The company plans to licence the solution to manufacturers of Natural Gas fired power generators to reduce their Natural Gas fuel bill, by replacing it with Hydrogen, and reduce their CO2 emissions bill as a result of using a replacement fuel that does not emit CO2 when burnt, with the model working as follows:
VN-HPG will charge the manufacturer for design and consultancy services
The manufacturer will integrate, build and commission the plant for the operator under a 0-25 year contract of supply
The manufacturer will charge the power station operator an annual fee for the provision,maintenance and support of the based on a percentage of the fuel and emissions savings,e.g. 10% replacement fuel = 10% CO2 reduction
VN-HPG will retain 20% of the annual charge it made to the operator, as a licence fee
VN-HPG is targeted on both ‘New build’ gas turbine plant and retro-fit. The target for ‘New build’ plant design is 5 of the 5-7.5MW gas turbines per year,(based on Siemens market share of New Gas Turbine sales)
The target for ‘Existing’ plant builds is 35, (based on Siemens market share of existing Gas Turbine plant)
The manufacturer is targeted to build and commission 35 retrofit plants per year, as part of their Operations & Maintenance schedule for existing plant. See pages 18 to 20 and pages 50 to 53 of the IM for more details.