Part 4. Economic assessment: value for money (questions 11-15)
Download the value for money worksheet to complete questions 11 to 15 and upload as an appendix. If you do not upload the completed spreadsheet your application will be marked as ineligible. For each question, please use the notes section to demonstrate how your numbers have been derived.
Once you have uploaded the spreadsheet, type its file name into the text field.
If you have further supporting information for this question, you can include it in the appendix for question 10.
All data needs to be entered into the grey cells in the worksheets, or by selecting an option from a list in a drop-down menu (these cells are coloured brown). Cells coloured yellow are title cells which cannot be changed. Worksheets are protected so that data cannot be entered into incorrect cells.
You can add additional rows in the jobs worksheet. This is so jobs can be defined separately for each project partner for the required number of NVQ levels. To preserve formatting, additional lines should be inserted in the middle of rows of input cells. Blank lines can be used to title project partners and group the jobs according to your preferences.
Additional rows can also be inserted as required into the training and Technology Readiness Level /Manufacturing Readiness Level worksheets.
In the index sheet, provide the following information:
- project title
- APC Applicant number (if known)
- lead company partner name
- contact email address of person completing this form
The first year of the project is set by default to the year that grant funding is available. It can be changed to the next year if needed, using the drop-down menu. Using the second drop-down menu, ensure that the first year of expected vehicle sales is defined. This is consistent with the first year that corresponding manufacturing jobs will be created and/or safeguarded. This may be towards the end of the APC funded R&D project or later.
Question 11. What is the proposed research and development (R&D) investment in the project?
This section enables assessors to quantify the economic value of research and development, capital investment and any increase in the skills level of the automotive supply chain. Investment captured here should be investment that occurs in the UK only.
Under EU State Aid guidelines, R&D expenditure can fall into one of three categories (see Q11 excel sheet for definitions of these). APC project activities need to be consistent with these definitions. A breakdown between the 3 categories is not normally required.
R&D expenditure includes all R&D spending that will occur if the applicant is awarded grant funding. This includes any additional (industry) funding provided by project partners. Expenditure not relating to or resulting from this project should not be included. The notes column can be used to justify or explain the numbers quoted in the application form.
Capital equipment includes all capital spending that will occur if the applicant is awarded grant funding. This should be calculated in the same way as ‘capital usage’ is claimed in the partner finance form. It should be the sum of capital usage for all project partners.
Skills and training includes all expenditure on training staff which is specific to and necessary for the project. Enter expenditure split by R&D, capital and skills for the following subsets:
Government funding: An aggregation of the data provided in partner finance forms. This will provide an annual view of how much public funding is expected to be used for R&D, Capital and Skills Investment.
Industry funding: An aggregation of the data provided in partner finance forms. This will provide an annual view of how much private funding is expected to be used for R&D, capital and skills investment.
Additional company funding: spent on related projects because of this project. This will include follow-on investment as a result of the project on related projects. It will be split by R&D, capital and skills investment. For example, subsequent R&D to bring the product to market or capital investment for a production facility. Exclude any funding for which additional government funding (from any scheme) is expected to be obtained. In addition, provide details of further overseas investment.
Further investment outside of the UK because of the project. This is to report any additional related overseas investment as a result of the project, providing a split by country. For this section, you do not need to provide a breakdown between R&D expenditure, capital equipment and skills and training.
12. How will the project lead to job creation and safeguarding?
This section records the change to employment due to the project. On a cumulative basis, provide the number of jobs created and/or safeguarded grouped by:
- research and development or design
Exclude administrative and marketing or sales jobs.
R&D and Design jobs can be specified for up to 10 years from the start of the APC project. If a small number of manufacturing jobs are created or safeguarded during the R&D phase of the project for example, for pilot runs to support any product development or testing, they can be included in this section and labelled accordingly.
Ensure that the first year of production has been specified in the required cell in the index worksheet. Up to 10 years of manufacturing jobs data can be specified from this start date, which will normally be towards the end of the R&D or design phase.
