Merseytravel Hydrogen Fuel Cell Electric Bus Project

Sharpe Pritchard recently advised Merseytravel (the passenger transport executive for the Liverpool City Region Combined Authority (LCRCA)) on its procurement and onward lease of a fleet of 20 state-of-the-art hydrogen fuel cell electric buses for use in the Liverpool City Region. Delivery of the buses will commence in 2023, and they will be used to provide public transport services in the region soon thereafter, write Steve Gummer, Allan Owen and Ellen Painter.

In 2019, the Liverpool City Region set a target to become net zero-carbon by 2040. A significant part of this goal will involve the replacement of high carbon emitting transport vehicles such as those run-on diesel fuel with low or zero-carbon emission alternatives. To commence this transition, Merseytravel sought specialist legal support from Sharpe Pritchard in relation to the bespoke commercial and contractual structure of the hydrogen bus trial, including public procurement and subsidy control advice.

Merseytravel procured the hydrogen buses through a ‘Partners in Procurement’ (Bath and North-East Somerset) Supply of Buses Framework Agreement. Alexander Dennis Limited (ADL) were successful in winning the mini-competition to provide the buses.

The hydrogen bus fleet will be owned by Merseytravel and leased to two key bus service operators in the Liverpool City Region, Arriva North-West Limited and Ribble Motor Services Limited (Stagecoach). The buses will be operated on the crucial route 10/10A between St Helens and Liverpool city centre, replacing existing diesel buses.

This fleet of 20 buses will form part of a trial which, if successful, could see an expansion in the use of hydrogen buses across the local bus network in the Liverpool City Region. With hydrogen fuel cell electric vehicles emitting water vapour only, the rollout of these buses will be a significant step towards achieving the LCRCA’s goal.

As well as environmental benefits, the buses will provide an improved passenger experience having been fitted out to an exceptionally high specification, including wireless and USB phone charging, internet access, spacious high-backed seats, and roof glazing.

Sharpe Pritchard advised across the project including:

• Bus Procurement – advising throughout the procurement of the Vehicles from a ‘Partners in Procurement’ Framework Agreement including drafting procurement documentation and the purchase agreement.
• Leases – drafting and negotiating the leases between Merseytravel and Arriva and Stagecoach, including an intricate subsidy control compliant payment mechanism.
• Subsidy Control – advising Merseytravel throughout the project on subsidy control (formerly state aid) requirements.

For further information on the project as reported in the media please click here.

Steve Gummer is a Partner, Allan Owen is a Senior Associate and Ellen Painter is an Associate at Sharpe Pritchard LLP.

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