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Future Mobility Zones Fund Application Form – Outline Proposal This application is for the creation of a single Future Mobility Zone (FMZ). One application form must be completed for the proposed zone, regardless of how many individual schemes it contains. Please include all relevant information within your completed application form.

Applicant Information City region name: Plymouth Bid manager name and position: Philip Heseltine, Head of Transport, Plymouth City Council Contact telephone number: 01752 307942 Email address: Philip.Heseltine@plymouth.gov.uk Postal address: Strategic Planning and Investment, Plymouth City Council, Ballard

House, West Hoe Road, Plymouth, PL1 3BJ

SECTION A – Name, location and description of the FMZ

A1. FMZ name and location (please provide a map of the area in an annex): H2 City (Plymouth + A30 / A38 / M5 Corridor)

A2. FMZ description Plymouth’s Future Mobility Zone complements proposed investments in the city’s Transforming Cities Fund bids by investing directly and leveraging private sector investment in: • Hydrogen Refuelling Stations (HRSs) • Hydrogen Fuel Cell Electric Vehicles (FCEVs) • FCEV maintenance and repair infrastructure • Support measures to respond to the incomplete hydrogen mobility market, fast-track and mainstream FCEV technologies, overcome barriers to take up, create economies of scale, achieve familiarity, acceptance, and create a functioning marketplace for hydrogen transport on a city scale. Up to 9 HRSs will be delivered, including open access ‘retail’ hydrogen within the city (2), dedicated access hydrogen for buses operator depots (2), dedicated access hydrogen for fleet vehicles at the Council’s main depot (1), and open access ‘retail’ hydrogen at existing HGV accessible fuel stations on the A30/A38/M5 corridor(4).

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Up to 352 FCEVs brought into commercial or private use in the city alongside commensurate capacity in FCEV servicing and repair infrastructure. Vehicles will include buses (conventional services and Demand Responsive Community Transport (DRT)), HGV’s (3.5t upwards), specialist vehicles (e.g. refuse), taxis, fleet cars, mobility service subscription and car club cars. The provision of a network of HRSs will release supressed and stimulate new demand for FCEVs in the city and along the A30/A38/M5 corridor. Up to 4 vehicles will be converted and 6 added to enhance our DRT offer. Our existing service is highly valued by local residents and visitors who find it difficult or are unable to use or travel on conventional bus or taxi services to access citywide facilities and services due to their age or disability. PCC will also partner with a supermarket food retailer and DWP to trial a grocery delivery charge credits scheme for recipients of certain benefits - subject to the identification of a delivery/funding model that can be delivered through a capital only fund.

SECTION B – The Strategic Case

B1. Background - What are the zone’s objectives? Overarching objective 1. To initiate fast-track and mainstream the use of green hydrogen as a zero emission,

low carbon energy carrier for transport in the city. Address the incomplete hydrogen mobility market by overcoming barriers to use, driving economies of scale, enabling early adopters, achieving cultural familiarity and acceptance, and allowing battery and fuel cell EVs to compete on equal terms by creating a functioning marketplace and ‘at scale’ test bed for hydrogen vehicles and services in an exemplar ‘H2 City’.

In achieving this we will also pursue the following objectives: 1. To use the development of a functioning marketplace for hydrogen mobility as a

catalyst for the development of a robust local green hydrogen supply chain, economy and knowledge centre and the economic and environmental opportunities that this presents.

2. to trial at scale ‘whole system design’ and subscription models of car production and

use. 3. To maximise opportunities for FCEV technology-driven reductions in the cities

transport carbon footprint and the air and noise pollution benefits that this will also generate (with a particular focus on heavy vehicles).

4. To make Plymouth ‘hydrogen ready’, generate a competitive advantage for the far

south west peninsula in hydrogen mobility, connectivity, green hydrogen production and the emerging hydrogen economy, and overcome the challenges of our geographic remoteness with regard to zero emission transport (with a particular focus on heavy vehicles).

