CAPITAL HYDROGEN FEASIBILITY REPORT
Working in partnership to deliver Hydrogen for London, the South East and the East of England
The business of sustainability
ERM is a leading environmental, health and safety consultancy, and has produced this report for Capital Hydrogen. As the transition to a lower carbon future accelerates, ERM is uniquely positioned to bring extensive technical and strategic capability to help organisations act at the scale and speed necessary to remain successful.
Supported by recent acquisitions of Element Energy, E4tech, RCG and Arcus, ERM is at the forefront of blue and green hydrogen development with a wealth of experience in the development of hydrogen projects from initiation stage, to feasibility assessment and deployment support. Delivering projects such as Hy4Heat, Dolphyn, H21, HyNet, Gigastack, Oyster, Acorn, and now Capital Hydrogen, ERM is accelerating deployment of low carbon hydrogen in the UK.
Drawing on our deep in-house energy sector expertise, established network of trusted local partners and global experience, ERM can offer strategic insight and excellence covering the decarbonisation of transport, buildings, fuels, energy systems, and industry in the UK, Europe and globally.
are
to Capital
hydrogen
working
demand in London
production in the South
Distributed hydrogen clusters in the South East...................26 Project Union - Conversion of the gas transmission
of hydrogen demand in London by
The need for new Capital Hydrogen Pipelines in London by
H2London
East London Hydrogen
How will the Capital Hydrogen pipelines be
ROLLOUT
Hydrogen transmission in Stage 2 of Capital Hydrogen........44
distribution
Hydrogen storage..............................................................46 Potential hydrogen demand in London by
and Regional
Timeline for hydrogen deployment in London out to
The Capital Hydrogen Programme
What needs to be done
TABLE OF CONTENTS 1. DECARBONISATION AND HYDROGEN’S ROLE 9 2. THE CAPITAL HYDROGEN REGION 15 5. THE BENEFITS OF THE CAPITAL HYDROGEN PROGRAMME 50 6. PROJECT ROADMAP AND STAKEHOLDER ENGAGEMENT 54 7 . CAPITAL HYDROGEN SUPPORTERS.........................................61 3. CAPITAL HYDROGEN STAGE 1 - DISTRIBUTED HYDROGEN IN LONDON AND THE SOUTH EAST BEFORE 2033 25 4. CAPITAL HYDROGEN STAGE 2 - HYDROGEN
TO 2050 43 1.1 1.2 1.3 2.1 2.2 5.1 5.2 6.1 6.2 6.3 3.1 3.2 3.3 3.4 3.5 3.6 3.7 4.1 4.2 4.3 4.4 Introduction
Hydrogen.........................................9 Why is capital
needed?.......................................10 Why
we
together on this?................................14 Energy
today...................................18 Hydrogen
East...............................19 National
Benefits...........................................52 Consumer-Level Benefits...................................................53
2050.....55
Roadmap.....................58
next?.............................................59
nework...............................................................................28 Summary
2030.............30
2030.................................................................31
Pipeline..............................................................34
Pipeline..........................................37
delivered?..........41
Gas
network conversion...................................46
2050..................46
LIST OF FIGURES
Figure 1: Fuel use breakdown in National Grid's Future Energy
Figure 2: Total fuel use in London for a range of sectors, broken down by fuel type......................................................................................18
Figure 3: An illustrative Project Union route map, showing strategic hydrogen production sites, industrial cluster sites, existing NTS (National Transmission System) pipelines, and illustrated pipe routes that could be converted to 100% hydrogen............................................................28
Figure 4: Hydrogen production or import locations and distributed hydrogen clusters in the Capital Hydrogen region.............................29
Figure 5: A map showing the proposed pipeline routes of the East London Hydrogen Pipeline (Cadent) north of the River Thames, and the H2London Pipeline (SGN) south of the River Thames.........................33
Figure 6: Proposed H2London Pipeline route, connecting low carbon hydrogen supply and demand opportunities across South East London..........................................................................................35
Figure 7: Potential hydrogen demand for the H2London Pipeline by 2033, broken down by type of sector................................................36
Figure 8: Proposed East London Hydrogen Pipeline route, connecting low carbon hydrogen supply and demand opportunities across East London...........................................................................................38
Figure 9: Potential hydrogen demand in the East London Hydrogen Cluster by 2033, broken down by sector...........................................39
Figure 10: A map showing the approximate location of new district heating networks in the Dagenham Docks area...............................40
Figure 11: Hydrogen deployment timeline for Stage 1 of Capital Hydrogen.......................................................................................42
Figure 12: A map of the South East during Stage 2 of Capital Hydrogen, showing hydrogen producers, end users, potential hydrogen storage locations, and transmission pipeline.................................................45
Figure 13: Potential 2050 hydrogen demand in London and the Thames
Scenarios........................................................................................10
Estuary...........................................................................................47
LIST OF FIGURES
Figure 14: The modelled heating technology breakdown in London in 2020, 2030 and 2050
Figure 15: Modelled industrial fuel use within London and the Thames Estuary in 2020, 2030 and 2050.....................................................48
Figure 16: Modelled road transport fuel use in 2050 by vehicle type.....49
Figure 17: A summary of the benefits to London and the UK as a whole through Capital Hydrogen................................................................51
Figure 18: Total annual emissions saved in 2050 by hydrogen fuel switching in Capital Hydrogen.......................................................52
Figure 19: Hydrogen deployment timeline for Stage 1 and Stage 2 of Capital Hydrogen............................................................................55
Figure 20: The stages of the Capital Hydrogen programme, subject to policy support................................................................................58
....................................................................48
ACRONYMS AND ABBREVIATIONS
Name Description
ASHP
Air Source Heat Pump
Auto-thermal reformation
BEIS
ATR CCC CCGT CHP FEED GLA HGV IMRRP LGV
LOHCs LNG NSTA RAV SAF SMR TEGB WSHP ZCPT
Her Majesty’s Government Department for Business, Energy & Industrial Strategy
Committee for Climate Change
Closed Cycle Gas Turbine
Combined Heat and Power
Front End Engineering Design
Greater London Authority
Heavy Goods Vehicle
Iron Mains Risk Reduction Programme Light Goods Vehicle Liquid Organic Hydrogen Compounds
Liquefied Natural Gas North Sea Transition Authority Regulated Asset Value
Sustainable Aviation Fuels Steam methane reformation Thames Estuary Growth Board Water Source Heat Pump Zero Carbon Pathway Tool
GLOSSARY Name Description
FEED
Front End Engineering and Design (FEED) is an engineering design approach to thoroughly plan a project before construction and follows industry design methodology standards
Pre-FEED
The pre-FEED process occurs before the FEED process, and helps prove the feasibility of a project both economically and technically, as well as determining the specific pipeline route, and the diameter and pressure of the pipeline.
TYPES OF HYDROGEN
Electrolytic hydrogen
Hydrogen produced through
using
depends on the
The
of the
into
of
hydrogen
Green hydrogen is a type of
such as
(see
using
or
(see below), produced using low
Pink hydrogen is a type of
generated by
power.
by
(auto-thermal
This
is
of
of
(steam
with CO2 as a
8
electrolysis, where water is split
hydrogen and oxygen,
electricity.
associated CO2 emissions
electrolytic hydrogen
emissions intensity
electricity used.
electrolytic hydrogen
below), produced
renewable energy
wind
solar.
electrolytic hydrogen
carbon electricity
nuclear
Hydrogen produced
chemically reforming natural gas in SMR
methane reformation) or ATR
reformation),
byproduct.
CO2 is released into the atmosphere in grey hydrogen production, leading to increased global warming. The majority
current global hydrogen production
grey hydrogen1. Blue hydrogen is produced using the same processes as grey hydrogen (see below), but the carbon dioxide produced is captured for use in other products or for long-term storage. More than 90%
the CO2 emissions can be captured in blue carbon production, depending on the production method and site2. The UK government is adopting a Low Carbon Hydrogen Standard3 to ensure any hydrogen produced in the UK will have low carbon emissions. Green
Pink hydrogen Grey hydrogen Blue hydrogen 1 https://iea.blob.core.windows.net/ assets/9e3a3493-b9a6-4b7d-b4997ca48e357561/The_Future_of_Hydrogen.pdf 2 Gorski et al., “Carbon intensity of blue hydrogen production,” 2021; https://www.jstor.org/stable/ resrep35977?seq=5 3 https://assets.publishing.service.gov.uk/ government/uploads/system/uploads/ attachment_data/file/1067392/low-carbonhydrogen-standard-guidance.pdf Key Low Carbon
1. DECARBONISATION AND HYDROGEN’S ROLE
1.1 INTRODUCTION TO CAPITAL HYDROGEN
Capital Hydrogen is a 15-20 year programme, run by Cadent, National Grid Gas Transmission and SGN, seeking to transition the natural gas pipeline network to a low carbon hydrogen network in London and the South East.
This report summarises the initial feasibility stage of Capital Hydrogen, in which we have:
• Identified how much hydrogen could be needed in London and the wider South East region over the next 30 years, where this hydrogen could be produced and stored, and how it could be delivered.
• Estimated the benefits that hydrogen would bring to this region - both in emissions savings, and economic and social benefits.
• Set out how full conversion of the natural gas network could occur in the late 2030s and early 2040s, to supply low carbon hydrogen to consumers across London and beyond.
• Developed concepts for the first supply of hydrogen via two potential routes for 100% hydrogen pipelines in East London, and sources of hydrogen supply that can feed into these pipelines. These pipelines could deliver low carbon hydrogen directly to some of the largest energy users in London and the Thames Estuary by the early 2030s.
Through these plans, Capital Hydrogen is aiming to help meet London’s ambitious climate targets by accelerating hydrogen deployment in the capital.
Capital Hydrogen Feasibility Report Working in partnership to deliver Hydrogen for London, the South East and the East of England 9
Decarbonisation and Hydrogen’s Role
1.2 WHY IS CAPITAL HYDROGEN NEEDED?
Decarbonising the UK
In 2019 the United Kingdom became the first country globally to commit to bring all greenhouse gas emissions to net zero by 20504
The Ten Point Plan for a Green Industrial Revolution, 20205 and the Net Zero Strategy, 20216 set out the government’s approach to reaching this legally binding target.
Hydrogen is central to the UK’s strategy, due to its storage potential and since it can be easily distributed using existing infrastructure.
In addition to significant electrification of existing energy demand, hydrogen is required across all decarbonisation pathways.
The UK Hydrogen Strategy7 estimates that by 2035 hydrogen could contribute up to 45 TWh each to industry, transport and heat in buildings.
Low carbon hydrogen makes up 15-24% of total 2050 fuel use in the Sixth Carbon Budget scenarios8.
