Hydrogen Transport Programme Prospective Bidders Webinar 19 September 2018

Transcription

1 Hydrogen Transport Programme Prospective Bidders Webinar 19 September 2018 Suki Dhadar (OLEV) Fiona Twisse & Kirsty Povey (Ricardo) Adam Chase & Marcello Contestabile (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 Adam Chase, E4tech 1550 Summarising key points Fiona Twisse, Ricardo

3 3 Welcome & Introductions Slides & webinar audio recording will be made available from: Housekeeping how to ask the questions for the Q&A session Introducing the panel; Suki Dhadar, (OLEV) Fiona Twisse, Project Manager (Ricardo) Adam Chase, Assessment Panel (E4tech)

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 Ricardo-AEA 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. Our work includes in-depth technical evaluation and research, high-profile policy analysis and management of major publicly-funded grant support schemes for environmental technologies. 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; technoeconomic 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 aims to provide almost 1.5billion to position the UK at the global forefront of ULEV development, manufacture and use. This will contribute to economic growth and will help reduce greenhouse gas emissions and air pollution on our roads. Based in the Department for Transport, OLEV is part of the Department for Transport and the Department for Business, Energy & Industrial Strategy.

7 7 Our mission To put the UK at the forefront of the design and manufacturing of zero emission vehicles... and for all new cars and vans to be effectively zero emission by 2040 Prime Minister, May 2018

8 8 Drivers for change Environment Improving air quality Cleaner, quieter cities Reducing greenhouse gas emissions

9 9 Drivers for change Opportunity Delivering our industrial strategy Lowering costs for consumers and businesses Improving energy security

10 10 Government s July 2018 strategy sets out our long-term ambitions and measures to get there 1.5bn funding over

11 11 Address from OLEV Suki Dhadar A previous programme, the HRS Infrastructure Grants Scheme, was launched by OLEV on the 2 nd February The HRS Infrastructure Grants Scheme has provided 5.5 million in capital grant funding over 2 years ( ) for infrastructure projects via two funding streams; Stream 1 provided top-up funds for upgrades to existing operational demonstrator projects Stream 2 funds were allocated to the development of brand new hydrogen refuelling stations.

12 12 Address from OLEV Suki Dhadar Stage 2 of the Hydrogen for Transport Programme (HTP) has been designed to build on the successes of Stage 1 of the same scheme and an earlier scheme; the HRS Infrastructure Grants Scheme which was launched in The HRS Infrastructure Grants Scheme provided 5.5 million in capital grant funding over 2 years ( ) for infrastructure projects. In order to build on the successes of the HRS Infrastructure Capital Grant Scheme, 23 million was allocated to the Hydrogen Transport Programme (HTP), with the aim of expanding the network of hydrogen refuelling stations alongside the deployment of fuel cell vehicles. Stage 1 of the HTP awarded 8.8 million to a project that will bring nearly 200 new hydrogen powered vehicles to the UK alongside additional hydrogen refuelling stations being built as well as upgrades to existing refuelling infrastructure. Ricardo Energy & Environment (supported by E4tech) have been contracted as the delivery partner to manage the Hydrogen Transport Programme (HTP) on behalf of OLEV.

13 13 Introduction to HTP About the Programme Suki Dhadar Hydrogen for Transport Programme (HTP) providing up to 23m new grant funding Stage 1 Stage 2 - Commit up to 9m - 50:50 match funding - Fund up to 7 HRSs - PLUS vehicle fleets - Commit up to 14m - Fund up to 10 HRSs - PLUS vehicle fleets Stage Two contingent on satisfactory progress on vehicle supply and market developments at Stage One.

14 14 Introduction to HTP Main objectives Projects must offer best Value for Money to the Government and hence, the UK taxpayer.

15 15 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.

16 16 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.

17 17 Overview of the Programme Stages of the HTP

18 18 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 2020

19 19 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)

20 20 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 350 and/or 700 bar pressure, with full justification for the choice.

21 21 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.

