Lower Thames Crossing (LTC) Low Carbon Hydrogen Supply

Description

National Highways is the government company charged with operating, maintaining and improving England's strategic road networks. The Lower Thames Crossing (LTC) is a National Highways project that will build a new road connecting Kent, Thurrock and Essex through a tunnel beneath the River Thames. It will provide much-needed new road capacity across the river east of London, alleviating congestion on the Dartford Crossing. Three Delivery Partners have been appointed to deliver the three main components of the project – Kent Roads, Tunnels & Approaches and Roads North. National Highways has designated LTC a pathfinder project that will explore carbon neutral construction. Low Carbon Hydrogen is a key element in LTC's strategy to deliver its carbon reduction targets and a key objective of this procurement is to enable a significant reduction in the use of diesel on the programme by enabling the use of hydrogen powered plant, machinery and generators. The procurement covers the supply, delivery, storage on site and dispensing of Low Carbon Hydrogen for use by the LTC appointed Delivery Partners to fuel their construction plant and equipment. Making hydrogen easily available could displace over one third of the diesel forecast to be used during construction. Lot 1: LTC is dedicated to achieving the lowest carbon solution to deliver the works. The scope of this procurement requires supply of up to 5,900 tonnes of Low Carbon Hydrogen over 5 years with delivery and storage on site as required. The Low Carbon Hydrogen supply contract has an estimated contract commencement date in mid 2025 with supply of hydrogen commencing in 2027. The Low Carbon Hydrogen contract will be enabled for use by Lower Thames Crossing’s Deliver Partners. The contract will be procured under the Competitive Dialogue Procedure (Public Contracts Regulations 2015). The estimated total value is in the range £30,000,000 - £80,000,000. This a broad range that depends on a number of factors including the price and availability of Low Carbon hydrogen during the project as well as other variables including amongst other things the availability and prevalence of hydrogen fueled plant and technology. LTC will seek to refine this range as part of this market exercise. LTC has previously engaged in a procurement process for the supply of Low Carbon Hydrogen over the last year, however we were unable to bring this procurement to a successful conclusion due to being unable to identify a candidate which was able to fully meet LTC’s requirements. We have learned lessons from the process and intend to use those learnings in any subsequent procurement .