Manufacturing jobs for production need to be supported by evidence of product sales. See question 13b.
In the note section applicants must explain how the job numbers have been derived, including calculations and assumptions underpinning estimates.
Job creation and safeguarding
A job created is a new job that will be linked to this project and last for a minimum of 12 months.
Safeguarded jobs are those which already exist in the consortium before the start of the project, and would be lost without the funding. The funding must allow a safeguarded job to be retained for a minimum of 12 months for the job to be listed under safeguarded jobs.
Numbers quoted should only include jobs created or safeguarded in the UK. Only include jobs from within the consortium that can be directly linked to this project. The job figures should be given in units of full time equivalent (FTE) posts. Treat part-time workers as a proportion of FTE.
Each job linked to the project should include the duration, the NVQ level (see NVQ definitions tab in the spreadsheet), salary and geographic location through a postcode. For agency workers or temporary staff, please include the posts by converting to the number of FTE posts this would represent.
Direct jobs are the UK jobs that will occur within the consortium companies. Do not include any jobs created or safeguarded outside of the consortium or the UK.
The job figures are recorded cumulatively, with a value showing in each column for the whole period over which the job will exist, not just in the year in which the job starts. The cumulative total should extend to the end of the project and could reduce in later years if staff stop working on the project before it ends.
For example: in year 1, the project creates a total of 20 R&D jobs. In the following 3 years, an additional 5 R&D jobs will be created each year. After year 4, the R&D phase of the project comes to an end. In year 3, 100 manufacturing jobs are created and these staff will remain working on the project for 3 years. The following year, 20 manufacturing staff will stop working on the project. This should result in the following:
Year 1 R&D jobs 20 manufacturing jobs
Year 2 R&D jobs 25 manufacturing jobs
Year 3 R&D jobs 30 manufacturing jobs 100
Year 4 R&D jobs 35 manufacturing jobs 100
Year 5 R&D jobs manufacturing jobs 100
Year 6 R&D jobs manufacturing jobs 80
Appraisers will consider the risk of non-delivery where applications include substantial jobs, or other benefits, outside the contractual period. Depending on the supporting evidence and narrative provided in the application, this may lead to economic benefit valuations being revised down.
Q13a. What vehicles are expected to adopt the APC technologies under development?
Information can be submitted for up to 4 different vehicle platforms which will use the new technology. First use the dropdown menu to define whether vehicle usage will be defined in terms of ‘kilometre (km) or year’ (the norm) or ‘kilowatt hour (kWh) or year’ (this normally only applies to off-road vehicles). Note that the vehicle usage definition cannot be mixed within the form, but APC technology is unlikely to apply to both cases. If necessary create a copy of sheets Q13a and Q13b).
Provide the following information in separate columns for each vehicle platform (up to 4 vehicles) which will use the new project technology.
Vehicle make or description: Please provide details about the vehicle including make and model.
Engine type: From the drop-down menu, please select whether the vehicle engine type is petrol, diesel, hybrid or electric.
Comparator engine type: From the dropdown menu, please select whether the comparator vehicle engine type is petrol or diesel. See details on comparator vehicles in the ‘expected carbon savings’ section below.
Usage per year: Please provide the average annual vehicle usage. This needs to be defined in terms of km per year or KWh per year, as defined earlier.
Lifetime of vehicle: Please provide the average lifetime of the vehicle.
Percentage of sales exported to EU: Please provide the expected proportion of sales which will be exported to the EU (excluding the UK).
Percentage of sales exported to the rest of the world: Please provide the expected proportion of sales which will be exported to the rest of the world (excluding the EU).
