DD2014 Hydrogen London Partnership Budget and Expenditure 2016/17

Type of decision: 
Director's decision
Date signed: 
20 June 2016
Decision by: 
Fiona Fletcher-Smith, Executive Director of Development, Enterprise and Environment

Executive summary

This Director Decision authorises the Hydrogen London Partnership budget for 2016/17 and associated programme activity. 

It is anticipated that the Mayoral Advisor for Environment will be appointed as Chair of Hydrogen London, as per the structure in previous administrations. Once the appointment is confirmed, the programme for the 2016-17 will be reviewed and officers will only commit amounts which are necessary at this stage.


The Executive Director:

•    approves the programme of work for 2016/17 to support the implementation of the London Hydrogen Action Plan;

•    approves the associated programme budget of £117,893 (£40,000 of this is GLA contribution – approved in MD 1640; £36,193 income in advance from 2015/16; and £41,700 from membership fees) to be committed during the 2016/17 financial year as agreed by the Hydrogen London Partnership Executive Committee (March 2016) and the GLA; and 

•    approves the associated expenditure in relation to the programme of work.


Part 1: Non-confidential facts and advice

Introduction and background

1.1    Hydrogen London was set up in 2002 as the London Hydrogen Partnership to develop a network of hydrogen fuel cell (HFC) stakeholders in the capital and help develop HFC technologies in London.

1.2    Hydrogen London is a public/private partnership that consists of an Executive Committee, two Project Groups (the Infrastructure Vehicle Group and the Stationary Group) and a Partnership manager, acting as Secretariat for the Partnership, based at City Hall (which coordinates the partnership's day to day activities). It is anticipated that the Mayoral Advisor for Environment will be appointed as Chair of Hydrogen London, as per the structure in previous administrations. Once the appointment is confirmed, the programme for the 2016-17 will be reviewed and officers will only commit amounts which are necessary at this stage. The partnership also has a Vice-Chair to represent industry members.

1.3    Hydrogen London works on delivering the London Hydrogen Action Plan (LHAP). LHAP makes the case for hydrogen investment and sets out the strategic framework and timeline (from now until 2017) for an action plan addressing vehicles and infrastructure, production and storage, stationary and early market applications. It aims to move beyond demonstrations and trials and to commercialise hydrogen and fuel cell projects that support the Mayor’s environmental, transport, social, economic and development priorities.

1.4    The main aims of the Hydrogen Programme are to: 
•    deliver a series of interconnecting hydrogen refuelling facilities in London;
•    deliver demonstration and deployment projects of early commercial hydrogen powered vehicles; 
•    support the delivery of standards for hydrogen refuelling stations in London;
•    support and encourage uptake of fuel cell units in London – in buildings and larger developments;
•    support and encourage transportable hydrogen powered applications. Take advantage of opportunities such as the NRMM (Non Road Mobile Machinery) Low Emission Zone to increase uptake of the technology;
•    raise awareness and disseminate the technology to stakeholders;
1.5    Hydrogen London has a proven track record of securing more than €50 million worth of hydrogen projects in London. One of these projects is coordinated by the GLA and it secured approximately €30 million with €400,000 funding for the GLA to appoint two officers (as per Mayoral Decision 1306) to coordinate the delivery of the project and to support dissemination and communication activities.

1.6    There is an increasingly urgent need for cities across Europe and beyond to address poor air quality, which has significant impacts on citizens’ health and is largely caused by road transport emissions. In addition, many countries have committed to reducing greenhouse gas emissions and reliance on fossil fuels. There is strong interest in hydrogen and fuel cells as a solution to these challenges, with high levels of investment in developing and demonstrating the technology in recent years, and a number of countries implementing national rollout plans.

1.7    National governments are interested in the technology due to the overall benefits a transition to a hydrogen-based economy can yield: 
•    Road transport decarbonisation – since hydrogen can be produced from various energy sources, including renewables. 
•    New economic opportunities – local production and supply of fuel (and potentially vehicles) creates new opportunities across the value chain. 
•    Diversity of energy supply – reducing reliance on imported fossil fuels. 
•    Reduced local environmental impact – FCEVs offer quiet operation and no harmful tailpipe emissions.
•    Benefits of large scale fuel cell units for combined heat and power (CHP) – particularly in terms of air quality and reliability. 
•    Economic and environmental benefits of developing further the use of low power fuel cell units – eg. in lighting towers, CCTV and road signs.

Objectives and expected outcomes

2.1    As the 2015-16 budget and expenditure was approved under cover of DD1355, this document seeks approval for the expenditure of the Hydrogen London budget and associated spends, in line with the agreed priorities set out in the LHAP for 2016-17. The GLA and the Hydrogen London Executive Committee have approved this work programme (April and March 2016 respectively), which consists of the activities outlined below.

