East Coast Hydrogen Delivery Plan Report 1699916094
East Coast Hydrogen Delivery Plan Report 1699916094
East Coast Hydrogen Delivery Plan Report 1699916094
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East Coast Hydrogen
Delivery Plan
November 2023
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Disclaimer
This report provides a strategic outline for delivery of the East Coast Hydrogen (ECH2) Programme and the opportunities and benefits it
can bring. It builds upon the information published in the 2021 ECH2 Feasibility Report and findings of Cadent, National Gas and
Northern Gas Networks (NGN) Pre-FEED studies. 1
Certain companies included within this report have provided Letters of Support to ECH2. These Letters of Support are non-legally
binding documents indicating early stage strategic support for the high level ambitions of the programme.
This report (including any enclosures and attachments) has been prepared for information purposes only. The information, opinions and
materials contained within this report are not intended to constitute an offer, professional, business or legal advice and should not be
relied on or treated as a substitute for specific advice. All information is provided as is and there is no guarantee of completeness,
accuracy or timeliness and no warranty of any kind is expressed or implied.
External sources of data and analysis used within the report are cited and a complete list of sources used can be found in the
Bibliography. Any data or analysis used in the report without specific citation to an external source is based on analysis conducted by
Cadent, National Gas and NGN:
• Analysis of the current and potential future network configuration and capacities is based on the networks’ own data.
• Analysis of the future system user’s needs (forecasts of hydrogen demand, production, storage) is based on primary data collected
directly from current and future network users for the purposes of supporting the development of the ECH2 Programme.
Key assumptions used in analysis of the data and information presented within this report, along with a summary of the approach to
primary data collection, can be found in Appendix 1: Methodology.
All data and information presented within this report should be considered a snapshot in time and subject to change. Due to the early-
stage nature of many of third party projects referenced in the report, the plans for infrastructure developments are subject to change.
The analysis and data outputs are based on the most recently available information from the networks and third parties, and are also
subject to change.
ECH2 reserves the right to continue to develop and amend pipeline routing options and the strategic business case throughout
subsequent stages of project development. All plans within this report are indicative at this time and remain as proposals to be refined
during FEED and other future stages of the Programme. They also remain subject to relevant regulatory oversight and approvals.
Unless Cadent, National Gas and NGN provide express prior written consent, no part of this report should be reproduced, distributed or
communicated to any third party. Cadent, National Gas and NGN shall not be liable to you or to any third party in any way for any
decision made or action taken in reliance on the information in this report.
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Contents
Foreword 4
Programme timeline 86
Glossary 91
Bibliography 92-94
Appendix 95-99
Methodology 95-99
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Foreword
According to the Climate Change Committee, low-carbon hydrogen will play a critical role in enabling the UK to meet its Net-Zero target
by 2050. 2 Complementing electrification and carbon capture, utilisation and storage (CCUS), hydrogen provides an alternative
decarbonisation solution for hard-to-abate industrial processes, which account for 16% of the UK’s total carbon emissions. Hydrogen also
provides a decarbonisation solution for heavier forms of transport like aviation and shipping, and has the potential to play an important
role in delivering low carbon-dispatchable power.
Recognising the important role of hydrogen in our future energy system, UK Government has set an ambitious target of deploying 10 GW
of low-carbon hydrogen production by 2030, with at least half of this total coming from Green Hydrogen. The National Infrastructure
Commission (NIC) has also recognised the important role of hydrogen and called for the development of a core network of hydrogen
pipelines by 2035. 3 The East Coast region will be vital to achieving this national ambition. The region is host to two of the UK’s largest
industrial centres, as well as two of the proposed CCUS clusters - East Coast Cluster and Viking – and is home to 8 hydrogen projects
that were shortlisted for bilateral negotiations in multiple UK Government funding rounds (accounting for ~30% of successful production
projects).
The Combined Authorities and the Local Enterprise Partnerships (LEPs) in the East Coast region are crucial partners in the UK reaching
its Net-Zero goals, driving local plans to decarbonise and supporting businesses and communities to upskill to enable the low-carbon
economy to grow.
We are fully supportive of the UK Government’s ambitions for hydrogen and have reflected this in the commitments we have made
within our local energy plans:
• Power emissions in the Derby and Nottingham areas will be reduced by transitioning coal-fired power stations at Ratcliffe-on-Soar
and High Marham to produce energy from low-carbon technologies like hydrogen. Increasingly high-voltage power lines will import
renewable electricity which can be used to make Green Hydrogen. This hydrogen will then be used to decarbonise aviation, and
manufacturing.
• Greater Lincolnshire has plans to reduce emissions in the area by supporting the early adoption of hydrogen technologies, and
strengthening local industrial productivity through the delivery of low-cost, low-carbon energy. The area will be home to several
hydrogen production sites in the South Humber, and is home to an important access point to the Viking CCUS store. Low-carbon
hydrogen will be vital to decarbonising the steel industry and power generation in Scunthorpe, as well as chemicals and building
materials production in Immingham. 4
• Tees Valley aims to be the world’s first Net-Zero industrial cluster by 2040 along with the Humber region, with hydrogen acting as
the centrepiece for achieving this. The region will produce more than 50% of the UK’s hydrogen, and is home to the UK’s first
Hydrogen Transport Hub. 5
• Leading by example West Yorkshire is aiming to be Net-Zero by 2038, with low-carbon hydrogen being a potential solution to
achieving significant emission reductions in hard-to-decarbonise sectors such as heavy industry. The use case and value proposition
of hydrogen to reduce emissions in those hard-to-decarbonise sectors in West Yorkshire is currently being assessed and modelled. 6
ECH2 will play a critical role in the development of a regional hydrogen market, providing the opportunity to connect up to 11 GW of
hydrogen production capacity by 2030 (exceeding the UK Government’s 10 GW by 2030 target in a single region) and up to 4 TWh of
hydrogen storage by 2030. By providing the network infrastructure needed to transport low-carbon hydrogen, the Programme will
connect producers and storage providers to a range of customers, who expect to need over 63 TWh/year of low-carbon hydrogen to
decarbonise their operations and save up to 12 MtCO2/year by 2037.
This Programme puts the East Coast region at the heart of the UK’s industrial decarbonisation agenda, creating world leading hydrogen
hubs in places like Teesside, the Humber region and East Midlands. This will support green jobs, skills and competitive supply chains
levelling up the economy by bringing new investment, and preserving the industrial and commercial (I&C) value of the Midlands and
North East.
We are proud to support this important initiative and look forward to witnessing the exciting developments yet to come in future phases
of the ECH2 Programme.
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Executive Summary
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Executive Summary
ECH2 is a 15-year programme which will play a critical role in creating a UK hydrogen economy and
decarbonising a range of sectors in line with UK Government targets.
The UK Government has identified low-carbon hydrogen as a key solution for decarbonising the UK economy and has set ambitious
targets for the deployment of hydrogen production. The National Infrastructure Commissions’ second National Infrastructure Assessment
has recommended the development of a core network of hydrogen pipelines by no later than 2035. 3
ECH2 was established by NGN, Cadent and National Gas with the objective of identifying
and ultimately delivering the network infrastructure required to support the deployment
of low-carbon hydrogen, facilitating the decarbonisation strategies of energy generators
and users in the East Coast region. A Feasibility Study launched in December 2021,
established the case for the Programme and set out the roadmap for completing further
investigation and design of the infrastructure required. The Programme will provide a
blueprint for deployment of low-carbon hydrogen and provide a starting point for the
development of the core network that the UK needs to achieve its decarbonisation
goals. 1
The Programme is being developed in close collaboration with network users, local
authorities and national policy makers to ensure that the Networks are ready to provide
the infrastructure required to facilitate decarbonisation plans of energy users and
support the development of a low-carbon hydrogen economy in the East Coast region.
122 stakeholders across the energy value chain – from existing large industrial energy
users, to power stations and to universities – have shown overwhelming support for
ECH2.
This Delivery Plan provides an update on the progress made since the Feasibility Study. It provides a detailed overview of the emerging
hydrogen economy in the East Coast region and aims to provide UK Government and industry, visibility of the networks’ plans. This
supports UK Government’s work on hydrogen and provides stakeholders with more certainty on the availability of infrastructure to help
them progress business decisions.
This report sets out:
1) The progress made by ECH2 since the Feasibility Study (Chapter 1)
2) Details of system users' decarbonisation plans with respect to hydrogen (Chapter 2)
3) Details of the initial infrastructure routing options based on system users’ plans (Chapter 3)
4) Updated assessment of the benefits unlocked by ECH2 (Chapter 4)
5) Next steps and enabling actions needed to successfully deliver the Programme (Chapter 5)
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Progress since the Feasibility Study launch
Since the Feasibility Study was launched in December 2021, UK Government and wider industry have
achieved significant progress in developing plans for a hydrogen economy across the UK.
British Energy Security Strategy was published setting World first 100% hydrogen programme completed in
out how Great Britain will accelerate homegrown Teesside as part of the H21 initiative to test the use of
power for greater energy independence 7 100% hydrogen in an existing gas distribution
network
Jet Zero Strategy was established to develop a
roadmap to achieving Net-Zero aviation by 2050 8 NGN has opened a Hydrogen Hub in Redcar to give
customers the opportunity to learn more about
Minded to position on Hydrogen T&S Infrastructure
hydrogen for heating
has been published 9
Powering Up Britain plan was created to set out how Project Union’s Feasibility Stage Re-opener was
the UK Government will enhance the country’s energy submitted, as part of the RIIO-2 price control
security, seize the economic opportunities of the H2NorthEast, Uniper Humber Hub Blue Project,
transition, and deliver on Net-Zero commitments 10 bpH2Teeside and H2H Saltend passed the eligibility
17 projects have been announced for the first criteria for Phase-2 of the government’s cluster
hydrogen electrolytic allocation round (HAR1) 11 sequencing process
UK Hydrogen Strategy was updated to set out the East Midlands Hydrogen, a large scale inland
approach to developing a thriving low-carbon hydrogen cluster, has been launched
hydrogen sector in the UK 12
The Viking CCUS cluster has been selected as part of
Energy Bill provisioned energy production and security the Track-2 UK Government cluster sequencing
and the regulation of the energy market process
UK-German hydrogen cooperation partnership Successful demonstration of HyDeploy, providing vital
announced aiming to accelerate innovation and evidence to support the safety case for blending up to
deployment 20% hydrogen into the grid across the UK and
Hydrogen blending consultation launched seeking supporting UK Government’s 2023 blending decision.
views in the case and options for implementation 13
Response published on creating a UK Low Carbon
Hydrogen Certification Scheme 86
Response published on revenue support regulations
for the Hydrogen Production and Industrial Carbon
Capture Business Models 87
5 external stakeholder events have been held, helping to ensure alignment of the ECH2 infrastructure programme with
stakeholders’ needs. Since December 2021, the number of Consortium Members increased from 37 to 122.
Primary and secondary data gathered and analysed from key stakeholders in relation to 367 planned and potential production,
demand and storage sites across the East Coast region.
Networks’ Pre-FEED Studies will be completed by the end of 2023 and provide greater understanding of the technical
feasibility of the Programme, as well as routing design and potential routing options.
Ongoing regulatory engagement to ensure alignment of the programme with regulatory requirements, and develop the
evidence base required to allow consideration of funding requirements for the next stage of work of FEED.
This Delivery Plan has been prepared to demonstrate the Programme’s needs case and engage key stakeholders and decision
makers in ECH₂.
ECH₂ is evolving in line with UK Government decisions and industry initiatives. Since the Feasibility Study, the Programme has made
significant progress in defining the scope and scale of hydrogen infrastructure that may be required in the East Coast region.
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The role of hydrogen in decarbonising the East Coast
The detail and ambition of the hydrogen plans set out by existing customers, prospective hydrogen
producers and storage developers have advanced since the Feasibility Study.
Over 63 H2 Up to 83 4 large
TWh/year TWh/year scale sites
identified I&C, power and current planned hydrogen connected across North
aviation hydrogen production by 2037 in the Humber and Teesside
demand by 2037* East Coast region
Momentum and ambition across demand, production and storage has grown since the Feasibility Study
*Total hydrogen demand includes (23.1 TWh) I&C demand, (34.5 TWh) power demand, (5.6 TWh) transport demand.
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** Total decarbonisation potential from switching to low-carbon hydrogen includes (4.1 MtC02) I&C, (6.2 MtC02) power, and (1.4 MtC02) transport emissions.
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Initial options for routing of ECH2 hydrogen
infrastructure
We have conducted a comprehensive analysis of the hydrogen infrastructure required for the East Coast
region based on the data provided by the Programme’s stakeholders about their own plans. Initial routing
options efficiently connect supply and demand through a mixture of repurposed and new build pipelines.
The routing options presented will be carried forward to the next phase of the Programme for further analysis through Front End
Engineering Design (FEED). We will continuously optimise routing to ensure that Programme plans continue to align with both
evolving UK Government policy and achieving value for money.
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Unlocking the benefits of hydrogen for the
East Coast Region
The ultimate goal of ECH₂ is to deliver the hydrogen transport infrastructure required to achieve the UK
Government and industrial decarbonisation ambitions. Progressing to FEED now is critical to ensure
deployment in time to unlock benefit and achieve 2030 and 2050 targets.
UK Government’s
commitments • ECH₂ will be necessary for the UK
Government’s Net-Zero ambitions by
enabling the scale up of a hydrogen economy 11.6 GW 8
Of planned
• The Programme informs future policy and Projects selected
hydrogen
investment decisions by showcasing how through the NZHF,
production capacity
development and deployment challenges can HAR1, and Cluster
can potentially be
be overcome Sequencing can be
connected within
supported by ECH₂
the region
ECH2 will unlock a number of benefits from deploying hydrogen in the East Coast region, however further work is needed to confirm
locations and timing for delivering this infrastructure. This in-depth analysis will be carried out during the FEED phase.
* Total natural gas (58 TWh) to switch to low-carbon hydrogen excludes aviation sector transport demand because it is additional that comes from aviation turbine fuel, not natural gas.
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** Total decarbonisation potential from switching to low-carbon hydrogen includes (4.1 MtC02) I&C, (6.2 MtC02) power, and (1.4 MtC02) transport emissions.
