Hydrogen Transport Programme · Hydrogen for Transport (HTP) - Prospective Bidders’ Webinar...

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© Ricardo-EE Ricardo Energy & Environment in Confidence

Hydrogen for Transport (HTP) - Prospective Bidders’ Webinar

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

1500 - Evaluation process Fiona Twisse, Ricardo

1510 Q&A Expert Panel, chaired by David Hart, E4tech

1550 Summarising key points Fiona Twisse, Ricardo


• Slide & webinar audio recording available from: https://ee.ricardo.com/htpgrants

• “Housekeeping” – how to ask the questions for the Q&A session

Welcome & Introductions


https://ee.ricardo.com/htpgrants


Any questions?

Submit your question in writing using the panel on the right.

Attendee control panel

Successful CRC Compliance webinar

Welcome to the CRC Compliance Webinar

If your panel is minimised, click

the orange button to expand it.

Type your question here


• 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.

Welcome & Introductions




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 2050’.

• 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.



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.



Introduction to HTP – About the Programme – Suki Dhadar

Hydrogen for Transport Programme (HTP) providing up to £23m new grant funding

- Commit up to £9m

- 50:50 match funding

- Fund up to 7 HRSs

- PLUS associated fleets

- Commit up to £14m

- Fund up to 10 HRSs

- PLUS associated fleets

Stage Two is contingent

on satisfactory progress

on vehicle supply and

market developments at

Stage One.

Stage 1

Stage 2



Introduction to HTP – Main objectives

Projects must offer best Value for Money to the Government and hence, the UK taxpayer.



Introduction to HTP – Secondary objectives

Increasing the amount of hydrogen used and so increasing familiarity, real-

world 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.

Ensuring credibility in the eyes of all stakeholders, including government,

local authorities, fleet operators, station operators and the general public.

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.



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.



Overview of the Programme – Stages of the HTP



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




• 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)





• 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.





• 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.




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




Overview of the Programme – Evaluation Process

Applications must be completed on the application form at www.ee.ricardo.com/HTPGrants

We will not consider applications submitted in any other format.

Completed application forms and required attachments must be submitted electronically to

[email protected] by 09:00 BST on Monday 16th October 2017. 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

http://www.ee.ricardo.com/HTPGrants

mailto:[email protected]




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.




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.

The assessment of proposals will be based only on the

information which is explicitly contained within your

application.

You must not assume that the assessment team has any

prior knowledge of your organisation, its work or the project.




Selection Criteria Weightings

Category CriteriaWeighting

/100

Project relevance

and impacts

(25%)

Clarity of the project objectives and relevance to the

competition objectives10

Potential and case for benefits to the UK 5

Potential and case for benefits to the refuelling network and

vehicle fleet10

Technical concept

(20%)

Credibility of the technical approach and relevance to the

specific challenge10

Level of robustness and credibility to reliably deliver H2 and

vehicles10






/100

Making the

commercial case:

(20%)

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

Supply chain:

economic and

environmental

aspects

(10%)

Demonstrated assessment of component availability and supply

chain capacity5

Demonstrated potential for lowering cost and carbon footprint

of hydrogen5






/100

Project

Implementation

(25%)

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




• 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.





• 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.


Potential for growth, development of

UK supply chain & opportunities for

learning & its exploitation will

strengthen bids




Best locations (or

combination of) to

balance growth of a

hydrogen refuelling

network and fleet

Resilience of

portfolio to identified

risks

Supporting

development of the

early market

Potential for de-

risking future

expansion of the early

network

Maximising learning

potential for wider

industry and future

markets

Projects assessed as a portfolio; which combination maximises

total net benefits given the overall £23 million budget?

?




When will decisions on the award of grants be known?

• Early November 2017.

• 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.


Future Fuels for Flight and Freight Competition (F4C) - Prospective Bidders’ Event


Hydrogen for Transport Programme (HTP) - Prospective Bidders’ Webinar

Pre-submitted questionsQuestion 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?

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.

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?

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.




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.

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-to-

tank). Similarly, cost analysis should also be based on the

dispensed cost, with suitable assumptions about utilisation of equipment.

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.

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.




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]?

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.

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?

Indicative dates for Stage Two of the HTP are;

- Application window for Stage Two bids opens in late-

summer 2018

- Application deadline during December 2018

- Announcements are expected to be made in late-

January, 2019.

It is not required that applicants to Stage Two have been active during Stage One.




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?

Any organisation – public or private can apply for HTP

funding – provided the proposed project meets with requirements and eligibility criteria.

9 Has ULEMCo., sufficient capacity to meet potential hydrogen retrofitting demand?

OLEV is unable to comment on the activities of private enterprise.

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.




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.


• Stage One application deadline: 16th 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

– [email protected]


Summary

https://ee.ricardo.com/htpgrants


Fiona Twisse

Ricardo Energy & Environment

The Gemini Building

Fermi Avenue

Harwell, Didcot,

OX11 0QR

[email protected]


Hydrogen Transport Programme · Hydrogen for Transport (HTP) - Prospective Bidders’ Webinar...

Documents

Transcript of Hydrogen Transport Programme · Hydrogen for Transport (HTP) - Prospective Bidders’ Webinar...