Percentage of tailpipe CO2 savings from this APC project: Estimate the percentage of vehicle CO2 reduction that is achieved specifically by delivering the project technologies to the vehicle platform. For example, if the new vehicles will have multiple technologies applied, all of which will contribute to a CO2 reduction, but only 30% of the CO2 reduction is a result of the technologies that are developed within the project, state ‘30%’. If it is claimed that 100% of CO2 savings are attributed to the APC project, it should be explained why all carbon savings can be attributed to the specific technology developed in the APC project and not to any other technologies.
Percentage of fuel savings from this APC project: As with carbon savings, applicants should identify the percentage of fuel savings that is directly attributable to the APC project.
Q13b. For each vehicle, what are the expected vehicle sales carbon and fuel savings forecasts for adopting the APC technology under development?
This section provides an opportunity for applicants to outline and quantify wider benefits, primarily carbon savings and fuel savings to UK customers.
This section provides an opportunity for applicants to outline and quantify wider benefits, primarily carbon savings and fuel savings to UK customers. For each vehicle specified in worksheet Q13a, provide the following information for each year that sales are expected to take place (up to 10 years from the first year of production) as defined in the index sheet.
Expected vehicle sales Provide for each year the forecast of vehicle sales (absolute number).
You will need to specify the expected volume of vehicle sales which will use the new technologies developed. Vehicle sales should be based on vehicle sales which are highly likely to materialise, such as sales arising from new planned vehicle production lines or firm agreements from vehicle manufacturers. They should not be based on speculative opportunities.
Expected carbon savings For each year provide the following in terms of gCO2/km (or gCO2/kWh as specified in Q13a):
- comparator vehicle CO2 tailpipe emissions
- improved CO2 tailpipe emissions for sales vehicle
Only tailpipe CO2 savings that are not part of an EU emissions trading scheme should be included.
Assessors need to understand the CO2 benefits that will be delivered beyond those which are mandated by regulation, or achieved by current best in class vehicles. As such, include a comparator vehicle to represent best in-class.
The comparator vehicle emissions will be expected to have an improved CO2 performance over time, in-line with future emissions performance expectations. Use the notes column to explain or reference assumptions made in defining the comparator vehicle CO2 performance, including reference to changing legislation.
Expected fuel savings for consumers
For each year provide the following in terms of litres/km:
- comparator vehicle fuel use
- improved fuel use for sales vehicle
Any fuel savings to consumers that arise as a result of applicants going beyond existing regulations should also be recorded. As with recording carbon savings, this should include a comparator vehicle or propulsion system which is expected to have an improved fuel economy performance over time, in-line with future performance expectations.
Fuel savings to consumers should only be included if the additional savings will not be captured in the price of the vehicle.
Q14. Number of employees upskilled and apprentices, MSc and PhD students working on the project
In this section please provide details of the number of employees expected to benefit from training which is specific and necessary to this project. You should only provide information on upskilling which is likely to add value, such as productivity improvements, bringing technical skills up-to-date or addressing skills gaps. Training that organisations are already required to undertake to meet health and safety or professional membership requirements should not be recorded in the table.
In the relevant tables, please provide the expected number of R&D or design and manufacturing employees who will be upskilled each year. Provide in the narrative box some indication of the duration of training and upskilling acquired.
Report the number of apprentices, MSc and PhD students who are expected to work on the project each year. These individuals should more than likely be included in the jobs figures provided in Q12. Where apprentices, MSc or PhD students are working on the R&D project on a part-time basis, report their number on a pro-rata basis using full-time equivalents (FTEs).
Q15. How will the Technology Readiness Level (TRL) and Manufacturing Readiness Level (MRL) of the developed technologies progress through this project?
The form is split into two sections. The first section covers the current status of the technology to be developed in the project and the second section covers the end state of the technology, after the proposed project has been completed.
In the first section identify the systems, sub-systems and/or elements that will be progressed with the project and categorise the TRL and MRL levels that they will have achieved before starting the project. Please contact APC for further guidance on TRL and MRL definitions.
In the second section identify the end state of each technology.
In both cases, the TRL and MRL levels assigned should be supported by specific justifications in line with the examples given in the guide.