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Northern Gas Networks – Redcar Hydrogen Village

Redcar Hydrogen Village Trial Tender

Energy

Sector

Consultancy

Services

  • Programme value

    >£TBCm

  • Duration

    7 years

  • Risk mitigation

    £5m

The UK Hydrogen Economy

Northern Gas Networks Requirements

Northern Gas Networks is the gas distributor for the North East and parts of Cumbria and Yorkshire.

Our client determined the need to develop and deliver the tender submission for the Redcar Hydrogen Village Trial. The trial is to undertake the conversion of an entire town from their existing Natural Gas service into a Green Hydrogen service. This includes the network conversion (Infrastructure) down to the in-house conversion of over 2,000 domestic, industrial and commercial properties. CappKind were engaged to support the development of the tender submission based on the Stage 2 Detailed Design.

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Energy futures

CappKind Solution

CappKind provided a team of three specialist estimators and quantity surveyors to measure and price the works in line with the detailed design drawings, scoping documents, and various surveys.

Two costed solutions were developed:

  • Scenario 1 “base tender” business as usual pricing and
  • Scenario 2 “worst case” and differences in delivery and supply chain employing a quantitative risk assessment (QRA) exercise.

With some of the design not being fully developed, some elements of the tender were based on estimated/budget costing exercises. Where the design was sufficiently developed, Bills of Quantities were prepared to be issued to the supply chain.

As part of the solution, a survey of domestic residents was carried out with ~900 customers engaged to establish potential uptake then extrapolate the returns based on surveyed properties. This was to establish quantities for change in appliances as these numbers were required to obtain pricing from the supply chain.

There were limitations in the marketplace supply chain due to the level of development and knowledge of the emerging technology. However, the tender documentation was submitted to the Department for  Energy Security and Net Zero on 31/03/23. This was successfully completed ahead of schedule much to the satisfaction of the client, Northern Gas Networks.

Risk and Opportunity Management

The Impact

CappKind’s services allowed Northern Gas Networks to submit a compliant tender to the Department of Energy Security and Net Zero ahead of schedule. This places Northern Gas Networks in a good position in relation to potentially securing the government funding to implement the design in the Redcar community.

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Key benefits

  • Compliant tender

  • Sustainability

  • Energy futures

Redcar sunset

Quantitative Risk Analysis

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