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CHAPTER 6 - Funding Mechanism and Education
Funding Mechanism
105. In terms of how recurrent funding could be allocated in a fair and transparent way, HEG are mindful that mechanisms for allocating funds from public sources have been developed at both the EU and UK level. Common features of these mechanisms are (a) clear Aims and Objectives for each "Call for Proposals", (b) a set of fixed criteria against which every application will be judged to have met these Aims and Objectives and (c) an independent body to judge how each application meets the criteria.
106. The public body providing the funding would set the Aims and Objectives for each "Call for Proposals" as well as the criteria for judging. They would also appoint the panel of independent experts in accordance with Norton Committee recommendations on standards in public life. The panel would judge each application in terms of meeting these aims and objectives on the basis of the judgement criteria. It would seem appropriate that the panel of independent experts is drawn from across the stakeholder community including the academic, industry and public sectors.
107. In respect of the judgement criteria, a number of factors are considered essential:
i) does the Application align with the Aims and Objectives;
ii) what is innovative about the Application;
iii) why is funding from the State required?
iv) what are the expected results, and how do they align with industrial and commercial needs;
v) what are the economic benefits of this Application and who is likely to benefit;
vi) how will the results be exploited;
vii) what are the environmental and social impacts of undertaking the project, and how significant are they relative to the economic benefits;
viii) what are the specific risks with regard to the successful outcome of the project;
ix) how will the project be organised and managed;
x) what is the financial commitment required for this Application.
108. The Scottish Executive Business Growth and Innovation Division within the Enterprise and Lifelong Learning Department currently administer the SMART, SPUR, SEEKIT and SCORE programmes. They work with a wide range of the innovation community in Scotland that encompasses universities, SMEs, Large Companies, the private sector Financial Community and other public bodies. They use selection panels for project evaluation, have a variety of due diligence mechanisms at their disposal and are well practised in taking projects forward through implementation and completion. HEG propose that this team should administer the funding of all project-based activity. The members of HEG would welcome the opportunity to serve on selection panels given their wide knowledge and experience of the technology. Any conflict of interest would be dealt with by declaration.
109. HEG further recommends that the most appropriate Scottish Enterprise unit be asked to set up a team dedicated to making application for funding from a variety of public and private sources throughout the world. In the first 3 years pump-priming funding of £500k per annum is envisaged on the basis that this team will create applications for at least £20 million and achieve a success ratio of one in four. Depending on the success of the team during its first 3 years, the continued existence of the team would be secured by a levy on funding raised at a level of around 5%. With EU funds of around £150 million per annum committed to the development of hydrogen and fuel cells technology there is every reason to believe that a dedicated team of skilled writers could greatly enhance Scotland's penetration of funding mechanisms. HEG also envisages that no specific restrictions would be placed upon the team making application for hydrogen and fuel cells funding alone. There may well be projects that involve a wider base of renewable technologies that incorporate hydrogen and fuel cells as part of the overall project.
110. HEG recognises that stimulation of effective market mechanisms is as important as direct fiscal incentives. Encouraging early stage adoption of hydrogen and fuel cell technology through a variety of public procurement initiatives would bridge the initial gap. HEG also recommends that consumer demand side organisations such as Scottish Community and Householder Renewables Initiative ( SHCRI) be directed to encourage adoption of hydrogen and fuel cells applications and provide consumer grants equal to those available for other renewable technologies.
Education and Training
111. For disruptive technologies such as fuel cell and hydrogen technologies, education and training are key barriers to implementation. Currently, the following items are taught in Scottish schools:
- Energy (including renewable energy) within the Standard Grade Technological Studies module;
- Basic hydrogen fuel cell electrochemistry and an overview of the 'hydrogen economy' (including production and storage) within Higher Chemistry.
112. Further, there are no current college/ SNVQ level qualifications covering hydrogen and fuel cell technologies. The two most appropriate courses where this should be introduced are:
- Gas Appliances Installation and Maintenance (Level 2);
- Vehicle Maintenance and Repair (Levels 1 and 2). This would also be required to take recognition of electric vehicle technology.
113. These courses could cover the basic installation of both stationary and vehicular systems. The electrical installation aspects of fuel cell devices would be covered by existing electrical courses: the specific nature of hydrogen and fuel cell devices require further training in combustible gas and high pressure systems not directly in the electrical connection/installation sector.
114. Additionally, the hydrogen and fuel cell sector requires to liaise with the planning authorities in Scotland. Fundamentally, this requires recognition of hydrogen and fuel cell developments within both Structural and Local Plans (produced by Local Authorities) for, for example, use of land for local electrolysis plants for transport use. Further, the sector requires to liaise with the Scottish Building Standards Agency regarding the future regulation/certification of fuel cell units for building integrated use.
115. At university postgraduate level, there are elements of taught modules dealing with hydrogen and fuel cell technology at both the University of St Andrews and the University of Strathclyde.
116. Scotland is world renowned for the standard of its education and should take a lead in this area. It is very important to address these new technologies in the Schools curriculum and to enhance the very highest levels of education that are available at some of the universities; however, perhaps the most important gaps exist between these levels. It is absolutely essential to develop training programmes at college and basic university levels. We cannot create a new Industry without training the specialists who will implement these new technologies.
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