Agenda item

The report was noted.

Lisa Willis Strategic Funding Programmes Manager gave members an update on the progress of the support and innovation and low carbon growth programme (SILCG).

 

Members were advised that the previous programme manager had taken another role within Neath Port Talbot County Council and the role has been advertised but not filled. Lisa Willis has taken over the role as programme manager with her programme office supporting her.

 

Members were advised that each of the projects has its own project manager who are reporting to Lisa Willis so there is no risk to delivery because of the change.

 

Members were given an overview of each of the 8 interlinked projects and the goal of them all is to deliver low carbon, sustainable and inclusive economic growth for the region.

Bay Technology Centre

Members were advised that this is a hybrid energy positive building, and it is currently at 53% occupancy. Officers explained that there are three companies due to sign heads of terms and officers also due to issue another head of terms to another company. Officers are currently in negotiations with additional company, this would mean that there should be 5 more companies joining over the next two months.

Members were advised that promotion of the facility is being done via the website and through social media and that the most recent tenant to arrive is the High Value Manufacturing Catapult and they've set up office in the Bay Technology Centre. Members were informed that they have got state-of-the-art equipment supporting businesses across the region, Wales and the UK.

 

The South Wales industrial transition from carbon Hub (SWITCH)

Officers advised that SWITCH is supporting the decarbonisation of the steel and metals industry and Swansea University are the delivery partner. Members were informed that the 12-month design phase concluded with Pre-Application Consultation (PAC) which is proposed to be submitted imminently and this will be followed by a 15 - 18-month construction phase and is due for completion at the end of 2026.

Officers felt that this was an exciting project, and it has also adapted to changes with the announcement with Tata Steel looking at decarbonisation of steel as well as the steel and metals industry across the region.

Advanced manufacturing production facility

Members were informed that there has been a delay with this project in terms of discussing land options and making sure it aligns with the innovation landscape.

Officers are talking to Welsh Government on the land areas and are engaging with partners on this. Members were also advised that there is a lot of interest in this in terms of diversification of industry across Neath the Talbot and the wider region.

Net Zero Skills Centre of Excellence

This is going to be Co-located with the advanced manufacturing production facility and officers are looking at where to site that with several land options that they are discussing.

Hydrogen stimulus project

Members were told this project was in two parts. The first is led by the University of South Wales and that is looking at increasing the capacity of hydrogen production at their site on Baglan energy Park.

The second is looking at the concept of hydrogen powered vehicles, potentially looking at refuse collections or council fleet vehicles. Officers are working closely with several suppliers on this and working closely with the University of South Wales on the hydrogen stimulant project.

Members were informed that there is a lot of development currently in the hydrogen stimulus projects across Neath Port Talbot and the wider region and officers are ensuring that everything is aligned to that.

Low emission vehicle charging infrastructure project

Officers explained that this project was looking at mapping and ensuring coordination across the region. This is to ensure the project maximises the funding opportunities across the region and looking at a case study where there's on street charging. Officers are looking at linking up that with one of the homes as power stations projects in the in the valley’s areas in Neath Port Talbot.

Air quality monitoring project

Officers advised this is coming to an end and there were some trials of low-cost mobile sensors, and they are waiting on the final reports to close that project and share the learnings from it.

Property Development Fund

Members were informed that this is on the Port Talbot waterfront enterprise zone. In round one officers have awarded 3 contracts totalling just over £1,000,000 and with £1,000,000 private sector investment on top of that.

Officers also informed members that they are monitoring the benefits of SILCG such as private sector leverage and the gross number of jobs created, along with the benefits linked to the wider portfolio targets.

Members noted the £2,000,000 investment in relation to the hydrogen stimulus programme and asked how much money from city deal has gone into that.

Officers advised that the £2,000,000 is the total city deal grants for the project and that has been split between £1.5 million for the University of South Wales for the infrastructure works and the purchase of the electrolyser for the University South Wales is to increase the capacity at the refuelling centre.