The objective of the grocery delivery charge credits trial scheme is to address food poverty and poor access to healthy food among low income household / households in receipt of certain benefits.

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The objective of providing 10 replacement and new DRT community Transport vehicles is to significantly expanding our existing Community Transport offer, providing freedom, independence, and an enhanced quality of life to even more residents of Plymouth.

B2. Strategic Case - What does the FMZ contribute to the programme objectives? Hydrogen powered Fuel Cell Electric Vehicles are part of the future of mobility and the transition to zero carbon mobility. Alongside battery electric vehicle (BEVs) they have the potential to deliver substantial benefits for society, the environment and the economy. In 2013, UK H2 Mobility’s demand modelling indicated that an initial network of 65 HRSs would need to develop by 2020 (growing to 329 stations by 2025 and 1150 by 2030) to meet hydrogen demand from UK sales of approximately 10,000 FCEVs per year. Early hopes for the emergence of a strong and growing market for hydrogen mobility in the UK have not been realised. In common with many countries, barriers to market growth have not been overcome: today there are around 250 FCEVs on UK roads, clustered within easy driving distances of just a dozen HRSs. There are no HRSs in the far south west. Private sector investment in a national HRS network has not been forthcoming as up-front investment costs are high, while early year revenues from hydrogen sales were correctly assumed to be low and eventual revenue growth was not protected from capture by later market entrants. A range of government and EU seed funding initiatives involving HRSs, FCEVs and research into new hydrogen applications in transport have unfortunately not proved sufficient to stimulate a virtuous cycle of mutually reinforcing infrastructure delivery, FCEV market growth and an expanding range of FCEV brought to market. Plymouth’s ambitious package of H2 City Future Mobility Zone schemes will enable a unique, high value, large scale demonstration of an innovative model for the development of a functioning marketplace for multi-modal green hydrogen mobility on a city scale: government funding empowering a proactive local authority to address the incomplete hydrogen mobility in partnership with a range of private sector partners. Hydrogen has the potential to meet 18% of the world’s energy demand, create 30 million jobs, abate 6 gigatons (Gt) of CO2 annually (footnote, McKinsey) and play seven different roles in the global energy transition:

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Plymouth City Council sees the development of a functioning marketplace for hydrogen mobility as a potential catalyst for the growth of a strong green hydrogen economy and knowledge centre and a range of related economic and environmental opportunities. These opportunities could include local generation, distribution and sale of green hydrogen; opportunities for Plymouth Energy Community; energy demand management through hydrogen as energy storage; energy supply diversification (a wide range of energy sources can be used in the production of green hydrogen); reduced reliance on imported energy sources for transport; potential synergies with Plymouth University’s renowned expertise in Offshore Renewable Energy and Plymouth’s growing science, engineering and technology sector; the development of a reputation as a leading city for FCEVs and hydrogen innovation; and production of hydrogen using ‘off line’ electricity from the city’s Energy from Waste facility.

The whole life environmental costs of vehicle production, use and disposal are very high. The application of ‘whole system design’ principles to transport technology and business models can systematically reduce these impacts. Car clubs and car subscription services are emerging as an alternative to car ownership and changing perceptions about personal