*** Independent analysis, completed by PWC on behalf of Cadent. See pp 81 for more information on economic benefits.
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Delivering the ECH2 Programme
To successfully deliver ECH2 and capture the anticipated benefits across the region, a number of enabling
actions are needed. Progressing these now is essential not just to ECH2 but to the core network of
hydrogen pipelines needed nationally by 2035.
Make a decision on hydrogen blending Provide evidence to the UK Government and regulators
through trials and technical assessment results to
Finalise T&S Business Models that provide the right support policy decisions
incentives for investment
Ensure sufficient engagement with Ofgem & DESNZ to
Make a decision on the role of hydrogen in residential
share key Programme insights and be aware of any
heating
policy changes
Assess technical requirements for safe hydrogen
transportation Engage with potential customers and provide them
input to support decisions on their own hydrogen and
Establish standardised procedure for hydrogen safety decarbonisation plans
case approval
Conduct Consortium activities to continue to ensure
Support the development of hydrogen storage facilities alignment of ECH2 with stakeholder plans
Support development of hydrogen offtake agreements Ensure that the Programme meets the requirements of
hydrogen users, production and storage facilities
Engage with different stakeholders to understand and
better support the need for hydrogen in specific Ensure optionality to adapt the routing design to an
businesses evolving environment
Ensure HSE & Ofgem have enabling mandates and Engage with cross supply-chain stakeholders, ensuring
sufficient resource to undertake all necessary licensing resourcing and procurement risks are addressed
activities (e.g. safety case, economic license)
Support projects through further rounds of the cluster Support initiatives which unlock further investment
sequencing and hydrogen allocation process aiding into the wider hydrogen economy and stakeholders
them achieve CAPEX or DEVEX support. decarbonisation plans
Pre-FEED
To ensure the progress of ECH2 and the development of a hydrogen economy in the East Coast region and across the UK, continued
momentum and commitment from Programme Partners, the UK Government and wider industry is required.
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DRAFT FOR DISCUSSION
01
Introduction to
East Coast Hydrogen
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Overview of East Coast Hydrogen and its main
objectives
ECH₂ is a large scale hydrogen infrastructure project that will connect production, storage and demand in
the East Coast region. The aim is to facilitate the decarbonisation plans of energy users in the region by
proving the infrastructure needed to support a hydrogen economy.
• This Programme could help reduce up to 7% of the UK’s total • ECH₂ will be an enabler for UK Government hydrogen
I&C annual carbon emissions across hard-to-abate industries production targets (10 GW of by 2030); Net-Zero targets;
through switching to low-carbon hydrogen (see pp 71). target for a Net-Zero power system by 2035; the NIC’s
hydrogen infrastructure target; and private sector investment
• In the power sector, there is a potential to save 6MtCO₂ /year,
(see pp 64-66).
equivalent of over 12% of the UK’s total emissions from the
power industry see pp 72). • The Programme is aligned with development of the East
Coast Cluster, providing transmission infrastructure in both
• ECH₂ also provides the opportunity for hydrogen to play a the Teesside and Humber region. It also supports
crucial role in achieving Net-Zero in heavy transport development of 8 projects shortlisted through the NZHF and
applications and in residential heat, subject to the UK HAR1, and the CCUS clusters within the region.
Government decisions.
• If the UK is to decarbonise multiple sectors through • ECH₂ will provide value for money by repurposing parts of
electrification, it will largely depend on intermittent the existing network instead of building a separate hydrogen
renewable power to achieve this. Backup flexible generation, network; utilising assets that customers have already funded
supported by seasonal storage and hydrogen networks and avoiding potential future decommissioning costs.
connecting to hydrogen storage facilities, will be required to
maintain system resilience and security of supply. • By facilitating sharing of market knowledge between energy
users through Consortium events and the ECH₂ website, the
• ECH₂ can deliver this by connecting large scale CCUS- Programme helps users to make investment decisions.
enabled hydrogen production with demand across the region,
including the supply of hydrogen-fuelled gas turbines that • ECH₂ will support the growth of the local economy, levelling up
will provide low-carbon, dispatchable power to the electricity the region by providing businesses with a low-carbon option to
system. decarbonise. This has the potential to avoid UK industrial exits,
create new hydrogen jobs and transition the existing skilled
workforce, and build capabilities throughout the supply-chain.
*See chapter 2 on the ‘Vision of the East Coast’ to find the figures on hydrogen demand, storage and production.
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The East Coast Hydrogen Programme Partners
ECH₂ is delivered by three of the UK’s gas networks. Each of the Partners has their own goals for the
hydrogen sector based on the needs of their own customers. The Programme reflects their shared vision,
setting the blueprint for cross-network initiatives in the transition to hydrogen.
About: Cadent is the UK’s largest gas distribution network, For Cadent, East Coast Hydrogen presents a unique opportunity to
managing a network of more than 130,000km of pipes which drastically reduce fossil fuel use for our biggest industrial
transport natural gas throughout the North West, West customers in the East Midlands and South Yorkshire. Many of the
Midlands, East Midlands, South Yorkshire, East of England and large industrial and power sector stakeholders that we have
North London. engaged with informed us that they have limited alternative
options to decarbonise their operations, other than hydrogen. This
Purpose : Cadent is committed to delivering Net-Zero, which makes it vitally important that we are able to bring them low
means finding a way to transition all consumers away from the carbon hydrogen in a timely manner to allow them to decarbonise
methane in its network today and to clean alternatives like operations and keep their companies thriving in the region,
hydrogen. They are delivering this by leading the UK’s work on supporting the local economy, providing high-value jobs and
developing the infrastructure and evidence case necessary to manufacturing low-carbon goods for the UK and export around the
realise this. world.
Objectives for ECH₂: Supporting the local hydrogen economy by
connecting large scale hydrogen producers with industry, Steve Fraser, Cadent CEO
hospitals, airports and power generators in towns and
dispersed sites.
About: NGN maintain more than 37,000km of gas pipes, Our East Coast Hydrogen delivery plan is absolutely critical to
covering large cities like Newcastle, Sunderland, Leeds, York, maintaining and building a thriving regional economy, whilst
Hull, and Bradford and rural areas such as North Yorkshire and hitting our Net-Zero target. It demonstrates how we can
Cumbria. decarbonise industry initially in Teesside, West Yorkshire and the
Humber, by bringing hydrogen to the majority of our largest users,
Purpose: Assessing the suitability of the gas network to many of which are simply unable to function without an alternative
transport 100% hydrogen and proving that the gas network can to today’s natural gas. A thriving industrial economy is essential to
safely transport a hydrogen blend through HyDeploy. In our region, creating good quality local jobs and prosperity for the
addition, NGN is working on research into how hydrogen can be community and attracting inward investment.
used for heating.
Objectives for ECH₂: ECH₂ presents an opportunity to scale the
experience to date into a broader deployment across East Coast Mark Horsley, NGN CEO
region, including homes, commercial and industrial users.
About : National Gas is the backbone of Britain’s energy system Our teams at National Gas are preparing to convert our national
today and will play a leading role in the transition to a clean network to hydrogen, and we have a concentration of key assets in
energy future that works for every home and business. the East Coast Hydrogen area. We are excited about our role in the
vanguard of a Net-Zero future, while still ensuring the continued
Purpose: National Gas through Project Union aims to develop a dependability of natural gas transmission to support Britain
hydrogen ‘backbone’ by connecting Industrial Clusters and through the energy transition. Indeed, it is this dependability of our
strategic hydrogen production sites, with storage and demand networks which enables us to make these decisions and deliver the
across the UK. innovation we need. Every project is eventually part of a customer
Objectives for ECH₂: Connection of the largest Industrial Clusters bill - and that is why it is so critical to adapt the networks we have
in the UK, Humber region and Teesside, to prove the case for already paid for, as well as building targeted, efficient new
hydrogen transportation at scale, whilst connecting these components. East Coast Hydrogen provides this balance, driving
clusters with production, storage and demand points. economic growth while securing thousands of jobs and creating
thousands of new ones in the process.
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The Programme is guided and supported by our
stakeholders
The Consortium Group is central to the delivery of ECH₂. It allows the Programme to be tailored to the
needs of the region’s energy users. 122 stakeholders across the entire value chain have provided
information about their hydrogen plans and/or letters of support for ECH₂ development.
Cross-value chain
Participants
Hydrogen
Production
Demand
Local Stakeholders
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Key Programme milestones
ECH₂ has significantly progressed since the Feasibility Study was published in December 2021. This
Delivery Plan builds on the previous work to show the development of the Programme partners’ low
carbon networks.
Development of East Midlands NGN Village trial in Redcar 15 Successful submission of Project Union
Hydrogen 14 Feasibility Re-opener 16
Subject to a decision from DESNZ later
Cadent with partners, including D2N2, this year, NGN will support the Section 1 of Project Union forms part of
Uniper, Toyota, Midlands Engine, and development of the UK’s first hydrogen ECH2 acting as a blueprint for the rollout
East Midlands Freeport, demonstrated village in the East Coast region with a of a UK hydrogen backbone, and
the existence of more than 10 TWh of large scale trial to be carried out in supporting the development of a wider
distribution connected hydrogen demand Redcar, Teesside by 2026. The trial will energy system. The progression of
in this sub-cluster of ECH₂, and 650 MW collect critical evidence to inform the UK Project Union, delivered by National Gas,
of forecast localised hydrogen Government’s decision on hydrogen’s supports the development of the
production. This has demonstrated the role in decarbonising residential heating. Programme.
need for a localised hydrogen network
and boosted investor confidence.
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Introduction to the Delivery Plan
This Delivery Plan provides an update on progress since the ECH₂ Feasibility Study. It presents more
detailed insights on the decarbonisation plans of energy users in the East Coast region and defines the
next steps needed to deliver the Programme.
Delivery Plan
1 Demonstrate alignment and collaboration between Cadent, NGN and National Gas hydrogen plans for the East Coast region.
2 Support timely decision making by UK Government and Ofgem to enable ECH₂ and the UK’s wider hydrogen ambitions.
Provide confidence to regional stakeholders, including hydrogen users, producers and storage asset owners, on the direction
3 of travel for hydrogen network infrastructure, allowing them to further invest in hydrogen plans.
Engage key stakeholders and decision makers in ECH₂ to galvanise support for the need to develop plans for hydrogen
4 infrastructure in a timely manner.
Set out the vision and need for Chapter 2 1. Demonstrate how the need for hydrogen infrastructure is being
ECH₂ by demonstrating the (pp 19-46) driven by system users and their plans for Net-Zero.
scale of expected hydrogen 2. Present high level timeline for ECH₂ and show how these map to the
demand, supply, and storage needs of system users and other transmission and distribution
within the region. projects.
Align detailed work of Chapter 3 1. Present an updated and more detailed overview of ECH₂ critical path
individual network Pre-FEEDs to (pp 47-60) and deployment timeline.
present a holistic approach to 2. Outline high level routing options and assumptions.
delivery by providing clarity on 3. Summarise key themes and findings of Pre-FEED studies.
the ‘what’, ‘when’, ‘where’, 'how'
of network development.
Building on the ECH₂ Feasibility Chapter 4 1. Demonstrate ECH₂ opportunities and benefits accross jobs and local
Study, reinforce the opportunity (pp 61-84) economy, industrial, and residential decarbonisation, system
and benefits of the Programme resilience.
and why it is critical to 2. Showcase support for the Programme across the value-chain.
achieving Net-Zero targets. 3. Highlight the impact and consequences of failing to deliver ECH₂ on
UK Government targets.
Identify key enabling actions Chapter 5 1. Summarise actions, identifying an owner, and timeline to achieve
across UK Government, (pp 85-90) ECH₂ Programme.
regulators, industry, and 2. Identify any dependencies and risks that could impact ECH₂ delivery.
networks to make ECH₂ a 3. Illustrate the scale of investment required for the Programme
reality. delivery.
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Key statistics provided by the East Coast Hydrogen
Consortium Group
Existing users of the gas transportation network, prospective hydrogen producers, and hydrogen storage
developers have informed us about their decarbonisation plans with respect to hydrogen. Here, we
summarise the demand for ECH₂ based on their feedback.
01 02 03
H2
*Total hydrogen demand includes (23.1 TWh) I&C demand, (34.5 TWh) power demand, (5.6 TWh) transport demand.
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Hydrogen demand, production and storage in the
East Coast region
The East Coast region is an ideal location to kickstart the UK hydrogen economy, due to a high
concentration of industrial, commercial (I&C) and power demand, a pipeline of hydrogen production, and
advantageous geological conditions for storage.
TWh
55% of total identified hydrogen demand lies within power, with 64 40
sites making up the largest share of total hydrogen demand.
30
There are 9 classified key I&C sectors within the East Coast region
with 270 sites demanding a combined 23.1 TWh/year of hydrogen 20
by 2037, with 41% of demand coming from the chemical sector.
A single potential user in the aviation sector has provided a 10
hydrogen forecast for 5.6 GWh/year hydrogen for zero-emission
aircraft, plus ground and aircraft power units. 0
Residential demand within towns and wider regions have not been 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037
factored into demand calculations used for core network
configurations. * However, optionality must be maintained within any
Total hydrogen demand Hydrogen for power
strategy pending UK Government’s decision on hydrogen for heat in
2026, potentially resulting in a large increase in total demand. Hydrogen for I&C Hydrogen for transport
80 +28%
The East Coast region is central to meeting the UK’s hydrogen annual
production targets, with over 83 TWh/year of potential hydrogen 70 growth
production to be available by 2037 to decarbonise Industrial to 2032
Clusters and wider region. 17 60
40
reforming (ATR)), but Green Hydrogen (produced by electrolysis)
will reach near-parity by the late 2030’s thanks to an abundance of 30
offshore wind power potential located in close proximity to the
East Coast region. 20
* In the case of Scunthorpe, Cadent have accounted for town demand in pipeline sizing. See chapter 3 for more information.
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The need for integrated hydrogen midstream
infrastructure
ECH₂ will be critical to the development of a regional hydrogen market by connecting a large number of
producers with consumers in the region and eventually to the wider market.
