East Coast Hydrogen Delivery Plan Report 1699916094

Download as pdf or txt
Download as pdf or txt
You are on page 1of 102

CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
East Coast Hydrogen
Delivery Plan
November 2023

CROP MARKS
CROP MARKS

MARGIN

0
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

ECH2 and its logo are trademarked and protected.

CROP MARKS
CROP MARKS

MARGIN

1
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
Contents

Foreword 4

Executive Summary 5-12

Chapter 1: Introduction to East Cast Hydrogen 13-18

Chapter 2: A vision for hydrogen in the East Coast region 19-46

Hydrogen demand 25-36


Hydrogen production 37-42
Hydrogen storage 43-46

Chapter 3: East Coast Hydrogen Delivery Plan 47-60

East Coast Hydrogen routing overview 48-50

National Gas routing and phasing 51-52

NGN routing and phasing 53-54

Cadent routing and phasing 55-56

East Coast Hydrogen Programme Roadmap 57-59

Chapter 4: Defining the East Coast Hydrogen opportunity 61-84


Delivers on the UK Government commitments 63-68
Creates a pathway to decarbonise the East Coast region 69-74
Supports hydrogen value chain development 75-78
Catalyses wider system benefits 79-84

Chapter 5: Programme dependencies and enabling actions 85-90

Programme timeline 86

Programme dependencies and next steps 87-90

Glossary 91

Bibliography 92-94

Appendix 95-99

Methodology 95-99
CROP MARKS
CROP MARKS

MARGIN

2
MARGIN

MARGIN MARGIN
CROP MARKS CROP MARKS
MARGIN MARGIN
MARGIN

MARGIN
3
3
MARGIN

MARGIN
MARGIN MARGIN
CROP MARKS CROP MARKS
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

Lord Chris Rowell Ruth Tracy Will


Houchen Chair of North Carver Brabin Morlidge
Major of Tees East and CEO of Greater Mayor of West CEO of D2N2
Valley Yorkshire Net Lincolnshire LEP Yorkshire Local Enterprise
Zero Hub Partnership
CROP MARKS
CROP MARKS

MARGIN

4
MARGIN

MARGIN MARGIN
Executive Summary
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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)

CROP MARKS
CROP MARKS

MARGIN

6
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

Government progress ECH2 Programme actions

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

ECH2 Programme achievements

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.
CROP MARKS
CROP MARKS

MARGIN

7
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

Demand Production Storage

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

44% 4.4 GW Over 19%


annual I&C and power Green Hydrogen capacity of the UK’s storage
natural gas demand is planned by 2030, requirements (56 TWh)
potentially switched to meeting 88% of the UK will be met by 2050
hydrogen Government targets within the region39

Up to 12 22 projects 10.7 TWh


MtCO2/year provided primary data
and forecasts to support
storage to be deployed
by 2050
avoided I&C, power, and
network development
aviation emissions
helping the UK to achieve
its 6th Carbon budget**

Momentum and ambition across demand, production and storage has grown since the Feasibility Study

Demand forecasts have been


refined through primary user 4.5 GW Up to 0.7 TWh
data and further secondary of additional storage capacity
of additional production
analysis under development in
capacity under development
onshore salt caverns

*Total hydrogen demand includes (23.1 TWh) I&C demand, (34.5 TWh) power demand, (5.6 TWh) transport demand.
CROP MARKS
CROP MARKS

** 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.
MARGIN

8
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.
CROP MARKS
CROP MARKS

MARGIN

9
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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

Decarbonisation of • ECH₂ will help I&C, power and transport


the East Coast region enterprises within the East Coast region to
decarbonise their operations

• The East Coast region is home to multiple 58 TWh up to 12


pilots and research projects that require Natural gas could MtCO₂/year
hydrogen infrastructure to test be converted to Abated across I&C,
decarbonisation opportunities across a hydrogen by 2037* power and
variety of sectors transport sectors**

Hydrogen value chain


development • ECH2 supports value chain development and
growth of a hydrogen market through its
Consortium Group

• The Programme is based on hydrogen 122 53


H2 forecasts received directly from users, Number of Customers who
providing certainty on the volume and timing stakeholders across provided primary
of need the value chain who hydrogen forecasts
support ECH₂

Wider system • ECH₂ can help to provide whole system


benefits resilience and flexibility providing access to
storage and reducing curtailment via Green
Hydrogen facilities.

• The programme additionally supports 21GW offshore £27bn GVA


regional jobs and economic growth, wind capacity is
potentially safeguarding £208bn/year GVA due online by 2030 and 360k jobs
with 17 Green
(based on 2021 figures) by avoiding business through the
closures and providing an additional £27bn development of a
GVA and across the North East, East Hydrogen facilities
expected full hydrogen value
Midlands, Yorkshire and Humber region up to chain ***
2050.