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mobility. Plymouth City Council will seek opportunities to support and trial at scale hydrogen mobility solutions that feature whole system design principles and / or car club and car subscription services. Plymouth City Council unanimously declared a Climate Emergency earlier this year and is committed to achieving net carbon neutrality by 2030. Carbon emissions from transport have remained persistently high and now account for 30% of the city’s carbon footprint. Achieving zero emission transport will require behaviour change and technological change. The city’s Transforming Cities Fund walking, cycling and public transport infrastructure proposals will enable a shift to sustainable modes of travel. Our Future Mobility Zone scheme will maximise opportunities for hydrogen fuel cell technology-driven reductions in the city’s transport carbon footprint and air and noise pollution - particularly with regard to heavy vehicles, which are less suited to battery electric drivetrains. Plymouth’s Future Mobility Zone schemes reflect our Local Plan Policy SPT9 commitment to deliver transport in the most health promoting and environmentally responsible manner; taking local control of our transport future, embracing localism, and embracing changes in travel technology. The schemes are also consistent with OLEV’s Hydrogen for Transport Programme objectives. Plymouth and the far south west peninsula suffer economic disadvantages associated with their peripherality. Our Future Mobility Zone schemes provide an opportunity for Plymouth and the far south west peninsula to become ‘hydrogen ready’, generate a competitive advantage for the region in hydrogen mobility, connectivity and the emerging hydrogen economy, and overcome the challenges of our geographic remoteness with regard to zero emission transport for HGVs and other heavy vehicles. In doing so, it will significantly enhance the existing national network of HRSs (currently, the nearest HRSs to Plymouth are in Swindon and south Wales). It will also provide an opportunity to make zero emission vehicle use easy and convenient for the 30% of Plymouth households without access to off street parking on which to charge battery electric vehicles. A large proportion of low income households have no access to a car. This can leave them with a choice between using expensive taxis for grocery shopping trips or using smaller local shops that are more expensive and offer a limited range of fresh food. All major food retailers offer online / app-based grocery delivery services. However, these typically charge several pounds per delivery and also require a minimum grocery spend of between £25 and £40 – a large sum for low income households. Plymouth City Council will seek to partner with a supermarket food retailer, web / IT specialists and the DWP to trial a grocery delivery charge credits scheme that enables recipients of certain benefits to access discounted / fee free grocery delivery charges and / or minimum spend requirements through a website / app based feature that can be built into the retailers exiting website. The following schemes will feature in Plymouth’s Future Mobility Zone: Hydrogen Refuelling Stations • 2 open access ‘retail’ HRSs will be provided within Plymouth will supply green

hydrogen to any FCEV owner / operator. It is envisaged that one each will be sited in the south and the north of the city to provide a convenient fuel offer to all city residents and businesses. These may be delivered as new facilities on new sites or integrated within the sites of existing fuel retail stations. Soft market testing will establish the extent of market interest from current providers of fuel retail facilities in Plymouth.

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• 3 ‘captive market’ HRSs will be provided to supply green hydrogen to FCE buses at

private bus operator depot sites (2) and Plymouth City Council fleet vehicles at the council’s main depot site (1)

• 4 open access ‘retail’ HRSs will be provided within existing HGV accessible fuel

stations on the A30/A38/M5 corridor at Truro, near Plymouth, near Exeter and near Bristol.

We will seek to ensure through the tendering process that open access HRSs feature contactless / payment technology and automatic fuel data transmission, so consumption can be monitored at each site and cumulatively to assess growth in demand. HRSs will use infra-red communication technology to connect to and monitor vehicles as they refuel. Specialist consultancy support will be procured to inform HRS tender specifications and address technical and planning considerations. Supply of high quality green hydrogen from on-site electrolysis generation powered by renewable electricity will be the default HRS supply model to avoid the need to buy in brown hydrogen from elsewhere in the UK or abroad. The potential for mobile HRS provision to be an appropriate part of the HRS delivery programme will be considered. Hydrogen Fuel Cell Electric Vehicles Up to 352 FCEVs will be brought into use in Plymouth by the end of the funding period (including new FCEVs and retrofitting of existing vehicles with FC drivetrains). Provisional vehicle number targets are: • 40 FCE buses (including FCE buses to provide an expanded range of innovative

