage and refuelling configurations; and policy review and input.

6 6 Address from OLEV Suki Dhadar The Office for Low Emission Vehicles (OLEV) is a cross-government, industry-endorsed team combining policy and funding streams to simplify policy development and delivery to support the early market for ultra-low emission vehicles (ULEV).OLEV is part of the Department for Transport and the Department for Business, Energy & Industrial Strategy. The Conservative party manifesto 2017 set out the commitment that: Our ambition is for Britain to lead the world in electric vehicle technology and use. We want almost every car and van to be zero emission by The Air Quality plan in July restated this and Ministers are clear that by 2040 they do not expect today s conventional petrol and diesel cars that rely on the internal combustion engine to be available for sale. By 2040 almost all new cars and vans will need to deliver a significant proportion of their mileage emitting nothing at the tailpipe. This ambition is technology neutral but we expect it to be industry led & delivered by innovation from the car industry rising to meet changing consumer tastes.

7 7 Address from OLEV Suki Dhadar Hydrogen fuel cell electric vehicles (FCEVs) have the potential to be a significant technology, alongside battery electric vehicles, for decarbonising road transport. Refuelling infrastructure availability is a key potential barrier to roll out of fuel cell electric vehicles. Without hydrogen refuelling stations (HRS) no vehicles can be deployed, without a significant number of vehicles in operation investment in refuelling infrastructure is not commercially attractive. The previous HRS Infrastructure Grants Scheme sought to address this market barrier by providing 5.5m for upgrades and new-builds to help form an initial network of 12 hydrogen refuelling stations. The majority of these are now operational and publically accessible enabling vehicle manufacturers to deploy FCEVs. Given the early nature of the market there was also 2m allocated to support both public and private sector fleets to become early adopters of FCEVs. Earlier this year additional funding was announced to expand the network of HRS alongside the deployment of FCEVs. A 23m programme will support the development of the hydrogen for transport market until 2020, as part of the Government s pledge to reduce carbon emissions, improve air quality and deliver economic opportunities for the UK.

8 8 Introduction to HTP About the Programme Suki Dhadar Hydrogen for Transport Programme (HTP) providing up to 23m new grant funding Stage 1 - Commit up to 9m - 50:50 match funding - Fund up to 7 HRSs - PLUS associated fleets Stage 2 - Commit up to 14m Stage Two is contingent on satisfactory progress on vehicle supply and market developments at Stage One. - Fund up to 10 HRSs - PLUS associated fleets

9 9 Introduction to HTP Main objectives Projects must offer best Value for Money to the Government and hence, the UK taxpayer.

10 10 Introduction to HTP Secondary objectives Ensuring credibility in the eyes of all stakeholders, including government, local authorities, fleet operators, station operators and the general public. Increasing the amount of hydrogen used and so increasing familiarity, realworld experience and the economics of its delivery. Enabling future expansion of both network and individual stations, by judicious placement or the potential to add future capacity. Increasing knowledge throughout the sector, including expert knowledge on performance and failures, best practice, and understanding of refuelling patterns and how to move forward with network optimisation. Increasing station throughput, improving the economics of the stations and reducing the likelihood of technical problems linked to idle equipment.

11 11 Introduction to HTP Secondary objectives Maximising the benefit to the UK hydrogen refuelling network, through ease of access and by reinforcing it (some slight redundancy of station locations will ensure that downtime has less impact for the customer), by extending it (enabling vehicles to travel further) and by increasing the density (more stations between nodes will enable more vehicles to travel within an area). Enabling, where possible, additional applications that require hydrogen, such as stationary applications or non-fuel cell vehicles, as well as developing the case for expansion of the sector, for example through future links to trains or ferries, or to renewable hydrogen. Helping strengthen the supply chain by providing evidence of emerging markets and hence some mitigation against the risk of early participation.