•    £53,347 for the cost of a Grade 8 post (approved until 31st March 2017) to manage the Partnership’s day to day activity. This resource will carry out the secretariat duties involved in running Hydrogen London along with supporting London’s strategic hydrogen agenda and pursuing new strategic opportunities for the Partnership. This resource will be funded solely by the income received through the Partnership (through 2016-17 membership fees and income carried forward). 

•    £53,000 to develop London’s current Hydrogen portfolio through: feasibility studies or submitting new bids under relevant funding streams. This may also include a new Action Plan for London 2016 to 2020. 

•    £4,000 for marketing and website development. The Hydrogen London website is the platform to promote the technology, activities and ongoing projects. This links to the London.gov.uk website and is visited by people interested in the technology as well as by those in the industry. We would like to build on the current site and add more interactive content as well as impartial graphics about the technology. We will also aim to design posters and flyers disseminating the technology. 

•    £2,000 for travel and miscellaneous expenses. Hydrogen London is involved in many projects at EU and UK level and also the team will be attending relevant events which may require UK and EU travel. 

•    £5,546 for Quarterly Meetings and Events. We currently host 4 annual quarterly meetings for the entire Partnership. We would look to build on the success of the last two year’s Hydrogen Week and organise this again in early 2017.  We will also aim to attend relevant events throughout the year. 

2.2    Occasionally new opportunities arise which Hydrogen London needs to respond to quickly in order to exploit. Any such opportunities would be pursued instead of (rather than in addition to) one of the planned projects outlined above, and would therefore not require additional net spend. Any substitution would be approved via the Assistant Director and/or Executive Director of Development, Enterprise and Environment. 


Equality comments

3.1    The measures being delivered by Hydrogen London’s work programme will deliver improvements in air pollution that will have benefits for all Londoners, including those with a recognised protected characteristic. 

3.2    Toxicology studies show air pollution is not spread evenly across demographic groups. Exposures and associated health risks appear to fall disproportionately on poor and non-white. Although the scientific evidence is scant, the available data strongly supports the contention that, disadvantaged groups, many of whom are from racial and financially disadvantaged backgrounds, routinely encounter levels of air pollution that are higher than average. 

3.3    Newham, Brent, Redbridge, Hackney and Tower Hamlets are the Boroughs that have the highest proportion of most deprived populations (top 30% deprived) in London’s areas of worst air quality. Tower Hamlets, Camden, Southwark, Islington and City of Westminster are the Boroughs that have the highest numbers of people living in London’s worst air quality areas. These Boroughs in particular need targeted action to reduce inequalities in access to clean air.

3.4    No special gender, religion or sex orientation equality issue is expected to arise. If any issue will arise, it will be promptly resolved at as a part of the daily project management.

Other considerations

4.1    The LHAP is a priority contained within the GLA strategic Plan. The Mayor views hydrogen as a zero – ultra low emission technology which will provide clean energy, reduce carbon emissions and noise, and improve air quality. The LHAP also supports the delivery of other strategic priorities identified in the Plan including the London Plan, London Environment Strategy, the Transport Strategy and Economic Development Strategy. 


Financial comments

5.1    Executive Director’s approval is requested to approve Hydrogen London Partnership expenditure for 2016-17 and the associated programme of activity.

5.2    As described in section 2 above, the estimated cost of this programme is £117,893 and broken down as follows: 



Grade 8 Senior Policy and Programme Officer for Hydrogen London secretariat


(1 April 2016 to 31 March 2017)

Programme Development work



Marketing and Website development


Travel and miscellaneous expenses


Hydrogen Meetings and Events







5.3    It is proposed to fund this expenditure from a mixture of programme budget, income in advance carried forward from 2015-16 to 2016-17, membership fees for 2016-17 and is broken down as follows:



2016/17 GLA Programme Contribution


Income in advance carried forward from 2015-16


Projected Hydrogen London Membership Fee income for 2016-17





5.4    To ensure spend does not exceed funding; work for any specific element of the work programme will not proceed until adequate funds have been secured i.e. there is enough Hydrogen London Membership Fee income. It is possible that the programme will have to forego or defer some projects.

5.5    Any changes to this proposal must be subject to further approval via the Authority’s decision-making process.

5.6    All requisite budget adjustments will be made.

5.7    The Environment Team within the Development, Enterprise and Environment Directorate will be responsible for managing this project.

Planned delivery approach and next steps



Funding bids or feasibility studies

July 2016 – March 2017

Quarterly Meetings

May 2016- March 2017


Hydrogen Week


March 2017

Programme Development



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