demand responsive community transport services provided by Access Plymouth) • 50 FCE taxis • 32 FCE Plymouth City Council fleet vehicles (including specialist vehicles) • 100 heavy goods vehicles (3.5t upwards) • 100 (annual equivalent) FCE car subscriptions • 30 FCE fleet cars for use by public and / or private sector employers If shortlisted Plymouth City Council will refine these vehicle numbers based on further market engagement. A flexible approach to the allocation of FMZ funding to the different vehicle type and mode will be needed, as it is likely that demand for certain FCEVs will exceed expectations and fall short of expectations in others. We will pursue any emerging opportunities during the project period to enable FCE motorbikes, coaches, military vehicles, trains and bikes (including cargo-bikes). As Britain’s Ocean City we are particularly keen to remove barriers to the use of hydrogen in the marine sector and would be keen to partner with the operators of Plymouth’s 4 ports to deliver marine hydrogen refuelling and storage infrastructure. All vehicles will be funded on a marginal cost basis (except Demand Responsive Community Transport buses which will be eligible for full capital costs) to make appropriate and efficient use of public funds. FCEV maintenance and repair infrastructure Plymouth City Council will work with FCEV manufacturers / retailers and FCEV end users to ensure that sufficient technology specific maintenance and repair services are available in

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the city for all vehicle types and modes. We have been advised by a FECV manufacturer that the training required to enable conventional motor vehicle mechanics to service and repair FC EVs is not onerous or difficult. Support measures Plymouth City Council will: • recruit a H2 City Project Officer on a fixed term contract for the duration of the project

to coordinate and drive scheme delivery, to be supported by allocated time from other officers (Transport and Economic Development) for the duration of the project period (3 x 0.2 FTE).

• explore offering free or discounted parking at council car parks and free or discounted residents’ parking permits to FCE and pure electric vehicle owners to incentivise and reward uptake, as already implemented in Milton Keynes.

• explore offering licence fee discounts to licence holders of FCE and pure electric taxis.

• seek to add Plymouth to the itinerary of the Energy Observer during the project period to provide educational opportunities and promote fuel cell technology.

• seek to leverage FMZ funding to secure additional hydrogen infrastructure funding from EU Hydrogen projects during the remaining period of the UK’s EU membership.

• Seek to replicate the London Schools Hydrogen Challenge in Plymouth schools.

How does Plymouth’s FMZ fit with the aims of the Future Mobility Zones?

Trialling new mobility

services, modes and

models to create a

functioning marketplace

for mobility that

combines new and

traditional modes

Innovative delivery model: transformative scale government

funding empowering a proactive local authority to address the

incomplete hydrogen mobility market in partnership with a range

of private sector partners.

Seeking opportunities for local generation and supply of

renewable fuel for transport and grid balancing.

Seeking opportunities for at scale trial of ‘whole system design’

resource minimisation model of car production use and end of

life reuse.

Seeking opportunities to trial at scale ‘subscription’ model of car

use (mobility service replaces ownership).

Enhancing our existing DRT offer by increasing the size of the

fleet, converting its current means of propulsion to zero carbon,

introducing web/app-based booking opportunities and route

management technology.

Improving the integration

Integration of green hydrogen generation, distribution, supply

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of services

and use by the transport sector.

Integration of traditional (petrol / diesel) and new (hydrogen and

EV charging) fuels in pre-existing fuel retail outlets.

To improve integration: enable / allow bus operators, fleet

operators, freight operators to make appropriate choices with

regard to how they transition to a zero carbon transport economy

(BEVs, FCEVs, integrate their fleets removing one of the

identified barriers to drivers switching to EVs and ensuring the

city has the infrastructure to support, encourage and grow FCEV

transport to hydrogen fuel cell technologies to.

Providing access to

digital planning and

payment options

HRSs to be equipped with contactless / phone touch payment

platforms

Exploring options for

providing mobility

credits, or other low-cost

options for low income

household;

Seek to partner with a supermarket food retailer and the DWP to

trial a grocery delivery charge credits scheme for recipients of

certain benefits.

Innovative ways of

increasing the efficiency

of freight movements /

logistics

Use of batteries is problematic for heavy vehicles as the

batteries need to be very large. Hydrogen fuel cell drivetrains are

much lighter and can be retrofitted to a wide range of existing

goods vehicles, opening up zero emission options for the users

of large commercial vehicles.

An improved consumer

offering.