BEIS has estimated that the UK could produce 250-460 TWh of low carbon hydrogen by 20509 to help decarbonise industry, power generation, heating in buildings and transport10. This production needs to be connected to consumers via converted or purpose-built hydrogen pipelines. Through driving the growth of low carbon hydrogen and supporting the development of hydrogen use in industrial clusters, the government is helping to develop a significant hydrogen economy in the UK by 2030.
Figure 1:
Fuel use breakdown in National Grid's Future Energy Scenarios11
https://www.gov.uk/government/news/uk-becomes-first-major-economy-to-pass-net-zero-emissions-law
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/936567/10_POINT_PLAN_BOOKLET.pdf
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1033990/net-zero-strategy-beis.pdf
UK Hydrogen Investor Roadmap, Department for Business, Energy & Industrial Strategy, 2022
Figure 2.15, Sixth Carbon Budget, Climate Change Committee, 2020
Table 6, Impact Assessment for the sixth carbon budget, Department for Business, Energy & Industrial Strategy,
UK Hydrogen Strategy, Department for Business, Energy & Industrial Strategy,
Energy flow diagrams, FES 2022 Data workbook, National Grid,
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Decarbonisation and Hydrogen’s Role
4
5
6
7
8
9
2021 10
2021 11
2022
Net Zero London by 2030
The Mayor of London has an ambition to bring London’s emissions to net zero by 203012.
As a result, the Greater London Authority has set out four emissions reduction scenarios, all relying on hydrogen use in targeted applications by 2030, alongside extensive electrification.
The Accelerated Green scenario, chosen by the Mayor of London as the preferred decarbonisation scenario, includes significant deployment of hydrogen by 2030 and further growth in hydrogen use by 2050 across a range of sectors.
The Deputy Mayors of London have written to Cadent, SGN and National Grid Gas Transmission to ask for their help in delivering against these ambitious hydrogen targets.
Decarbonising the East and South East of England
Throughout the East and South East of England, over 90 councils and combined authorities have declared a climate emergency.
They are in the process of designing and implementing plans to achieve ambitious net zero targets and would like to understand the role that hydrogen could play13.
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Decarbonisation and Hydrogen’s Role
12 https://sadiq.london/wp-content/uploads/2021/04/Sadiq-for-London-Manifesto-.pdf 13 https://www.climateemergency.uk/blog/list-of-councils/
Due to the infrastructure and investment required to produce, store, and transport hydrogen throughout London and the South East, the long-term planning set out in Capital Hydrogen is essential.
Develop large-scale hydrogen projects to support the delivery of these ambitious climate targets.
Deliver the necessary infrastructure to transport hydrogen to end users.
Stimulate and accelerate the production of hydrogen to meet the demand.
Support the economy through hydrogen deployment.
Capital Hydrogen Programme
The plans in this report are dependent on government support for widespread use of hydrogen for decarbonisation.
This early planning will allow for rapid deployment if government is supportive.
This roadmap is based on current assumptions, and will develop as the future role of hydrogen becomes clearer.
The Capital Hydrogen Programme aims to:
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Capital Hydrogen Feasibility Report Working in partnership to deliver Hydrogen for London, the South East and the East of England
Decarbonisation and Hydrogen’s Role
Sadiq Khan, Mayor of London 13
Capital Hydrogen Feasibility Report Working in partnership to deliver Hydrogen for London,
the South East
and
the East of England
Decarbonisation and Hydrogen’s Role
“WE SIMPLY DON’T HAVE TIME TO WASTE. THE CLIMATE EMERGENCY MEANS WE ONLY HAVE A SMALL WINDOW OF OPPORTUNITY LEFT TO REDUCE CARBON EMISSIONS TO HELP SAVE THE PLANET”14 14 Quote extracted from https://www.london.gov.uk/press-releases/mayoral/mayor-announcesbold-plans-for-a-greener-london © Sadiq Khan, The Mayor of London. Image courtesy of the Mayor of London’s Press Office. Photograph sourced from VisitLondon.com
1.3 WHY ARE WE WORKING TOGETHER ON THIS?
• Cadent, National Grid Gas Transmission and SGN operate the gas networks in the South East and London.
• Part of our mandate is to ensure that there is a constant and reliable supply of energy to consumers whom we serve.
• Whilst Government has already made positive decisions on the role of hydrogen in industrial decarbonisation and power generation, it is yet to make a final decision on the role of hydrogen in heating buildings.
• Given the uncertainty, and the length of time it takes to effectively plan the infrastructure that might be required, we have established the Capital Hydrogen feasibility project to take a first look at what might be needed.
• Cadent, SGN and National Grid Gas Transmission are looking at how existing gas pipelines could be repurposed to carry hydrogen and what a conversion strategy might entail.
• Given the interconnectivity of the transmission system with the distribution networks, it is essential that we work closely together on our plans, allowing a coherent plan for the whole of the region.
The Capital Hydrogen Plan
The Capital Hydrogen plan is to have a gas network which will supply low carbon hydrogen via pipelines to consumers throughout the South East and London, providing resilience, flexibility, and decarbonisation across all sectors cost-effectively.
These pipelines, whether converted from existing natural gas infrastructure or newly constructed, will require long-term planning, for which collaboration is essential.
The Government’s decisions on the role of hydrogen blending into the natural gas grid, and on the potential for hydrogen for domestic heating, will be made in 2023 and 2026 respectively.
Early plans set out in this feasibility report will allow progress, despite those areas of uncertainty.
Capital Hydrogen Partners
Cadent operate the gas distribution network in North London and East Anglia, as well as in the East and West Midlands, and in the North West, providing gas to over 11 million homes.
National Grid Gas Transmission operate the National Transmission System (NTS), a network of high-pressure pipelines which transports gas safely and efficiently from coastal terminals and storage facilities to exit points from the system, including large gas users in the industry and power sectors, distribution networks and interconnectors.
SGN operate the gas distribution network in South London and the South of England, as well as in Scotland, providing gas to 5.9 million homes and businesses.
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Role
2. THE CAPITAL HYDROGEN REGION
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Capital Hydrogen Feasibility Report
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in partnership to deliver Hydrogen for London, the South East and the East of England
The Capital Hydrogen Region
2. THE CAPITAL HYDROGEN REGION
Capital Hydrogen focuses on hydrogen production, distribution and consumption in London and the South East. There is a need for a roadmap for hydrogen deployment in this region because:
• London accounts for a significant amount of the UK’s carbon emissions – representing over 8% of total national emissions in 2019.
• The Greater London Authority (GLA) has ambitious targets for a net zero London by 2030, with hydrogen needed to achieve this.
• Through engagement with stakeholders, we know that there is a clear need for accelerated hydrogen deployment in London to meet potential demand prior to 2030.
• The majority of hydrogen used in the capital is likely to be produced in the east of England and the South East.
• Prospective large-scale hydrogen production sites, such as at Bacton (Norfolk) and the Isle of Grain, have the potential capacity to produce large amounts of low carbon hydrogen for London and the wider region, but need a guarantee of demand. These production centres need visibility of a transmission and distribution plan that allows the hydrogen to reach consumers.
Existing gas infrastructure throughout London, the East of England and the South East provides flexible, dispatchable, and secure energy for heating, industry and power generation, delivering up to 250 TWh of natural gas to over 8 million homes, over 180,000 commercial buildings, 20,000 industrial users and 46 power generation sites. The goal of the Capital Hydrogen Programme is to explore how existing and new gas infrastructure can deliver low carbon hydrogen to the region, maintaining the same flexibility, dispatchability and security as we head towards net zero.
This feasibility study includes near-term opportunities for both potential hydrogen end users and producers, and shows how supply and demand can be connected through new and repurposed gas pipeline infrastructure.
16 Capital Hydrogen Feasibility Report Working in partnership to deliver Hydrogen for London, the South East and the East of England
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THE GOAL OF THE CAPITAL HYDROGEN PROGRAMME IS TO EXPLORE HOW EXISTING AND NEW GAS INFRASTRUCTURE CAN DELIVER LOW CARBON HYDROGEN TO THE REGION, MAINTAINING THE SAME FLEXIBILITY, DISPATCHABILITY AND SECURITY AS WE HEAD TOWARDS NET ZERO.
Regions Cadent SGN Rest of the UK
London
Leicester Ipswich
Colchester Luton Oxford Portsmouth Brighton
Canterbury
Reading
Norwich Peterborough Cambridge
Regions
2.1 ENERGY DEMAND IN LONDON TODAY
• London has the highest concentration of energy use and emissions in the South East, covering energy use in buildings, industry, road transport, aviation, and shipping. Coupled with the ambitious 2030 net zero target set by the Mayor of London, there is a clear need for rapid decarbonisation of energy use in London.
• Due to its high energy density, London is unlikely to be self-sufficient in terms of hydrogen. It will have to rely on producers outside of London, throughout the South East and East of England, and beyond.
• In this feasibility report we focus on decarbonising energy demand in London and the Thames Estuary through deployment of hydrogen, and the hydrogen production that will be required in the wider region to support this. Thorough analysis of the potential demand for hydrogen in London will help accelerate decarbonisation in the region, and will justify the progression of hydrogen deployment plans.
• In future stages of the Capital Hydrogen Programme, we will explore in greater detail the potential hydrogen demand in wider regions of the South East.
Figure 2 shows the current fuel use in London15 for a range of sectors, broken down by fuel type.
Figure 2:
Total fuel use in London for a range of sectors, broken down by fuel type
15
• London represented over 8% of UK emissions in 2019, with over 29 Mt CO2
• 67 TWh of natural gas use represents nearly half (48%) of London’s current fuel use across all sectors.
• The majority of fuel use in London is in domestic and non-domestic buildings, these account for over 70% of all fuel energy use in the capital.
• 61% of fuel use in buildings is natural gas for space heating, hot water and cooking.
• 36% of fuel use in buildings is electricity, for heating, cooling and electrical appliances.
• 16% of London’s fuel use is in road transport, with mainly petrol and diesel used in passenger vehicles, public transport, vans and lorries.
• The remaining 13.5% of London’s fuel use represents a range of fuel types, across shipping, power, aviation, industry and rail.
use shown here is
use
Gases Inventory database and data from the GLA’s Zero Carbon Pathway Tool. However, shipping fuel use from London’s ports along the Thames Estuary is also included in this graph. More information is provided in Section 5.
