Hydrogen Refuelling Station Infrastructure Grant Scheme

Office for Low Emission Vehicles Ricardo Energy & Environment E4tech
     



Hydrogen Refuelling Station Infrastructure Grant Scheme

The HRS Infrastructure Grants Scheme was launched on the 2nd February 2015 by the Office for Low Emission Vehicles (OLEV) to support roll out of hydrogen infrastructure networks in the UK with the specific aim of encouraging the introduction of Hydrogen Fuel Cell Electric Vehicles (FCEVs). The HRS Infrastructure Grants Scheme will provide up to £5.5 million in capital grant funding over 2 years (2015-17) for infrastructure projects seeding development of hydrogen for road transport in the UK. The HRS Infrastructure Grants Scheme will fund projects via two funding streams:

Stream 1 (Upgrades): £2million of top-up funding to upgrade 6-8 existing hydrogen refuelling stations (already operation or under development in the UK) and take them from demonstrator projects to sites which meet the required technical and operational standards to play a role in the early refuelling network. The aid intensity can be up to 100% of the eligible costs.  
Stream 2 (New stations): £3.5 million of funding for 4-7 new hydrogen refuelling stations. These could include HRS on stand-alone sites, integrated into conventional petrol forecourts, and mobile or relocateable HRS. The scheme will fund up to 60% of the eligible costs, matched by the applicant.  
The following diagram outlines the steps within the HRS Infrastructure Grant Scheme, from initial applications to final projects.
  • Stream 1 (Upgrades): Approximately £2million of top-up funding to upgrade 6-8 existing hydrogen refuelling stations (already operational or under development in the UK) and take them from demonstrator projects to sites which meet the required technical and operational standards to play a role in an early refuelling network
  • Stream 2 (New stations): Approximately £3.5 million of funding for 4-7 new hydrogen refuelling stations

Either stream could include fixed HRS on stand-alone sites or integrated into conventional fuel forecourts, and fully mobile HRS. Applicants can bid for funding under either or both streams, but bids for each stream must be separate, as the evaluation criteria are also slightly different. OLEV reserves the right to move funding between the two streams if this provides the best overall opportunity to meet the scheme’s objectives.

The HRS Infrastructure Grants Scheme is now closed to applications. The following seven applications were successful:

Ref

Project name

Lead Organisation

HRS1/001

FCSL Mobile H2 Refueller

Fuel Cell Systems Ltd. (FCSL)

HRS1/003

ITM Upgrades

ITM Power

HRS1/004

London Hydrogen Network Upgrade (LHNU)

Air Products

HRS1/006

HRS Swindon upgrades

Honda of the UK Manufacturing Limited (HUM)

HRS1/008

ITM Two New Builds

ITM Power

HRS1/011

Hydrogen M4 West: University of South Wales Baglan HRS Upgrade

University of South Wales

HRS1/012

Mobile High Pressure Fueller (MHPF)

Air Products

For the Ministerial announcement of these results, please follow this link: https://www.gov.uk/government/news/government-revs-up-motorcycle-market

The following diagram outlines the steps within the HRS Infrastructure Grants Scheme, from initial applications to final projects.


Objectives

The fundamental objective of the programme is to cost-effectively seed the UK network of HRS with the greatest potential to enable the timely roll-out of FCEVs, and ultimately grow into a nationwide network. To achieve this will require a network that:

  • Builds confidence for infrastructure providers, vehicle providers, operators and, importantly, the public
  • Generates, captures, disseminates and exploits learning from the early operations
  • Is strategically located with clear and logical opportunities for expansion and replication

 From this it follows that of key importance in assessing each application will be:

  • Value for money and potential economic benefits to the UK
  • Clarity and quality of the application in meeting the objectives
  • Justification of the location of the project, and contribution to a nascent HRS network
  • The potential for replicability and scale up
  • The potential for building and supporting a UK supply chain
  • Exploitation of the learning and communications potential


Applications will also be assessed by the Selection Panel from a portfolio perspective, looking at:

  • The resilience of the overall portfolio to identified risks
  • The potential of the portfolio for de-risking future expansion of the early network
  • The best locations (or combination of locations) to set up an early hydrogen refuelling network, reflecting anticipated customer demand
  • Maximising the learning potential for the wider industry and future markets
  • Broad stimulation of the market, via a number of projects


Requirements

Projects that are funded through the HRS Infrastructure Grant Scheme should demonstrate:

  • An understanding of the market context (size, readiness, target market, cost levels) with a clear view of where their project would fit
  • A suitably mature technology to maximise the likely availability of the HRS
  • That the applicants have the necessary expertise and experience to deliver the project to its objectives
  • The ability to match fund the project’s costs
  • A clear strategy for communicating the successful delivery of the project
  • A commitment to measuring and sharing key data


Any questions?

Please email HRSinfrastructuregrants@ricardo.com if you have any questions when filling in your application to the HRS Infrastructure Grant Scheme. We will aim to post responses on this website within 3 working days.

State aid information

At the commencement of this bidding process, hydrogen refuelling infrastructure remains an emerging technology which lacks a market for competition between economic entities. As a result, the award of funds under this grant scheme does not constitute state aid. However, successful bidders must satisfy themselves that their use of the awarded funds does not itself engage state aid or, where it does, ensure that the state aid rules are fully complied with.