HVT Appliance Development Business Case

Completed

Hydrogen and Fuel Cells(Hydrogen, Other infrastructure and systems R&D)

Applied Research and Development

ENGINEERING AND TECHNOLOGY (Mechanical, Aeronautical and Manufacturing Engineering)

Not Cross-cutting

Project Contact
Cadent Gas

Network Innovation Allowance

Ofgem

01 April 2023

30 September 2023

ENA months

£72,530

Energy

London

Network Innovation Allowance

Project Contact, Cadent Gas

Project Contact, Cadent Central
Project Contact, Cadent Eastern
Project Contact, Cadent North London
Project Contact, Cadent North West

Project Contact, Northern Gas Networks
Project Contact, SGN
Project Contact, Wales and West Utilities

This activity/service is purely desk-based, with work including coordination of meetings, management of stakeholders, and writing final recommendation reports.Arup was commissioned in July 2022 by SGN, as part of Ofgems HVT Stage 2 collaborative annexes, to project manage and deliver an assessment of the hydrogen appliance supply chain ahead of the 2025 start date. Arup have undertaken a comprehensive evaluation of the market delivering three reports across an eight-month period from July 2022-March 2023. These reports have expanded upon existing relationships with appliance OEMs to articulate current product development programmes and highlight the current development areas across the entire supply chain.Cadent, as new leads of the AWG (hence on behalf of the GDNs), will contract with Arup for this short-term service. Arup can support this project as they have knowledge and understanding of: Appliances, meters, and ancillary components through work on procurement and development on the HVT Appliance Supply Chain Assessment project and the Hy4Heat programme, Key stakeholders, including DESNZ, Ofgem, other GDNOs, appliance OEMs, trade bodies and technical consultants, The wider hydrogen economy landscape through work as DESNZs Hydrogen Technical Advisor, and on BEIS Hydrogen Advisory Council and Working Groups This activity/service is purely desk-based, with work including coordination of meetings, management of stakeholders, and writing final recommendation reports.The scope is fully aligned within the Hydrogen Village Trial (HVT) programme – which is ultimately environmentally focussed with the long-term aim of demonstrating that the existing natural gas network can be transitioned to facilitate hydrogen in the future.This workstream is specific to the development of hydrogen appliances (mainly for use in heating and cooking) in domestic and commercial properties.Hence the benefits are ensuring that: From a technical perspective - hydrogen appliances are available in time for trial deployment, and can be offered as suitable (safe and functional) alternatives to all current natural gas appliances in both trial areas From a consumer perspective – an adequate level of choice is offered (i.e., an appropriate variation of appliance sizes, models, colours, and brands etc.) to further encourage participation. Arup will develop an appliance development business case report. This will be based on previous project engagement with GDNOs, government and OEMs. The key themes of the business case report will be: To fully explain the current shortcomings of hydrogen appliance development To detail and articulate existing relationships with appliance OEMs and their desire to further develop hydrogen appliances in the UK To provide cost analysis as to level of funding required to meet demand of the HVT To highlight the time-critical nature of this work with a concise timeline for future OEM development To suggest the framework for which this work can be delivered, with government, GDNOs and OEMs working together To outline a method and means for which any future procurement exercise will take place, defining any future funding methods, stating milestones, whilst considering lessons learnt from previous projects To define a future working structure, combining expertise from government, regulatory bodies, GDNOs and technical advisor

Short sprint to cover 6-8 weeks continuation on the Appliance Supply Chain workstream across April & May 2023, following the closure of HVT Stage 2. This is an extension of Arups role from Stage 2 (following completion of the collaborative Procurement Strategy). Arup will continue to coordinate engagement with appliance OEMs, and work with Cadent (as Appliance Working Group leads) and DESNZ representatives, to help to develop the Business Case to unlock the additional funding required to stimulate the appliance development necessary for the HVTs (in either Whitby or Redcar).The project is in collaboration with the other gas networks, however Cadent would lead and fund this project on their behalf (similar to more recent hydrogen village collaboration projects undertaken over 2022/23 and into 2023/24).

01/11/23