11th March 2024
Aberdeen’s new South Harbour and Energy Transition Zone (Photo credits: OGV Energy.)
The UK government has announced a further £21 million of support from the Net Zero Hydrogen Fund to develop the production of green hydrogen and derivative fuels across the UK. Seven projects are receiving support involving SHFCA members: bp Aberdeen Hydrogen Energy Ltd, EDF Renewables, Hynamics, RWE, and Shetland Islands Council. Two of these seven projects are located in Scotland – the Aberdeen Hydrogen Hub in the city of Aberdeen and Veri Energy at the Sullom Voe terminal in the Shetland Islands.
Both the Aberdeen Hydrogen Hub and the Sullom Voe Terminal Hydrogen Project are located adjacent to strategic North Sea harbours. CEO of Shetland Islands Council Maggie Sandison said: “This is the first hydrogen project for Shetland and we are delighted that Veri Energy has received funding support to progress a Front-End Engineering and Design study. This is clear recognition from the UK government of the strategic importance of the Sullom Voe Terminal and its significance to Scotland as a whole.“
Oliver Taylor, Chief Executive of bp Aberdeen Hydrogen Energy Ltd, added: “Bp Aberdeen Hydrogen Energy Ltd welcomes today’s announcement that the Aberdeen Hydrogen Hub will benefit from funding from the UK government’s Net Zero Hydrogen Fund. This is an important step towards considering final investment decision on the project to deliver phase one of a scalable green hydrogen production, storage and distribution facility in Aberdeen. By harnessing natural resources, a skilled workforce, and the pioneering spirit of the north-east of Scotland, the Aberdeen Hydrogen Hub could create a new energy solution that builds on the region’s strong oil and gas heritage.”
Aberdeen Hydrogen Hub: For more than 10 years, Aberdeen has been at the forefront of hydrogen innovation, with the H2 Aberdeen initiative driving growth of a hydrogen economy and the adoption of hydrogen technologies within the region. In March 2022, Aberdeen City Council and bp formed a joint venture called bp Aberdeen Hydrogen Energy Limited (bpAHEL). The partnership intends to enhance the hydrogen economy in the Aberdeen city and North East of Scotland by building the Aberdeen Hydrogen Hub to help deliver the city’s net-zero vision.
The Aberdeen Hydrogen Hub project is a scalable and sustainable green hydrogen production, storage, and distribution facility, powered by a new solar plant and additional renewable energy sources. The project is designed to scale up in line with hydrogen market growth. Phase one targets delivering over 800kg of green H2/day, sufficient to fuel at least 25 fuel cell electric buses and the Council’s fleet of hydrogen vehicles. Additional capacity is designed to support private vehicle refuelling for consumers and fleets.
Future phases see production increase to meet the demands of road and other transport sectors, including rail, and marine. A final phase anticipates hydrogen for heat and net export – helping to deliver Aberdeen’s vision to be a climate positive city at the heart of the global energy transition.
The strategic Sullom Voe Terminal in the Shetland Islands
Sullom Voe Terminal 50MW Hydrogen Project: Veri Energy intends to establish the Sullom Voe Terminal Energy Hub project as an advanced facility for hydrogen generation and derivative production. The project will have an initial capacity of 50MW, with potential expansion to 300MW in subsequent phases.
This project will harness Shetland’s abundant renewable wind and tidal power to generate hydrogen through advanced electrolysis technology.
The Sullom Voe Terminal (SVT) is operated by SHFCA member Enquest and Veri Energy is a wholly owned subsidiary of Enquest. SVT has a highly skilled workforce, a well established supply chain, a supportive local government, and existing infrastructure which includes access to utilities, civils, deepwater port and jetties, that offers significant potential for reuse and repurposing. This project will help to transform Sullom Voe into a green energy hub, supporting the creation of new jobs and maximising positive impacts on the community and the environment.
The Aberdeen Hydrogen Hub, Sullom Voe Terminal Hydrogen Project, and the Tees Green Hydrogen Project are located adjacent to strategic North Sea harbours. The seven projects receiving this latest Net Zero Hydrogen Fund support have the potential to increase UK hydrogen production capacity by 800MW, supporting local communities to cut their emissions while moving towards net zero.
The UK government has also launched a call for evidence on the hydrogen and carbon capture, usage and storage (CCUS) elements of the Green Industries Growth Accelerator. Announced at last year’s Autumn Statement, the £960 million Green Industries Growth Accelerator will speed up advanced manufacturing capacity in sectors including offshore wind, networks, carbon capture, usage and storage, hydrogen and nuclear.