12 12 Overview of the Programme Stages of the HTP

13 13 Overview of the Programme Eligibility Criteria The following are minimum requirements. Hydrogen Refuelling Stations The HRS must be located in the UK The station as a whole must achieve TRL level 7 or above - Prototype near or at planned operational system (as a minimum) The HRS must be accessible to all hydrogen fuel cell vehicles Projects should be fully operational by March 2019

14 14 Overview of the Programme Eligibility Criteria Hydrogen Refuelling Stations The station must demonstrate compliance with all relevant safety and security regulations The station must demonstrate compliance with appropriate fuelling protocols currently defined as: SAE Technical Information Report (TIR) J2601: 2010 Fuelling protocols for Light Duty Gaseous Hydrogen Surface Vehicles (until a new ISO or CEN regulation supersedes the SAE protocol)

15 15 Overview of the Programme Eligibility Criteria Hydrogen Refuelling Stations Selected use data (for example availability, number of refuelling events, etc) must be collected and shared quarterly under suitable agreements All stations are required to dispense fuel at 700 bar pressure. 350 bar may be implemented as an additional option with justification.

16 16 Overview of the Programme Eligibility Criteria Hydrogen Refuelling Stations Stations must have a daily refuelling capacity of no less than 80kg/day, though 200 kg/day is preferred. Applications must demonstrate that large fleets can be accommodated, by considering the number of vehicles and their anticipated refuelling requirements with the station capacity and throughput.

17 17 Overview of the Programme Eligibility Criteria Vehicles The hydrogen vehicles must be fuel cell vehicles operating on UK public roads. - Fuel cell may be part of a hybrid powertrain The vehicles must comply with all safety regulations governing operation on public roads. The vehicles must be TRL 7 or above

18 18 Overview of the Programme Evaluation Process Applications must be completed on the application form at We will not consider applications submitted in any other format. Completed application forms and required attachments must be submitted electronically to by 09:00 BST on Monday 16th October An identical signed original hard copy should be submitted to Ricardo Energy & Environment within 5 working days of the deadline to: Hydrogen Transport Programme Ricardo Energy & Environment Gemini Building Fermi Avenue Harwell International Business Park Oxfordshire, OX11 0QR

19 19 Overview of the Programme Evaluation Process

20 20 Overview of the Programme Evaluation Process All applications will be checked for eligibility using the criteria outlined previously. Only those that are considered to be valid will be fully assessed. For all valid applications, the consortium will be subject to due diligence & must provide all information required in the application form to facilitate this test, plus any additional information requested during the assessment period. Applications from any organisation failing the test (including failure to provide requested information within 1 week of the request), or involving a consortium that includes any organisation failing the test, will be ruled ineligible.

21 21 Overview of the Programme Evaluation Process All applications will be checked for eligibility using the criteria outlined previously. Only those that are considered to be valid will be fully assessed. The assessment of proposals will be based only on the information which is explicitly contained within your For all valid applications, the consortium will be subject to due diligence & must application. provide all information required in the application form to facilitate this test, plus any additional information requested during the assessment period. You must not assume that the assessment team has any Applications from any organisation failing the test (including failure to provide prior knowledge of your organisation, its work or the project. requested information within 1 week of the request), or involving a consortium that includes any organisation failing the test, will be ruled ineligible.

22 22 Overview of the Programme Evaluation Process Selection Criteria Weightings Category Project relevance and impacts (25%) Technical concept (20%) Criteria Weighting /100 Clarity of the project objectives and relevance to the competition objectives 10 Potential and case for benefits to the UK 5 Potential and case for benefits to the refuelling network and vehicle fleet 10 Credibility of the technical approach and relevance to the specific challenge 10 Level of robustness and credibility to reliably deliver H 2 and vehicles 10

23 23 Overview of the Programme Evaluation Process Selection Criteria Weightings Category Making the commercial case: (20%) Supply chain: economic and environmental aspects (10%) Criteria Weighting /100 Level of commercial advancement as a result of the project 5 Strength of case for DfT funding 10 Level of matched funding, other funding applications, and status of securing funding 5 Demonstrated assessment of component availability and supply chain capacity 5 Demonstrated potential for lowering cost and carbon footprint of hydrogen 5

24 24 Overview of the Programme Evaluation Process Selection Criteria Weightings Category Project Implementation (25%) Criteria Weighting /100 Confidence in skills and experience of the project team 5 Appropriateness of the project work plan and status of the project 5 Understanding of the project risks and their management 5 Appropriateness and clarity of communications plan 5 Credibility of project outline costing 5

25 25 Overview of the Programme Evaluation Process Projects must offer best Value for Money to the Government and hence, the UK taxpayer. OLEV have an obligation to ensure Value for Money (VfM) to the UK taxpayer OLEV therefore reserves the right to work with the applicants after the evaluation, to optimise a network from a selection of those bids offering the greatest VfM. Good value for money means high benefits to the UK roll-out of FCEVs at a reasonable cost. Demonstration of positive impacts such as; support for early fuel cell vehicles & increased utilisation of stations strategic geographic coverage with potential for expansion etc.

