Portishead Branch Line (MetroWest Phase 1) TR040011 Applicant: North Somerset District Council 9.10 ExA.WQ1.D2.V1 – Appendix CC.1.1-1 to Applicant's responses to the Examining Authority's Written Questions ExQ1 Author: Womble Bond Dickinson (UK) LLP Version: 1 Date: November 2020 OFFICIAL TRACTION DECARBONISATION NETWORK STRATEGY Interim Programme Business Case 31st July 2020 OFFICIAL 1. PREFACE Important Notice – This document and its appendices have been produced by Network Rail (NR) in response to a recommendation made by the Rail Industry Decarbonisation Taskforce. The document summarises evidence and analysis carried out by NR in the period between 1st April 2019 and 29th May 2020. This analysis considers technological, operational and economic methodologies to identify the optimum application of decarbonised traction technologies. The document ultimately identifies the optimum deployment of these traction technologies (battery, electrification and hydrogen) on the unelectrified UK rail network. Note that reference to UK railway infrastructure and operations in this document relate to those contained within England, Scotland and Wales and this document does not consider rail operations in Northern Ireland. The primary purpose of this document and its appendices is to provide DfT, Transport Scotland and Welsh Government with recommendations to inform decisions required to remove diesel trains from the network, achieve net-zero legislative targets, and identify the capital works programme required to achieve this. The document should be used to inform discrete project business cases being developed by project teams. The document provides the strategic rationale for rail traction decarbonisation, as well as initial high-level economic and carbon abatement appraisals of options to underpin the recommendations made. The recommendations have been made using a balanced range of priorities and this work has broad cross industry support. This document should be used exclusively for the purposes of informing further development activity to be carried out by the rail industry. Any person who obtains access to this document and its appendices accepts and agrees that it has been produced by NR in accordance with the instructions provided in an agreement with a cross-industry programme board and was produced exclusively for the benefit and use of DfT, Transport Scotland, Welsh Government and others within the rail industry for the purposes set out above. It should be noted that the recommendations within this report will change as further analysis is carried out, with an update to be provided in the TDNS Programme Business Case. Whilst cost and benefit assessments have been provided, the recommendations made as part of this document have not had any significant bottom-up development or deliverability assessment carried out and assume that the current general service provision of the network is maintained. This work has been endorsed by a number of industry partners and ratified by the TDNS Programme Board. DOCUMENT CONTROL Document Title Traction Decarbonisation Network Strategy – Interim Programme Business Case Version and date C02 - Final Author System Operator Strategic Planning (FNPO) Security Level Official OFFICIAL 2. FOREWORD It is overwhelmingly accepted that the global climate is changing due to human impact. The scientific evidence is increasingly clear. Every year, across the planet, weather records are broken and there is increased incidence of extreme weather events such as flooding and drought. There is an increasingly strong demand for urgent action by populations across the world, to protect the planet and future generations. The UK government set out in June 2019 its legal commitment to achieve ‘net zero’ greenhouse gas emissions by 2050. In respect of the railway, in 2018 the DfT challenged the rail industry remove all diesel-only trains from the network by 2040. The Scottish Government has set a target to decarbonise domestic passenger rail services by 2035. The railways in Great Britain play a critical role in supporting the economy and connectivity between communities across Britain. Rail is a relatively environmentally friendly mode of transport, but we need to do more, and we need to be part of the solution to the climate change challenge. Over the last year the rail industry has come together collaboratively and constructively, under the co-ordination of the System Operator, to assess the issues and options for removing all diesel trains from the rail network. The result of this work is the Traction Decarbonisation Network Strategy and I am delighted that we can now set out the rail sector’s response to the climate challenge by outlining how we can end the direct emissions of greenhouse gases from