htp prospective bidder's webinar presentation · hydrogen transport programme prospective...

Hydrogen Transport Programme

Prospective Bidders’ Webinar

19 September 2018

Suki Dhadar (OLEV)

Fiona Twisse & Kirsty Povey (Ricardo)

Adam Chase & Marcello Contestabile (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 Adam Chase, E4tech

1550 Summarising key points Fiona Twisse, Ricardo


• Slides & webinar audio recording will be made available from:

https://ee.ricardo.com/htpgrants

• “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)

Welcome & Introductions




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• 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; 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 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.


Our

mission…and for all new cars and

vans to be effectively zero

emission by 2040

“To put the UK at the

forefront of the design and

manufacturing of zero

emission vehicles...

Prime Minister, May 2018

”


Drivers for change

Environment

Improving air

quality

Cleaner, quieter

cities

Reducing greenhouse

gas emissions


Delivering our

industrial strategy

Lowering costs for

consumers and

businesses

Improving energy

security

Drivers for change

Opportunity


Government’s July 2018

strategy sets out our

long-term ambitions and

measures to get there

£1.5bn funding over

2015-2021




A previous programme, the HRS Infrastructure Grants Scheme, was launched by OLEV on the 2nd

February 2015.

• The HRS Infrastructure Grants Scheme has provided £5.5 million in capital grant funding over 2

years (2015-17) 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.




• 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 2015. The HRS Infrastructure Grants Scheme provided £5.5 million in capital grant funding over 2

years (2015-17) 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.



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.



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 2020




• 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

350 and/or 700 bar pressure, with full

justification for the choice.





• 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 05 November 2018. 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]




Copy of applications

securely shared with OLEVApplications received via email

Clarification

sought from

applicants

Applications logged and assigned to assessors

1st Technical assessment (Infrastructure)

2nd Technical assessment (Fleet)

Eligibility checks

Commercial assessment

(economics experts)

QA review of all assessments

Produce application overview

Applications and overviews

sent to Selection PanelSelection Panel reviews

applications Selection Panel makes final

funding recommendations

Final funding recommendations

presented to OLEV Programme Board

Produce portfolio overview

Final funding decision made and all applicants notified




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.



Overview of the Programme – Stage 2 Evaluation Process

Technical assessment - Selection Criteria Weightings

Category Criteria Weighting /100

Project relevance and

impacts (25%)

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

Technical concept

(30%)

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

Supply chain: economic

and environmental

aspects (20%)

Availability of components and the capacity of supply chains to deliver within

project timescales10

Demonstrated potential for lowering delivered hydrogen cost 5

Demonstrated potential for lowering the carbon footprint of the hydrogen 5

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



Overview of the Programme – Stage 2 Evaluation Process

Commercial Assessment Selection Criteria Weightings

Category Criteria Weighting /100

Project relevance and

impacts (25%)

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

Making the commercial

case (40%)

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 10

Supply chain: economic

and environmental

aspects (10%)

Availability of components and the capacity of supply chains to deliver within

project timescales10

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?

• 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.


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


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

Pre-submitted questions

Pre-submitted questions Response

Will small scale hydrogen stations be applicable for

this bid?

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.

Will the HRS funding be for NEW hydrogen stations or

just for upgrading the existing ones again? We need

new stations

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.



Pre-submitted questions

Pre-submitted questions Response

Which vehicles will be approved as part of the bid?

Will retrofits be applicable to diesel and EVs?

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

logistics company) as part of a wider scheme for

fleet vehicles will not be eligible ?

All vehicles must meet eligibility criteria and

must be TRL level 7 or above.

Can you confirm the Gain share/match funding.

Is it the same as OLEV 1 i.e. 50 :50

The programme is a match-funded capital grant

scheme. Applicants will be required to cover

50% of costs.

What vehicles can be included as part of the

bid? Will retrofits and conversions be included?See above.


• 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

– [email protected]


Summary



Fiona Twisse

Ricardo Energy & Environment

The Gemini Building

Fermi Avenue

Harwell, Didcot,

OX11 0QR

[email protected]


htp prospective bidder's webinar presentation · hydrogen transport programme prospective...

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