The FMZ schemes will expand and diversify the mobility offer to

individual and businesses in terms of fuel options (hydrogen),

sustainable car use (‘whole system design’ model), car use

(subscription rather than ownership), food accessibility (grocery

delivery charge credits scheme).

Bids should demonstrate how establishing the demonstrator will:

Allow the area to

prepare for emerging

The FMZ will open the city up to all future hydrogen mobility,

generation and storage opportunities.

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business models

Deliver measurable

outputs to enable

through the monitoring &

evaluation process, to

identify policy,

commercial and

regulatory measures for

emerging technologies

Plymouth City Council will gather data on the number of FCEVs

brought into use, the number of HRSs brought into use (all

types), fuel volumes sold at each HRS and cumulatively, and

retail price of hydrogen at all open access HRSs. User surveys

will gather quantitative and qualitative data on user experience.

Help the area

understand and respond

to future mobility risks

and opportunities

Development of local fuel generation capability for use in

transport and grid balancing offer the potential to reduce

vulnerability to oil price rises and maintain grid supply when

renewable energy supply dips.

Deliver improved

outcomes in local

congestion, air quality

and accessibility.

DRT – gives improved accessibility options to economically

disadvantaged groups and reduces congestion by consolidating

journeys in DRT Community Transport vehicles that would often

otherwise be made individually by taxi.

FCEVs are zero emission vehicles. Their introductions part of

the transport offer in Plymouth will reduce NOx and PM pollution.

The grocery delivery charge credits trial scheme for recipients of

certain benefits will improve food accessibility for low income

households in receipt of certain benefits.

Please provide

information to show how

the zone will help to

meet strategic transport

objectives in the area.

The FMZ schemes will support the achievement of Plymouth’s

Strategic Transport polices.

Joint Local Plan policy STP8:

The quality and resilience of Plymouth and South West Devon's

transport and digital connectivity to the rest of the country and to

global markets will be protected and enhanced

Joint Local Plan policy SPT9:

Taking local control of our transport future, embracing localism,

generating independent resources to transform transport

investment, and embracing changes in travel technology.

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Plymouth Plan, Theme 2: A Green City:

ii. Increasing the proportion of energy from local renewable,

decentralised and low carbon sources.

2. A thriving green economy is achieved, with a skilled and

growing workforce.

5. A transport system is provided that responds to emerging

technological changes for electric and low carbon forms of

transport

9. Clean air is enjoyed and Plymouth has some of the cleanest

air of any city in the country.

Plymouth Plan, Policy HEA6

7. Investing in and promoting the growth of an electric vehicle

charging network and continuing to work with partners to

harness the benefits of alternative fuel technologies.

9. Working with our partners, including the charitable sector, to

provide community transport to enable people who cannot use

conventional public transport to access [services and

opportunities]

10. Working with regional partners, agencies and public

transport operators to deliver an integrated transport system

Outline which user

segments are most

expected to benefit from

the FMZ (e.g. existing

commuters, prospective

workers with new

access to work).

All residents will benefit from reduced air pollution. Residents

and business will have access to a more diverse range of zero

emission transport opportunities; opportunities to experience the

‘whole system design’ resource minimisation model of car

production use and end of life reuse; and ‘subscription’ model of

car use (mobility service replaces ownership). Businesses who

use heavy vehicles – especially over long distances - will have

viable zero carbon mobility options.

B3. Global significance The growth in hydrogen mobility has been slower than hoped across the world. The response to this has varied. In Japan and Germany national governments have announced plans to deliver national networks of HRSs. While in the US, Nikola (a manufacturer of FCE trucks) is investing billions in a private national network of HRSs. Plymouth’s H2 City Future Mobility Zone will serve as an innovative, ambitious, significant, real world and potentially exportable demonstration of a different model: significant scale

