UK utilities explore hybrid hydrogen hubs in decarbonisation pitch

Three UK utilities, together with Guidehouse and Pembrokeshire County Council are exploring the use of hydrogen hubs to reduce emissions from transport and heat, while reducing the operating costs of gas and electricity networks.

Guidehouse, Wales & West Utilities, National Grid Electricity Distribution, RWE and Pembrokeshire County Council are conducting a feasibility project to determine whether hybrid hydrogen and district heating systems can support the decarbonisation of transport and heat at the lowest cost for customers and the network.

The five partners will attempt to co-locate electrolytic hydrogen refuelling stations with heat demand, a benefit of which is the expected cost reduction.

Co-locating hydrogen stations and heat demand

According to Wales & West Utilities, hydrogen fuel-cell vehicle tech is considered a credible option to decarbonise vehicles, and by lowering the cost of generating and distributing green hydrogen, would also help to make this a more viable option for a wider range of uses.

Waste heat from electrolysis – the process used to produce green hydrogen – could be a means to reduce the cost of hydrogen production, while also offering solutions in the supply of low carbon heat to homes, businesses and public buildings.

For this reason, the project’s partners are looking at opportunities to co-locate electrolytic hydrogen refuelling stations with heat demand areas, investigating the cost-benefit of waste heat to reduce the cost of hydrogen.

Should the concept prove applicable, the project is expected to deliver many benefits, including reducing operating costs on the gas and electricity network, savings on consumer energy bills and a positive environmental impact.

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Partners will also explore revenue stacking and financial optimisation of electrolysers, integrating the response to multiple energy demands and facilitating efficient infrastructure provision.

They will further explore the extent to which exploiting these opportunities will help to de-risk development projects.

Matt Hindle, head of net zero and sustainability at Wales & West Utilities, commented on the multi-use case benefits behind these types of hydrogen hubs, stating their potential to, “help find solutions for vehicles which need a low carbon fuel; local authorities, housing owners and commercial building operators looking to decarbonise their estates; and by renewable generators looking to make use of curtailed power.

“This project will explore sites where co-locating hydrogen production for transport with heat demands could maximise its value and cut emissions from both.

“This project will develop our understanding of the data and technology to understand how integrated hydrogen hubs could make hydrogen more economic. It will also look at how their location can support energy networks and make efficient use of our infrastructure as we progress to Net Zero.”

The project will run until 30 June 2023.

This project is funded by energy network users and consumers through the Strategic Innovation Fund, a programme from the UK’s independent energy regulator Ofgem managed in partnership with Innovate UK.