Notice

Net Zero Hydrogen Fund strands 1 and 2: summaries of successful applicants round 2 (April 2023) competition

Updated 27 February 2024

Strand 1

Pembroke 200MW Green Hydrogen Electrolyser Phase II   

Pembroke Phase II is a 200MW electrolytic hydrogen production facility project in Pembrokeshire, Wales located at RWE’s Pembroke Power Station site and part of the Pembroke Net Zero Centre.

The project will supply local offtakers with low carbon hydrogen, resulting in an emissions reduction of 160,000 tonnes CO2 equivalent each year and creating up to 40 new jobs. It is anticipated to be operational in the late 2020s, supporting the government’s net zero and low carbon hydrogen targets and those of the South Wales Industrial Cluster, for which Pembroke Phase II is a key enabler. The DEVEX project is necessary for the facility’s deployment, undertaking activities that include FEED study delivery, supply chain procurement, and stakeholder engagement.

The project is being delivered by RWE Generation which is part of RWE, one of the largest power generators in the UK, with a diverse operational portfolio of around 10GW. RWE has a target to be net zero by 2040, being one of the world’s largest producers of renewable energy and through its ‘Growing Green’ strategy, investing €50 billion gross by the end of the decade. RWE is developing multiple electrolytic hydrogen projects in the UK and overseas and aims to develop over 2GW of green hydrogen projects by 2030.

RWE are already developing a separate 110MW electrolyser facility in Pembroke, known as Pembroke Phase I, which is due to be deployed by 2027. Combined, the 2 projects will have a hydrogen generation capacity of 310MW.

RWE Generation UK Plc

Grenian Hydrogen Speke  

Grenian Hydrogen intends to build a new electrolytic hydrogen project at Speke in Liverpool City Region; the ‘Grenian Hydrogen Speke’ project.

Using a Proton Exchange Membrane (PEM) electrolyser, Grenian will supply hydrogen via a new dedicated, local pipeline network to several large offtakers as a replacement fuel for natural gas. This approach to decarbonising the automotive, pharmaceutical and aviation sectors has the potential to be a world-first.

The core objective of the work is to produce a Front-End Engineering and Design (FEED) study. This will enable the subsequent procurement of an engineering, procurement and construction contract to build the hydrogen production plant and pipeline network, along with requisite permitting and consenting documentation to enable a Final Investment Decision.

The FEED study will include the core electrolyser technology, full balance of plant to include rectifier, dryer etc, along with all relevant electrical cabling, controls and pipeline network to enable hydrogen production and supply of fuel to each offtaker.

Grenian intends to use information from the FEED study to enable a bid and subsequent engagement in the government’s second Hydrogen Allocation Round (HAR2) during 2024. Under this model, the plant would reach commercial operation by the end of 2028.

Hydrogen at Speke will be produced using temporally linked renewable electricity generation from around the UK, thus meeting the requirements of the Low Carbon Hydrogen Standard (as required under the Low Carbon Hydrogen Agreement).

Once operating, the project could result in carbon dioxide savings of around 61,000 tonnes of CO2 equivalent per year.

Grenian Hydrogen Limited

Sullom Voe Terminal Hydrogen Project

Veri Energy intends to establish the Sullom Voe Terminal (SVT) Energy Hub project as an advanced facility for hydrogen generation and derivative production. The project will have an initial capacity of 50MW, with potential expansion to 300MW in subsequent phases.  

The project will harness Shetland’s abundant renewable resources like wind and tidal power to generate hydrogen through advanced electrolysis technology. This not only underscores Veri Energy’s commitment to the local energy ecosystem but also positions it to export energy.

SVT has a highly skilled workforce, a well established supply chain, a supportive local government, and existing infrastructure, which includes access to utilities, civils, deepwater port and jetties, that offers significant potential for reuse and repurposing.

This project represents an important pillar of Veri Energy’s strategy to transform Sullom Voe into a green energy hub, which will support protection and creation of new jobs. With government funding, we can further enhance the building blocks we already have in place, ensuring the project’s success and maximizing its positive impact on the community and the environment. 

Veri Energy

Tees Green Methanol  

The 3rd phase of EDF Renewables and Hynamics’ Tees green hydrogen programme will see a 200MW electrolyser developed and deployed to feed into a proposed e-methanol plant at Teesport, to help decarbonise the UK’s maritime sector.

The electrolyser, using electricity from EDF’s nuclear and new-build wind and solar portfolio, will produce hydrogen in the heart of the UK’s leading hydrogen cluster. The project has ambitions to combine the hydrogen with captured biogenic CO2 in an e-methanol synthesis plant to create the UK’s largest source of renewable methanol. The e-methanol will be used as a clean fuel in maritime engines in vessels such as large-scale cargo shipping vessels.

By its start of operations in 2030, the e-methanol plant could be the largest of its kind in the UK.