A large amount of hydrogen production and demand is expected to be commissioned at pace, with up to 83 TWh of annual
production, and 63 TWh of annual demand by 2037.
To transform the nascent and fragmented hydrogen market into a more integrated and competitive end state, hydrogen transport and
storage infrastructure needs to be developed in anticipation of the volumes of demand and production materialising in the coming
years. Planning for the network infrastructure now will send clearer signals to the market on the future structure of the hydrogen
market. This will provide greater certainty for both hydrogen producers and consumers in centres of supply and demand, supporting
investment in an integrated energy system that works alongside electricity and natural gas. This integration across the value chain is
essential to the UK's overall energy supply, making it more secure and resilient.
By 2037, ECH₂ will be required to connect over 63 TWh/year of projected demand with hydrogen production, roughly 48% of total
natural gas supplied to I&C and power sectors in 2022/23. It is expected that natural gas demand will decrease due to the uptake of
hydrogen, electrification and other alternative energies. It is anticipated that hydrogen demand will continue to rise as low-carbon
hydrogen becomes more accessible, commercially viable, and scalable, giving businesses the confidence to invest in the equipment
required to switch from natural gas. 17
Additionally, the majority of hydrogen production that is announced within the region is planning to come online before 2031.
Growth is anticipated to continue increasing as the nascent hydrogen market transforms and it is proven to be economically viable
with sufficient infrastructure available to transport and store hydrogen at scale.
There is potential for hydrogen production in the region to outstrip demand, this could provide ECH2 with a opportunity to distribute,
or export, excess hydrogen across the UK through Project Union’s network. The significant scale up in hydrogen supply and demand
will require an integrated hydrogen transport network to enable a stable supply of energy to the businesses and customers that
depend on it.
Total potential annual I&C, power and aviation hydrogen demand and production within the East Coast region (2028 to 2037)
10
0
2028 2029 2030 2031 2032 2033 2034 2035 2036 2037
Note: Total natural gas consumption is indicative of the scale of natural gas to fuel switch or abate, not a forecast over time.
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A vision for hydrogen in the East Coast region
Our vision of a hydrogen economy in the East Coast region by 2037 is based on the decarbonisation plans
of our stakeholders and has been shaped by our Consortium Members.
ECH₂ provides a solution to efficiently connect planned centres of hydrogen production, demand and storage; balancing the network and
managing misalignment between supply and demand through a safe and regulated distribution system.
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2.1
Hydrogen demand
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Industrial and commercial hydrogen demand profile
The East Coast region is home to a variety of I&C organisations, many of which are actively seeking to
decarbonise their operations by switching to low-carbon hydrogen to achieve Net-Zero compliance.
Methodology for assessing potential hydrogen demand from I&C and power customers
There are 7 energy intensive industrial sectors and 2 key commercial sectors within the East Coast region with 270 sites potentially
requiring 23.1 TWh/year of hydrogen by 2037 to decarbonise their operations and reach Net-Zero targets.
On average I&C hydrogen demand will increase annually by 24% between 2028 to 2037. We expect this growth to continue as I&C
hydrogen-ready assets are deployed at scale, transport and storage infrastructure gets developed, and the potential rising price of
emissions allowances in the UK ETS.
Due to increasingly stringent regulatory restrictions and Net-Zero targets being enforced on heavy emitting industries, hydrogen
demand has the potential to increase by 187% between 2029 and 2030 with 184 sites looking to transition away from natural gas. A
transport network will need to be ready in time to support this scale up and ensure that these sites can access hydrogen.
The chemical sector is expected to consume the largest amount of hydrogen within the East Coast region, making up 41% of total
I&C demand in 2037, requiring 9.4 TWh of hydrogen.
Total announced I&C demand for hydrogen by large users between 2028 to 2037 19
TWh
24 23.1
22
20 +24% CAGR
18.2 18.7
18
15.7 15.5 15.5
16
14
12
10 8.9 8.9
8 41% of
6 demand
3.3 3.1 from
4
chemical
2 sector
0
2028 2029 2030 2031 2032 2033 2034 2035 2036 2037
Education Automotive Manufacturing Glass Heathcare Steel Building Materials Food & Drink Chemicals
Note: See methodology section to understand the assumptions and data used in assessing I&C hydrogen demand.
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Role of hydrogen in decarbonising industrial and
commercial sectors
While there are multiple routes to decarbonisation in different sectors of the economy, the availability of
low-carbon hydrogen is essential for the decarbonisation of hard-to-abate industrial operations.
Each industrial sector is faced with a Using feedback from stakeholders, we have considered potential
sector reliance on hydrogen-based on todays availability and
different set of challenges and options
cost of technologies, as well as:
While some sectors have multiple options to cost effectively → Sector decarbonisation commitments collected from industry
decarbonise, others have fewer and are more dependent on the associations or UK Government reports.
availability of hydrogen. Factors influencing this include: → Industrial dependency on natural gas, e.g. feasibility and cost
effectiveness of implementing alternative technology.
1. Technical feasibility of alternatives such as space constraints,
technology maturity, readiness and scalability (which often vary → Companies’ strategic priorities on decarbonizing collected
on specific site level basis) through primary data and secondary resources.
2. Industrial dependency on natural gas as feedstock, or for
high temperature thermal processes making it hard-to-abate Other Biogas or efficiency gains Technically feasible
3. Cost effectiveness of using alternative fuels, or capital CCUS Technically and
investment cycles to refit/convert industrial equipment. economically feasible
Electrification
Technologies are constantly evolving, and we need to be Considered potentially
mindful that preferred solutions may change over time. Hydrogen optimal solution
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Sector Identified Sector commitments Potential technologies to Comments by key
hydrogen decarbonise industrial process sector player
demand that uses natural gas
Other
Tronox
Note: This is a qualitative view of the potential reliance of industrial sectors on hydrogen for decarbonisation. This is based on information provided by ECH2 stakeholders and consortium members, as well
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as secondary case studies. It considers not only the economic potential of alternative solutions but also practical considerations for implementation (such as availability of space for carbon capture
facilities). As technologies continue to evolve this view will change over time.
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Industrial and commercial demand centres
I&C hydrogen demand is expected to be spread across nine demand centres, with 45% of demand located
outside of core Industrial Clusters being developed within Yorkshire and the East Midlands.
Demand centre
Note: See methodology section to understand the assumptions and data used in assessing I&C hydrogen demand.
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Risk of industrial exits
Industrial processes, jobs and investment could move abroad if decarbonisation targets are enforced
without hydrogen being widely available for companies with limited alternatives
When collecting data from our industrial customers, we have gained vital insight into the need for hydrogen and the potential consequences
if it is not readily available.
Hydrogen is critical to many industrial customers in achieving their decarbonisation strategy, with many companies hailing it as the only
option to decarbonise certain elements of their operations.
Without access to hydrogen at scale, these industrials will fail to decarbonise which either jeopardises the UK's Net-Zero ambitions, or risks
driving industrial processes abroad. This will result in a loss to investment and jobs, whilst increasing our energy and industrial dependence
on other countries.
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Industrial and commercial case studies
Large industrial players in the East Coast region see switching to hydrogen as a route to decarbonisation.
The current lack of hydrogen infrastructure and certainty of supply are barriers to investment.
Case study:
Aggregate Industries
Asphalt production requires significant amounts of high temperature heat that
cannot be provided through electrification. Decarbonisation therefore requires
large volumes of an alternative low-carbon fuel.
“The supply of hydrogen in a cost effective manner can only be delivered through
pipeline infrastructure such as ECH₂. This project is critical to driving forward the
use of hydrogen within energy intensive and hard-to-decarbonise industries across
the East Midlands.” - Luke Olly, Energy & Carbon Manager.
Note: All quotes and case studies have been provided by the named companies.
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Industrial and commercial case studies (cont.)
Case study:
Solenis UK
For Solenis, a manufacturer of specialty
chemicals, the biggest challenge in
decarbonising its operations is the
availability of Green Hydrogen in
sufficient quantity and at a commercially
competitive cost. Case study:
“Hydrogen connectivity and availability Lenzing Fibres
will be a critical step in sustaining
Foundation Industry manufacturers such Due to a large heat requirement, full
as Solenis on our journey to Net-Zero. electrification is not currently a
ECH₂ promises to deliver this capability financially viable option for
and will be a key factor in creating a decarbonising Lenzing’s operations.
vibrant, green manufacturing sector in The company is investigating alternative
northern England” - Kevin Fitzgerald, decarbonisation pathways. Lenzing’s
Operational Excellence Manager. main focus is to understand how
hydrogen will fit into its road map, what
technologies are available and will be
available in the future, and when
hydrogen will be available in sufficient
quantities at a price that is financially
viable.
"ECH₂ can help support our strategy by
laying out more specific plans with
accurate timelines and therefore more
accurate indications of when hydrogen
will be available and at what cost.“ - Rob
Payne, Plant Improvement Manager.
Forterra is one of the UK’s leading manufacturers of building products. The company employs circa 1,800 staff across 17
manufacturing facilities, 10 lying in the East Coast region.
Forterra has a target of 33% and 80% CO₂ reduction by 2030 in clay and concrete productions respectively. If Forterra switched its
plants within the East Coast region to 100% low-carbon hydrogen, 22% of its total emissions can be avoided, enabling 20% reduction
in CO₂ emissions by 2030.
Forterra can decarbonise 50% of its total industrial process emissions through alternative technologies such as electrification, energy
efficiency and carbon capture, but the remaining 50% come from thermal processes which use natural gas. These emissions need to
be decarbonised through low-carbon hydrogen.
“Almost 50% of the carbon emissions generated by Forterra can be attributed to the use of natural gas. If the UK wants to achieve the
Net-Zero target, we believe cost-competitive, grid-connected hydrogen will be essential. We are fully committed to ensuring all
Forterra manufacturing facilities are hydrogen-ready.” - David Manley, Head of Sustainability.
Note: All quotes and case studies have been provided by the named companies.
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Hydrogen demand in the power sector
The East Coast region is home to a significant proportion of the UK’s existing natural gas-fired power
generation capacity. Operators of these facilities have expressed a desire to convert to hydrogen to
decarbonise operations.
Power demand
7 31% 3 5%
power sites of total Power power sites of total Power
demand demand
Note: See methodology section to understand the assumptions and data used in assessing hydrogen demand in the power sector.
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Hydrogen power case studies
Case studies from our Consortium Members show the demand for stable hydrogen supply, at scale, for
power in the East Coast region.
SSE Thermal and Equinor are developing Keadby Hydrogen Power Station, which
would have a peak demand of 1,800 MW of hydrogen, producing zero carbon
emissions at the point of combustion. It would be the world’s first major 100%
hydrogen-fired power station, securing at scale demand for hydrogen in the region for
decades to come. With appropriate policy mechanisms in place, Keadby Hydrogen
could come online before the end of the decade.
In order to bring forward hydrogen to power projects, a hydrogen network will be
essential. That is why ECH2 has an important role to play in the development of a
thriving hydrogen economy in the region, allowing sites to connect with a wider
network carrying the fuel to centres of demand. That will be vital not only for Keadby
Hydrogen but also for other hydrogen to power projects in the Humber and beyond.
Note: All quotes and case studies have been provided by the named companies.
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Hydrogen demand in the transport sector
The East Coast region is home to major ports and airports that are investigating the role of low carbon
hydrogen in decarbonising their operations.
Transport projects
Note: Potential hydrogen demand for transport has only been quantified within this report where specific sites provided primary data for hydrogen forecasts.
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Hydrogen demand in towns
Some I&C and power demand comes from within towns. Studies are ongoing to determine the technical
feasibility of deploying hydrogen to decarbonise these operations.
Note: See methodology section to understand the assumptions and data used in assessing hydrogen demand in towns.
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2.2
Hydrogen
Production
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Hydrogen production
The UK Government has developed business models that support investment in hydrogen production to
help achieve its ambition of delivering 10 GW of low-carbon hydrogen production capacity by 2030.
• While it is expected that Blue and Green Hydrogen will play a dominant role initially, there are other low-
Other
carbon hydrogen production techniques (such as pink or yellow hydrogen) with a potential role to play in ECH2
There are multiple funding and revenue support schemes to kickstart hydrogen production
within the UK
Note: Grey hydrogen is the most common form of hydrogen produced today and is generated from methane. ECH₂ is focused on developing infrastructure for low-carbon hydrogen, which does not include
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grey.
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Hydrogen production profile
There is strong pipeline of hydrogen production assets in the East Coast region, with enough planned
capacity to meet the UK Government’s 2030 ambition.
H2
The East Coast’s hydrogen pipeline could Total potential hydrogen capacity within the East Coast region
between 2025 and 2037
meet the UK total target in 2030
In 2022 the UK Government doubled it’s ambition for low- 15
carbon hydrogen production capacity to 10 GW by 2030, with at
least half of this coming from electrolytic hydrogen. 40 11.6
10.8
The East Coast region has up to 11.6 GW of planned hydrogen UK 2030
capacity by 2037, making up 58% of the UK’s total announced 10 target for
capacity which stand at just over 20 GW. The East Cost region is 6.3
hydrogen
therefore vital for the government to meet the UK’s hydrogen 7.0 6.3
GW
6
A further 2.4 GW, made up of nine projects, are preparing for
FID having gained more revenue certainty by signing 4
Memorandums of Understanding (MoU) or preliminary contracts
with off-takers, and/or progressing through to low-carbon 2
hydrogen negotiations with the UK Government.
0
Policy and regulatory decisions must not be delayed if the UK is Pre-planning Pre-FEED or Preparing Operational
to achieve its 2025 and 2030 ambitions. FEED Studies for FID
Note: See methodology section to understand the assumptions and data used in assessing hydrogen production.
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* The status of hydrogen production projects has been collected through discussions with developers and supplemented by secondary sources. The information provided is a snapshot of the stage of
development for each project as of 08/2023 and may not include the latest project updates or market information.
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Hydrogen production hubs
There are five production centres in the East Coast region, with 25 hydrogen production projects of which
8 have secured funding from the UK Government.
