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2024

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05

Centrica, Equinor, and SSE launch multi-gigawatt green and blue hydrogen hub in northern England

Author:

HydrogenTech


Energy companies Centrica, Equinor, and SSE Thermal have announced plans for up to 2.2GW of low-carbon hydrogen projects, as well as associated pipeline and storage infrastructure, at the Easington gas terminal in East Yorkshire, northern England.

 

Centrica and Equinor plan to bring up to 1.2GW of blue hydrogen production capacity and up to 1GW of green H2 on line as part of the Humber Hydrogen Hub in the 2030s, with the first electrolyser project due to start operations by 2029 — if it receives subsidies.

 

The two firms have already submitted this proposed green hydrogen facility for a Contracts for Difference-style subsidy from the UK's second Hydrogen Allocation Round, which covers the difference in cost between H2 and natural gas prices.

 

Given the cost gap between green hydrogen and fossil gas is wider than for other molecules, such as grey hydrogen or diesel, the first HAR set a strike price of around £9.49 ($12.09) per kilo of H2 and only supported 125MW of new electrolyser capacity.

 

By comparison, the highest bid price to win in the European Hydrogen Bank subsidy auction for EU projects, which awarded 1.5GW of capacity, was €0.48 ($0.52) per kilogram.

 

Centrica and Equinor have already said that their first customers for the project would be existing gas offtakers from Easington seeking to switch fuels, with sustainable aviation fuel production an “immediate next step”.

 

The three firms plan to build new hydrogen pipelines linking the hub at Easington with Equinor’s planned 600MW H2H Saltend blue H2 project, also in East Yorkshire, which received planning permission in February this year.

 

The 45km pipeline network would also feed into to a new hydrogen storage facility at an existing gas storage site in the nearby village of Aldbrough proposed by Equinor and SSE Thermal, as well as crossing over the Humber to supply offtakers on both sides of the estuary.

 

Source: HydrogenTech

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