18 Capital Hydrogen Feasibility Report Working in partnership to deliver Hydrogen for London, the South East and the East of England
The
Capital Hydrogen Region
The fuel
mainly an estimate of fuel
within the Greater London boundary, using the London Emissions and Greenhouse
2.2 HYDROGEN PRODUCTION IN THE SOUTH EAST
There are multiple planned sites for low carbon hydrogen production throughout the South East. These sites are initially planning to produce hydrogen for nearby consumption in the 2020s, however, if the government is supportive of wider hydrogen deployment in the region, they are capable of scaling up production capacity to support greater hydrogen deployment in London and the South East. Blending of hydrogen into the National Transmission System will be important to provide an early market for hydrogen produced in Bacton, Norfolk.
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Capital Hydrogen Feasibility Report
Working in partnership to deliver Hydrogen for
London,
the
South East and
the
East
of England
The Capital Hydrogen Region
26-31 TWh 2030 potential production Over 4 GW potential production capacity by 2035 110-164 TWh 2050 potential production
Potential hydrogen producers and importers in the South East
Project Hydrogen Type
Key StakeholdersLocation Scale
Bacton Energy Hub Blue & Green Bacton
Freeport East Green Felixstowe & Harwich
355 MW by 2030 1000 MW by 2050
500 MW by 2030, 1000 MW by 2035
Scottish Power Green Felixstowe 100 MW
Lowestoft PowerPark Green Lowestoft
Southampton Water Blue & Green Southampton
Statera –Thurrock Green Thurrock
3 MW by mid2020s
710 MW in initial phase
50 MW by mid2020s
Thames Enterprise Park Not yet published Stanford-leHope Not yet published
Marine2o Green Thurrock
3 MW by 2024
RWE Not yet published Thurrock Not yet published
Herne Bay –Ryze Green Herne Bay
Isle of Grain Blue Isle of Grain
To be confirmed
8.8 MW by mid2020s
700 MW in first phase, up to 1750 MW in second phase
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Hydrogen Production Locations
Regions Cadent SGN Rest of the UK
Key Hydrogen Production or Import
Leicester
Lowestoft Ipswich Colchester Luton Oxford Portsmouth Brighton
Canterbury
Reading
Norwich
Bacton Energy Hub Peterborough Cambridge Southampton Industrial Cluster
Felixstowe & Harwich Freeport East Herne Bay
Isle of Grain
London
Descriptions of hydrogen production in the Freeport East, Lowestoft Power Park, Southampton Water, and Scottish Power projects are included in Section 3.1.
2.2.1 ISLE OF GRAIN
• Project Cavendish was a consortium project which had been investigating the potential for low carbon hydrogen production on the Isle of Grain in Kent.
• It was targeting 700 MW of blue hydrogen production with carbon capture and storage (CCS) initially, and it had the potential for future expansion to 1750 MW to supply London and the South East with hydrogen before 2030.
• The carbon captured could have been stored offshore in the UK or in Europe, depending on infrastructure development as well as funding and government support.
• The government is targeting deployment of four CCUS clusters by 203016, with two Track 1 clusters already supported17. Project Cavendish did not receive Track 1 support, but hydrogen production at the Isle of Grain could receive support as a project within one of the Track 2 Clusters.
• The former Project Cavendish consortium members individually remain committed to decarbonisation and continue to explore all options to achieve this, including low carbon hydrogen.
• Capital Hydrogen has committed to work collaboratively with interested parties to support development of low carbon hydrogen production at the Isle of Grain, accelerating the decarbonisation of London and the South East.
2.2.2 BACTON ENERGY HUB
• Bacton Energy Hub is a proposed blue and green hydrogen terminal at Bacton, Norfolk, on the East Coast.
• The core components of the Bacton Energy Hub include access to indigenous natural gas, access to offshore wind, access to key infrastructure for re-use to facilitate hydrogen distribution and export, interconnectors to Europe to facilitate import and export of hydrogen and finally potential offshore stores for CO2 and hydrogen.
• There is potential for storage of hydrogen in depleted gas fields – Bacton Energy Hub is actively assessing the type of storage and potential scale of storage a hydrogen project at Bacton could require.
• Bacton Energy Hub is near several large energy users such as British Sugar’s Cantley Sugar Factory and RWE’s 420 MW CCGT power plant18 in Great Yarmouth.
• The current phase of work will conclude with the delivery of a business opportunity document that will be published towards the end of 2022.
22 Capital Hydrogen Feasibility Report Working in partnership to deliver Hydrogen for London, the South East and the East of England The Capital Hydrogen Region 16 Net Zero Strategy: Build Back Greener, Department for Business, Energy & Industrial Strategy, 2021 17 https://www.gov.uk/government/publications/cluster-sequencing-for-carbon-capture-usage-and-storage-ccus-deployment-phase-1-expressions-of-interest/october2021-update-track-1-clusters-confirmed 18 NAEI emissions database: https://naei.beis.gov.uk/emissionsapp/
Bacton Energy Hub Production
• An initial project of 355 MW blue hydrogen production in the mid-2030s, with an output of around 8 TWh of hydrogen per year.
• Potential to increase hydrogen capacity up to circa 60 TWh per year by 2040, and up to 90 TWh per year in 2050.
2.2.3 OTHER HYDROGEN PRODUCTION OPPORTUNITIES EAST OF LONDON
Capital Hydrogen has engaged with a number of groups aiming to produce and use hydrogen to the east of London.
2.2.3.1 Hydrogen production in Thurrock
• Statera Energy has developed a pathway to commercial operation of a 20-50MW electrolyser system producing green hydrogen powered by wind and solar energy by the mid-2020s.
• The Thurrock Hydrogen project has planning consent to develop a gas-fired power station adapted to operate on hydrogen fuel to generate dispatchable renewable power during periods when generation from wind and solar is low, storing green hydrogen onsite.
• Statera is also seeking to supply offtakers across local industry and transport applications, including the construction sector.
• The Thurrock Site has potential to expand the electrolysis capacity by the end of the decade, with scope to supply a wide variety of applications across London and the Thames Estuary, including blending into the gas grid to supply industrial and domestic heating demand.
• Statera is working with Capital Hydrogen to investigate how this can support hydrogen deployment opportunities north of the River Thames in Stage 1 of Capital Hydrogen.
2.2.3.2 Thames Enterprise Park
Thames Enterprise Park (TEP) will be a sustainable ‘next generation’ manufacturing, logistics and energy hub. The billion-pound regeneration will reinvent the former Coryton Oil Refinery site into a major economic centre for sustainable and specialist industries initially delivering 3.7 million sq ft of advanced logistics, advanced manufacturing and next-generation energy technology uses. It will create up to 5,500 new jobs.
The redevelopment plans will put TEP at the heart of the decarbonisation agenda and help occupiers looking for solutions in the face of the energy transition and the climate change challenge.
In this context, TEP is supportive of hydrogen and actively engaged in the TEGB hydrogen strategy as well as exploring wider opportunities for collaboration such as Capital Hydrogen’s East London Hydrogen Pipeline. Building on its fuels legacy TEP is assessing scope for production, storage and consumption of hydrogen where this will benefit businesses wanting to be part of TEP.
The Capital Hydrogen initiative is complementary and aligned to the vision at TEP.
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2.2.3.3 Marine 2o
• Marine2o is working to provide clean fuel infrastructure for marine transport and intermodal transport along the River Thames.
• They are developing hyper-localised, decentralised production of low carbon, hydrogen-based fuels at strategic sites including in a major port within the Thames Estuary.
• A 3 MW electrolyser will use locally generated renewable electricity to produce low carbon fuels in 2024, with the potential to scale up the production capacity in future.
• Their plans include providing low carbon fuels to users within the Port, as well as the distribution of these fuels further up the River Thames.
• Marine 2o and Capital Hydrogen are working together to identify future hydrogen deployment opportunities.
2.2.3.4 Ryze Hydrogen – Herne Bay
• Ryze Hydrogen have submitted plans to build an electrolyser at Herne Bay in Kent.
• It will have the capacity to produce 10 tonnes of hydrogen per day.
• The hydrogen is planned to be used for road transport, such as the hydrogen buses in operation in London.
24 Capital Hydrogen Feasibility Report Working in partnership to deliver Hydrogen for London, the South East and the East of England The Capital Hydrogen Region
25 Capital Hydrogen Feasibility Report Working in partnership to deliver Hydrogen for London, the South East and the East of England Capital Hydrogen Stage 1 DISTRIBUTED HYDROGEN IN LONDON AND THE SOUTH EAST BEFORE 2033 3. CAPITAL HYDROGEN STAGE 1
This section sets out the plan for Stage 1 of Capital Hydrogen, subject to consultation and investment through the regulatory cycle. This stage covers the time period from publication of this report to the end of 2033. Stage 1 of Capital Hydrogen focuses on two things:
1. Connecting hydrogen production to large energy users with short sections of hydrogen distribution pipeline.
2. Deploying the Project Union hydrogen backbone to connect hydrogen production, distributed hydrogen clusters and areas of future potential hydrogen demand throughout the region.
During Stage 1, in 2026, the UK government will make a decision on the use of hydrogen for heating in domestic and non-domestic buildings. A positive decision will lead to intensified planning from all groups which could be involved in the future hydrogen system. Towns throughout the South East could be converted to hydrogen from 2030. This is covered in Section 4 of this report, covering Stage 2 of Capital Hydrogen.
3.1 DISTRIBUTED HYDROGEN CLUSTERS IN THE SOUTH EAST
Definition: Distributed hydrogen clusters – regions of concentrated energy demand that could decarbonise by using low carbon hydrogen which is produced and stored locally. Short sections of distribution pipelines could be used to connect production, storage or demand of hydrogen within a cluster.
• Distributed hydrogen clusters are in development throughout the UK. Three such projects in the South East are outlined in this section, covering decarbonisation of industry and transport in the East of England and in Southampton, as shown on the map below.
• These distributed hydrogen clusters are aiming to operate independently initially, and will likely produce hydrogen needed for local demand with some small-scale storage. This production could be blue or green hydrogen, and hydrogen could be stored as a gas in pressurised containers, or chemically in hydrogen-containing compounds such as ammonia or Liquid Organic Hydrogen Compounds (LOHCs).
• Once connected to the hydrogen NTS via the Project Union hydrogen backbone, these projects could benefit from and contribute to the national hydrogen network, with hydrogen production and storage possible at larger scale, allowing greater flexibility and resilience.
3.1.1 NORWICH AND LOWESTOFT
• There is potential for hydrogen deployment around Norwich within Stage 1 of Capital Hydrogen, with up to 3.5 TWh of annual hydrogen demand from industrial and agricultural organisations in this region, and for marine transport along the nearby coastline.
• There is significant potential for an increase in renewable energy generation nearby and throughout East Anglia.
• Hydrogen East is currently exploring the potential to use this renewable generation to produce green hydrogen. The Lowestoft PowerPark site, on the east coast of England, has been identified as one of six potential focus sites for green hydrogen production in East Anglia. This site is looking to produce green hydrogen using existing and future local renewable generation plants, including both wind and solar.
