Appraising different types of hydrogen appliance

The Department for Business, Energy & Industrial Strategy wishes commission a project to appraise different approaches to providing hydrogen appliances in UK homes, should there be a future transition from natural gas to hydrogen.

Heat refers to any energy that is used, or might be used, for the purposes of heating or cooling in buildings, including cooking, providing hot water and in industrial processes. The Climate Change Act places a statutory obligation on the UK Government to make an 80% reduction in 1990 greenhouse gas emissions by 2050. Achieving nearly zero carbon heating continues to be identified by government analysis as an important feature of any lowest cost pathway to 2050. Heat currently accounts for ~48% of UK energy consumption and approximately one third of our greenhouse gas emissions.

On the 14/12/16, Baroness Neville Rolfe gave a speech at the Policy Exchange's Heat Summit on heat decarbonisation. For more information see Baroness Neville Rolfe's keynote speech from the Policy Exchange event "The Heat Summit: How Can We Decarbonise Heating?"

Converting the gas grid to hydrogen is one potential option for decarbonising part of the UK's heat demand.

A Supplier Day was held on 21/4/17. Slides from the event are published alongside this ITT. Non-attendance at the Supplier Day does not preclude you from further involvement in the tender process. Questions and answers raised during the Supplier Day will be published alongside this ITT in the next few days.

Any further questions can also be asked to [email protected] and all responses will be provided and published to all interested parties in an anonymised form.

Description: This project will seek to appraise the following three variations in approach to providing hydrogen appliances in UK homes should there be a transition from natural gas to hydrogen: a) Appliances fully replaced: Natural gas appliances removed and hydrogen appliances installed in their place. b) Appliances adapted: Natural gas appliances have components that can be easily switched-out to allow conversion to hydrogen. c) Dual fuel appliances: Appliances will be capable of burning both natural gas and hydrogen.

For the purposes of this project, "appliances" will be defined as: domestic gas boilers, ovens, hobs and fires.

This project will consider the cost, performance, practicality and technical feasibility of the three variations in approach to hydrogen appliances identified above. It will seek to understand, the trade-offs and preferred market conditions for the development of each variation. The precise research questions that we are looking for the contractor to address are included in the ITT attached.

The contractors will be invited to propose a methodology which would best meet the overall aim and objectives above for approval by BEIS.

The methodology proposed must make clear how contractors will deliver new robust evidence, and add value to the evidence base.

Additional information: Please note: The following sections of this ITT were amended on 3 May 2017, [changes have been highlighted using red font]:

• Section 1 E "Terms and conditions applying to this Invitation to Tender", • Section 1 F "Further Instructions to Contractors", • Section 2 - 7 "Ownership and Publication"

The tender timeline has also been extended. Revised tender timeline dates are included in Section 1 A "Indicative Timetable" and Section B "Procedure for Submitting Tenders".

The deadline for receipt of Tender Responses will now be 15:00 Fri 26th May 2017. ------------------------------------------------------------------------------- The methodology ought to include innovative proposals to answer the project's key questions. Contractors will be expected to critically assess and challenge the information they receive as required. Where applicable relevant existing evidence should be interrogated, critically analysed, evaluated and as appropriate used as a basis to build on.

How to Apply If you wish to take part in this procurement please see the attached Tender documents attached to this Notice and send your completed Proposal to Jenna Owen at address stipulated in the "Who to Contact" section.

Any late submissions will not be considered. BEIS reserves the right to halt the procurement process and to not award a contract. BEIS will not be held liable for recovery of costs from unsuccessful bids if a contract is not awarded. All costs will be borne by the bidding organisations. If a contract is created it will be upon BEIS Standard Terms and Conditions, which are available on Contracts Finder with this notice. Completed tender submission must be emailed to [email protected] before the deadline of 11:00 Mon 22nd May 2017. After reviewing and evaluating the written proposals, BEIS may decide to hold bid clarification meetings with suppliers. If successful and upon contract signature, the supplier is expected to attend a kick-off meeting taking place during the week commencing 19th June 2017. Project completion is required by 6th Oct 2017.

Useful links to other relevant studies: Report for DECC - Desk study on the development of a hydrogen-fired appliance supply chain November 2016: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/537594/30686_Final_Report_DECC_Hydrogen_appliances_08.07.16.pdf

Northern Gas Networks Leeds City Gate H21 report July 2016: http://www.northerngasnetworks.co.uk/wp-content/uploads/2016/07/H21-Report-Interactive-PDF-July-2016.pdf

Please note that the list of Q&A from the supplier day has now been added to the list of available documents. Please read and take into account before submitting your tender.