Green hydrogen PPP tender launched by Aberdeen Council
Aberdeen City Council has begun the Competitive Dialogue procurement process to identify and select a private sector development partner to develop a green hydrogen hub in the city.
The development partner will be expected to provide finance and investment along with scoping, design, procurement, project management, implementation, delivery, operation, maintenance, commercial support and technical expertise.
The Hydrogen Hub aims to capitalise on the North East Scotland region’s role in the rapidly growing offshore wind sector to provide ‘green’ hydrogen and would serve the City’s housing, heating and transport systems, in what the Council describes as the first “commercially scalable” and “investible” site of its kind in Scotland
Green hydrogen is a type of fuel which is produced via renewable energy, a cleaner and more sought-after fuel than blue hydrogen which is derived from natural gas.
The joint venture will have a 10-20 year hydrogen supply agreement with the Council.
Phase 1 will include procurement of a hydrogen production facility for public sector consumption of green hydrogen to support both existing and proposed transport projects.
Phase 2 envisages supply to larger volume utilisation hydrogen vehicles such as rail, freight and marine. Phase 3 will involve the supply of hydrogen for heat and export.
The new partnership will build on the City’s existing hydrogen infrastructure and transport projects, including a fleet of hydrogen-powered buses, public sector vehicles and refuse vehicles.
The Council’s contract notice identifies the potential cost of the hydrogen hub facility at £215m, with the Council having “agreed in principle” to fund £19.4m from its capital programme towards the project.
Aberdeen City Council Co-Leader Councillor Jenny Laing said:
“Over the past five years, Aberdeen has established itself as a centre of excellence for hydrogen and fuel cell technologies.
Taking the energy expertise, experience and infrastructure already in place in Aberdeen, the city has successfully implemented large scale hydrogen projects laying the foundations for more to follow.
At the City Region level, there is an opportunity to expand into large scale upstream production and supply for both domestic and export markets through the Aberdeen Hydrogen Hub concept.
“The Hub will capitalise on Aberdeen’s leading role as a pioneering hydrogen city and create a springboard for economic growth, future investment, technology development and job creation across the region.”
The invitation to tender document is available here.
The publication of the Council’s procurement documents comes after a market engagement exercise earlier this year demonstrated “significant [commercial] interest” stated the Council in an accompanying press release..
Cover image by Alexnewworld from Pixabay