• Hydrogen production at Lowestoft PowerPark could be used for local buses, port operations at the Port of Lowestoft, local council refuse collection vehicles, and for road transport hydrogen refuelling hubs in Lowestoft.
26 Capital Hydrogen Feasibility Report Working in partnership to deliver Hydrogen for London, the South East and the East of England Capital Hydrogen Stage 1
• A hydrogen gas grid blending opportunity near Yelverton offers a further ~ 350 GWh of potential hydrogen demand, allowing scale up of hydrogen production at Lowestoft and decarbonisation of gas supply to Norwich and the surrounding area.
• There is also potential for hydrogen production at Bacton to supplement hydrogen supply to industry near Norwich, either via the Project Union hydrogen backbone or via a dedicated new hydrogen pipeline between Bacton and Norwich.
• Because of these potential demand and hydrogen production opportunities, Cadent expects there is a need for short sections of hydrogen pipelines. Cadent will do further work on this in 2023, with a view to taking any pipeline plans to technical feasibility in 2025.
3.1.2
FELIXSTOWE AND HARWICH – FREEPORT EAST
• The Felixstowe and Harwich port areas are located near Ipswich on the east coast of England, and sites are key in Freeport East’s plans for development in the area.
• Felixstowe is Britain’s largest and busiest container port, dealing with 48% of Britain’s containerised trade, and Harwich is set to become a hub for the manufacture of offshore wind turbine components based on the favourable conditions created by Freeport East.
• Decarbonising these areas using hydrogen would be a way to drive economic growth in the area.
• Hydrogen could be produced and used locally around the Freeport East area, with a target of 0.5 GW hydrogen production capacity by 2030 and 1 GW hydrogen production capacity targeted for 2035.
• This hydrogen could be a mixture of green hydrogen using North Sea offshore wind generation and pink hydrogen from nearby nuclear power plants at Sizewell.
• Scottish Power are developing a 100 MW green hydrogen production facility at the Port of Felixstowe.
• Hydrogen production and consumption at this site could be further supported by connection to a future hydrogen NTS.
• Cadent will do further work on this in 2023, with a view to taking any pipeline plans to technical feasibility in 2024.
3.1.3 SOUTHAMPTON
• Southampton is home to one of the UK’s busiest ports, with around 2.6 million tonnes of CO2 emitted annually19
• The UK government has identified the Southampton as one of Britain’s six industrial clusters20. The Southampton Water project is looking to use hydrogen to decarbonise industry and transport in the Southampton area, in partnership with Macquarie’s Green Investment Group. This could involve a mixture of hydrogen production, storage and consumption.
• There is 4.3 TWh of potential hydrogen demand in Southampton Water’s initial phase, with the first hydrogen planned to be supplied from 203021.
27 Capital Hydrogen Feasibility Report Working in partnership to deliver Hydrogen for London, the South East and the East of England Capital Hydrogen Stage 1
19 https://www.sgn.co.uk/news/were-exploring-potential-of-hydrogen-super-hub-port-of-southampton 20 Net Zero Strategy: Build Back Greener, BEIS, 2021 21 https://www.wsp.com/en-GB/projects/southampton-water-feasibility-study
3.2 PROJECT UNION – CONVERSION OF THE GAS TRANSMISSION NETWORK
• Project Union is a key enabler of wider decarbonisation through hydrogen, and will connect hydrogen production at Bacton, the Isle of Grain, Southampton and elsewhere to both storage and demand across the country, while providing a route for hydrogen to be delivered at scale to London.
• Repurposing existing transmission pipelines will provide the fastest and cheapest transport option for hydrogen in the UK. Project Union will form a UK Hydrogen Backbone by 2033 and could also connect to the proposed European Hydrogen Backbone.
• Up to 100 TWh of hydrogen storage capacity could be required by 2050, and so a hydrogen transmission system is needed to connect hydrogen production hubs with hydrogen storage and hydrogen users which are geographically dispersed across the country. This will provide a flexible energy system to meet peak energy demand which cannot be delivered by intermittent renewables alone.
• It will deliver a programme of ‘no-regrets’ investments with supporting evidence to inform energy policy that will enable the Government to make progress in realising its hydrogen ambitions.
Figure 3:
An illustrative Project Union route map, showing strategic hydrogen production sites, industrial cluster sites, existing NTS (National Transmission System) pipelines, and illustrated pipe routes that could be converted to 100% hydrogen
PROJECT UNION IS A KEY ENABLER OF DECARBONISATION, AND WILL CONNECT LOW CARBON HYDROGEN PRODUCTION, STORAGE AND DEMAND THROUGHOUT THE UK USING REPURPOSED GAS TRANSMISSION PIPELINES
28 Capital Hydrogen Feasibility Report Working in partnership to deliver Hydrogen for London, the South East and the East of England Capital Hydrogen Stage 1
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Leicester Lowestoft Ipswich Colchester Luton Oxford Portsmouth Brighton Canterbury Reading Norwich Bacton Energy Hub Peterborough Cambridge Southampton Industrial Cluster Felixstowe & Harwich Freeport East Herne
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Distributed Hydrogen Cluster Blending H2 with natural gas into the gas network Underground H2 Storage Underwater H2 Storage Potential H2 Production from Wind Energy Potential H2 Production from Nuclear Power Power Station Underwater CO2 Storage Hydrogen Production or Import The North - H2 Production & Storage The North West (HyNet)H2 Production & Storage South WalesH Production London Figure 4: Hydrogen production or import locations and distributed hydrogen clusters in the Capital Hydrogen region
3.3 SUMMARY OF HYDROGEN DEMAND IN LONDON BY 2030
Project Union will be capable of delivering hydrogen at scale to London once its London sections are completed, before or by 2033. However, demand for hydrogen in London and the surrounding area will increase throughout the 2020s, as identified during engagement by Capital Hydrogen.
Below is a summary of potential hydrogen use in 2030 in London across a variety of sectors, based on detailed modelling of energy use and input from stakeholders:
Industry Blending District Heating Networks
• Many of the largest industrial energy users are situated in a corridor along the banks of the River Thames in East London. This includes Tate & Lyle’s Thames Refinery and Erith Oil Works, London’s two largest industrial CO2 emitters22. New or repurposed hydrogen infrastructure could allow fuel switching for many of these sites.
• Up to 0.5 TWh of hydrogen could be used by industry within Greater London by 2030 if a dedicated supply is available23, and this could double by 2035 with new infrastructure. An additional 1 TWh of industry demand in close proximity to Greater London has also been identified.
• Cadent and SGN have identified two strategic gas grid injection sites at Horndon-on-the-Hill (north of the River Thames) and at Shorne (south of the River Thames).
• Gas grid blending would allow early decarbonisation of existing natural gas use across London for users far from a hydrogen production source, and could help decarbonise gas supply to 3,000,000 homes and businesses by 2030
• Additional blending could be carried out through the NTS by injecting hydrogen into one or more of the NTS feeders that originate at Bacton, subject to hydrogen production volumes and government support.
• Several district heating networks throughout East London are actively considering conversion to hydrogen to provide low carbon heat to customers. These include district heating networks in the London Boroughs of Barking and Dagenham and Newham, and the Royal Borough of Greenwich
• District heating networks which currently use, or are planning to use, gas for heat and power across the capital would also benefit from gas grid blending.
30 Capital Hydrogen Feasibility Report Working in partnership to deliver Hydrogen for London, the South East and the East of England Capital Hydrogen Stage 1
22 https://naei.beis.gov.uk/data/map-large-source 23 https://www.london.gov.uk/sites/default/files/nz2030_element_energy.pdf
Power Generation
• The Grain power station could be an early consumer of hydrogen produced in the region, with Uniper and GE exploring up to 40% hydrogen blending opportunities at this site.
• VPI is exploring the use of low carbon hydrogen as a fuel for its existing and developmental projects in the region with the aim of meeting all 2030/2035 UK decarbonisation goals for the power generation industry.
• Gas grid blending in the NTS would reduce emissions at other power production plants across London, including at Enfield Power Station, the largest power station within the Greater London boundary.
• Statera’s planned power plant in Thurrock is intending to use natural gas blended with hydrogen generated on site using renewable energy. The hydrogen could be used to produce zero-carbon electricity when renewable generation is low or at times of peak electricity demand.
Road Transport
• 20 low carbon hydrogen buses are already in use in London, operating from the Perivale bus depot.
• The GLA’s Accelerated Green decarbonisation scenario24 includes a significant scale-up of hydrogen buses, vans and road freight across the capital by 2030.
• A network of hydrogen refuelling hubs identified in the TEGB’s roadmap and involving Thames Freeport partners could decarbonise road freight transport throughout the Thames Estuary, as described in Section 3.5.1.1.
To meet this demand by 2030 and beyond, low carbon hydrogen production will need to be scaled up and infrastructure put in place to connect production to consumers.
3.4 THE NEED FOR NEW CAPITAL HYDROGEN PIPELINES IN LONDON BY 2030
There is a need for hydrogen deployment plans in the area, alongside hydrogen delivery through the national hydrogen backbone, to meet the demand identified above.
• Throughout this feasibility stage of Capital Hydrogen many stakeholders in London and the Thames Estuary expressed a keen interest in fuel switching to low carbon hydrogen within the next 10 years.
• This includes several of the largest energy users in or near to London.
• A number of these large energy users are located in East London or the Thames Estuary region to the east of London, and require energy use for industry, road and marine transport, power generation and heating.
31 Capital Hydrogen Feasibility Report Working in partnership to deliver Hydrogen for London, the South East and the East of England Capital Hydrogen Stage 1 24 https://www.london.gov.uk/sites/default/files/nz2030_element_energy_final.pdf
• A number of the potential hydrogen production sites described above also lie to the east of London.
• Hydrogen pipelines are the most cost-effective, reliable and flexible transportation method for large quantities of hydrogen between multiple producers, importers, storage locations and consumers, potentially supplemented by trucking and/or shipping of hydrogen.
• Two separate pipelines are required, one on either side of the River Thames to connect hydrogen sources to end users.
• The proposed pipeline south of the River Thames is the H2London Pipeline, with plans developed by SGN.
• The proposed pipeline north of the River Thames is the East London Hydrogen Pipeline, with plans developed by Cadent.
• Collectively, these are the Capital Hydrogen Pipelines. The following sections of the report describe these proposed pipelines in more detail. (See next page)
Plans for these pipelines, and for the deployment of low carbon hydrogen in London that they would enable, are subject to consultation and investment through the regulatory cycle.
