green fuels, green skies - ricardo plc

Green Fuels, Green SkiesStakeholder engagement session

Edward Hornsby, Low Carbon Fuels

13 April 2021

Public Presentation – V1.0 13/04/2021

Agenda

GFGS Stakeholder Engagement Session V1.0 13/04/2021

Item Lead

Introduction Giorgio Parolini (DfT)

GFGS Overview Teddy Hornsby (DfT)

FAQ sprint Teddy Hornsby (DfT)

GHG calculations walkthrough Richard Taylor (E4tech)

Q&A* All

*Please submit questions for the Q&A on the chat, these will be published by our moderator.

Green Fuels, Green Skies

competition overview

GFGS backgroundExisting government support for the sector:

• Future Fuels for Flight & Freight Competition (F4C), Advanced Biofuels Demo’ Comp’ (ABDC)

• Development Fuels subtarget of the Renewable Transport Fuels Obligation (RTFO)

Ricardo/E4tech feasibility:

• UK potential for the sector

• Main market barriers: high capital cost, technology risk, market uncertainty

• Proposed competition design

Stakeholder survey, winter 2020


GFGS objectivesKey objective:“Support the development of the UK SAF sector towards the deployment of innovative SAF production

technologies at commercial scale that are capable of reducing emissions from the aviation sector in the UK

within the near-term.”

- Get projects financeable/construction-ready & scale up UK SAF production past the technology “valley of

death”;

- Support a wide range of technologies where they demonstrate potential;

- Keep UK leadership in the emerging global sector.

Objectives for winning projects:

• Technology demonstration

• Fuel production

• Commercial potential

• Emissions reduction

• Project execution


GFGS design & expected timeline


We are here

Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22Phase Application Development Assessment Funding Period

Application development/networkingDocuments to complete:

Application form (provided) + Appendices:

A. Consortium letters

B. Technology evidence

C. Work plan

D. Project budget (template provided)

E. Projected cash-flow model (to be provided imminently)

F. Match funding details

G. Outline risk assessment (template provided)

H. GHG emissions estimate (template provided)

I. Development status documents

Networking/Consortium building:

Stakeholder list available on ricardo.com/GFGS - email [email protected] to be included.


Organisation Contact Name Contact Email100 words outlining your organisation’s relevant experience and collaboration interest:

Exxamplecompany Joe Bloggs [email protected] Exxample company is an SME gasification company with….

mailto:[email protected]


Assessment 1: eligibility screening

Category Eligibility Criteria

Pathways

The proposed SAF output must be capable of being blended with jet A-1.

•Ideally, this would involve fuel that can be used immediately without engine modifications, meeting the relevant jet fuel ASTM

specifications.2

•However, projects involving fuels that do not currently meet ASTM specifications are also able to apply, provided that the relevant

SAF pathway is currently engaged with the ASTM certification process, or there is clear evidence of the fuel’s future potential to be blended

with Jet A-1.

Greenhouse Gas

savings

First-of-a-kind commercial scale plants must demonstrate they will deliver a SAF output with a minimum 70% lifecycle GHG reduction in

comparison to a counterfactual of 94gCO2e/MJ (LHV). Demonstration plants do not have to meet this requirement but must demonstrate

how a future commercial plant will meet this threshold.3

TRLThe proposed plant must achieve Technology Readiness Level4 6-8 (small demonstration, large demonstration or First-Of-A-

Kind commercial scale).

Feedstock

Feedstocks (including the original feedstocks used to derive any intermediate fuels) should have the potential to qualify as a ‘development

fuel’ under the RTFO5:

•Waste feedstocks used must demonstrate compliance with the waste hierarchy. Segregated waste fats/oils are not eligible.

•Renewable power to liquids routes must demonstrate additionality of the renewable electricity used, as per RTFO guidance.

Location The proposed plant must be located in the UK.

Project Lead The project lead must be a UK registered company.

T&Cs Acceptance of the competition's grant offer letter terms and conditions.6

Eligible costs Funding cannot be used for previously funded activities or to replace private sector investment.7

Timescales Funding is only available for project work completed during the competition’s Funding Period.8


In order to be eligible to apply to the GFGS competition, a project must comply with the following minimum requirements:

Assessment 2: scoring process


The total score calculated by applying the weighting for each scoring criterion from the table.

- Projects must score 50%

- Projects may be asked to provide clarifications/invited to an interview.

- Due diligence by DfT will also be started during this period. Projects must pass this to receive funding.

- Extra information must be provided within 5 working days to support the scoring process.

Category Scoring criteria

Project

relevance (5%)1. Clarity of the project objectives and relevance to the competition objectives

Technical

approach (25%)

2. Credibility of the technological approach, clarity of the project data and justification with relevant pilot/demo plant data

3. Level of innovation and progress as a result of the proposed plant

4. Level of progression of the fuel pathway through ASTM certification process

5. Level and evidence of GHG emissions savings of the proposed plant (and expected GHG emissions savings at commercial scale if different)

Commercial

approach (20%)

6. Level of progression towards construction of a FOAK commercial plant as a result of the funded activities

7. Potential and case for economic benefits of the proposed plant during construction and operation, including CAPEX, OPEX, revenues of plant and

local economic benefits

8. Potential and case for benefits of future deployment of the technology within the UK, and benefits from export markets

Project

Implementation

(50%)

9. Credibility of current status of the project and readiness to proceed with funded activities

10. Confidence in skills and experience of the project team

11. Appropriateness of project management and governance structure and partners roles

12. Appropriateness and credibility of the project work plan

13. Detailed understanding of the project risks and their management

14. Credibility of detailed project costing for the funded activities

15. Strength of case for the DfT funding, including level of match funding leveraged and status of securing funding

Funding allocation

The competition board will employ a portfolio approach considering:

• Project scores;

• Breadth of technology pathways represented.

Up to £2m funding pot set aside to support feasibility studies across all TRLs


Feasibility Pre-FEED FEEDEngineering

&

Procurement

Installation

&

Commissioning

Operations

Up to £2m pot

Competition Scope

Project lifecycle

Some scoring focus

Funding period

Grant awards

• Based on boiler plate terms

• Project funds provided in arrears and on provision of evidence of work completed

Monitoring/Reporting

• Projects assigned a Monitoring Officer – “critical friend” and first point of contact

• Monthly reporting requirements

Funding period ends March 31, 2022

• Tied to HMT budget period


Advice from the ABDCGo Green Gas

• “Read the competition documents including feasibility study. The competition requirements and scoring criteria are very clear and are taken seriously.

• Engage with the DfT and advisors. Their culture is very collaborative.

• Be realistic. There is no such thing as a perfect project and its better to discuss and address weaknesses than ignore them.”

Nova Pangaea Technology

• “Openness and transparency is rewarded with support and pragmatism

• Milestones need careful thought and can be difficult to manage. But also understand that the DfT needs target achievements to pay out grant claims and also to manage government funding

• The “management process” does not involve extensive administration

• There is genuine interest in your technology and its success”


FAQs

available at

ricardo.com/GFGS

GHG template

Walkthrough

Thank you

Contactsquestions: [email protected]

website: www.ricardo.com/GFGS



http://www.ricardo.com/GFGS