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central government funding empowering a proactive local authority, working with a wide range of private sector partners to achieve rapid, coordinated provision of a comprehensive city and regional corridor network of hydrogen refuelling stations alongside rapid introduction of several hundred FCEVs into the local market to drive demand and create a functioning marketplace for hydrogen mobility. If successful there will be more FCEVs in use in Plymouth in 2023 than there are in the whole of the UK right now, and Plymouth’s H2 City could become as an example of global best practice in transitioning to hydrogen mobility. Process mapping, monitoring and evaluation from project inception and throughout implementation will enable the production of a resource pack to share with other city or regional authorities to apply and adapt to their locale and circumstances. Data gathered will include the number of FCEVs brought into use (all types), the number of HRSs brought into use (all types), fuel volumes sold at HRSs individually and cumulatively, and retail price of hydrogen at all open access HRSs. User surveys will gather quantitative and qualitative data on experiences of stakeholders, including retailers and end users. Specific elements of the FMZ package may also serve as globally significant demonstrators: the trialling at scale of vehicles produced and used using ‘whole system design’ principles, and, the potential to exploit opportunities for grid management provided by the scaling up of hydrogen refuelling infrastructure with on-site green hydrogen generation and storage. These aspects of the FMZ will be included in monitoring and evaluation activities.

SECTION C – The financial case

C1. Financial case – scheme costs Total scheme cost (£m): £56.9m Total DfT (FMZ) funding contribution (£m): £38.0m Total public sector contribution (£m): £1.4m (subject to approval) Total local and/or private contribution (£m): £17.5m Details of any ‘contributions in kind’ (e.g. operators agreeing to run a service): £0m Year 2019/20 2020/21 2021/22 2022/23 Total Total (£m) 0.5 19.8 7.1 10.6 38.0 N.B. Scheme costs and therefore contributions are scalable

SECTION D – The management case

D1. Management case – Delivery and risk management Key project milestones currently known:

Milestone

Date

Produce brief for initial consultancy support in development of final proposal in advance

June 2019

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of shortlisting announcement (ready to appoint consultants to commence work immediately in the event that we are shortlisted).

Recruit H2 City Project Officer on a fixed term contract for the duration of the FMZ project period.

October 2019

Establish a H2 City Partnership involving all relevant stakeholders to aid communication, partnership working and delivery.

December 2019

First open access ‘retail’ HRS opens, enabling FCEVs to be used in Plymouth for the first time.

Autumn 2020

Contracts enabling FCE taxis, FCE car subscription, FCE employer fleet cars, and FCE heavy good vehicles use to come into effect from date of opening of first HRS

Autumn 2020

Plymouth City Council FCE fleet vehicles able to refuel at an open at an open access ‘retail’ HRS to be brought into service from the date of opening of the first open access ‘retail’ HRS.

Autumn 2020

Access Plymouth DRT to be brought into use from date of opening of first open access ‘retail’ HRS.

Autumn 2020

All 9 proposed HRSs open.

March 2022

The Council has a robust Risk Management Strategy which will be used to manage and mitigate risks within this project by wherever possible. Key risks currently identified:

Risk

Mitigation

Difficulty in locating suitable sites for hydrogen refuelling stations

Early engagement in site identification, supported by specialist consultants.

Owners / operators of existing petrol stations in Plymouth and on the A30/A38/M5 corridor do not respond to opportunity for HRS delivery on their sites, which would require HRSs to be built on new sites.

Early engagement with owners / operators to ensure that the HRS ‘offer’ is commercially and operationally attractive and allow time for issues to be addressed.

Delays in implementation of refuelling stations leading causing delayed uptake of FCEV due to lack of available refuelling options

Robust project management practices and risk management.

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Lack of willing ‘early adopters’ of FCEV leading to lower than expected use

Proactive marketing activities and tailored market engagement.

Hydrogen price increases leading to viability issues from private sector

This risk cannot be readily managed as we do not have any control over the market price of hydrogen.

Commercially viable model for mobility credits not established

Early engagement with DfT on this issue.

Electrical engineering issues relating to localised grid capacity constraints at HRSs with on-site hydrogen generation via electrolysis

Scoping activities undertaken to identify viable HRS sites to involve liaison with Western Power Distribution.