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Pipeline Figure 5: A map showing the proposed pipeline routes of the East London Hydrogen Pipeline (Cadent) north of the River Thames, and the H2London Pipeline (SGN) south of the River Thames Bromley H2London Pipeline East London Hydrogen Pipeline
3.5 H2LONDON PIPELINE
• The H2London Pipeline plans to connect a range of large energy users in South East London near the south bank of the River Thames with a low carbon hydrogen supply.
• Construction is scheduled for the mid– and late-2020s, with initial connections planned before 2030 and expansion out to 2033.
• The Isle of Grain and other local production or imports could supply hydrogen directly to London through the H2London pipeline.
• Pre-FEED and FEED analysis to design the pipe and identify the optimum route are planned to start by the end of 2022. Figure 6 shows the possible H2London Pipeline route.
34 Capital Hydrogen Feasibility Report Working in partnership to deliver Hydrogen for London, the South East and the East of England Capital Hydrogen Stage 1
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Figure 6: Proposed H2London Pipeline route, connecting low carbon hydrogen supply and demand opportunities across South East London
3.5.1 H2LONDON PIPELINE – POTENTIAL HYDROGEN DEMAND
A summary of the hydrogen demand by sector is given in Figure 7. Potential hydrogen consumers from the H2London Pipeline include:
• Large industrial energy users such as Erith Oil Works, and a number of construction and manufacturing sites along the south bank of the River Thames, as well as a range of food and drink producers and utilities.
• The pipeline would provide the opportunity to connect to a number of existing and planned district heating networks in the south east of London. These schemes, if fuelled by hydrogen, would help decarbonise building heat demand in London by 2030.
• A network of hydrogen refuelling hubs developed by the TEGB could decarbonise road freight transport throughout the Thames Estuary.
• Low carbon blue hydrogen could be injected into the existing gas network at the Shorne Offtake to help decarbonise gas supply to South London. The link between the Isle of Grain and Shorne is the first planned section of the H2London Pipeline.
Figure 7:
Potential hydrogen demand for the H2London Pipeline by 2033, broken down by type of sector
3.5.1.1 Road transport hydrogen demand – Thames Estuary Growth Board
• The Thames Estuary Growth Board (TEGB) is working to realise the potential of the Thames Estuary through creating green, sustainable growth using the connections between London and the rest of the world provided by the River Thames.
• TEGB sees the development of a hydrogen ecosystem, comprised of demand-led clusters and connected by enabling infrastructure, as a key driver for regional growth in the 2020s and beyond.
• TEGB and Ikigai are working with Capital Hydrogen to accelerate and collaborate on hydrogen opportunities across the region, with a specific focus on the area of East London, identified as having the potential to become an anchor cluster in the Thames Estuary. Sourcing hydrogen in the appropriate purity, timeframe, volumes, form and critically, price, which may include utilising Capital Hydrogen pipelines, is a key element of this collaboration.
•A number of high traffic locations along the River Thames have been identified as being ideal for strategic deployment of multi-modal hydrogen refuelling hubs. Such infrastructure is necessary to encourage the conversion of road haulage vehicles, short haul aviation, river vessels and international shipping to low carbon alternative fuels.
36 Capital Hydrogen Feasibility Report Working in partnership to deliver Hydrogen for London, the South East and the East of England Capital Hydrogen Stage 1
• These sites extend between London Gateway and Purfleet north of the river, and between the Isle of Grain and Greenwich south of the river.
• Hydrogen demand from this strategic network of refuelling hubs is estimated to reach 1,400 GWh per year by 2035 (~100 tonnes H2 per day).
• The Capital Hydrogen pipelines provide an opportunity to deliver hydrogen to this network of refuelling hubs from central production locations.
3.6 EAST LONDON HYDROGEN PIPELINE
• The plan is for the East London Hydrogen Pipeline to connect a range of large energy users in East London near the north bank of the River Thames with a low carbon hydrogen supply by 2030, with the potential for further connections and expansion of this local pipeline network by 2033.
• The pipeline could connect potential hydrogen production sites to the east of London, near Tilbury and the Thames Enterprise Park, to consumers in the centre of East London, in the London Boroughs of Havering, Barking and Dagenham, and Newham.
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Figure 8: Proposed East London Hydrogen Pipeline route, connecting low carbon hydrogen supply and demand opportunities across East London
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HYDROGEN DEMAND – EAST LONDON HYDROGEN CLUSTER
Figure 9 shows the potential hydrogen demand in the East London Hydrogen Cluster. These demand estimates represent the potential hydrogen demand from consumers along the East London Pipeline route that have been engaged during this feasibility study, and represents real interest by these stakeholders to switch to a low carbon hydrogen supply. There are a number of potential hydrogen consumers in the following sectors:
• Industrial consumers in the East London cluster represent some of London’s largest energy users, such as Tate & Lyle and ADM Pura. It also includes a number of other industrial consumers across the food and drink, chemicals, manufacturing and utilities sectors.
• The pipeline is planned to allow connection of a number of existing and planned district heating networks in the east of London, including in the Boroughs of Barking and Dagenham and Newham. Hydrogen would allow these district heating networks to generate their own low carbon heat and power.
• Cadent has identified a potential hydrogen gas grid blending opportunity at Horndon-on-theHill, close to the production sites in Tilbury and at the Thames Enterprise Park. Gas grid blending of hydrogen up to 20% by volume into the natural gas grid would provide early hydrogen demand as the production ramps up. This could potentially remove over 0.2 TWh of natural gas from the gas grid, providing partial decarbonisation for gas grid users across North London before wider gas grid conversion in the 2040s.
• Hydrogen can provide a significant decarbonisation opportunity for road freight transport in the East London Hydrogen Cluster, allowing refuelling for hydrogen fuel cell heavy goods vehicles. This could occur at large industrial sites with existing road freight infrastructure, at the Thames Freeport sites such as the Port of Tilbury, or at sites being developed throughout the 2020s such as the London Markets Relocation site in the Borough of Barking and Dagenham.
Figure 9:
Potential hydrogen demand in the East London Hydrogen Cluster by 2033, broken down by sector
THE EAST LONDON HYDROGEN PIPELINE COULD CONNECT A RANGE OF LARGE ENERGY USERS IN EAST LONDON NEAR THE BANK OF THE RIVER THAMES WITH A LOW CARBON HYDROGEN SUPPLY BY 2030
39 Capital Hydrogen Feasibility Report Working in partnership to deliver Hydrogen for London, the South East and the East of England Capital Hydrogen Stage 1
3.6.1.1 District heating hydrogen demand – Barking and Dagenham
EastLondonHydrogen Pipeline
THERE ARE PLANS FOR 35,000 HOMES TO BE BUILT IN THE DAGENHAM DOCKS AREA ACROSS FIVE DISTRICT HEATING NETWORKS, SHOWN IN FIGURE 10.
Figure 10:
A map showing the approximate location of new district heating networks in the Dagenham Docks area
• A GLA-funded study in 2021 investigated the techno-economic feasibility of decarbonised heat options for district heating network in this area.
2LondonPipeline
• One of the key findings of the report was that there is no available waste heat for these networks, either from high-grade waste heat or energy from waste plants.
• Potential solutions for decarbonising planned district heating networks in the Dagenham Docks area include air source heat pumps (ASHPs), water source heat pumps (WSHPs), or a dedicated hydrogen supply.
Hydrogen can provide the heat supply for district heating networks using a number of technologies:
Hydrogen boilers for peaking on top of other baseload sources such as heat pumps.
Hydrogen CHP (combined heat and power) for baseload; combustion, or fuel cell CHP.
Waste heat from electrolysis feeding a heat pump.
Blending of hydrogen in gas-fired boilers or CHP systems.
Capital Hydrogen is actively investigating how and when hydrogen could be delivered to these district heating networks. Hydrogen supply to district heating networks like these could help provide anchor loads to bolster hydrogen demand before 2030.
HYDROGEN CAN PROVIDE THE HEAT SUPPLY FOR DISTRICT HEATING NETWORKS USING A NUMBER OF TECHNOLOGIES, AND COULD ACCELERATE DECARBONISATION OF HEATING IN BUILDINGS
Greenwich
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3.7 HOW WILL THE CAPITAL HYDROGEN PIPELINES BE DELIVERED?
Plans for the Capital Hydrogen Pipelines, and the decarbonisation of London that these plans would enable, are subject to consultation and investment through the regulatory cycle.
• Figure 11 shows the timeline for deployment of Capital Hydrogen Stage 1, including the planning and construction of the two Capital Hydrogen Pipelines, scaling up of hydrogen production in the South East, and stakeholder engagement.
• The H2London Pipeline could deliver low carbon hydrogen to consumers in South East London, with pre-FEED possibly commencing in 2023, and FEED possible in 2025.
• Dependent on funding, construction for the initial phase of this pipeline could be in the late 2020s. This initial stage could carry hydrogen from the production or import site at the Isle of Grain to nearby power stations and also to a grid-blending location at Shorne.
• The second stage of the H2London pipeline is currently planned from 2026, and could extend the pipeline further west from the grid blending location at Shorne to consumers along the south bank of the River Thames. This could connect large energy users throughout this part of London, including industrial sites and district heating networks.
• As the pipeline is extended further west towards Greenwich an increasing number of consumers can connect, with all consumer connections possible by 2032.
• The East London Hydrogen Pipeline is planned for pre-FEED during 2024, followed by FEED between 2025 and 2027, assuming the appropriate funding is in place. Current plans show construction between 2028 and 2033, connecting the range of hydrogen producers and consumers to each other.
• The planning and potential construction of these pipelines will happen alongside the planning and building of the Project Union national hydrogen transmission backbone, which is planned to be completed by 2033.
• Throughout planning of the two pipelines, potential offtakers and hydrogen producers will be engaged to ensure careful balancing of supply and demand.
41 Capital Hydrogen Feasibility Report Working in partnership to deliver Hydrogen for London, the South East and the East of England Capital Hydrogen Stage 1
Hydrogen deployment timeline for Stage 1 of Capital Hydrogen
42 Figure 11:
CAPITAL HYDROGEN STAGE 2
HYDROGEN ROLLOUT TO 2050
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Stage 1 sets out a roadmap for distributed, self-sufficient hydrogen deployment projects in London and the South East by 2033. Once the Project Union hydrogen backbone is completed by 2033, these projects can connect to a regional and national hydrogen pipeline network, allowing much wider hydrogen deployment in the South East.
Stage 2 of the Capital Hydrogen programme covers what a wider deployment of hydrogen in the region could look like, as we await key policy and regulatory framework decisions. Once Project Union has connected large-scale coastal production of hydrogen with London, Stage 2 of Capital Hydrogen could follow. More than 180 TWh of natural gas demand is currently used in London and the South East for domestic and non-domestic heating, and for industrial use. If the government’s decision on use of hydrogen for heat is positive, hydrogen production in the region could scale up significantly and will require extensive conversion of existing infrastructure as well as purpose-built hydrogen infrastructure.