Production centres
1,5
1,20
1,0 0,50
1,76
0,5 ECH₂ will play a vital role in connecting 25 production facilities with end-users*
0,26
0,70
0,17
0,0
HAR1 NZHF CCUS Track 1 8 projects selected through the NZHF, HAR1, and Cluster sequencing that can be
ECH2 Wider UK supported by ECH₂
* Three confidential production projects have not been included within the map, but have been included within total production figures.
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** Note that 0.26 GW Wider UK capacity entering HAR1 negotiations with UK Government will be reduced to 0.25 GW through final negotiations.
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Hydrogen production sites
ECH₂ has support from 15 prospective hydrogen producers within the region, many of which would be
dependent on connecting into a network for flexibility and resilience.
Case study:
Uniper
The Humber H2ub® project is a proposed
large scale, low-carbon hydrogen
production facility at Uniper’s
Killingholme site, being delivered by
Uniper in partnership with Shell. The
project is expected to be operational later
this decade.
With plans for low-carbon hydrogen
production capability with a capacity of up
to 720 MW, the Humber H2ub® could
contribute to the UK Government
production target of delivering 10 GW of
hydrogen by 2030.
Case study:
Equinor
Part of Zero Carbon Humber, H2H Saltend
will be led by Equinor. By using Humber's
unique geography to deploy and grow
hydrogen and CCS, this will help to
deliver one of the world's first large low-
carbon Industrial Clusters by 2040.
A first-of-a-kind 600 MW Blue Hydrogen
production plant will enable fuel switching
at scale by 2026/7, providing 6% of the UK’s
hydrogen production target.
“ECH₂ can enable early developing
Hydrogen Transport and Storage
Infrastructure, as well as both CCS
enabled and electrolytic hydrogen
production to be connected to the wider
East Coast region, thereby consolidating
and aggregating demand and
accelerating the development of the
Hydrogen Economy” - Ian Livingston,
Case study: Kellas Midstream
Project Manager.
As part of the East Coast Cluster, Kellas is developing H2NorthEast, a major project that
will deliver over 1 GW of low-carbon hydrogen to industrial users across Teesside. As
one of the first Blue Hydrogen production facilities in Teesside, Phase 1 of the project
will deliver 355 MW of hydrogen, with plans to scale up to full capacity by 2030.
Utilising synergies with the existing CATS terminal and connection to the Northern
Endurance Partnership CO₂ pipeline and store, H2NorthEast will deliver hydrogen at
lower cost, cutting emissions whilst also promoting regional growth - contributing an
additional £200-300m to the local economy and creating hundreds of new jobs
Hydrogen production developers rely on business model support from UK Government to provide the long-term certainty required to
make final investment decisions. Continued support for the hydrogen business models is needed to ensure that the production capacity
materialises; and to ensuring that low carbon hydrogen is available to support industrial decarbonisation.
Note: All quotes and case studies have been provided by the named companies.
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2.3
Hydrogen storage
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Hydrogen storage
The East Coast region is home to a diverse development pipeline of potential hydrogen storage – this will
be critical to delivering a resilient energy system.
Hydrogen storage is required in almost every independent third party Net-Zero scenario for the UK. Hydrogen storage capacity will be
required for: 49 50
1. Grid balancing by storing excess electricity as hydrogen to then use as power or gas in peak energy periods
2. Energy security through the ability to store energy as hydrogen at scale and across seasons improves energy security
3. Support development of an efficient tradable hydrogen market
4. Provide sufficient resilience to customers above single direct connections to give offtakers confidence in switching
Whilst storage has a crucial role to play in ensuring a resilient and efficient system, there are barriers to deployment, including: 51 33
1. Demand uncertainty around the location, capacity and type of storage infrastructure that will be required
2. High investment cost requirements and long lead times
3. Absence of a clear and consistent long-term policy
4. Uncertainty regarding the commercial business case
The UK Government is working with industry to support further R&D and to design a business model by 2025 to unlock UK hydrogen
storage potential and promote investment in large scale storage.
Technology Discharge
Characteristics Suitability Capacity 52 53
group duration
Disused oil Although an attractive option, we are still at early
& gas fields Underground solution where sites of Inter- stages of technology readiness and there are
High
former oil and gas assets are repurposed. seasonal geographical constraints due to the fixed location
of these geological assets.
Salt cavern Can potentially offer storage of large volumes of
Underground solution where mined Intra and compressed hydrogen but has geographical
Medium
cavities created in salt-strata. Inter-day constraints due to geological requirements. To date
hydrogen is stored in geological formations in the UK.
Surface Large above ground fabricated Suited for short-term grid services. Requires
storage containers, either stationary or mobile. considerable space and requires specialist
Hydrogen can be held in solid-state Intra-day equipment, expertise and certification to manage Low
storage or liquefied at -253°C in safely. Constant cooling is necessary when storing
cryogenic vessels for storage. liquefied hydrogen.
Line-pack Line-pack has a role to play in managing flexibility of
The transmission and distribution
the hydrogen system. This is crucial to manage
networks increase within-pipe gas
Intra-day variability in production and demand. It can also play Low
pressures to accommodate
a role in managing intermittent renewables by
more hydrogen.
providing offtake for Green Hydrogen.
ECH₂ has collected primary quantitative and qualitative data Storage sites have confirmed their intention to store
from eight announced storage projects. This includes four off- 4 hydrogen and provided forecasts
site storage facilities that are co-located with production
Hydrogen production sites have confirmed their intension to
projects. All of these projects are at early stages of
development, and are looking to secure funding or gain
4 build on-site storage
planning permission.
Secondary analysis has identified eight existing and planned
natural gas storage sites within the region, which are assumed Secondary storage data
to hold the potential to convert to hydrogen.
Existing or planned natural gas storage sites are located in
5 the region with an assumed potential to convert to H2
Note: See methodology section to understand the assumptions and data used in assessing hydrogen storage.
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Hydrogen storage within the East Coast region
The East Coast region is well placed geologically for hydrogen storage, with high availability of existing
natural gas reservoirs and salt caverns. ECH₂ can connect up to 19% of the UK’s 2050 estimated hydrogen
storage requirements.
Storage capacity
0.7
45.3 56.0
10.0 North Humber Teesside
Under development Under development
Remaining H2 storage
19% UK
requirement for the UK
Announced salt cavern H2 3 with Rough gas
reservoir set to be a 1
with multiple
production facilities
Hydrogen storage storage sites strategic connection storage sites looking to build on-
storage Announced gas reservoir H2 site site storage
storage (Rough)
Large scale hydrogen storage projects within the East Coast region
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Announced hydrogen storage
Hydrogen storage developers in the region are supporters of the ECH₂ and its objectives.
Case study:
Rough
Centrica has been working to re-open
Rough off the Yorkshire coast, which
resumed storing natural gas again in
October 2022, providing half of the UK’s
total gas storage.
Rough’s unique geological and
geographical advantages position it well
to support a growing hydrogen economy
and with no insurmountable technical
barriers to conversion, it could store 10
TWh of hydrogen, 94% of announced
storage capacity, making it one of the
world’s largest hydrogen stores.
“Our long-term aim remains to turn the
Rough field into the world’s biggest
natural gas and hydrogen storage
facility, bolstering the UK’s energy
security, delivering a Net-Zero electricity
system by 2035, decarbonising the UK’s
Industrial Clusters, such as the Humber
region by 2040, and helping the UK
economy by returning to being a net
exporter of energy” - Chris O'Shea, Centrica
CEO.
Note: All quotes and case studies have been provided by the named companies.
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East Coast Hydrogen routing overview
This chapter outlines initial network configurations for ECH2, reflecting on supply and demand as
identified through Pre-FEED. These options will be further refined during FEED to create an integrated
hydrogen transmission and distribution system capable of meeting user needs.
Connects 61.9
TWh/year I&C and
power hydrogen
demand by 2037
Connects up to 83
TWh/year potential
hydrogen
production by 2037
Connects up to 4
TWh potential
hydrogen storage
capacity by 2037
770 km of existing
natural gas pipeline
could be
repurposed
Saves up to 12
MtCO₂/year by
2037
Connects large
demand centres in
Teesside, Humber
and the East
Midlands
Note: Total annual hydrogen demand, production and storage shown above is representative of what the initial network design aims to connect by 2037, not the total potential in the region.
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Existing network design and future optionality
In outlining routing, the networks have incorporated optionality to ensure the future hydrogen system
can evolve to meet changing policy and user needs over the coming years.
To satisfy network design principles and ensure the future hydrogen transmission and distribution system can be adapted to changing
circumstances and policies, optionality must be incorporated into routing design. The preferred pipeline routes, whether repurposed or
new build, will be developed during the next stage of ECH2, and will depend on a number of factors, including:
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Network design principles
The initial routing options are guided by design principles which ensure that the design options align with
the overall Programme objectives as well as the networks’ duties and obligations.
• Both repurposing and new build solutions should be considered, with the best
value option that meets the technical requirements being selected
• Demand should be carefully considered to avoid oversizing, whilst also
providing future growth opportunities
Cost effective • Environmental and socio-economic considerations should also be factored in,
ensuring the network is not just cost effective but adds overall value
• Subject to the above considerations, pipeline length and layout will then be
optimised to the most cost effective route
• Selected routes must ensure a safe and secure environment for network
employees, system users and the general public during the construction and
Safety over the assets operational life – this includes the pipeline and Above Ground
Installations (AGIs)
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National Gas routing and phasing
The National Gas route focuses on connecting the Humber-Tees Industrial Clusters and other large
production and storage locations in the region and beyond, ensuring that demand from the GDNs and its
directly connected customers can be supplied with hydrogen from production centres or storage facilities.
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National Gas routing and phasing strategy
The first section of Project Union will create a hydrogen transmission pipeline within the East Coast
region, creating a national ‘backbone’ for Cadent and NGN to connect to, scaling up storage and
production hubs across the UK.
National Gas approach to defining its routing and Key assumptions used in the
phasing options network assessment
Through its routing and phasing strategy National Gas has prioritised the repurposing of
Modelling based on National Grid’s
existing infrastructure, exploring how current transmission pipelines can be converted to
100% hydrogen to meet regional, and eventually, national demand. New pipelines are 1 FES System Transformation
scenario.
only considered where existing assets cannot be used due to technical, economic or
locational factors and will be subject to detailed assessment of routing options to ensure
environmental impacts are minimised, as well as the relevant consents obtained. Off-takers will transition to 100%
In identifying routing options, National Gas first mapped system users, considering 2 hydrogen (confirmed through
not just their location but also their future hydrogen capacity, grid connection status, stakeholder engagement).
and strategic importance to the wider UK hydrogen landscape. As a result, National
Gas has focused on the Humber-Tees Industrial Clusters, production centres in Pipelines can be repurposed from a
Lincolnshire and North Humber, and storage at Rough. Other strategic sites have technical standpoint (material,
been prioritised based on high density of industrial users, the presence of proposed 3 asset, integrity etc). This will be
hydrogen projects, and GDN hydrogen network plans. confirmed in the FEED study.
After identifying anchor projects, National Gas evaluated network requirements,
modelling not just the operation of a future hydrogen network but also the impact of The GDN hydrogen demand is
routing options on the existing natural gas network. This enabled repurposed and included as a potential offtake
new build options to be identified that would effectively integrate supply and 4 connection point within the
demand within the East Coast region, and then nationally, whilst also ensuring the network design.
continued safe and stable operation of the NTS.
National Gas have also worked closely with Cadent and NGN to ensure routing options and
phasing are complementary, enabling the whole region to be interconnected.
As a next step, all options will be subject to engagement with statutory bodies and
local communities.
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NGN routing and phasing
NGN’s routing focuses on connecting production, storage and demand around the Teesside and North
Humber Industrial Clusters, then extending wider into Leeds, Newcastle-upon-Tyne, and Scarborough.
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NGN routing and phasing strategy
The NGN network integrates with National Gas and private hydrogen networks to deploy locally before
extending regionally. In addition, it focuses on repurposing existing assets to limit costs and network
redundancy.
NGN's approach to routing and phasing considers how hydrogen can be delivered to the network’s top 200 natural gas customers,
with detailed modelling used to identify requirements across Yorkshire, Teesside, and County Durham. Given the location of key
centres of production, storage and demand, NGN’s routing options have been designed to complement National Gas's plans for the
Hydrogen NTS between Teesside, Asselby and Easington.
Network requirements have been identified based on the following:
1. I&C and power offtake points: Assuming a 100% switch to hydrogen NGN used primary and secondary data to model the ability of
large users to transition to hydrogen, anchoring infrastructure around those with high requirements. Consideration was also given
to clusters of industrial sites where a number of potential hydrogen users in close proximity could be supplied using common
infrastructure.
2. Supply points (spurs): Using primary data from potential producers and storage facilities, NGN modelled future capacities and
resulting connection requirements (including integration with private pipelines).
3. Towns: Residential demand within pilot town locations has been considered as an optional load. In the first instance routes have
been prioritised to meet I&C and power demand, but subject to UK Government decisions can also satisfy residential needs with
limited impact on costs and network design.
Pipeline routes has been selected based on user demand, ease of connection, ease of conversion, safety, flow assurance, and environmental
concerns. In addition, NGN has optimised routing to prioritise pipeline repurposing and keep new build to a minimum.
Whilst routing options consider how hydrogen can be delivered to the top natural gas customers and towns, subject to policy
decisions, connection phasing ultimately depends on confirmation from these users that they will transition to hydrogen when it is
made available. During FEED, NGN will engage directly with customers to confirm assumed demand.
The UK’s natural gas use and supply requirements has evolved
Phase 1 (2028) – By 2028, NGN aims to connect 60 large I&C over time, creating an opportunity to repurpose existing
customers in the Humber and Teesside regions, suppling up to 5 infrastructure in some areas to transport low-carbon hydrogen
TWh/year of low-carbon hydrogen at a third of the new build cost, without impacting current
natural gas customers.