26 26 Overview of the Programme Evaluation Process Projects must offer best Value for Money to the Government and hence, the UK taxpayer. OLEV have an obligation to ensure Value for Money (VfM) to the UK taxpayer Potential for growth, development of OLEV therefore reserves the right to work with the applicants after the evaluation, to optimise a network from a selection of those bids offering the greatest VfM. UK supply chain & opportunities for Good value for money means high benefits to the UK roll-out of FCEVs at a reasonable cost. learning & its exploitation will Demonstration of positive impacts such as; strengthen bids support for early fuel cell vehicles & increased utilisation of stations strategic geographic coverage with potential for expansion etc.

27 Overview of the Programme Evaluation Process Projects assessed as a portfolio; which combination maximises total net benefits given the overall 23 million budget? Resilience of portfolio to identified risks? Maximising learning potential for wider industry and future markets Supporting development of the early market Ricardo Energy & Environment in Confidence Best locations (or combination of) to balance growth of a hydrogen refuelling network and fleet Potential for derisking future expansion of the early network 27

28 28 Overview of the Programme Evaluation Process When will decisions on the award of grants be known? Early November All applicants will receive notification of decision All decisions will be final and there is no appeals process. Summary details of all successful grants will be published on the competition website. If successful, you will receive a grant offer from the Department for Transport (DfT). This offer may be subject to conditions that need to be met prior to acceptance. The grant offer letter, including T&C s, form the agreement between your organisation and DfT. You must sign the offer letter and return it to establish the agreement.

29 Future Fuels for Flight and Freight Competition (F4C) - Prospective Bidders Event Ricardo Energy & Environment in Confidence 29

30 Hydrogen for Transport Programme (HTP) - Prospective Bidders Webinar Ricardo Energy & Environment in Confidence 30 Pre-submitted questions Question Response 1 Can other funding from OLEV be used alongside the HTP scheme funding to support the vehicle aspects? E.g. can plug in car or plug in van grants be used alongside this scheme to either reduce costs to users or reduce the grant intervention rate? 2 We are interested in infrastructure support to produce hydrogen from renewable energy via an electrolyser. The hydrogen would then be transported to filling stations/end users. And If the hydrogen is produced away from the station can the capital cost of the electrolysers and tube trailers be covered by the grant? There is no clause within the HTP scheme that would prevent any organisation purchasing eligible vehicles using the plug-in grant scheme. Applicants are required to determine whether there are any restrictions imposed by any other scheme if utilised in conjunction with HTP grant monies. The cost of equipment for the on-site production of hydrogen would an eligible part of the CAPEX. The eligibility criteria states; The equipment eligible for grant is any piece of hardware that is intended to be part of the HRS through its expected lifetime, e.g. storage tanks, compression equipment and dispensers. Equipment that is integral to the operation of the HRS will be considered applicants must be able to provide strong evidence and justification that the off-site equipment is necessary for the HRS. Tube trailers would not be included in the eligible costs.

31 Hydrogen for Transport Programme (HTP) - Prospective Bidders Webinar Ricardo Energy & Environment in Confidence 31 Pre-submitted questions Question Response 3 Q2.5 states; Confirm the carbon footprint of the hydrogen. What level of detail do you require? The footprint for the trucks that transport the hydrogen? the footprint for the people that will drive to service the equipment? the travelling footprint for the staff that may need to work at the site? the footprint to make the equipment? the footprint to dispose of the equipment? Please clarify. 4 I am concerned that we won t be able to adequately make our case in the word limits given in the Application Form do we need to stick within the word limit? For example, the risk section doesn t provide enough room to cover all elements. A full LCA is not required, but the primary energy source, transmission and conversion efficiencies etc should be included. Diesel fuel for delivery trucks would be part of the chain; the manufacturing of the truck would not. The carbon footprint should be estimated at the point of dispensing, taking into consideration the whole production chain (well-totank). Similarly, cost analysis should also be based on the dispensed cost, with suitable assumptions about utilisation of equipment. There are opportunities to provide detailed information in the form of appendices Page 21 of the Application form states Please ensure all appendices are provided as supporting information. Ricardo Energy & Environment templates must be used (where provided) and if any additional appendices are being provided this must be listed below.