Lack of interest from potential supermarket partners for mobility credits scheme

This risk cannot be readily managed.

Lack of organisational experience and knowledge with regard to hydrogen infrastructure and vehicles.

Recruit a H2 City Project Officer with technical and project management in the hydrogen sector, and secure specialist consultancy support.

HRS malfunction prevents FCEV users being able to access hydrogen fuel

Deliver the second HRS as soon as possible in order that reliable fuel supply is maintained in the event of malfunction at the other HRS. Ensure all HRSs have two supply nozzles in the event of malfunction of one of them. Contingency planning to consider options of purchase or emergency leasing of a mobile HRS to ensure reliable supply until the second HRS is delivered.

D2. Management case – Governance Do you have governance processes in place to deliver the scheme?

Yes No Please give brief details including the name and position of the Senior Responsible Owner: Paul Barnard, Service Director for Strategic Planning and Infrastructure Project Governance The City Council Investment Board (CCIB) will steer the investment decisions for the project in order to ensure that schemes are delivered in line with corporate priorities. An organogram in Appendix G shows the Project Team and the relationship with the SRO and TCF Board. Given the scale of ambition it is plausible to involve both sub-national transport boards within the governance arrangements for the siting of HRS across the south west region.

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The Project Director will be responsible for co-ordinating the delivery of the scheme elements, identifying key interdependencies and ensuring that the overall project is delivered to programme, quality and budget. The Project Director will be supported by a project team of Project Managers responsible for delivering each TCF and FMZ scheme element assisted by Legal, Procurement, Finance and contract management. The Project Director and Contract Administration will be responsible for ensuring that the contractors perform effectively. The Council has the technical skills and expertise to oversee delivery of the schemes and the associated benefits delivering a ‘H2 City’ will bring. The Council has recent experience of delivering major infrastructure projects such as the Eastern Corridor and City Centre SCN; Northern Corridor SCN; Derriford Hospital Interchange (DHI) scheme and the DfT funded Marjon Link Road scheme that provides a two-way, bus-only road with dedicated cycling and pedestrian facilities. Through existing frameworks, the Council has access to a number of specialist consultants to provide engineering, transport planning and related support as required and has also already entered into correspondence and engagement with a number of key players in the hydrogen marketplace.

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SECTION E – The commercial case

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E1. Commercial Case Our FMZ bid – and our initial procurement strategy - has been informed by engagement with manufacturers of FCE cars, FEC buses, FCE bikes and FCE heavy good vehicles, with FCEV retro-fitters, HRS manufacturers and installers, FCE vehicle operators, local authorities with FCE vehicles and HRSs already in use, car subscription service providers and Plymouth City Council’s procurement specialists. It has also been informed by online resources produced by Fuel Cells and Hydrogen Joint Undertaking, the HYFIVE project, the Hydrogen Council, and UK H2 Mobility. A number of third parties have offered to write letters of support for our FMZ proposals. Our final procurement strategy will be informed by further external engagement, soft market testing, legal advice and specialist consultancy support. It is likely to involve a range of procurement pathways tailored to secure the delivery and operation of HRSs in a range of circumstances and delivery and use of a range of different FCEVs. We currently anticipate procuring on the following basis: Hydrogen Refuelling Stations Open access ‘retail’ HRSs: Invite proposals for funding to build, operate and maintain. Assess proposals against pre-determined and weighted evaluation criteria. Technical specifications to be informed by specialist consultants. Successful bidder to receive funds via staged payments with final payment retained until after a defined period of successful operation. Captured market ‘depot’ HRSs: Competitive tendering process in line with public contract regulations. Fuel Cell Electric Vehicles FCE Buses: Grant funding to meet the marginal cost differential between a comparable diesel bus and an FCE bus. Invite proposals from bus operators. Assess proposals against pre-determined and weighted evaluation criteria. These criteria will address the operators’ proposals to ensure adequate provision of or access to maintenance and repair expertise and facilities. Stipulation that FCE buses remain in service in Plymouth for a defined number of years. FCE Taxis: Grant funding to meet the marginal cost differential between the purchase cost or the lease cost of a comparable taxi and an FCE taxi. Invite proposals from taxi fleet operators. Assess proposals against pre-determined and weighted evaluation criteria. These criteria will address the operators’ proposals to ensure adequate provision of or access to maintenance and repair expertise and facilities. Stipulation that FCE taxis remain in service in Plymouth for a defined number of years. FCE Subscription car use / car club cars: Invite proposals to initiate a scheme in Plymouth. Procurement process to be informed by the nature of proposals received. Funding arrangements will be configured to meet marginal costs differential between service provision with FCE car and service provision with a comparable petrol or diesel car.