Phase 2 (2030) - By 2030, NGN will extend to 80 large I&C
46% of NGN’s proposed hydrogen network can be repurposed
customers and three pilot towns, supplying 11.4 TWh/year of
from existing assets for low-carbon hydrogen between
low-carbon hydrogen
Teesside and the Humber region, saving in building and
Phase 3 (2037) - Further integration with the Hydrogen NTS construction costs.
developed under Project Union will enable NGN to supply 12.6 To assess the feasibility of repurposing existing pipeline,
TWh/year to 108 I&C customers across Yorkshire, Teesside and assessments have been undertaken on both the energy
Scarborough capacity of the repurposed line and any existing lines which
will be required to uptake additional natural gas flow.
Phase 4 (2037+) - Expansion beyond ECH₂ will be prioritised In order to repurpose the existing pipeline, legislation and
based on user demand and government decisions on hydrogen regulatory frameworks, such as the Gas Safety (Management)
for heat, connecting to demand in Tyneside and Cumbria Regulations 1996, need to be amended to accommodate the
conveyance of hydrogen.
Central to the NGN design strategy and approach is its collaboration between private hydrogen networks and the Hydrogen NTS,
ensuring duplication of pipelines is avoided and wider UK hydrogen network resilience and flexibility is maintained.
NGN is working closely with bp and Kellas to integrate the private lines being developed as part of HyGreen and H2NorthEast in
Teesside, with routing plans under ECH2.
Integration enables expansion of infrastructure beyond that built under the hydrogen production business models, securing new
revenue streams for producers and enabling them to scale up faster. Not only does this provide users with greater certainty of supply
but also provides greater efficiency, cost savings and resilience for the wider hydrogen transmission network.
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Cadent routing and phasing
Cadent's routing focuses on connecting production in the East Midlands, South Humber and South
Yorkshire with local industrial and commercial users, connecting these sub-regions over time to provide
resilience.
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Cadent routing and phasing strategy
The Cadent network initially focuses on delivering hydrogen within two distinct regions given the
urgency and density of demand, and the location of production.
Cadent’s approach to routing and phasing is demand-led, using primary data forecasts from 170 top natural gas consuming sites to
identify hydrogen network requirements. In particular requirements have been identified beyond the Humber Industrial Cluster, with
16.7 TWh of industrial, commercial and power demand located across the East Midlands, South Yorkshire and South Humber region.
Through in-depth discussions with cornerstone industrial users, and robust forecasts taking account of each site’s decarbonisation
plan, the speed of transition their equipment to hydrogen and interest in blending, Cadent is confident in the needs case for the
network and the real benefits it can unlock.
Pipeline options have been identified based on their ability to efficiently and cost effectively deliver hydrogen, whilst avoiding all
key constraints and minimising impact to the surrounding areas and resilience of the existing natural gas network.
In contrast to NGN, the National Gas network within Cadent’s area does not go through key industrial demand locations. To meet
need across South Yorkshire, Nottinghamshire, Derbyshire and Lincolnshire a new hydrogen transmission pipeline is needed. This
means new build pipelines have been considered in the first instance, with multiple route corridors taken into FEED for refinement
ahead of selecting preferred routes. Options for repurposing the existing local transmission network will be further developed in
FEED, considering the most suitable engineering and economic solution to meet need.
By 2030, the UK Government plan to pilot a full town conversion to hydrogen. Given the need for the pilot to be within reach of
existing hydrogen production, storage and network infrastructure there are limited options, with Scunthorpe as one of those options.
Based on construction timings, and the need to meet I&C demand within Scunthorpe, Cadent have included full town demand of
Scunthorpe in pipeline sizing requirements. This maintains optionality, enabling the pipeline to carry sufficient hydrogen to meet
existing planned demand and future potential residential demand, with limited impact on costs.
In preparation for a wider rollout, Cadent have undertaken a sensitivity analysis, identifying the impact of including residential
demand on pipeline diameter and pressure. This will allow decision making on pipeline sizing at the start of FEED, with engagement
from Ofgem and DESNZ.
The network is initially anchored in two separate locations The 3-year best case construction timings presented rely on
covering the North and South of Cadent’s distribution area: detailed design, construction contractor (or partner)
• North: South Humber to South Yorkshire (target procurement and long lead item procurement - such as steel
construction 2028 – 2031) pipe, valves and pressure reduction equipment - running in
parallel to the consenting process. To enable this, certainty is
• South: East Midlands (Nottinghamshire, Derbyshire and
needed from government on strategic planning and the
northern Leicestershire) (target construction 2029 – 2032)
Hydrogen Transport and Storage Business Models.
The development of the network in the South will depend on
Adopting an accelerated programme will mean the benefits of
the outcomes of a finalised Pre-FEED study conducted in Q2
ECH₂ can be realised sooner, supporting not just UK Hydrogen
2024. Importantly this will include a transient flow analysis
targets but enabling key industrial sectors to decarbonise in
which will ensure an isolated hydrogen network with no access
line with Carbon Budget 6 and the trajectory set for achieving
to storage can operate efficiently and with resilience.
Net-Zero by 2050.
From 2030 Cadent will begin work to connect the North and
If these activities do not run concurrently, over 2 years will be
South sections, and further expansion into towns and to users
added to delivery timelines, meaning the first users will not be
not able to connect as part of Phase 1. The routing for the
connected until the early 2030s.
expansions will be prioritised based on customer need and
government decisions on hydrogen for heat.
The ECH₂ Industrial Distribution Project will run in parallel to the build out of the main network. Its aim is to increase the ‘reach’ of the
transmission pipeline through additional networks and spurs, enabling hydrogen to be delivered into towns or to more remote users. The
plan is to repurpose the existing natural gas network where possible, only building new pipelines to bridge gaps. Cadent are also
exploring the potential to utilise ‘dis-used’ assets in some regions. Early investigations are expected to begin next year with the re-
purposing and new build connection work starting as soon as is practically feasible alongside the main new build phases.
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ECH₂ Programme Roadmap
ECH₂ is a long-term project that will be carried out in multiple, discrete phases to decarbonise industrial
processes and potentially residential heating in the East Coast region. This Delivery Plan marks a
significant milestone within Phase 2 – as the networks complete the Pre-FEEDs.
Phase 1 Feasibility Phase 2 (2022 – 2028) Phase 3 (2026 – 2030) Phase 4 (2028 – 2037) Phase 5 (2037+)
Study (2021)
Completion of Delivery Hydrogen transmission Expansion from the Connection of the
Definition of the Plan, Pre-FEED, FEED system development and Industrial Clusters into network into further
strategic business Study and development initial hydrogen distribution northern urban areas and regions and future
case for ECH₂ of East Coast Cluster system the Midlands growth opportunities
infrastructure
• Concept • Lay out the strategic • Connect Humber and • Expand the project • Expand further
development of business case for Teesside clusters across Yorkshire’s urban across NGN and
ECH2 the Programme through the repurposed areas and the Midlands Cadent networks
Objectives
• Validate the • Conduct detailed NTS • Connection of the North • Connection into
hydrogen market design and • Build a local network in and South Humber neighbouring
and strategic assessment of East Midlands Freeport region to East Midlands projects
benefits of a technical feasibility Zone, South Humber Freeport Zone
transmission and of the Programme region and Teesside
distribution cluster
network
• Establish the • Complete Pre-FEED • Connection of Industrial • Connection of North and • Further expansion of
design concept and FEED studies for Clusters within the South Humber, bridging the Programme
and strategic ECH₂, finalising Humber region and the gap between NGN nationally through
objectives of the feasibility and Teesside through and Cadent regions subsequent sections
Programme detailed design of the repurposing of the through the Hydrogen of Project Union
• Demonstrate Programme Humber-Tees leg of the NTS. • Expansion through
customer • Demonstrate the NTS, enabling the • NGN will develop off the Cadent’s Eastern
support, needs case and transportation of NTS ‘Hydrogen Backbone’ region with potential
establishing a benefits of the hydrogen between in West Yorkshire, connection into the
Consortium Programme within a clusters connecting to production HyNet industrial
Group of public facing Delivery • NGN will develop off the and storage centres in cluster in Merseyside
participants from Plan Hydrogen NTS, Hull and Scarborough. • Expansion North
across the value • Conduct detailed connecting to large I&C • Cadent's local through NGN’s
Overview
chain engineering and customers in Teesside transmission network will network into
• Identify the scale technical and West Yorkshire and seek to connect South Newcastle-upon-
and location of assessments such as building into private Yorkshire and the Tyne and west
potential flow assurance, final pipelines from production Humber with the East towards Cumbria
hydrogen ‘hubs’ routing design, sites Midlands, and add second passing through
to which a options analysis, and • Cadent will develop the stage expansion in all Carlisle and Penrith
network can environmental network within North regions.
connect surveys (South Humber to • The networks will seek to
• Undertake economic Sheffield) and South connect to private
analysis to ensure (Nottingham and pipelines and projects
that the proposed Derbyshire), connecting such as the Viking CCUS
network delivers Green Hydrogen cluster, BP’s HyGreen and
value for money production facilities in Kellas’ H2NorthEast.
• Private hydrogen the Midlands with
networks to be built industrial and transport
within the region centres
• Value chain • Detailed routing region and Teesside Yorkshire • Connection into
assessment options • Connection into Teesside • Connection to storage and Bacton and other
• Stakeholder • Cost Benefit Analysis and West Yorkshire production in Scarborough, Cadent Eastern
Consortium Group (CBA) • Connection into Cadent Hull and Easington locations
North and South regions • Connection into • Connection into
Northamptonshire Cumbria and
Tyneside
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Connecting supply, demand and storage with a
transport network
The below map provides a snapshot of what the regional hydrogen economy could look like by 2037 if
ECH2 is delivered as envisaged. This is indicative and subject to ongoing testing of requirements with
stakeholders and future UK Government policy decisions.
Sites shown on this map are compiled from information provided by potential customers, supplemented by secondary sources. Project locations are the approximate
relative location and may not be complete or accurate. The location of Pilot Towns have not been decided and the icons represented on the map indicate the region under
consideration. Confidential storage and production facilities are not included within the map
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Transitioning into FEED Studies
As ECH₂ progresses into FEED studies, the networks’ routing options and phasing strategy will be further
developed, alongside technical requirements and costing work to prepare for construction.
• Review changes in demand, production, and storage data • Early-FEED reports confirming need
Data collection since completion of Pre-FEED
& analysis • Backcheck route option selection and basis of design
• Complete multiple intrusive and non-intrusive investigations • Geological and hydrological reports
to assess impacts of new build network on surrounding • Environmental impact reports (noise,
Design surveys, environment, infrastructure and land visual, biodiversity)
assessments &
• Routing options report for new
investigations pipeline sections
• Preapplication consultation
• Analyse transient flow across a range of scenarios including ramp • Flow assurance report
Flow
up and ramp down capabilities of other networks, production and
assurance storage facilities and customer demand
• Refine routing options, identify preferred repurposed/new • Pipeline route selection reports
build routes • Design specifications
• Complete mechanical, electrical and civils design of pipelines • Equipment specifications
Route selection and AGIs, including materials selection and key long lead
& design • Pipeline modelling reports
procurement items
• Various engineering discipline
• Reproposed network modelling, including redistribution of reports
existing natural gas supply
• Review existing licenses, land agreements and consents to • Land acquisition strategy
identify new or additional requirements • New or updated licences and
Land
• Identify land requirements and prepare for acquisition consents
acquisition,
• Develop and complete all required consenting activities to • DCO application (as required)
licenses &
enable, if required, a DCO submission to the Planning
planning Inspectorate, including needs case, public consultation, draft
order, environmental statement, land plans etc.
• Estimate the total Programme costs (DEVEX, CAPEX, and • Cost estimate report
Cost OPEX) through to delivery • Detailed CBA
estimates • Refine CBAs, demonstrating costs and benefits of individual
routes but also the programme as a whole
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DRAFT FOR DISCUSSION
04
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Defining the East Coast Hydrogen opportunity
ECH₂ aims to be the foundation upon which the East Coast region builds out its hydrogen economy;
delivering decarbonisation, resilience, energy security, and green economic growth.
Natural gas is a primary energy source in the East Coast region with
industrial, commercial and residential customers consuming over 200 TWh,
30% of the UK’s total gas usage in 2022/23, making the Programme
essential to regional decarbonisation: 17 54
→ Saving up to 7% of UK total I&C annual emissions across hard-to-abate
industries through switching to low-carbon hydrogen, abating over 10.2
MtCO₂/year (see pp 70-72).
→ Enabling the conversion of four potential pilot towns to low-carbon
hydrogen which could see over 100k residential sites decarbonising
their heating by the early 2030s (see pp 74).
→ Supporting multiple transport pilots and research projects within the
region, investigating the potential for hydrogen to decarbonise aviation
maritime and road transport decarbonisation (see pp 73).
→ Connecting 17 Green Hydrogen production facilities with 64 power “We need a hydrogen pipeline network in
sites, and 4 storage sites in the region to balance future energy supply Nottinghamshire and Derbyshire to allow
and demand and ensure energy system resilience. * our aviation, power generation and
→ Supporting the continued growth of local and regional economies by manufacturing companies access to low
maintaining the current skilled workforce in manufacturing, carbon hydrogen – without this, many of
transitioning its industry to low-carbon hydrogen. them cannot decarbonise as they have no
other viable options. This will not only
→ Leveraging the decarbonisation benefits of the two CCUS Clusters
protect jobs in the region, but will also
selected within the East Coast region by connecting large scale Blue
create tens of thousands of new jobs
Hydrogen production with demand.
within the hydrogen supply-chain.”
→ Expansion into other proposed UK’s hydrogen network, supporting the - Will Morlidge, CEO.
broader ambitions of other UK Programmes, such as Project Union,
HyNet and Hydrogen Valley, to decarbonise the gas grid.
* See chapter 3 on the ‘Vision of the East Coast’ to find the figures on hydrogen demand, storage and production
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4.1
Delivers on the UK
Government
commitments
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UK policy landscape
The UK Government is strengthening its policies and commitments in building a world leading hydrogen
economy to deliver on its Net-Zero target by 2050.
The UK Government has not wavered in its ambition to develop a global leading low-carbon hydrogen economy since the ‘Ten Point Plan for a
Green Industrial Revolution’ in 2020.
Low-carbon hydrogen is cited in multiple papers as critical to the transition to Net-Zero, and ECH₂ will play a role in decarbonising our
industrial heartlands, delivering energy resilience, and driving sustainable national growth.