32 Hydrogen for Transport Programme (HTP) - Prospective Bidders Webinar Ricardo Energy & Environment in Confidence 32 Pre-submitted questions Question Response 5 Eligibility includes a requirement to provide access "to all FC vehicles". Does this exclude bi-fuel ICE vehicles? Please define what is meant by vehicles [e.g. does the HRS have to be accessible by buses]? 6 Is there a deadline date for Stage 2 applications? Will those interested in Stage 2 need to be active in Stage 1? And Have the deadlines for the Stage 2 process been established? Our requirement that HRS must be accessible to all hydrogen fuel cell vehicles was intended to include cars and other light duty vehicles, and to make clear that HRS to be used for single company fleets only would not be eligible for funding under this scheme. We do not require that all HRS must be accessible to fuel cell buses, nor heavy duty vehicles, although bidders are of course welcome to make their HRS accessible to additional types of vehicles as they see fit and to develop their business case. Indicative dates for Stage Two of the HTP are; - Application window for Stage Two bids opens in latesummer Application deadline during December Announcements are expected to be made in late- January, It is not required that applicants to Stage Two have been active during Stage One.

33 Hydrogen for Transport Programme (HTP) - Prospective Bidders Webinar Ricardo Energy & Environment in Confidence 33 Pre-submitted questions Question Response 7 How advanced in this technology can we be? Both HRS and vehicles should be at TRL level 7 or above. 8 Can funding be passed to local private filling stations or will this be mainly public sector led? 9 Has ULEMCo., sufficient capacity to meet potential hydrogen retrofitting demand? 10 Will it only be FCEV vehicles that are valid or will retrofit hydrogen vehicles also be possible? Any organisation public or private can apply for HTP funding provided the proposed project meets with requirements and eligibility criteria. OLEV is unable to comment on the activities of private enterprise. All FCEVs will in principle be considered, whether bespoke or with fuel cells added to existing battery vehicles, though they must meet all existing standards. No ICE hydrogen vehicles will be eligible for funding, whether bespoke or retrofitted, though they can of course use the stations if appropriate. The aim of the scheme is specifically to support the roll-out and increased utilisation of fuel cell vehicles.

34 Hydrogen for Transport Programme (HTP) - Prospective Bidders Webinar Ricardo Energy & Environment in Confidence 34 Pre-submitted questions Question Response 10 Will it only be FCEV vehicles that are valid or will retrofit hydrogen vehicles also be possible? All FCEVs will in principle be considered, whether bespoke or with fuel cells added to existing battery vehicles, though they must meet all existing standards. No ICE hydrogen vehicles will be eligible for funding, whether bespoke or retrofitted, though they can of course use the stations if appropriate. The aim of the scheme is specifically to support the roll-out and increased utilisation of fuel cell vehicles. 11 Will cities that have an existing hydrogen refuelling station be favoured or not favoured for the bids? At this stage, we cannot speculate about the nature or geographical spread of projects that will make a bid for HTP grant-funding. Applicants will be expected to articulate the case for all projects, whether located near to an existing HRS or isolated from the existing network and demonstrate that the project will contribute to the UK Hydrogen refuelling infrastructure and improve network links. 12 Are extensions to existing HRS stations eligible? Extensions to existing HRS are eligible for the scheme providing all requirements and criteria for the scheme can be met.

35 Hydrogen for Transport Programme (HTP) - Prospective Bidders Webinar Ricardo Energy & Environment in Confidence 35 Summary Stage One application deadline: 16 th October 2017 at 0900Hrs Applications must meet eligibility criteria, minimum requirements & all relevant safety & security regulations Applications must provide strong evidence of source(s) of matched funding All information must be included within the application (which includes appendices) Original, signed hard copy required in addition to electronic copy Applicants should refer to guidance & scheme documentation while preparing bids Any queries can be directed to; HTP website and helpdesk: ee.ricardo.com/htpgrants HTPGrants@Ricardo.com

36 Fiona Twisse Ricardo Energy & Environment The Gemini Building Fermi Avenue Harwell, Didcot, OX11 0QR