The project offers multiple benefits to the UK:

- contributing to the government’s 10GW electrolysis target: EDF Renewables and Hynamics’ Tees Green Methanol electrolyser will cover 2% of the government target
- deploying the first commercial e-methanol plant in the UK: EDF’s flagship e-methanol plant could be the first deployed in the UK, demonstrating the technology at a commercial scale and enabling UK ports to benefit from lessons learnt and replicate across the nation
- contributing to the UK government’s Clean Maritime Plan: e-methanol is currently the preferred choice for maritime decarbonisation due to drop-in qualities, safe combustion and easy handling. As a result, the project will directly promote industry developments to achieve the UK’s ambition of a net-zero maritime sector, as laid out in the government’s Clean Maritime Plan

EDF Energy Renewables Limited

Strand 2  

Aberdeen Hydrogen Hub Phase 1  

In March 2022, Aberdeen City Council and bp formed a joint venture called bp Aberdeen Hydrogen Energy Limited (bpAHEL). The partnership intends to enhance the hydrogen economy in the Aberdeen city and North East of Scotland by building the Aberdeen Hydrogen Hub, a scalable and sustainable green hydrogen production, storage, and distribution facility, powered by a new solar plant and additional renewable energy sources.

For more than 10 years, Aberdeen has been at the forefront of hydrogen innovation, with the H2 Aberdeen initiative driving growth of a hydrogen economy and the adoption of hydrogen technologies within the region.

The Aberdeen Hydrogen Hub project is now central to helping deliver the city’s net-zero vision. By harnessing natural resources, a skilled workforce, and the industrial capacity of the North East of Scotland, the project seeks to help create a thriving new energy sector that builds upon the region’s oil and gas heritage.

The project is designed to scale up in line with hydrogen market growth. Phase one targets delivering over 800kg of green H2/day, sufficient to fuel at least 25 fuel cell electric buses and the Council’s fleet of hydrogen vehicles. Additional capacity is designed to support private vehicle refuelling for consumers and fleets.

Future phases see production increase to meet the demands of road and other transport sectors, including rail, and marine. bp’s floating offshore wind demonstrator project, part of INTOG, could increase power supply to enable expansion along with potential connection to other local renewable power sources.

A final phase anticipates hydrogen for heat and net export – helping to deliver Aberdeen’s vision to be a climate positive city at the heart of the global energy transition.

The project stimulates demand for hydrogen and growth of a supplier network, and can support a Just Transition by fostering the development of skills and training within the hydrogen sector. A study commissioned by the council estimates that if the hydrogen hub enables the export of renewable hydrogen, up to 700 skilled jobs could be created in the hydrogen industry by 2030.

By spearheading this ambitious project, bpAHEL aims to help further expand Aberdeen’s existing hydrogen economy, showcasing the city as a leader in sustainable development, pioneering technology, and economic growth.

BP Aberdeen Hydrogen Energy Limited

Tees Valley Hydrogen Vehicle Ecosystem (HYVE)  

Exolum will install a 5MW electrolyser at its Riverside storage terminal in the Tees Valley to produce 1.9 tonnes / day of green hydrogen for the transport sector as part of the Tees Valley Hydrogen Vehicle Ecosystem (HYVE) project. Additionally, Exolum will construct a hydrogen refuelling station and tube trailer loading facility at the terminal to supply hydrogen to its customers.

Exolum is a member of the Hydrogen Vehicle Ecosystem (HYVE) consortium, which recently received funding for the hydrogen refuelling station through the Tees Valley Hydrogen Transport Hub competition.

It is working alongside 2 hydrogen vehicle suppliers, Electra Commercial Vehicles and German manufacturer Quantron AG - in partnership with Novuna Vehicle Solutions - who will deploy 25 hydrogen fuel cell vehicles to be refuelled at Exolum’s facility. These vehicles, ranging from 4.2 to 27 tonnes, will demonstrate the various uses of hydrogen within the mobility sector and will be used by a range of different vehicle operators who are looking to reduce the carbon emissions from their fleet operations.

This project aims to catalyse additional hydrogen vehicle deployment within the Tees Valley and nationwide by stimulating further investment in fuel cell vehicles and hydrogen refuelling infrastructure. Exolum is planning to work with partners develop multiple hydrogen transport hubs across the country to build a national network of production facilities and refuelling stations that will be a key aspect of the UK’s hydrogen economy.

Exolum is proud to develop this project alongside its wider decarbonisation strategy.  In addition to investing in new infrastructure to unlock the low carbon economy, Exolum is committed to becoming a net zero company by 2040.

Exolum International UK Ltd

Suffolk Hydrogen  

The Suffolk Hydrogen Hub will build a network of hydrogen production and refuelling stations in Suffolk, starting with a 10MW production facility in Ipswich. This production facility will be able to produce 4 tonnes of low carbon hydrogen per day.

The Suffolk Hydrogen Hub is led by a consortium of The Bamford Bus Company (Wrightbus), Ryze Hydrogen, Hynamics and Hygen Energy Holdings. The consortium members are able to provide an end-to-end hydrogen solution to customers, from hydrogen vehicles (Wrightbus), hydrogen production (Hygen and Hynamics), and hydrogen dispensing and distribution (Ryze).

Sizewell C will have one of the lowest carbon footprints per kWh of electricity produced and is seeking to further reduce its carbon footprint by minimising carbon emissions during the construction phase. One measure being implemented is to transport staff to the construction site by bus from Park and Ride facilities. This will make it the largest hydrogen mobility project in the UK.

The production site is being designed and consented to supply hydrogen to a wider ecosystem in the Suffolk and East Anglia region, beyond the requirements of Sizewell C.

The project predicts an estimated 17.5 tonnes of CO2 equivalent per year saved based on full operation, generating around 24 direct new jobs.

HydraB Power Limited