2020 2021
Ten point Plan for Energy White CCC 6th Carbon Industrial Decarbonising
a Green Industrial Paper Budget Decarbonisation Transport
Revolution Strategy
UK Hydrogen Strategy
2022 Reports (+ Update to
Markets)
2023
Consultations on Consultation on a Powering Up Hydrogen T&S Energy Bill UK Hydrogen Hydrogen Production
Hydrogen T&S UK Low Carbon Britain Infrastructure: Strategy and Industrial
Infrastructure Hydrogen Minded to Update: Aug Carbon Capture
Certification Scheme positions Business Models
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East Coast Hydrogen alignment with UK policy
ECH₂ will support the UK Government policy and Net-Zero ambitions – enabling green job creation,
emissions reduction, energy system resilience and the integration of power and gas value chains.
How ECH₂ aligns to the key UK Government policy and public commitments
10 Point Plan Driving growth in low-carbon Enable the transition to a large, mature, and competitive
for a Green hydrogen with an initial production hydrogen market by connecting up to 11.6 GW of hydrogen
Industrial target of 5 GW (now increased to 10 supply with demand by 2030*
Revolution GW) of low-carbon hydrogen by
2030 Facilitate the decarbonisation of two of the UK’s largest
Nov, 2020 industrial centres, Teesside and Humber region
Develop Industrial ‘SuperPlaces’ as
hubs for renewable development Enable the creation of new inland hydrogen super places
such as East Midlands Hydrogen
Industrial Reduce industrial emissions by at Support I&C sites within and outside of the clusters to
Decarbonisation least two-thirds by 2035 and 90% decarbonise through a phased and customer driven pipeline
Strategy by 2050 routing strategy
July, 2021 Capture 3 MtCO₂e per year through Connect Blue Hydrogen facilities within the East Coast
Carbon Capture, Usage and Storage Cluster and Viking CCUS clusters
(CCUS) by 2030
Enable 8.9 TWh I&C demand to fuel switch from natural gas
Switch 20 TWh per year of fossil to hydrogen in 2030 (see pp 71)
fuel to low-carbon fuels in 2030
Net-Zero All electricity generation to be Enable decarbonisation of 12% of the UK’s electricity from
Strategy: Build decarbonised by 2035 natural gas, helping to abate over 6 MtCO₂ /year within the
Back Greener East Coast region (see pp 72)
60% reduction in natural gas
April, 2021 demand versus 2020 levels Provide a network to help fuel switch 58 TWh of natural gas
demand in 2037 (see pp 70)
* See chapter 3 on the ‘Vision of the East Coast’ to find the figures on hydrogen demand, storage and production
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East Coast Hydrogen alignment with UK policy
(cont.)
Decarbonising Investment of £3m in 2021 to Facilitates distribution of hydrogen capacity to supply future
Transport: A establish the UK’s first multi-modal transport demand and supports development of integrated
Better Greener hydrogen transport hub in Tees transport hubs
Britain Valley
Enables 5.6 GWh potential supply of low-carbon hydrogen
August, 2021 All new vehicles must be fully zero- fuel to decarbonise East Midlands Airport*
emission by 2040, including buses
and heavy goods vehicles (HGV)
Heat and Expected policy decision on the Provide optionality in all pipeline routing and design
Building role of hydrogen in decarbonising engineering options to account for potential future demand
Strategy heat by 2026 from towns with high I&C and power demand
October, 2021 Supporting industry to deliver a 100% Integrated hydrogen network which connects with town
hydrogen heating neighbourhood trial pilots realizing wider system benefits (see pp 74)
by 2024, a village trial by 2025, and
town trial by 2030
Powering up 15 projects selected to develop Support the development of 7 projects selected through the
Britain with the £240 m Net-Zero NZHF and HAR1 within the region *
April, 2023 Hydrogen Fund (NZHF)
Align with development of the East Coast Cluster to provide
Select two CCUS enabled hydrogen transmission infrastructure in both Teesside and Humber
projects for the Track-1 clusters region, connecting low-carbon hydrogen supply, demand
20 projects announced for the first and storage
hydrogen electrolytic allocation
round (HAR1)
Hydrogen Initial focus for hydrogen transport Strategically plan a coordinated and phased hydrogen
Transport and will be large scale pipeline transportation network, delivering hydrogen as gas to
Storage infrastructure transporting customers
Infrastructure: hydrogen as a gas
Stimulate private sector investment by ensuring a transport
Minded to Design a new business models for system that is ready to connect supply with demand
Positions hydrogen transport and storage
August, 2023 infrastructure by 2025 using a RAB
mechanism to encourage
investment
Energy Bill Creation of Future System Operator, Inform the FSO on how to build out hydrogen assets within
Nov, 2023 taking on the role of strategically the region, utilising networks’ customer relationships and
planning the energy system with insights on volume and timing of demand and production
appropriate legislated power
Provide investor confidence with plans to develop a
Enable business models to be brought transmission network ensuring security of hydrogen supply
forward to provide investors with long- and demand
term revenue certainty
It is critical that the UK develop a hydrogen transportation infrastructure that enables the growth of a mature and competitive
hydrogen economy by diversifying energy supply, encouraging hydrogen producers into the future market, and enabling end-users to
fuel switch to hydrogen.
* See chapter 2 on the ‘Vision of the East Coast’ to find the figures on hydrogen demand, storage and production
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ECH₂ will support ongoing policy decisions
In addition to developing infrastructure that supports UK Government’s ambitions, ECH₂ will provide
insights into potential costs and challenges of developing hydrogen infrastructure that will inform future
policy and investment decisions.
Key
FEED
2023 2024 2025 2026 2027 2028 2029 2030 2035 2040 2050
Neighbourhood H2 for
sized trial 100% domestic
H2 heating heating H2
decision blending
at scale
UK Government and industry milestones
T&S H2
business pilot
models town
Decision
on 20% Track-1 Track-2
blending First Net-
Industrial Industrial
into the Zero
Clusters online Clusters
GB industrial
(Teesside & online
distributi cluster
HyNet) (4 CCUS
Hydrogen
on clusters
village trial
network deployed)
Demonstration
of Net-Zero
Grid
ECH₂ is aligned with the UK Government priorities and industry strategies and will help to assess the hydrogen evidence base to inform
government policy decisions on the future role of hydrogen.
Note: UK Government timings are indicative and subject to change
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4.2
Creates a pathway to
decarbonise the
East Coast region
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The identified decarbonisation potential of building
out ECH2
The East Coast region accounts for up to 30% of the UK industrial, commercial and residential natural gas
usage. Analysis suggests that by 2037, over 57 TWh of natural gas will fuel switch to low-carbon
hydrogen, abating over 10 MtCO₂/year.*
TWh
MtCO₂/year emissions. 17 55 71
100
The I&C sectors consume 23% of the region’s natural gas
42% of the East
demand, supplying energy to disperse I&C gas connected sites, Coast region
50
highlighting the opportunity to decarbonise multiple sectors 85 consumption is
and reduce the UK’s dependency on natural gas. 17 in power
0
We collected primary and secondary data from >300 of the top 120
Total I&C and power
I&C and power sites. 100 demand for hydrogen to
reach 58 TWh/year by
Based on the plans set out by our stakeholders, we estimate 80 2037 (44% of the region)
TWh
that at least 44% of the region’s total I&C and power sector
demand (58 TWh) could fuel switch from natural gas to low- 60
carbon hydrogen by 2037*. This reflects the plans of just those 40
stakeholders we surveyed and investigated. The true potential
may be higher. 20
0
This would enable the UK to transition large energy users and
sectors away from natural gas if a repurposed, or new build 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037
I&C and power hydrogen demand (surveyed customers)
pipeline infrastructure, is developed to supply hydrogen to
multiple disparate sites. I&C and power natural gas demand (surveyed customers)
Total regional I&C and power natural gas demand (2023)
114
Using I&C and power customers’ hydrogen forecasts, there is 6
115
the potential to save over 10 MtCO2/year by 2037. This is
4
equivalent to abating over 9% of the UK’s total I&C and power
emissions.** 2
As ECH₂ is developed, further customers could be connected to 0
the network and thereby greater carbon savings could be 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037
achieved once a viable and cost effective alternative is Total UK I&C and Power emissions Power emissions
available to transition away from natural gas.
Total I&C and power emissions I&C emissions
A hydrogen midstream will be essential in achieving the UK Net-Zero targets, enabling I&C and power customers to decarbonise their
operations.
* Total natural gas (58 TWh) to switch to low-carbon hydrogen excludes aviation demand because it is additional demand that comes from aviation turbine fuel, not natural gas.
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** Total decarbonisation potential from switching to low-carbon hydrogen includes (4.1 MtC02) for I&C and (6.2 MtC02) for power, and excludes (1.4 MtC02) transport.
*** Total UK I&C and power emissions is indicative of the scale of C02 to abate, not a forecast over time.
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The opportunity to decarbonise industry and
commercial
Our analysis indicates 50% of the East Coast region’s total I&C gas consumption could switch to low-
carbon hydrogen by 2037, abating over 4 MtCO₂/year.
Total I&C decarbonisation potential Key figures for the East Coast region:
3
Through fuel switching the I&C sector from natural gas, there is
the potential to save up to 50% of the East Coast region 2 59 58
emissions by reducing over 4 MtCO2/year by 2037, equivalent of
up to 7% of the UK’s total I&C emissions. 1
60 60
There is potential for further carbon savings as residual
emissions from Blue Hydrogen are replaced with over 5 GW of
Green Hydrogen projected to come online by 2037 (see pp 36). 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037
Total UK I&C emissions Emissions abated through fuel switching
ECH₂ can help deliver the benefits of switching 23.1 TWh of natural gas usage to low-carbon hydrogen by 2037, abating up to 7% of total
UK I&C emissions.
Note: See methodology section to understand the assumptions and data used in assessing I&C demand and decarbonisation.
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* Total UK I&C emissions is indicative of the scale of C02 to abate, not a forecast over time.
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The opportunity to decarbonise power
The UK Government has set the ambition of having a zero carbon power grid by 2035. The East Coast
region has the potential to fuel switch over 34 TWh of natural gas based power generation to hydrogen,
abating over 12% of total UK power emissions.
Total power decarbonisation potential Key figures for the East Coast region:
5
planning wider system flexibility. 17
4
Using the hydrogen forecasts collected from power generators,
3
there is a potential for emissions saving over 6 MtCO2/year,
equivalent of over 12% of the UK’s total power emissions. 49 2
1
ECH₂ will be vital to ensure low-carbon hydrogen is supplied to 0
these power generators to provide a low-carbon alternative to
2028 2029 2030 2031 2032 2033 2034 2035 2036 2037
meet the UK ambitious 2035 Net-Zero target.
Total UK power emissions Emissions abated through fuel switching
There is an opportunity to decarbonise 6 MtCO2/year in power emissions by 2037 within the East Coast region if the UK Government
provides certainty in the strategic direction for low-carbon hydrogen in dispatchable power generation and if the ECH₂ network is built.
Note: See methodology section to understand the assumptions and data used in assessing power demand and decarbonisation
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* Total UK power emissions is indicative of the scale of C02 to abate, not a forecast over time
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The wider opportunity to decarbonise transport
Low-carbon hydrogen will play a role in decarbonising heavier transport applications, where longer
ranges are necessary, or as a feedstock in developing fuels for aviation and shipping.
Transport decarbonisation potential Key figures for the East Coast region:
The UK Government recognises the The UK’s Jet Zero Strategy has set out a The maritime sector accounts for 5% of UK
importance of hydrogen in decarbonising Net-Zero target by 2050 with a Net-Zero emissions. UK Government is committed to
heavier road transport applications (HGVs) target in domestic flights and airports in reach Net-Zero in maritime by 2050. The
which make up 19% of domestic transport England by 2040 which will help to reduce indirect use of Green Hydrogen, i.e. for the
emissions (18.6 MtCO₂e/year), and little sector emissions by 40%. An energy subsequent production of e-fuels or
progress has been made on cutting transition will include commercialization of ammonia, will be critical for the
emissions to date. 57 SAF, with 2030 the target to replace 10% of decarbonisation of international shipping
The Department for Transport (DfT) is set to jet fuel with SAF. 8 and reaching the UK targets. 61
define hydrogen’s role in decarbonising Hydrogen offers a viable alternative Based on responses received from the
road transport with a zero-emission HGV offering a 100% reduction in lifetime CO2 Consultation on domestic maritime
infrastructure strategy being published in emissions and no tailpipe CO2 relative to decarbonisation, hydrogen is viewed as a
2024. Furthermore, DfT is exploring kerosene. As well as up to £178bn/year by clean and safe fuel for 78% respondents. 62
hydrogen in clean transport technologies, 2050 and 60,000 jobs. 8 SAF production Immingham is home to the UK’s largest port
funding five hydrogen-fuelled road projects, could require 0.6-3 TWh of low-carbon by tonnage, accounting for up to 46 million
including to develop zero-emission hydrogen, increasing to 5-20 TWh tonnes of cargo annually. Located in the
emergency service vehicles. depending on the final mandate. 59 Humber Industrial Cluster this location
At least 4 hydrogen re-fuelling stations are Beyond the UK Government, companies are presents a unique opportunity to pilot and
expected to be built in the East Coast region setting Net-Zero targets. Manchester rollout a maritime hydrogen
by 2027. According to UK H2 Mobility Airports Group (MAG) owns the East decarbonisation model. 63
consortium of industrials, initial focus will be Midlands airport, a leading UK airport by
on the infrastructure in metropolitan areas number of aircraft movements in the East
and the major routes, progressing to Coast region. By switching to hydrogen, a
nationwide coverage by 2030. 34 58 total estimate of 1.4 MtCO₂/year from
aircraft serving East Midlands airport could
be abated based on current commitments.
60
ECH₂ has the potential to play a crucial role in achieving Net-Zero in heavy transport applications by delivering hydrogen to transport
hubs and supporting transport pilot trials
Note: See methodology section to understand the assumptions and data used in assessing transport demand and decarbonisation for East Midlands Airport
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The wider opportunity to decarbonise residential
heating
ECH₂ could enable over 100,000 homes to decarbonise within four potential UK Government pilot towns.
