Review of HyTech Outline Business Case (OBC)

Case Studies, Economic Analysis, Energy, Low Carbon and Net Zero, Just Transition and the Green Economy

Introduction

In 2023, Queen’s University Belfast (QUB) and Mid and East Antrim Borough Council (MEABC) produced an Outline Business Case (OBC) seeking approval for the allocation of £15m from the Northern Ireland Complementary Fund in order to implement HyTech NI, a joint programme to support investment in hydrogen energy through the creation of an Accelerator and the delivery of three Demonstrators in mobility, energy production and skills.

As the designated Investment Decision Maker for the Complementary Fund, Invest Northern Ireland (INI) commissioned CAG Consultants to conduct an independent appraisal of the OBC to help inform decisions about approval and next stages for the project.

How we delivered the project

The review of the HyTech OBC comprised of two related tasks:

  • A detailed appraisal of the OBC against HM Treasury’s Green Book five-case model to establish the project’s strategic fit and rationale for investment (Strategic Case), societal value (Economic Case), affordability (Financial Case) and deliverability (Commercial and Management Cases). Each of the five cases was assessed against a list of questions based on HM Treasury’s (HMT) ‘Checklist for Assessment of Project and Programme Business Cases’, adapted as needed to reflect Invest NI’s requirements and the specific features of the scheme. The work involved: the development of a transparent appraisal template; the review of the OBC and 18 supporting appendices; in-depth discussions with the projects’ sponsors to examine weaknesses and gaps in the OBC; answering each of the checklist questions with in-depth justification; and assigning them a Green-Amber-Red rating based on whether the OBC meets Green Book requirements fully, partially or not at all.
  • A high-level review of the technologies identified within the business case and the rationale for the accelerator and each demonstrator to assess the extent to which the programme targets innovation areas in line with strategic and market needs as established in UK and regional strategies, recent research reports. Desk based work was complemented through interviews with policy and technology experts.

Summary of Key Findings

CAG Consultants provided a report to INI outlining the strengths and weaknesses in HyTech NI’s OBC and provided a detailed list of recommendations to strengthen the case for public investment in particular around the approach to the Accelerator, linkages between the component projects, the cost-benefit analysis, eligibility of the costs under the Invest NI’s criteria for R&D grants, risk management and benefit realisation.

The INI client provided highly positive feedback praising CAG’s ability to provide detailed, but practical advice and noted its value as an independent source of appraisal which improved INI’s ability to engage with key stakeholders in shaping the future of the HyTech programme.

For further details regarding this project please contact Stephanie Cesbron sc@cagconsult.co.uk (lead author) or Bill Kirkup bk@cagconsult.co.uk

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