SECTION F – Additionality

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F1. Additionality The transition to zero carbon transport will require both behaviour change and technological change. Plymouth’s Transforming Cities Fund will deliver a comprehensive package of walking, cycling and public transport infrastructure proposals to enable a significant shift to the use of sustainable travel modes. Our Future Mobility Zone scheme will complement these by maximising opportunities for hydrogen fuel cell technology-driven reductions in the city’s transport carbon footprint (and associated air and noise pollution). Both our TCF and FMZ schemes seek to deliver benefits on a sub-regional and regional scale, reflecting Plymouth’s ambition to be a major economic driver for the heart of the south west. Process mapping, monitoring and evaluation from project inception and throughout implementation will formalise the learning FMZ learning opportunities. The FMZ will provide specific learning opportunities in relation to: • the FMZ’s distinct delivery model: significant scale central government funding

empowering a proactive local authority, working with a wide range of private sector partners to achieve rapid, coordinated provision of a comprehensive city and regional corridor network of hydrogen refuelling stations alongside rapid introduction of several hundred FCEVs into the local market to drive demand and create a functioning marketplace for hydrogen mobility;

• the real world trialling of new to market FCEV application in hydrogen mobility; • the trialling at scale of vehicles produced and used using ‘whole system design’

principles; • the opportunities for grid management provided by the scaling up of hydrogen

refuelling infrastructure with on-site green hydrogen generation and storage; and • the trialling of a grocery delivery charge credits scheme for recipients of certain

benefits.

SECTION G – Declarations G1. Senior Responsible Owner Declaration As Senior Responsible Owner for Integrated Plymouth I hereby submit this request for approval to DfT on behalf of Plymouth City Council and confirm that I have the necessary authority to do so. I confirm that Plymouth City Council will have all the necessary statutory powers in place to ensure the planned timescales in the application can be realised.

Name: Paul Barnard

Signed:

Position: Service Director for Strategic Planning and Infrastructure

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G2. Section 151 Officer Declaration As Section 151 Officer for Plymouth City Council I declare that the scheme cost estimates quoted in this bid are accurate to the best of my knowledge and that Plymouth City Council

has allocated sufficient budget to deliver this scheme on the basis of its proposed funding contribution;

accepts responsibility for meeting any costs over and above the DfT contribution requested, including potential cost overruns and the underwriting of any funding contributions expected from third parties;

accepts responsibility for meeting any ongoing revenue and capital requirements in relation to the scheme;

accepts that no further increase in DfT funding will be considered beyond the maximum contribution requested and that no DfT funding will be provided after 2022/23;

Confirms that the authority has the necessary governance and assurance arrangements in place and the authority can provide, if required, evidence of a stakeholder analysis and communications plan in place.

Name: NOT REQUIRED AT OUTLINE STAGE

Signed: NOT REQUIRED AT OUTLINE STAGE

Submission of Bids The deadline for bids is: 23:59pm on 24 May 2019. An electronic copy (including supporting material) should be submitted to: FutureMobilityZones@dft.gov.uk However, if you must send hard copies of papers, please provide three copies to: Fran McMahon Future Mobility Zones Department for Transport 3/27, Great Minster House 33 Horseferry Road London SW1P 4DR

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Appendix 1: Map of H2 City Future Mobility Zone

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