4.1 HYDROGEN TRANSMISSION IN STAGE 2 OF CAPITAL HYDROGEN
• Additional hydrogen transmission pipelines will be required in Stage 2 of Capital Hydrogen to provide further capacity as hydrogen demand increases. This will allow conversion of the gas distribution networks to hydrogen.
• New or converted transmission pipelines will also connect distributed hydrogen projects throughout the South East to the national hydrogen transmission system providing system resilience and flexibility.
• Figure 12 shows a map of the South East during Stage 2 of Capital Hydrogen. Included are hydrogen producers, end users, storage locations, and transmission pipes to transport hydrogen between these various sites. These pipeline routes are only indicative at this stage, with final routes to be developed by the gas networks in the coming years.
• The transmission pipelines shown on this map include indicative routes for the Project Union repurposed transmission pipelines (solid lines), and new or re-purposed transmission pipelines that will be required in addition to Project Union (dashed lines). Further pipelines may be needed in the longer term.
44 Capital Hydrogen Feasibility Report Working in partnership to deliver Hydrogen for London, the South East and the East of England Capital Hydrogen Stage 2
IF THE GOVERNMENT IS SUPPORTIVE OF THE USE OF LOW CARBON HYDROGEN FOR HEAT, STAGE 2 OF CAPITAL HYDROGEN WILL COVER WIDER DEPLOYMENT OF LOW CARBON HYDROGEN INFRASTRUCTURE TO SUPPORT DECARBONISATION IN LONDON AND THE SOUTH EAST
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Distributed Hydrogen Cluster Blending H2 with natural gas into the gas network Underground H2 Storage Underwater H2 Storage Potential H2 Production from Wind Energy Potential H2 Production from Nuclear Power Power Station Underwater CO2 Storage Hydrogen Production or Import The North - H2 Production & Storage The North West (HyNet)H2 Production & Storage South WalesH Production London Figure 12: A map of the South East during Stage 2 of Capital Hydrogen, showing hydrogen producers, end users, potential hydrogen storage locations, and transmission pipeline
4.2 GAS DISTRIBUTION NETWORK CONVERSION
• The Iron Mains Risk Reduction Programme (IMRRP) is currently being carried out by the gas network operators. The IMRRP is replacing all cast iron gas pipes within 30 metres of homes in the gas network throughout the UK to increase safety and reduce methane leakage.
• Once replaced, these pipes are ready to carry hydrogen, allowing the eventual transition to hydrogen to be quicker, with less disruption for consumers. The IMRRP is targeted to finish by 2032.
• The Government has yet to decide on the role of hydrogen in domestic heating. Subject to this decision in 2026, gas networks will be planning the roll out and conversion of networks on the basis of hydrogen supply and storage. Current expectations are that conversion could begin between 2030 to 2035.
• The gas network in London would be converted to supply hydrogen one segment at a time. This would allow all buildings with existing gas network connections to switch over to a low carbon fuel supply with little disruption, with a secure supply of natural gas guaranteed until hydrogen is available.
4.3
HYDROGEN STORAGE
• Energy storage helps guarantee a secure supply of energy in the UK year-round. Hydrogen storage is vital in delivering low-cost hydrogen long-term to all consumers.
• Hydrogen can be stored in a variety of ways, either as a gas, liquid or in hydrogen-containing chemical compounds.
• Due to the seasonal nature of heat demand, large, long-term storage options, mostly likely in the form of underground hydrogen gas storage, will be needed if hydrogen is used for heat decarbonisation in the UK.
• The UK has three major locations for underground hydrogen storage in onshore salt caverns: the Wessex Basin, the Cheshire Basin, and in East Yorkshire. The theoretical hydrogen storage capacity in these three locations totals over 3000 TWh25, vastly exceeding annual UK gas demand today26.
• The Wessex Basin is near Southampton and has over 200 TWh of potential hydrogen capacity27, and could help provide hydrogen storage capacity for London and the South East.
• However, the production of new salt caverns for underground gas storage is a time-intensive process, and can take up to 7 years before hydrogen storage is available28.
• Another option that is being explored is the storage of hydrogen in off-shore geological stores.
4.4 POTENTIAL HYDROGEN DEMAND IN LONDON BY 2050
This section outlines the potential hydrogen demand in London in 2050, broken down by sector. This study has analysed potential hydrogen demand in London, the biggest demand centre in the region.
https://ukccsrc.ac.uk/wp-content/uploads/2020/05/John-Williams_CCS-and-Hydrogen.pdf
https://www.gov.uk/government/statistics/digest-of-uk-energy-statistics-dukes-2021
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A more detailed assessment of potential hydrogen demand throughout the East of England and the South East will be carried out early on in Stage 1 of Capital Hydrogen.
Figure 13:
Potential 2050 hydrogen demand in London and the Thames Estuary
LOW CARBON HYDROGEN COULD PLAY A SIGNIFICANT ROLE IN THE DECARBONISATION OF A NUMBER OF SECTORS THROUGHOUT LONDON AND THE THAMES ESTUARY BY 2050
Buildings
• The gas distribution network can be fully converted in London to supply hydrogen boilers in over 2.8 million homes and businesses by 2050.
• Over 1 million homes in London could have standalone heat pumps installed by 2050.
• Over 650,000 hybrid heat pumps could be installed, with the heat pump delivering the base load of heating and a hydrogen boiler providing heating at peak times.
• District heating could provide 11% of domestic and 19% of non-domestic building heat demand in London by 205029, with 55% of this heat demand met by hydrogen systems.
• Rollout of all low carbon heating technologies will be supported by ambitious energy efficiency improvements, with 97% of domestic buildings having an EPC rating of C or above by 2030.
• A breakdown of London’s domestic heating technologies in 2020, 2030 and 2050 is shown in Figure 14.
47 Capital Hydrogen Feasibility Report Working in partnership to deliver Hydrogen for London, the South East and the East of England Capital Hydrogen Stage 2
29 Analysis of a Net Zero 2030 Target for Greater London, Element Energy, 2022
Figure 14:
The modelled heating technology breakdown in London in 2020, 2030 and 2050
Industry
• 2 TWh of hydrogen fuel use in industry in London and the Thames Estuary by 2050
• Highest use in the food and drink sector
• Includes large industrial energy users in East London
Figure 15:
Modelled industrial fuel use within London and the Thames Estuary in 2020, 2030 and 2050.
• Significant reduction in road traffic in London, in line with the GLA’s targets
• 33% of bus travel in London to be powered by H2 by 2050
• 32% of all road freight transport powered by hydrogen fuel cell vehicles
Road Transport
48 Capital Hydrogen Feasibility Report Working in partnership to deliver Hydrogen for London, the South East and the East of England Capital Hydrogen Stage 2
Figure 16:
Modelled road transport fuel use in 2050 by vehicle type
Power Sector Shipping
• 2.4 TWh of hydrogen used for power generation in Greater London in 2050
• This includes the conversion of some existing gas-fired power generation plants, and new sites using hydrogen for electricity network balancing services or flexible generation
Aviation
• Growth in widespread deployment of hydrogen-based fuels for shipping in London and the Thames Estuary from 2030
• Up to 3.3 TWh of hydrogen demand in 2040 and 6.7 TWh in 2050
• Synthetic aviation fuels could make up the majority of aviation fuel use from London’s airports by 2050
• Up to 2 TWh of this could be hydrogen-based aviation fuels by 2050
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5. THE BENEFITS OF THE CAPITAL HYDROGEN PROGRAMME
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Benefits of the Capital Hydrogen Programme
Implementation of the Capital Hydrogen roadmap will result in a wide range of environmental, economic and social benefits.
National Benefits
Achieve UK decarbonisation objectives
Decarbonisation solution for hard-toabate sectors and applications
Generation of highly skilled jobs and manufacturing capability
Value added to the economy
Energy security
� Energy system resilience
Value for money for the UK
Regional Benefits
Achieve local authority decarbonisation objectives
� Regional jobs and economic benefits
Regional energy system resilience
Consumer Benefits
Consumer choice
Just transition and fuel poverty
� Health and safety (carbon monoxide risk removed)
Air quality
CAPITAL HYDROGEN COULD PROVIDE BENEFITS THROUGHOUT THE UK, BY REDUCING EMISSIONS, CREATING AND SUSTAINING JOBS, PROVIDING CONSUMER BENEFITS, AND IMPROVING ENERGY SYSTEM RESILIENCE
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Benefits of the Capital Hydrogen Programme
per year 7.8 Mt CO saved billion GVA added to the UK economy £40 40,000 created jobs Figure 17: A summary of the benefits to London and the UK as a whole through Capital Hydrogen
5.1 NATIONAL AND REGIONAL BENEFITS
The conversion of the gas network to hydrogen would be a critical lever in decarbonisation of the UK economy in the London region, contributing carbon savings of 7.8 Mt CO2e annually by 2050.
Figure 18:
Total annual emissions saved in 2050 by hydrogen fuel switching in Capital Hydrogen
• Hydrogen offers a compelling decarbonisation solution for hard-to-abate applications such as heating, heavy transport and high-grade industrial heat and feedstocks.
• The production, transport and use of hydrogen offers transformational economic opportunities to the UK economy. The implementation of this roadmap for London alone could result in the creation of over 40,000 jobs and £40 billion GVA added to the UK economy.
• The implementation of Capital Hydrogen would offer job opportunities throughout the UK, especially near to hydrogen production locations in the East and South East of England
• Hydrogen can be produced using locally available, inexhaustible renewable energy as well as natural gas from the North Sea and other sources; this makes it a more flexible and secure source of energy than conventional fossil fuels.
• Hydrogen offers a long-term economic opportunity for the UK to become a large-scale energy exporter, to Europe and further afield.
• The gas network has unparalleled capability to meet varying demand. Seasonally, natural gas demand for heating varies by a factor of five between summer and winter30. The conversion of the gas network to hydrogen would significantly contribute to stronger, more resilient energy networks in London and across the UK.
• If heating demand nationally was fully electrified then substantial additional investment in electricity infrastructure would be required to meet the seasonal variation in heat demand.
• Repurposing the existing gas network represents better value for money than the development of new capital infrastructure for full electrification. A balanced solution to full decarbonisation which includes hydrogen alongside other solutions such as biogas and electrification could save up to £12 billion per year when compared with a fully electrified alternative31 .
