A company that is aiming to open a hydrogen production facility in the North East has signed a deal with energy giant Centrica that could accelerate its plans.
French firm Lhyfe - which has opened an office in Newcastle ahead of plans to produce hydrogen at a site in the region - has signed a memorandum of understanding with Centrica that will explore combining the two firm’s expertise on a pilot green hydrogen production site in the North Sea. The project aims to combine Lhyfe’s expertise on green hydrogen production and Centrica’s experience of gas storage and infrastructure to ensure that the hydrogen produced can be safely stored and utilised in the UK.
If successful, the end result would be proof that an end-to-end hydrogen production, storage and distribution system is possible here. The two firms will also examine an additional partnership to deploy the technology at commercial scale alongside offshore wind electricity production.
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Colin Brown, UK and Ireland country manager of Lhyfe, said: “We are pleased to announce this agreement with Centrica, which represents an exciting opportunity to drive forward the clean energy transition through large-scale offshore green hydrogen production.
“Offshore electrolysis coupled with hydrogen storage will maximise the huge potential of offshore wind around the UK. The UK can become a global leader in the production of renewable green hydrogen, moving away from our reliance on fossil fuels and improving our homegrown energy security, while delivering net zero and boosting local economies.”
Martin Scargill, managing director of Centrica Storage, said: “We are delighted to be working with our partners Lhyfe on another exciting and world-leading hydrogen project. Hydrogen is going to play a key role in decarbonising the UK’s power supply by 2035 and our long-term ambition is for Rough, our gas storage site, to be the world’s largest hydrogen store, offering up to 16TWh of storage capacity.
“This pilot will show how green hydrogen can be produced, moved and stored in the UK market; all while supporting the UK on its net zero journey.”
The possibility of using hydrogen to heat homes and businesses is one of a number of plans being investigated as part of the UK and other countries’ push towards net zero. The UK Government has doubled its low-carbon hydrogen production target from 5GW to 10GW by 2030, with at least half of this coming from green hydrogen.
Lhyfe is aiming to develop more than 90 green energy projects across Europe and has raised more than €100m to put its plans into reality. It already has a plant in France that supplies green hydrogen to a range of customers.
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