East Coast Cluster Secures Funding for Hydrogen Transport Network Expansion
Key Ideas
- East Coast Hydrogen to invest £96m in front end engineering design for a hydrogen transport and storage network in the UK.
- The consortium's gas distribution networks, supported by Ofgem funding, aim to connect hydrogen supply to industries in the Humber, East Midlands, and Teesside regions.
- Stakeholders including Air Products advocate for hydrogen networks to support emission reduction and decarbonisation of critical industries like steelmaking.
- Energy regulator Ofgem approves funding for East Coast network but rejects funding for a hydrogen pipeline in South Wales due to a lack of potential customers.
East Coast Hydrogen, comprising National Gas, Cadent, and Northern Gas Networks, is set to invest around £96m in front end engineering design (FEED) for a regional hydrogen transport and storage network in the UK. Ofgem has confirmed funding for the project, part of the government's £500m allocation for regional hydrogen networks. The East Coast Cluster initiative aims to establish a low-carbon hydrogen region connecting industries across Humber, East Midlands, and Teesside.
Stakeholders, including Air Products, highlight the importance of hydrogen networks to facilitate emission reduction and support the decarbonisation of critical industries. Air Products plans to contribute significantly to the hydrogen generating capacity target by 2030 through a project in Immingham, emphasizing the need for East Coast pipeline networks to reach remote customers.
The proposed East Coast network is seen as crucial for providing multiple supply options to hydrogen off-takers, boosting confidence in uninterrupted supply and encouraging investment in decarbonization plans. However, Ofgem rejected funding for a hydrogen pipeline in South Wales, citing a lack of potential customers due to changes in the steelmaking industry. The decision reflects the regulator's focus on supporting projects with high consumer value and strategic significance for decarbonization efforts.
Topics
Middle East
Decarbonisation
Pipeline Infrastructure
Energy Industry
Government Funding
Regulatory Decisions
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