22 22 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

23 23 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 05 November 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

24 24 Overview of the Programme Evaluation Process Copy of applications securely shared with OLEV Applications received via Applications logged and assigned to assessors 1 st Technical assessment (Infrastructure) 2 nd Technical assessment (Fleet) Eligibility checks Commercial assessment (economics experts) Clarification sought from applicants QA review of all assessments Produce application overview Produce portfolio overview Applications and overviews sent to Selection Panel Final funding recommendations presented to OLEV Programme Board Selection Panel reviews applications Selection Panel makes final funding recommendations Final funding decision made and all applicants notified

25 25 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.

26 26 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.

27 27 Overview of the Programme Stage 2 Evaluation Process Technical assessment - Selection Criteria Weightings Category Criteria Weighting /100 Clarity of the project objectives and relevance to the competition objectives 10 Project relevance and Potential and case for benefits to the UK 5 impacts (25%) Potential and case for benefits to the refuelling network and vehicle fleet 10 Technical concept (30%) Supply chain: economic and environmental aspects (20%) Project Implementation (25%) Credibility of the technical approach and relevance to the specific challenge 15 Level of robustness and credibility to reliably deliver H2 and vehicles 10 Does the Hydrogen production plan meet overall criteria? 5 Availability of components and the capacity of supply chains to deliver within project timescales 10 Demonstrated potential for lowering delivered hydrogen cost 5 Demonstrated potential for lowering the carbon footprint of the hydrogen 5 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

28 28 Overview of the Programme Stage 2 Evaluation Process Commercial Assessment Selection Criteria Weightings Category Criteria Weighting /100 Clarity of the project objectives and relevance to the competition objectives 10 Project relevance and Potential and case for benefits to the UK 5 impacts (25%) Potential and case for benefits to the refuelling network and vehicle fleet 10 Making the commercial case (40%) Supply chain: economic and environmental aspects (10%) Project Implementation (25%) Level of commercial advancement as a result of the project 5 Strength of case for DfT funding 25 Level of matched funding, other funding applications, and status of securing funding Availability of components and the capacity of supply chains to deliver within project timescales 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

29 29 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.

30 30 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.

31 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 31

32 32 Overview of the Programme Evaluation Process When will decisions on the award of grants be known? January 2019 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.

33 Future Fuels for Flight and Freight Competition (F4C) - Prospective Bidders Event Ricardo Energy & Environment in Confidence 33

34 Hydrogen for Transport Programme (HTP) - Prospective Bidders Webinar Ricardo Energy & Environment in Confidence 34 Pre-submitted questions Pre-submitted questions Will small scale hydrogen stations be applicable for this bid? Will the HRS funding be for NEW hydrogen stations or just for upgrading the existing ones again? We need new stations Response There are few limitations or exclusions on the scale of HRS. Please see page 10, paragraph 2.9 of the guidance document for eligibility criteria. The Hydrogen Transport Programme will provide funding to support the roll out of hydrogen refuelling stations and fuel cell vehicles in the UK. The programme has two primary objectives: 1)To increase the number of publicly-accessible hydrogen refuelling stations in the UK, and 2)To increase the number of fuel cell-powered electric vehicles on UK roads.

35 Hydrogen for Transport Programme (HTP) - Prospective Bidders Webinar Ricardo Energy & Environment in Confidence 35 Pre-submitted questions Pre-submitted questions Which vehicles will be approved as part of the bid? Will retrofits be applicable to diesel and EVs? Response All FCEVs will in principle be considered, whether bespoke or with fuel cells added to existing battery vehicles, though they must meet all existing vehicle 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. I'm assuming piloting hydrogen trucks (involving All vehicles must meet eligibility criteria and logistics company) as part of a wider scheme for must be TRL level 7 or above. fleet vehicles will not be eligible? The programme is a match-funded capital grant Can you confirm the Gain share/match funding. scheme. Applicants will be required to cover Is it the same as OLEV 1 i.e. 50 :50 50% of costs. What vehicles can be included as part of the bid? Will retrofits and conversions be included? See above.

36 Hydrogen for Transport Programme (HTP) - Prospective Bidders Webinar Ricardo Energy & Environment in Confidence 36 Summary Stage One application deadline: 05 November 2018 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

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