Aberdeen Hydrogen Hub Strategic Partnership

Procurement Purpose

Aberdeen City Council (the "Council") is seeking to procure an experienced, dynamic and innovative strategic partner to form a long-term joint venture with the Council (the "Aberdeen Hydrogen Hub Strategic Partnership"), in order to secure substantial low carbon infrastructure investment and delivery capability in support of the City's Hydrogen Hub and Net Zero Vision. As part of its role in the Aberdeen Hydrogen Hub Strategic Partnership, the strategic partner will be expected to provide finance and investment for the opportunity and competent resources including scoping, design, procurement, project management, implementation, delivery, operation, maintenance, commercial support and technical expertise. Phase 1 will include the procurement of a hydrogen production facility for public sector consumption of a resilient, cost effective supply of green hydrogen on a commercial basis 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 joint venture will enter into a Hydrogen Supply Framework Agreement with the Council for an initial period of 10 years with two subsequent optional extensions of 5 years each. This agreement will set out the terms upon which the joint venture will supply hydrogen to the Council during Phase 1, and develop proposals for delivery of hydrogen to the Council during Phases 2 and 3. The Hydrogen Supply Framework Agreement will also set out the terms upon which Non ACC Contracting Authorities will be permitted to call-off hydrogen supplies under the framework agreement.

The Council has agreed in principle to fund 19.4 million GDP from its Capital Programme as investment in the Hydrogen Energy Partnership. The form of investment by the Council into the joint venture will be the subject of dialogue and subject to meeting subsidy control requirements.