trains on the network. This document, and other supporting material being provided as part of the Traction Decarbonisation Network Strategy, will support the decisions on what needs to be achieved, and by when. The Strategy considers where overhead electrification, battery or hydrogen trains might be most effectively deployed. The work to end greenhouse gas emissions will require a commitment to a long-term, stable and efficient programme of works which will last at least the next thirty years. In order to meet the UK government’s commitment to achieve net zero by 2050, and any interim emissions targets along the way, we need to set the wheels in motion. One of the key things we pledged when we started work on the Strategy was that we would be open and transparent and that the work would involve the industry as a full part of the process. As a result, the work to produce the Strategy has been overseen by a Programme Board comprised of representatives from across the industry. We have also engaged with over two-hundred and fifty different organisations from both within the rail industry and outside of it, including a number of UK Government departments and other infrastructure managers from around Europe. Much more work will be needed beyond the Strategy, including the development of Regional delivery plans, but this document outlines the journey we must take together. We must now move forward with focus, determination and collective will to see rail rise to the climate change challenge and to maintain its position as a critical and environmentally friendly mode of transport. Paul McMahon Managing Director – System Operator Network Rail OFFICIAL 3. CONTENTS 5. Strategic Case ............................. 2 6.8 Economic case limitations ...... 117 5.1 Strategic Case: Summary ............ 2 6.9 Economic Case: Conclusions .. 119 5.2 Context ....................................... 7 7. Commercial Case .................... 121 5.3 Case for Change ........................ 24 7.1 Introduction ........................... 121 5.4 Strategic Objectives .................. 36 7.2 Network Rail Capability .......... 122 5.5 Strategic Benefits ..................... 43 7.3 Supply Chain Capability .......... 122 5.6 Decarbonisation Traction Options 7.4 Delivery Structures and 59 Procurement .................................... 125 5.7 Methodology ............................ 73 7.5 Commercial Case: Conclusions 5.8 Traction Decarbonisation 126 Recommendations ............................. 76 8. Financial Case ......................... 128 5.9 Recommendations – Scotland’s 8.1 Financial Case: Summary ....... 128 Railway ............................................... 82 8.2 Spend Profile .......................... 128 5.10 Recommendations - Eastern 82 8.3 Financial Case: Conclusions .... 132 5.11 Recommendations - Southern 9. Management Case .................. 134 84 9.1 Management Case: Summary 134 5.12 Recommendations – Wales 9.2 Programme of Decarbonisation and Western ....................................... 85 134 5.13 Recommendations – North 9.3 Governance ............................ 139 West and Central ................................ 85 9.4 Project Business Case 5.14 Traction Decarbonisation Development .................................... 139 Programme ......................................... 86 9.5 Further Synergies ................... 141 5.15 Strategic Case: Conclusion .... 87 9.6 Management Case: Conclusions 6. Economic Case .......................... 90 141 6.1 Economic Case: Summary ........ 90 Appendix 1 – Network Rail Regions and 6.2 Introduction.............................. 91 Service Overview .............................. 143 6.3 Pathways Appraised ................. 93 Appendix 2 – Rolling Stock Tables.... 149 6.4 Economic Approach ................. 97 Appendix 3 – Decarbonisation 6.5 Economic Outputs .................. 105 Programme (Non-Traction) .............. 154 6.6 Analysis of Outputs ................ 110 Appendix 4 – Sub-Regional Context and 6.7 Sensitivities ............................. 115 Emissions Targets ............................. 156 OFFICIAL Appendix 5 – Strategic and Economic Appendix 9 – Strategic Assumptions, Benefits ............................................ 161 Risks and Opportunities ................... 240 Appendix 6 – Traction Types Technical Appendix 10 – Economic Model Summary .......................................... 164 Sources ............................................. 246 Appendix 7 – Embodied Carbon and Appendix 11 – Acronyms and Glossary Ethics ................................................ 180 247 Appendix 8 – Traction Decarbonisation Recommendations Regional Breakdown ....................................... 182 OFFICIAL 4. EXECUTIVE SUMMARY Alongside the current global