There are further carbon savings, up to 16% of the total UK residential emissions, through conversion of
wider rollout regions, should the UK Government wish to pursue hydrogen for heating.
Residential decarbonisation potential Key figures for the East Coast region:
58
Within the East Coast region, investigations are underway to
examine the possibility to convert four pilot towns through the 56
UK Government programme to low-carbon hydrogen which Up to 16% of total UK
could see over 100,000 residential properties in Scunthorpe, residential emissions abated in
10 pilot towns and rollout towns
West Yorkshire, Hull, and Teesside decarbonised by 2030 (see
pp 36).
MtCO2
8
There is up to 4 TWh/year of potential residential hydrogen
demand within these pilot towns, providing the potential to 6
abate up to 1 MtCO2/year in 2030 by switching natural gas to 4
low-carbon hydrogen.**
2
By 2037 this could be scaled to include 17 wider rollout towns,
abating over 9 MtCO2/year of residential emissions, or 16% of 0
the UK total residential emissions. ** 2030 2031 2032 2033 2034 2035 2036 2037
Using hydrogen as a tool to enable these residential emissions
savings will be dependant on the UK Government’s decision for Regional roll out emissions Total UK residential emissions
hydrogen for heat in 2026. Pilot town emissions Residential emissions abated
2023 2024 2025 2026 2027 2028 2029 2030 2035 2040 2050
CCC targets:
Neighbourhood sized trial Hydrogen for domestic • 50% of building heat demand met by
100% hydrogen heating heating decision Hydrogen town low-carbon sources
pilot online • Gas boilers phased out 65
Hydrogen village trial online H2 strategy:
• Hydrogen strategy report stated that
Plans developed for the demand for heat in buildings is up
hydrogen heated town to 45 TWh 66
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Note: See methodology section to understand the assumptions and data used in calculating residential demand and decarbonisation.
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* Total UK residential emissions is indicative of the scale of C02 to abate, not a forecast over time.
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4.3
Supports hydrogen
value chain
development
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East Coast Hydrogen is facilitating the creation of a
hydrogen economy
ECH₂ is using its Consortium Group to facilitate the creation of a hydrogen economy in the East Coast
region, providing a blueprint for other regions to follow.
122
credible partnerships Consortium
offtake agreements with • Share valuable insights on the region’s hydrogen demand, Members
industrial users production and storage forecasts through Consortium updates
and reports helping inform offtake agreements
• Further develop offtake agreements to include 3rd party
intermediaries such as a network owner/operator
424
is available when demand and supply comes online
intensive demand within the East
• Prioritise connection with known or confirmed future hydrogen
production facilities with large scale credible hydrogen Coast region
customers
ECH₂ can support the UK Government to strategically build out hydrogen transport infrastructure, utilising the Gas Networks’ customer
relationships to grow the nascent hydrogen market.
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East Coast Hydrogen is facilitating benefits across
the value-chain
ECH₂’s Consortium Group consists of producers, off-takers and transport and storage developers. The
Programme provides a combined strategic vision for stakeholders in the East Coast region to facilitate
cross-value chain benefits.
Transportation & • Stakeholders • Uncertainty on costs and • Provide greater clarity on potential
responsible for the benefits routes and associated costs during
Storage transportation and Feasibility phase
• Limited infrastructure
storage of hydrogen, readiness to transport 100% • Prove the viability of repurposing
incl. public gas grid, hydrogen assets
storage network and
• Regulatory limitations on • Determine a transition plan to low-
private hydrogen
current % hydrogen carbon hydrogen, incl. blending
network
blending capacity
ECH₂ will also support local stakeholders, including sub-regional and local governments, elected mayors and LEPs,
by providing more clarity on consumer usage of hydrogen, incl. safety measures and economic feasibility of 100%
hydrogen usage, so local authorities can plan for and achieve their decarbonisation ambitions.
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4.4
Catalyses wider
system benefits
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Whole energy system resilience and flexibility
The penetration of intermittent renewables in UK’s electricity mix is rising, creating challenges in
balancing supply with demand. Hydrogen-fuelled electricity generation with hydrogen storage can help
support a resilient energy system.
Future Energy demand in a resilience and flexible system (Illustrative) 67 Energy demand is inherently variable with
Average
the gas and electricity grids working to
Dispatchable annual
ensure resilience and flexibility in the
energy
Energy Demand
In a highly renewable electricity system, In a decarbonised electricity system with Molecules (gas) are easier and cheaper to
hydrogen power can help to manage: a high penetration of renewables, transport and store in large volumes, for
• System stability by providing challenges arise from the intermittency long durations, than electrons (power).
ancillary services that renewables of wind and solar, causing supply, in Hydrogen is currently the best option for
can’t solely provide, such as inertia or some periods, to be significantly higher seasonal energy storage in a
voltage control than demand. This can result in decarbonised UK energy system. 50
curtailment of generation. Hydrogen can enable the storage of
• System resilience and adequacy by
providing low-carbon, flexible Utilising excess power to produce Green excess renewable energy from the
generation capacity to meet peak Hydrogen can reduce curtailment costs by summer months, when demand is low, to
demand acting as a flexible source of power utilise in the winter months, when
demand. This hydrogen can then be stored demand is high.
• System cost by providing a network (in dedicated stores or line-pack) for times
balancing solution that is cheaper The UK has a high potential storage
when demand is higher, or renewable capacity in salt caverns and disused oil
than electricity storage generation is lower. and gas fields to meet the seasonal
The East Coast region has 64 power The East Coast region could develop variation in demand, with the East Coast
generation sites considering hydrogen 21GW of offshore wind energy capacity region having the potential for more than
who recognise the need for developing making it a strategic location to develop 10 TWh of storage capacity by 2050.*
low-carbon, dispatchable power.* electrolysers to ease local constraints
and reduce incurred curtailment costs. 69
Annual balancing costs in the UK power Monthly curtailment costs in the UK 70 Hydrogen storage requirement in a
system 68 System Transformation Scenario 71
60
2,500 250
Curtailment costs (£m)
1,500 150
100 20
1,000
500 50
0
0 0 2030 2035 2040 2045 2050
2018 2019 2020 2021 2020 2021 2022
ECH₂ can play a key role in providing whole energy system resilience and flexibility by connecting to hydrogen-fuelled power stations,
long-term storage facilities and Green Hydrogen production facilities.
* See chapter 3 on the ‘Vision of the East Coast’ to find the figures on hydrogen storage and power generation.
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Regional jobs and economic growth in the East
Coast region
The East Coast region is an important economic region within the UK with large capabilities in
manufacturing goods and services. To secure regional green growth and jobs, investment in
infrastructure is required.
Economic importance of
the East Coast region
Manufacturing is the largest sector within GVA by broad industry sector: East Coast region vs UK (excl. London)*
the East Coast region, generating £48.5bn
for the UK in 2021. Food Beverages and Manufacturing
Metal Products were the highest earning % of GVA by manufacturing
Education sectors in the East Coast
sectors, producing £13.6bn, up to 14% of
the manufacturing sector. Subsequently Social Services region
aligning to industries which are Electricity
forecasting the need for 6.1 TWh of low- 42% 16%12% 10%
Agriculture
carbon hydrogen by 2037 (see pp 26). 10%10%
Manufacturing companies need to ensure a Hospitality & Entertainment
smooth transition to a low-carbon Construction Other
alternative, whilst maintaining market Financial Services Food, beverages and tobacco
competitiveness. Metal products
Mining
If the infrastructure to support the
Other Coke, refined petroleum
transition of these hard-to-abate sectors is & chemicals
not developed the region runs a risk of Professional activities
seeing jobs and investment move either Rubber, plastic
Real Estate & non-metallic minerals
out of the region or abroad, putting the
local economy at risk. Transportation Machinery and equipment
Percentage point difference
* Data was collected from the Office of National Statistics (ONS) dataset titled ‘Regional gross value added (balanced) per head and income components. The latest available data for 2021 was used to calculate
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the regional GVA per head across the UK and the GVA by industry at current basic prices.
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Enhanced benefits of a decarbonised industrial
cluster
The region is host to two of the proposed CCUS transport and storage facilities, East Coast Cluster and
Viking. ECH₂ can help maximise the benefits to the region, by connecting large scale CCUS enabled
hydrogen production with demand across the East Coast region.
Realising the industrial cluster benefits by having an integrated hydrogen transport network to connect
the three selected CCUS clusters
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Contribution to the wider hydrogen economy
ECH₂ complements and enhances the hydrogen projects within the region, supporting the
interconnection of different users to facilitate a resilient hydrogen economy across not just the East Coast
region but also the UK as a whole.
Note: Project locations are the approximate relative location and may not be complete or accurate.
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OYSTER Project (Grimsby
Northern Endurance Partnership
Port)
Location: Grimsby Location: Teesside
Details: The OYSTER project aims to develop a combined wind Details: CO2 transportation and storage company which will
turbine and electrolyser system to advance the technologies deliver the onshore and offshore infrastructure needed to
needed for future offshore hydrogen production. 81 capture carbon from a range of emitters across Teesside and the
How ECH₂ aligns: ECH₂ can connect future hydrogen production Humber region, and transport to the offshore Endurance store. 84
with demand points within and beyond the region to facilitate How ECH2 aligns: ECH2 provides a viable opportunity for
greater use of renewable energy and deployment of Green industrial decarbonisation in the region, linking Blue Hydrogen
Hydrogen. producers with users.
Zero Carbon
Viking
Humber Project
Location: Humber Region and North Sea Location: Humber region
Details: Viking is developing a CO2 store in the North Sea, Details: Zero Carbon Humber brings together multiple industrial
connecting CCUS in the Humber region via Immingham and an and power generation partners to develop shared hydrogen
existing gas terminal in Theddlethorpe. The 55km Viking CCS infrastructure in the Humber region. 78
pipeline will transport up to 10 MtCO2/year. 82 How ECH₂ aligns: ECH2 will help Humber infrastructure to
How ECH2 aligns: ECH2 will support the scale up of the wider expand further by connecting hydrogen production and storage
value chain connecting large industrial emitters and users in the in Humber region with businesses and industries outside of
region who are looking to deploy both CCUS and low-carbon cluster to support their hydrogen trials and investment decisions
hydrogen. respectively.
Location: Nottinghamshire, Derbyshire and Northern Location: West Midlands and East of England
Leicestershire Details: The Hydrogen Valley project connects costal hydrogen
Details: East Midlands Hydrogen, pioneering the UK’s largest hubs with landlocked industries looking for decarbonisation
inland hydrogen cluster, is established to commercialise and solutions. The project is also at the heart of the UK’s strategic
deliver a hydrogen ecosystem. 14 road networks providing opportunities to test and scale re-
How ECH₂ aligns: East Midlands Hydrogen’s pipeline routing will fuelling technologies. 85
be designed as part of ECH₂. ECH2 will also ensure connection How ECH2 aligns: As demand in the region scales ECH2 will
of this 'sub-regional cluster' to storage in the North, enabling provide access to additional low-carbon hydrogen production
greater resilience and expansion opportunities. and storage.
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05
Programme dependencies
and enabling actions
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Programme timeline
The ECH2 Programme has been scoped as a 15-year project from feasibility through to commissioning of
new build and repurposed pipelines within the region and expansion to connect the East Coast with other
regions of the UK. The below is an indicative programme timeline, please see Chapter 3 for more detail.
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037
Funding Engagement with Ofgem on the suitability of available funding mechanisms to support the delivery of the Programme
mechanis
m
Feasibility Study
Feasibility
Pre-FEED
Pre-FEED Pre-FEED completion
Detailed design
Repurposing
Repurposi
ng Connection
New build
Commissioning
New build
The staged delivery approach of ECH₂ allows the Programme to take into account market and customers’ needs as they evolve over time
and ensures optionality in how hydrogen infrastructure is deployed in the region – so that it is deployed where and when it is needed.
Note: These timelines are indicative and could be subject to change as the programme progresses through FEED.
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Programme dependencies and critical enabling
actions
To support the delivery of ECH2 across the multiple phases of the Programme, there are critical enabling
actions that require the involvement of the UK Government, regulators (Ofgem and HSE) and networks.
These actions will not only unlock the benefits of ECH2 but also UK wide hydrogen ambitions.
Blending decision This decision will give • Lack of initial Providing evidence to the UK • Networks
2023 more clarity on the hydrogen supply if Government and regulator on • Other
potential of blending blending will not the feasibility of blending Transmission
hydrogen to provide firm, be allowed through the trials and insights System
high-volume offtake for from technical assessment to Operators
producers. support blending decision.
Hydrogen T&S The new business • The project The engagement with the UK • Networks
Business Models models will establish the delivery timeline Government, regulator and • Ofgem
2025 principles of UK being extended system operators to ensure • DESNZ
Government’s support for due to the delay in ECH₂ provides evidence to
hydrogen T&S projects. the announcement support the development of
It is critical that the new of a new business the T&S Business Models.
business models provide model
Policy & Regulatory
Hydrogen for Heat Although ECH₂ demand • Decisions can Providing evidence to the UK • Networks
Policy decision in is not based on heat better be taken on Government and regulator at
2026 demand, a positive pipe sizes and an early stage of the FEED to
decision on hydrogen for routes now to enable joint decision making
heat will allow the support a more on pipe sizing.
project to be scaled up. cost-effective
residental rollout
Safety Case: A decision on the safety • Added costs due Sufficient engagement with • Networks
approval case is currently to additional DESNZ and HSE to be aware of • DESNZ
outstanding, and a date research needed any changes to procedures. • HSE
for approval has not yet • The project • FutureGrid
been defined. This delivery timeline
process is critical to the being extended
deployment of hydrogen due to insufficient
infrastructure. approval
procedure
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Similarly, in the next stage of the ECH2 Programme, the networks, industry and statutory bodies will
need to continue to collaborate on addressing technical constraints, developing commercial frameworks
and engaging stakeholders.
Storage capacity Lack of sufficient storage • Loss of security of The UK Government and • Ofgem
can result in improper supply industry players need to work • DESNZ
energy balance during • Slowdown in the together to assess the storage • Storage
peak consumption. transition to capacity needs and support providers
hydrogen policy development that will
support hydrogen storage
Technical
projects.
