Warwick District Council (WDC) has gone to market to search for an organisation to lead on developing, delivering and operating a ‘low carbon hydrogen hub’.
The Council has a commitment to ensure that its contracted services are net-zero carbon by 2030. Decarbonising the council’s refuse collection vehicles (RCVs) is a high priority as they are the most significant user of diesel fuel. A 2022 feasibility study found that a battery electric strategy could require an increase in fleet size (due to battery weight) a reduction in available operating hours and a power supply upgrade. In contrast, hydrogen fuel cell vehicles would replicate the current operating structure in terms of user experience, operating hours and payload.
It found a hydrogen hub could be sited at a number of locations within the district (one close to the M40) and could produce hydrogen for the broader public and private sector markets.
To fuel the RCV fleet, WDC would require a 1MW electrolyser and would require the supply of renewable electricity. However, the council found “hydrogen production lends itself to economies of scale given balance of plant, so a larger facility would reduce the overall cost of hydrogen – and thus operating cost of the vehicles”. It considered a 3MW facility would reduce the cost of hydrogen from £12.09 to £8.11, assuming a power price of £90/MWh.
A study of potential users found that “broadly the market was supportive and would be interested in participating but the perception is that hydrogen vehicles are some way off and as such it would take time for demand to emerge”. To be considered ‘green’ the hub’s power must be supplied from renewable energy via power purchase agreements or locally generated electricity and the council is in contact with developers planning to build solar PV in the region.
It is now exploring options regarding potential contract types or delivery arrangements for the hydrogen hub and is seeking feedback from the market. As well as exploring private sector funding it is considering council funding and funding from government schemes.
Premarket engagement will be in week commencing 24th April. To register interest visit www.csw-jets.co.uk