Currently officers are looking to develop a sleeving technique as they couldn't install a wire between Swansea Bay Technology Centre and the University of South Wales Hydrogen Centre on Baglan Energy Park due to various challenges. Officers are also looking at a power purchase agreement.

Members were concerned that there are only 300 hydrogen powered vehicles in the UK and less than 15 fuelling stations and wondered how much progress has actually been made with partners.

Officers explained that there is a limited amount of hydrogen vehicles because there is a limited number of refuelling stations. Officers view it as a chicken and egg scenario and by creating several refuelling stations across the country, of which there are several developments in Neath Port Talbot and across the Swansea Bay City region. That will provide assurance to people that they can refuel their hydrogen vehicles.

Officers emphasised however that this project, is not looking at general commercial cars and instead looking at fleets and in particular, heavy freighters because that's where hydrogen is more suitable to be used as a vehicle and they are exploring several vehicles with NPT’s fleet and their Streetscene teams.

Members were advised that the aim of Swansea City Deal project was to create hydrogen stimulus, and they have got the company Protium who have now invested along with the University South Wales and they're looking to expand further.

Members were informed that in terms of the hydrogen stimulus projects overall aim, it's doing what it says and that is encouraging more refuelling stations across the M4 corridor and across the wider area so that will increase the uptake of hydrogen vehicles on a commercial basis although officers are looking at the council fleet and not personal vehicles.

Officers advised that the additional half a million, is ring fenced to fund the gap between a standard vehicle and a hydrogen vehicle and it hasn't been spent yet.

Members noted that the vehicles are expensive and there's very few places you can run hydrogen vehicles because there isn't a network yet, and it seems like the project is more at a research level.

Officers advised that Protium has invested on the University South Wales area and officers can provide more details on that.

Members felt that they have a responsibility to ask about why this money has been spent on something that they believe is still very unless and stated that there aren’t many examples across the world where a hydrogen project is still being used. Members used the example of the buses at the Olympics in Atlanta and noted that once the stimulus has gone, projects don’t seem to continue, although members noted that it is part the UK government energy strategy to have approximately 18% hydrogen vehicles in the future.

Members were sceptical about the technology and were worried that taxpayer’s money is potentially wasted on it.

Officers advised that they are working closely with John Maddie from the University of South Wales and Swansea University in terms on the examples in Scotland of hydrogen vehicles that are used by councils and looking at lessons learned from across Scotland and the rest of Europe. Officers advised that it has been done elsewhere but you need a concentration of refuelling stations. Currently there are potentially 4 being developed within the Swansea Bay City region for refuelling.

Officers added further context and advised that in relation to the hydrogen stimulus project within the portfolio of city deal, there's a regional and national context that they are working within. Members were informed that it is quite early on in hydrogen’s use and there is still a lot of work to do in terms of getting policies and government approval particularly around vehicles and hydrogen use in homes.

Officers advised felt that for what is in the region between the production of hydrogen, hydrogen storage and usage of it, whether that will be in homes, industry or cars there is massive potential for hydrogen. Members were advised that there is a lot of businesses and interest around hydrogen, but they are in the earlier stages of it, but city deal have a high potential to make it successful within the region and the hydrogen stimulus project is part of that jigsaw for the region.

Officers stated that the aim of the project is a stimulus project and felt that having Protium investing in it shows that this project is doing what it says on the tin.

The project is not just about the Hydrogen vehicles but also linked to the SWITCH project and exploring opportunities in that area such as commercialisation.

Officers are looking at lessons learned and exploring opportunities with the rest of Europe.

Officers offered for John Maddie who they work closely with at the University South Wales to potentially come to another progress meeting and focus on the hydrogen aspect or for members to meet with University South Wales on the hydrogen work that they're doing and the linkages to commercialisation.

Members agreed that this was a good idea.

 

The report was noted.