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30 H21 North Of England Report, Figure 1.2 31 Figure 51, comparing high-flexibility scenarios, Flexibility in Great Britain, The Carbon Trust and Imperial College London, 2021
5.2 CONSUMER-LEVEL BENEFITS
Hydrogen provides a unique opportunity to offer heating consumers a choice about their decarbonisation route – be it heat pumps, district heating networks, hydrogen or other solutions.
• While heat pumps may be suitable for new build properties that are well insulated (Energy Performance Certificate or EPC of C or above32), adding an electric heating system to an existing property may be extremely expensive and disruptive when compared to converting to a hydrogen ready boiler.
• Around 85%33 of residential buildings in the UK (90% in London) are currently connected to the gas grid and hydrogen can provide consumers with a user experience which is very similar to their existing natural gas appliances.
• As the economy shifts towards a Net Zero future, hydrogen can play a key role in ensuring that a “just” transition is achieved from a socio-economic perspective. Key areas of opportunity include the potential to develop new highly skilled jobs in the manufacturing industry. The generation of bulk scale green hydrogen also offers the opportunity to decouple energy prices from fossil fuels, thus reducing the volatility of pricing and offering a long-term solution to reducing fuel poverty34 .
• While the gas industry is very safe, around 75% of health and safety incidents recorded by the industry relate to carbon monoxide35. This risk is not present with hydrogen – only water vapour is produced when hydrogen is burned – and this represents a major health and safety advantage of hydrogen when compared with natural gas.
• The UK Health and Safety Executive has approved hydrogen as being as safe as the natural gas that is currently used, and detailed studies are underway36 to further build understanding of how hydrogen can be safety used in homes and other buildings in the UK.
• The combustion of hydrogen does not give off carbon dioxide, particulate emissions or SOx. The conversion of vehicles and other applications such as industrial emissions therefore provides an opportunity to improve air quality in urban areas.
Goes Green, Britain’s Hydrogen Network Plan https://www.energynetworks.org/industry-hub/resource-library/britains-hydrogen-network-plan.pdf
UK CCC, 2017, https://www.theccc.org.uk/wp-content/uploads/2017/01/Annex-2-Heat-in-UK-Buildings-Today-Committee-on-Climate-Change-October-2016.pdf
poverty in England is measured using the Low Income Low Energy Efficiency (LILEE) indicator. Further information is available on UK Government website: https://www.gov.uk/government/collections/fuel-poverty-statistics#:~:text=Fuel%20poverty%20in%20England%20is,of%20band%20D%20or%20below.
https://hydeploy.co.uk/about/safety/
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32 Gas
33
34 Fuel
35 HSE Executive 36 For example HyDeploy
ROADMAP AND
ENGAGEMENT
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6. PROJECT
STAKEHOLDER
6.1 TIMELINE FOR HYDROGEN DEPLOYMENT IN LONDON OUT TO 2050
Figure 19 shows the hydrogen deployment timeline for London out to 2050, highlighting milestones and key activities for a range of stakeholders, including those responsible for hydrogen production, hydrogen network conversion and hydrogen demonstration projects, and the role of government policy and support for hydrogen deployment. These plans are subject to consultation and investment through the regulatory cycle.
Figure 19: Hydrogen deployment timeline for Stage 1 and Stage 2 of Capital Hydrogen
CAPITAL HYDROGEN WILL INVOLVE A LARGE NUMBER OF STAKEHOLDERS, WORKING TOGETHER TO SUPPORT AND ACCELERATE THE DECARBONISATION OF LONDON AND THE SOUTH EAST OVER THE NEXT 20 YEARS
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6.1.1
LOW CARBON HYDROGEN PRODUCTION TIMELINE
• Hydrogen production must ramp up in parallel with hydrogen deployment projects to ensure security of supply.
• The distributed hydrogen production sites throughout the South East will increase their hydrogen production capacities throughout the 2020s and early 2030s to meet the growing demand from more widespread use of hydrogen.
• Large-scale hydrogen production sites such as Bacton Energy Hub, and potentially Isle of Grain, are capable of scaling up to meet the large additional hydrogen demand that would accompany a wider gas grid conversion.
• A clear decision from the government by 2026 on the role of hydrogen for domestic heat would provide reassurance for production sites that hydrogen demand will scale up significantly in the mid2030s and beyond, allowing the scale up of hydrogen production accordingly.
• Infrastructure to deliver hydrogen to consumers, such as the Capital Hydrogen pipelines, must be ready to supply hydrogen at and beyond the point of fuel switching.
6.1.2 ONGOING STAKEHOLDER ENGAGEMENT IN LONDON
• The Capital Hydrogen pipeline projects can only deliver their potential emissions savings and wider benefits to London with active engagement and support from all stakeholders. Potential hydrogen consumers and producers will be directly involved in the pre-FEED and FEED processes.
• The GLA and Local Authorities will be engaged to ensure delivery of the Capital Hydrogen pipelines is successful, minimising disruption to local people as they are constructed and helping to ensure the deployment of hydrogen supports their ambitious climate targets.
• Ongoing engagement with them will also allow any Local Area Energy Plans and future development projects to make the most of the low carbon hydrogen supply delivered by the pipelines.
6.1.3 GAS NETWORKS
• The gas networks will play a key role in delivering low carbon hydrogen to consumers across London and are planning accordingly to enable the transition to hydrogen to happen as quickly as possible.
• Pre-FEED for the first stages of Project Union is expected to begin in 2023, to determine which NTS pipelines are most strategically important to convert to supply low carbon hydrogen. Conversion of the initial segments of Project Union will begin in 2026 followed by a phased approach to convert further segments of NTS pipeline, with the full backbone spanning the UK set to be completed by the early2030s. Conversion of the NTS is planned to continue beyond the initial backbone, with the transition being completed by 2045.
• The distribution networks are preparing for hydrogen conversion with conversion expected to begin in the 2030s. The capital could have a 100% low carbon gas network by 2045.
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6.1.4 GOVERNMENT SUPPORT AND WIDER GAS NETWORK DEVELOPMENT
6.1.4.1 Government Support
• Government support and clear policy signals are vital for successful delivery of low carbon hydrogen to London and the UK. Early support will allow hydrogen production to reach the 2030 targets set out in the UK Hydrogen Strategy, as well as supporting the GLA’s net zero 2030 target, and the government’s target for a net zero power network by 2035 via use of hydrogen in dispatchable power generation.
• To meet these targets, the UK government has a number of funding streams to support projects across the hydrogen supply chain. These include the Low Carbon Hydrogen Supply scheme, the Net Zero Innovation Fund, Low Carbon Hydrogen Production Fund, the Storage at Scale scheme, the Industrial Fuel Switching scheme, and the Hydrogen for Transport scheme. Through these schemes the government should target the largest energy users and emitters across the UK, but they must also ensure that hydrogen deployment is supported in all regions of the UK, including London and the South East.
6.1.4.2 Gas network conversion trials
• The Government’s Ten Point Plan sets out to gain a better understanding of what would be needed to convert the gas network to hydrogen. This begins with a hydrogen neighbourhood in 2023, followed by a large hydrogen village trial in 2025 and a possible pilot hydrogen town by the end of the decade37
• SGN are implementing the hydrogen neighbourhood – the H100 Fife project, a world-first green hydrogen-to-homes heating network on the Scottish coast38. Renewable hydrogen will be delivered in up to 300 homes in 2023, with on-site storage unit holding enough hydrogen to ensure supply won’t be disrupted during even the coldest weather conditions.
• Cadent and Northern Gas Networks are working on plans to implement the first hydrogen village, after receiving government funding to investigate the conversion of a village-sized area to hydrogen by 2025. The government is set to decide which location will be chosen to become the first hydrogen village in mid-2023.
• Cadent worked with Northern Gas Networks to build the UK’s first homes with appliances fuelled entirely by hydrogen in Low Thornley, Gateshead, with additional funding from the government39. The houses include hydrogen appliances such as boilers, hobs, cookers and fires that release no carbon emissions.
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37 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/936567/10_POINT_PLAN_BOOKLET.pdf 38 https://www.sgn.co.uk/H100Fife 39 https://cadentgas.com/future-of-gas/projects/hydrogen-home
6.2 THE CAPITAL HYDROGEN PROGRAMME ROADMAP
The following table sets out a summary of the stages of hydrogen deployment in London and the South East;
Figure 20: The stages of the Capital Hydrogen programme, subject to policy support
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6.3 WHAT NEEDS TO BE DONE NEXT?
Capital Hydrogen Consortium
A Capital Hydrogen Consortium has been set up to update all relevant stakeholders on progress , and to allow stakeholders to feed directly into the plans for hydrogen in London, the South East and the East of England.
Coordination and collaboration through the Capital Hydrogen Consortium will ensure that any future hydrogen projects in London are aligned, and can benefit from the opportunities other projects will offer.
a. Technical feasibility studies for the two new London pipelines will establish how supply and demand can be balanced.
b. The pre-FEED and FEED design processes will be carried out for the two hydrogen pipelines in the coming years. This will provide more detail for the timelines and delivery capacities.
1. Preparation for conversion of the gas networks to hydrogen
c. A detailed practical plan on how to convert the entire gas network in London and the South East to 100% hydrogen is needed, including costs and timescales, setting out plans for how to minimise disruption to consumers and to ensure access to a dispatchable and safe gas supply during the gas grid conversion period.
d. A detailed assessment of the potential hydrogen demand throughout the South East
e. Further investigation of blending of hydrogen into the gas transmission and distribution networks will be required for this key enabler of gas grid decarbonisation.
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2. Ramping up hydrogen production, storage and delivery
a. Strong government signals and support will provide confidence to hydrogen producers that there will be sufficient demand for low carbon hydrogen to scale up. This involves clear and early guidance on the government’s strategy for hydrogen for heating in buildings, the potential role of hydrogen blending into the gas network, and hydrogen in transport.
b.Further investigation of the opportunities for large-scale hydrogen storage in the UK, including underground storage of hydrogen as a gas and chemical storage of hydrogen carriers such as ammonia or LOHCs.
c. Clear government support for hydrogen pricing schemes to help ramp up hydrogen production, bringing initial hydrogen prices closer to the cost of current gas prices as supply increases.
d. A business model for hydrogen pipelines and storage would enable infrastructure to be financed. The government is currently working to develop this by 2025, with a potential RAV funding model.
e. Development of the business model to accelerate new hydrogen pipeline infrastructure would advance these projects throughout the UK. FEED funding is currently only available via a re-opener process with Ofgem.
f. Continued communications between hydrogen producers, potential endusers and the gas networks will enable hydrogen infrastructure to meet the needs of all users.
a. While most existing appliances will be compatible with a blend of up to 20% hydrogen by volume, some changes may be required for specific industrial technologies such as those used in high temperature process heating.
b. Scaling up the production and supply chain of hydrogen-ready boilers, to fully replace the installation of non-hydrogen-ready gas boilers from 2026. An early decision on a hydrogen-ready boiler mandate will increase the time available for engineers to upskill in installing, maintaining and converting these boilers. It will also benefit customers who may buy a replacement natural gas boiler only to find that they need replacing before the end of their life time because they are not net zero compatible.
c. Large gas users in industry and the power sectors need to engage with technology providers to understand the changes required to existing equipment or new equipment to be installed in the coming years. Fuel switching to low carbon hydrogen may require some changes to industrial processes; stakeholders will need to be aware of these and be able to plan accordingly to minimise impact on their operations during and after fuel switching.