Safety Case: There are no defined • Added costs due Engaging with HSE and • HSE
technical standards technical standards for to additional collaborating with projects
hydrogen transmission research needed assessing technical
and distribution pipeline • Project delivery requirements for the safe
design, and the timings timeline being transport of hydrogen to
for their establishment is extended ensure knowledge sharing.
currently uncertain.
Offtake Offtake agreements need • Project delays and Engaging with potential • Networks
agreements to be developed to unsuitable hydrogen users and providing • Hydrogen users
ensure cost efficiency of pipeline sizing them evidence needed to • Hydrogen
hydrogen production due to uncertainty support the decision to switch producers
projects and support around production to hydrogen. Ensure timelines • DESNZ
their deployment. volumes and are met for HAR1, HAR2 and
Commercial
Project reaching Mechanism to unlock • Projects delays Provide the evidence needed • Networks
FID capital is needed to • Missing to de-risk investment • Ofgem
ensure project can be opportunity to decisions and present strong • DESNZ
delivered. realise all the needs case.
benefits
Public acceptance Public acceptance drives • Networks’ costs go Engaging with potential • Networks
demand for hydrogen. up due to the lack hydrogen users to ensure that • Other
Public support for of demand and ECH₂ meets their needs, Transmission
hydrogen projects will insufficient conducting Consortium System
allow the hydrogen external activities to develop Operators
economy to develop. investments understanding of the • Ofgem
expected use of hydrogen in • DESNZ
the future energy system and
Stakeholders
Users’ hydrogen Network users' demand • The pipeline Continued engagement with • Networks
forecast plans may not materialise as design might potential system users and • Hydrogen
forecasted, resulting in become refreshing primary data producers
under-utilisation of unsuitable for collection at appropriate • Hydrogen users
assets or insufficient customers’ needs stages of the Programme to • Storage
capacity to connect all • Potential benefits ensure that pipeline design providers
customers. will not be meets customers’ needs.
realised Maintaining optionality within
routing and phasing.
The next phase of ECH₂ could not only provide the detailed analysis needed for the hydrogen infrastructure deployment, but also the
evidence base that is important for further development of the hydrogen economy in the UK. The support of the UK Government and
regulators are therefore required to move this Programme forward
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ECH2: a look ahead
ECH2 will build on the progress made, progressing the assessment of hydrogen infrastructure routing
options to the FEED stage. The Programme will continue to provide vital insights into how hydrogen
distribution can be delivered, enabling widespread benefits for industry and the environment.
If hydrogen is to play its full potential role in the future energy system, and if the ambitions of the UK Government’s Hydrogen
Strategy are to be realised, it is critical that the necessary midstream infrastructure is developed in a timely manner. Whilst there has
been progress across the value-chain, including T&S business model development, the expansion of Industrial Clusters, progression
of large scale hydrogen technology and consumer trials, there is still a lot of uncertainty across the supply-chain that is preventing
investment decisions from being made.
Over the coming stages of work, ECH2 will continue to collaborate with industry and government stakeholders to deliver the actions
outlined above, to support decision making and reduce uncertainty for the Programme and critical hydrogen projects more widely.
The UK Government has set ambitious hydrogen targets complemented by a strategy for policy change and
pro-active development by industry, however the lack of a clear regulatory framework impacts the drive for
Policy and consistent and sustained investment in hydrogen at pace.
regulation
The supply chains essential to the hydrogen economy are new and still evolving, with a variety of
approaches and technologies being explored globally. Additionally, work is still ongoing to define safety and
Technical technical standards for storage and distribution.
constraints
One of the biggest challenges for the nascent UK hydrogen industry is the cost of producing low-carbon
hydrogen compared to alternatives. Defining new business models is critical for growth of the hydrogen
Commercial economy.
framework
Although customers in the region understand the benefits of hydrogen, the wider public has limited
awareness of hydrogen as a low-carbon energy source and is unfamiliar with its expected use. Additionally,
Stakeholder uncertainty around when and how hydrogen will be supplied make it difficult for customers to commit to
transition.
engagement
The completion of Pre-FEED studies, which has provided detailed insights on hydrogen demand, technical feasibility of the
Programme, and routing options, makes the networks ready to progress to the next stage of work. Namely the FEED, which will
provide more detailed analysis of commercial, construction and engineering requirements, and allow continued engagement with
stakeholders to keep potential hydrogen demand up to date and ensure permitting from relevant authorities.
The FEED will form the basis of preparations for infrastructure delivery from summer 2024, contingent on government decisions and
access to funding.
Cadent, NGN and National Gas are currently engaging with Ofgem to secure FEED funding through the Net-Zero Pre-construction
Work and Small Net-Zero Projects Re-opener (NZASP). This Delivery Plan, which provides details on the Programme needs case,
benefits, and opportunities as well as a detailed Programme development plan, will feed into the Re-opener, supporting Ofgem’s
decision making. Subject to agreement with Ofgem the networks expect to submit the ECH₂ Re-opener in Q1 2024.
As ECH2 progresses through Phase 2 of the 15-year Programme, the Partners are committed to continuing to work with network users,
the UK Government and Ofgem to further develop the Programme, to ensure ECH₂ can unlock hydrogen ambitions and realise
decarbonisation across multiple sectors.
The Programme Partners will now further assess the identified routing options through the FEED. We will provide a further update on the
preferred routing options once that work is complete; taking into account UK Government policy decisions and users’ needs.
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Glossary
GWh Gigawatt-hour
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Bibliography
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41. Teesside Freeport, website
42. ABP, "Explore Port of Immingham," 2023
43. Leeds Bradford Airport, "Net-Zero Carbon Roadmap”, 2023
44. Teesside International Airport, "Airport To Pilot UK’s First Hydrogen Transport Trial," 2021
45. HMG, “Hydrogen Production Costs 2021,” 2021
46. HMG, “Hydrogen Net-Zero investment roadmap,” 2023
47. HMG, “Update to industry on conclusion of the CCUS Cluster Sequencing Track-2 expression of interest,” 2023
48. HMG, “Hydrogen Production Business Model / Net-Zero Hydrogen Fund: projects invited to negotiations,” 2023
49. National Grid, “Future Energy Scenarios,” 2023
50. Royal Society, “Large scale electricity storage,” 2023
51. IEA, “Global Hydrogen Review,”2022
52. ENA, “Britain's Hydrogen Network Plan,” 2022
53. Imperial College London, “The Role and Value of Hydrogen in Future Zero Carbon Great Britain’s Energy System,” 2023
54. HMG, “Regional and local authority gas consumption statistics,” 2021
55. DUKES, “Energy Statistics,” 2023 (43)
56. DUKES, “Provisional UK greenhouse gas emissions national statistics, ” 2022
57. HMG, “Transport and Environment Statistics 2021 Annual report,” 2021
58. UKH 2Mobility, website
59. HMG, “Pathway to Net-Zero aviation: Developing the sustainable aviation fuel mandate”, 2023
60. Cadent, NGN, and National Grid hydrogen forecasts
61. HMG, “UK Domestic Maritime Decarbonization”, 2022
62. HMG, “UK domestic maritime decarbonisation consultation: plotting the course to zero,” 2022
63. Associated British Ports, “Immingham”, website
64. Cadent, “Our Green Print Future Heat for Everyone,” 2021
65. CCC, Progress Report to Parliament, 2023
66. BEIS, UK Hydrogen Strategy, 2021
67. ENA, “A system for all seasons: a holistic approach to decarbonisation,” 2021
68. National Grid ESO, 2021
69. HMG, “Renewable Energy Planning Database: July 2023,” 2023
70. LCP, “Renewable curtailment and the role of long duration storage,” 2022
71. National Grid ESO, “Future Energy Scenarios,” 2023
72. HMG, “Grand Challenge: What is the Industrial Cluster mission,” 2020
73. HMG, “Carbon Capture, usage, and storage Net-Zero investment roadmap,” 2023
74. HMG, “Levelling Up the United Kingdom,” 2022
75. IDRIC, “Industrial Clusters,” website
76. Net-Zero Teesside website
77. HMG, “Carbon capture, usage and storage,” website
78. Zero Carbon Humber website
79. Viking CC, “Viking CCS Transforming the Humber into a Net-Zero SuperPlace,” 2023
80. East Coast Cluster, website
81. Project OYSTER, website
82. Viking CCS, website
83. Tees Valley Hydrogen Transport Hub, website
84. Northern Endurance Partnership, website
85. Hydrogen Valley, website
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86. HMG, “Consultation on a UK low carbon hydrogen certification scheme”, 2023
87. HMG, “Hydrogen production and industrial carbon capture business models”, 2023
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Appendix: Methodology | hydrogen demand
H2
Hydrogen demand methodology
This report has drawn upon data from National Gas, Cadent and NGN to assess the potential future demand for hydrogen (TWh) within
the region from I&C, power, transport and residential customers.
To establish the potential demand for hydrogen, the networks have focused on collecting primary data on large I&C and power
natural gas users who may convert to hydrogen, as well as potential new hydrogen users. Domestic and transport demand has been
modelled using mainly secondary data.
This section outlines each networks data collection approach, analysis of the data and any assumptions used to estimate demand.
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Appendix: Methodology | hydrogen demand
continued
High energy end-users which are directly involved in manufacturing or producing services or
goods. The major industrial sectors included within this report are divided into; Glass,
Industrial demand
Chemicals, Food & Drink, Steel, Manufacturing, Automotive Manufacturing, and Building
Materials.
End-users which engage in all commerce-providing services within the business, public, social,
Commercial demand
healthcare and educational sectors.
End-users that generate power from natural gas and export to the electricty grid, including
Power demand
large scale power generators and flex or standby generators
End-users which use natural gas for transport activities including freight (HGVs), aviation,
Transport demand
maritime, passenger transport (car, buses, trains).
End user is an individual or household that uses energy at domestic premises for their own
Residential demand
personal domestic purposes, rather than for business or commercial purposes.
Steel sector A network user that produces, manufactures, and processes steel.
A network user that designs, produces and manufactures motor vehicles including cars, light
Automotive sector
trucks, and commercial vehicles.
A network user that designs, produces and manufactures various types of glass and glass
Glass sector products including sheet glass, optical glass, glass fibre, household glassware, and glass used
in various fields such as construction, lighting and electronics.
A network user that produces or manufactures building materials for industrial, rural, marine
Building materials sector and other types of construction including gravel, cement, timber, stone & tiles, bricks & blocks,
mortar, plaster board, plastic, aggregates, asphalt, concrete, lime, metal and building products.
A network user that produces, manufactures or converts materials into organic and inorganic
Chemicals sector chemicals and their derivatives, including industrial chemicals, ceramic products,
petrochemicals, agrochemicals & fertilizers, polymers and fragrances.
A network user that produces and manufacture large scale products from raw materials,
Manufacturing sector involving clothing, computers, consumer electronics, electrical equipment, furniture, heavy
machinery, ships, and tools.
A network customer that produces, manufactures, and packages food and drink products from
Food & drink sector
raw food agricultural commodities and semi-processed food products.
A network user that provides educational services, including public and non-profit, or for profit
Education sector
institutions such as schools, community colleges, and universities.
A network user that provides healthcare services, including public and non-profit, or for profit
Healthcare sector
institutions such as trusts, hospitals, and clinics.
Natural gas consumption (based on Xoserve data) is Potential I&C and power hydrogen demand from private
1 assumed to be reflective of total energy requirement in 3 pipelines to producers, within Teesside region only, has
MWh been included within total hydrogen demand calculations.
No partial switching, off-takers will transition to 100% Charts present hydrogen demand coming on-stream at the
2 hydrogen (confirmed through stakeholder engagement). 4 dates provided, no additional profiling has been applied.
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Appendix: Methodology | hydrogen production
Hydrogen production capacity (GW) and annual supply (TWh) has been estimated based on primary and secondary data collected for
25 production sites across the East Coast region.
All hydrogen produced will be available to the wider Assumed that production commences at the beginning of
network, despite specific offtake agreements, private 2 the year online for all projects listed.
1 pipelines, and which network connects as it is assumed
that each of the networks will connect into these pipelines The UK Government’s Lower Heating Value (LHV) of
in the future for wider resilience and flexibility options. 3 hydrogen (KWh) is 33.4 kg/H2
All projects will go ahead as planned at the time of It is assumed that the plant load factor remains constant
4 forecasting (this is being monitored and updated as more 6 from year 2 onwards and that production remains at
information becomes available) maximum nameplate capacity (see table below]).
Green Hydrogen
Year of Operation Year 1 Year 2 Year 3
Availability 0.95 0.95 0.95
Load Factor 0.70 0.90 0.90
Plant Load Factor 0.67 0.86 0.86
Blue Hydrogen
Year of Operation Year 1 Year 2 Year 3
Availability 0.95 0.95 0.95
Load Factor 0.50 0.90 0.90
Plant Load Factor 0.48 0.86 0.86
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Appendix: Methodology | storage
Primary data has been collected from all announced or operational hydrogen storage projects within the region. A literature review
has been completed on all current or potential natural gas storage sites, demonstrating the region’s potential hydrogen storage
availability and requirements to meet the future necessities of future hydrogen transmission and distribution system.
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Appendix: Methodology | decarbonisation & fuel
switching
Decarbonisation methodology
Decarbonisation assumptions
The potential abated C02 emissions from the identified The UK emissions factor for aviation turbine fuel: 0.25 kg
demand sites will be considered as Scope 1 (direct) 4 C02e per kWh
1 emissions from natural gas or aviation turbine fuel
combustion For new hydrogen demand, it is assumed this has come
5 from an increase in production not from other processes
The UK Government’s emissions factor for natural gas: 0.18 which have fuel switched
2 kg C02e per kWh
To calculate the UK total I&C sector emissions, we have
3 Hydrogen is displacing natural gas through fuel switching 6 only taken data from the ‘Business’ sector emissions in the
UK Governments ‘Provisional emissions for 2022’ dataset
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© ECH₂ 2023
ECH₂ and its logo are trademarked and protected
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