NEWS
Client: DESNZ
Industrial Fuel Switching and Hydrogen Supply Innovation Programmes Evaluation

As part of the government’s Energy Innovation Programme, the Department of Energy Security and Net Zero (DESNZ) created the Industrial Fuel Switching (IFS) and Hydrogen Supply (HS) innovation programmes to help reach net zero by 2050. Both programmes offered100% funding for eligible projects.  

Industrial Fuel Switching 

As it is necessary to switch industrial processes from carbon-intensive to low carbon fuels to reach net zero goals, the £21 million IFS competition aimed to stimulate early investment in and development of fuel switching processes and technologies, so that a range of technologies would be available by 2030 The competition included three stages. The third stage, which included four studies and received most of the funds (£18.4m), demonstrated the use of hydrogen, biomass, and electrical heating across a range of industry sectors.  

Low Carbon Hydrogen Supply 

Low carbon hydrogen could play an important role in decarbonising industry, power, heat and transport. However, for the market to grow, potential users need to be confident in the supply of sufficient amounts of low carbon hydrogen at a competitive price. 

The £33 million HS programme sought to develop, demonstrate and reduce the cost of low carbon bulk hydrogen solutions (production, storage and supply), and was aimed at innovations involving pre-commercial technologies with a medium level of maturity Delivered in two phases, the programme funded 13 feasibility studies and five demonstration programmes from 2019 – 2022.  

Evaluation methods 

DESNZ commissioned CAG Consultants, with support from GC Insight and Verco, to evaluate both programmes.    

Evidence 

The impact evaluation (there is a separate process evaluation) aimed to establish to what extent and how the programmes and their funded projects produced the impacts and outcomes intended. These included wider goals such as improving understanding & reducing uncertainty / risk amongst stakeholders, stimulating further investment, innovation and deployment, and contributing to future/wider impacts. 

The evaluation drew on a combination of sources: 

  • in-depth and semi-structured interviews with key stakeholders across both HS and IFS Across two waves, GC Insight conducted 189 interviews exploring a wide range of questions around programme processes and influence, project delivery experiences and project outputs and outcomes
  • a review of secondary data from programmes and project documents
  • media monitoring (web-scraping) to determine awareness and perceptions of the programme and effectiveness of communications activities 

Analysis 

The data were analysed through several approaches: 

  • general case-level analysis and synthesis using multiple data sources for each demonstration project, as well as programme-wide, thematic analysis and synthesis A coding framework was developed for all interview groups. Each interview transcript was coded against the relevant coding framework, with the coded data being organised by topic and participant. Analysis was conducted thematically, structured around key evaluation themes 
  • contribution analysis - a step-by-step theory-based approach for inferring causality, by seeking to identify an intervention’s contributions to expected outcomes and impacts, as well as alternative explanations or contributions
  • light-touch economic evaluation of the extent to which and how the programmes have addressed the barriers and market failures indicated in the business cases. It also estimated the costs and benefits of the two programmes and thus value-for-money at the programme level
  • a series of project-level case studies providing case-based insights on key themes, highlighting transferable learning from the IFS and HS programmes for relevant programmes, policies and industrial sectors 

Findings

Among the detailed findings in the evaluation, CAG found that overall, both the IFS and HS programmes achieved their intended outcomes during the programme’s lifespan and made some contribution to two longer-term goals.  

The three case studies produced by GC Insight can be found here, along with the full evaluation report authored by CAG.

GC Insight has an experienced in-house team of researchers who offer a wide range of survey solutions tailored to your goals, budget, timeline, and audience. Find out more on our website here.