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3. Preparing consumers for the transition to hydrogen
HYDROGEN SUPPORTERS
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7 . CAPITAL
33 organisations have shown overwhelming support for the Capital Hydrogen programme. Each have made commitments to contribute to the programme in their respective value chain segment:
Table of Supporters
Stakeholder
Description, ambitions and commitments
Hydrogen production and cross-value chain stakeholders
Carlton Power
Carlton Power are an energy development company who are leading a hydrogen project with major industry on the south side of the Thames Estuary to produce and supply green hydrogen. Carlton Power has committed to work in conjunction with the activities of Capital Hydrogen to ensure developments remain complementary.
Eni UK are an integrated energy company and are enablers of hydrogen production at scale using carbon capture and storage (CCS), with activities located in the Bacton area through their Bacton Thames Net Zero initiative. ENI are committed to cooperation with Capital Hydrogen to integrate their plans and allow low carbon hydrogen production and distribution in the region.
Greenergy
Greenergy are a leading waste-derived renewables fuel manufacturer and supplier of transportation fuels that has committed to contribute technical, commercial and project delivery knowledge in support of the Capital Hydrogen programme.
Marine 2o
Marine2o are a hydrogen infrastructure development company focusing on port locations around the UK including the Thames Estuary. Marine2o are committed to working with Capital Hydrogen, contributing logistical information for moving hydrogen from production sites to demand locations in the Thames area.
Navigator Terminals
Navigator Terminals is an independent, UK based Chemicals, Energy and Fuels storage and infrastructure partner strategically located in major UK ports. Navigator Terminals is focused on the energy transition and hydrogen is key to their growth. Working with Capital Hydrogen will unlock the opportunities for import, storage, blending, utilisation, and export of future energy carriers.
Progressive Energy
Progressive Energy are a project development and implementation company and a major player in Hynet North West. Progressive Energy are committed to develop links between Bacton Energy Hub and Capital Hydrogen whenever possible to ensure coherence between hydrogen supply and demand scenarios.
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Eni
RWE
RWE are a multinational energy company, that has committed to work with Capital Hydrogen to explore the feasibility of electrolytic hydrogen production in the Southeast of England.
Shell UK
Shell UK is making major strategic investments in the UK energy system and many of the UK’s flagship Energy Transition projects such as Scotwind and Acorn. They are involved in the development of new Hydrogen production facilities in the UK’s regional energy hubs. Shell UK are committed to working with Capital Hydrogen to realise the potential hydrogen brings to the low carbon economy in London, the East and South East of England.
Summit Energy Evolution Ltd
Summit Energy Evolution is leading the hydrogen supply workstream for the Bacton Energy hub and has committed to ensuring schedules for supply, transportation and demand are aligned.
Statera
Statera Energy is a new generation energy company that is developing large-scale hydrogen production projects across the UK and has committed to collaborate on hydrogen infrastructure requirements, network connections and skills training in their Thurrock production project.
Thames Enterprise Park (TEP) will be a sustainable ‘next generation’ manufacturing, logistics and energy hub. TEP see the objectives of Capital Hydrogen as aligned and complementary and have committed to working together to accelerate hydrogen deployment in the region.
Thames Enterprise Park (TEP)
Uniper
Uniper is an international energy company with around 11,500 employees in more than 40 countries. The company plans to make its power generation CO2-neutral in Europe by 2035. As a pioneer in the field of hydrogen, Uniper has set itself the target of operating worldwide along the entire value chain in the future and implementing projects that will make hydrogen the mainstay of the future energy supply. Uniper is supportive of Capital Hydrogen and its ambitions as a potential producer and consumer of hydrogen.
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Capital Hydrogen Supporters
XODUS
Xodus are a global Energy Consultancy that are leading the infrastructure stream of the Bacton Energy Hub work. They have committed to ensuring that infrastructure schedules are aligned to allow the balance of supply and demand.
Britannia Refined Metals
Potential Hydrogen User (Industrial)
Cemex (Angerstein Wharf)
Britannia Refined Metals (BRM) provide metal mining services and operate natural gas fired processes. BRM are interested in the potential role hydrogen may play in replacing conventional fuels in the future and are committed to working with Capital Hydrogen to progress investigation of hydrogen use in their processes for the future.
CMB Tech
Cemex are a multinational building materials company that are already implementing the use of hydrogen within global cement operations. They are committed to work with Capital Hydrogen and equipment manufacturers to assess the feasibility of implementing hydrogenpowered equipment and vehicles at their sites in London.
Eurovia Infrastructure Limited
CMB Tech are manufacturers of marine vessels including those fuelled by hydrogen and ammonia and as developers of hydrogen applications, are in need of reliable hydrogen supply to support next generation hydrogen vehicles and ships. CMB Tech have committed to work with Capital Hydrogen to provide user demand for hydrogen in and around London and the South East of England.
FM Conway
Eurovia is a specialist highways and infrastructure business, responsible for improving the UK’s highways network. They are revolutionising the way they work with production processes and greener fleet. Eurovia is committed to working with Capital Hydrogen to support the development of a hydrogen network in the southeast.
FM Conway are a leading infrastructure services company that has committed to play a role as an industry partner in exploring how hydrogen can play a role in asphalt plants in supporting Net Zero ambitions. They are committed to work with Capital Hydrogen on testing and development of hydrogen solutions, training and developing their workforce with regard to hydrogen innovation and technology.
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Hanson UK are a leading supplier of building materials who have carried out trials of hydrogen combustion in cement kiln. They are committed to work with Capital Hydrogen to share knowledge and forecast hydrogen consumption.
Hanson
Tarmac
Tarmac are a British building materials company who are exploring the role of hydrogen in their 2050 net zero roadmap and are committed to work with Capital Hydrogen to share information on projects and sites.
Tate & Lyle
Tilda
Tate & Lyle Sugars have been refining cane sugar on the banks of the River Thames for over 140 years, producing over 650 different sugars, syrups, and sauces. They are actively considering the role of 100% hydrogen-ready equipment for fuel-switching plans and decarbonisation ambitions. They are committed to supporting Capital Hydrogen through to its successful delivery by working alongside the project and sharing learnings and project information.
Tilda are a food manufacturer of Rice and related food products based in the Thames Estuary and are committed to working with Capital Hydrogen and investing in a hydrogen transition, including skills and employment.
Potential Hydrogen User (Transport and Marine Users)
DP World London Gateway
DP World is the leading provider of worldwide smart end-to-end supply chain logistics, enabling the flow of trade across the globe. Owned and operated by DP World, London Gateway is the fastest growing, most technologically advanced container port in the UK and a key pillar of Thames Freeport. They are committed to working with Capital Hydrogen to share knowledge on potential demand of hydrogen and supply chain decarbonisation.
Freeport East
Freeport East has a vision to be a Green Hydrogen Hub of the future. They expect to be a producer and consumer of green hydrogen and centre for innovation. They welcome the opportunity to collaborate with Capital Hydrogen to accelerate critical emissions reductions across the transport sector.
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National Highways (Lower Thames Crossing)
National Highways is the government company responsible for operating, maintaining and improving motorways and major A roads in England. They will use the Lower Thames Crossing as a Pathfinder for low carbon construction, including the use of hydrogen as a low carbon fuel. They support Capital Hydrogen’s ambition in the region and will seek opportunities to collaborate both during construction and to support road users post-opening.
Port of Tilbury London Ltd
The Port of Tilbury, owned by Forth Ports is located in Tilbury, Essex and is the principal port for London. They are committed to working with Capital Hydrogen to develop the future demand for hydrogen, provide access to all transport modes for storage and distribution and deliver potential hydrogen solutions to the Thames Freeport.
Potential Hydrogen User (District heating networks)
B and D Energy Ltd
B&D Energy Ltd, an energy services company wholly owned by the London Borough of Barking and Dagenham, has created a number of heat networks in the borough. They are committed to decarbonising the heat supplied through these networks and are very interested to explore how hydrogen could help deliver decarbonisation in the borough.
Greenwich Peninsula ESCO (GP ESCo Ltd)
Greenwich Peninsula ESCO Limited (GPEL) is a Special Purpose Vehicle (SPV) set up to design, build, operate and maintain all the energy infrastructure at the Greenwich Peninsula development on the South side of the Thames. They are committed to continue engaging with Capital Hydrogen and are supportive of the opportunity that hydrogen could present in contributing to the decarbonisation of the Greenwich Peninsula Heat Network.
Government, Regional and Local Authority Stakeholders
The City of London Corporation has adopted a radical Climate Action Strategy which breaks new ground and sets out how the organisation will achieve net zero, build climate resilience and champion sustainable growth over the next two decades.
City of London Corporation
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North Sea Transition Authority (NSTA)
The North Sea Transition Authority (NSTA) are working with government to influence the carbon storage industry in the North Sea and are supportive of exploring synergies between The Bacton Energy Plan and the Capital Hydrogen Programme.
Hydrogen East
Hydrogen East is exploring the scope for development of hydrogen markets in the East of England. Hydrogen East are committed to work with Capital Hydrogen to provide local stakeholder engagement, research, data analysis and feasibility studies.
Thames Estuary Growth Board
The Thames Estuary is the UK’s number one growth opportunity. The Growth Board is a Government backed dynamic private–public partnership driving Good, Green Growth at pace across the Estuary. They are committed to working in partnership with Capital Hydrogen to lead the development of a hydrogen ecosystem and sustainable investment propositions in the Estuary.
Essex County Council
Essex County Council have a commitment to accelerate the transition to net zero in the county. The Essex Climate Action commission has made two critical recommendations for hydrogen: to create hydrogen storage facilities by 2030 and to create facilities to produce green hydrogen by 2040. They are committed to work with Capital Hydrogen to provide local data and help develop and realise Essex’s hydrogen potential.
Surrey County Council is committed to working with Capital Hydrogen to establish what role hydrogen might play in decarbonising homes, businesses and transport in Surrey, and how this could be developed into a delivery roadmap for hydrogen going forward.
Surrey County Council
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The business of sustainability
erm.com