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.
CROP MARKS
CROP MARKS

** 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.
MARGIN

10
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

UK Government and wider industry actions ECH2 Programme actions

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

High level ECH2 timeline


2023 2024 2025 2026 2027 2028 2029 2030 2035 2040 2050

Pre-FEED

Delivery Potential UK Target NIC target UK Net-


Plan funding of 10 GW for a core Zero Target
published decision installed H2 national
FEED (multiple studies for different production hydrogen
sections see Chapter 3) capacity network

Detailed design, planning, land rights and consents,


procurement

Connection of repurposed pipelines Connection of the network


into further regions and
Build and connection of new pipelines future growth opportunities

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.
CROP MARKS
CROP MARKS

MARGIN

11
MARGIN

MARGIN MARGIN
CROP MARKS CROP MARKS
MARGIN MARGIN
MARGIN

MARGIN
12
12
MARGIN

MARGIN
MARGIN MARGIN
CROP MARKS CROP MARKS
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
DRAFT FOR DISCUSSION

01

Introduction to
East Coast Hydrogen

CROP MARKS
CROP MARKS

MARGIN

13
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

Connect supply and demand

• The East Coast region hosts concentrated industrial energy demand,


significant gas storage and offshore wind power, making it an obvious
location to produce low-carbon hydrogen. By providing critical
midstream hydrogen infrastructure, the Programme can enable
widespread decarbonisation benefits through fuel switching from fossil
fuels.
• Through its Consortium Group, ECH₂ has identified up to 83 TWh of
annual hydrogen production and over 63 TWh of annual I&C, power
and transport hydrogen demand, potentially materialising over the next
15 years.*
• It is essential that a clear plan for the transportation of hydrogen is
developed to provide certainty for those at both ends of the value chain
looking to make investments.
• ECH₂ will connect hydrogen production projects with demand sites,
enabling large scale use in I&C and power, and potentially,
transportation and residential sectors.

Decarbonise multiple sectors Support delivery of UK Government targets

• 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.

Provide UK energy system resilience and


Catalyse wider system benefits
flexibility

• 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.
CROP MARKS
CROP MARKS

MARGIN

14
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

Jon Butterworth, National Gas CEO


CROP MARKS
CROP MARKS

MARGIN

15
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

The Hydrogen Industry Value-Chain

Cross-value chain
Participants
Hydrogen
Production

Demand

Local Stakeholders
CROP MARKS
CROP MARKS

MARGIN

16
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

Key project milestones

2022 2023 2024

Feasibility Study 1st Consortium event Phase 2 Public Delivery Plan


published launch event launch
3rd Consortium
1 event 4
2
Consortium Group created 2nd Consortium Start of Regulatory Pre-FEED studies
event Pre-FEED engagement started completed
3 5

Key Programme achievements

1 Feasibility Study completion 4 Delivery Plan


The Feasibility Study established the strategic vision and This Delivery Plan represents the culmination of the Pre-
opportunity for ECH₂. FEED phase of the Programme. It has summarised the
findings of the Pre-FEEDs and presents the ECH₂ needs
case, including the benefits that could accrue to various
2 Consortium Group growth stakeholders, and a detailed plan for further Programme
development.
The Partners work closely with hydrogen off-takers,
producers and storage providers. The number of members
in the ECH₂ Consortium is now 122, including
representation from a variety of sectors including the NHS
and educational bodies, demonstrating the level of demand
for a hydrogen economy in the region.

3 Progress on regulatory engagement 5 Pre-FEED completion (end 2023)


The Partners have commenced Re-opener engagement, one As part of the Pre-FEEDs, the Partners will complete a
of the key milestones in obtaining funding for the technical feasibility assessment of the Programme,
Programme. The ‘needs case’, being the most critical part of identifying route design options and indicate which
the submission, has been presented to Ofgem and DESNZ, pipelines could be repurposed and where new assets are
helping to maintain the Programme’s alignment with the needed.
UK Government’s strategy.

Programme Partners’ accomplishments supporting the project

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.
CROP MARKS
CROP MARKS

MARGIN

17
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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

Purpose of the 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.

Structure of the Delivery Plan

Goals Chapter Details

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.
CROP MARKS
CROP MARKS

MARGIN

18
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
02

A vision for hydrogen


in the East Coast region

CROP MARKS
CROP MARKS

MARGIN

19
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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

Demand Production Storage

H2

Over 63 TWh/year Over 83 TWh/year Over 19%


Identified potential hydrogen Current planned hydrogen production of the UK’s storage requirements (56
demand by 2037 for industrial, by 2037 in the East Coast region TWh) will be met by 2050 with
commercial, power and aviation Rough accounting for 10 TWh 39
companies looking to decarbonise
their operations*

45% Rise in green UK’s Largest Permian


Saltfield
Of total forecast hydrogen I&C and The East Coast region could meet Huge potential for salt cavern
power demand is in the Humber and 88% of the UK’s target for 5 GW of development in the region for
Teesside Industrial Clusters. The Green Hydrogen by 2030 hydrogen storage
remaining 55% of demand will come
from Yorkshire and the East Midlands

64 Power Sites Up to 30% Up to 4 TWh


Make up 55% of total announced Of all projects down selected for Announced storage within the East
hydrogen demand by 2037 funding negotiations with UK Coast region by 2037 to provide
Government are located within the system resilience and flexibility
East Coast region

*Total hydrogen demand includes (23.1 TWh) I&C demand, (34.5 TWh) power demand, (5.6 TWh) transport demand.
CROP MARKS
CROP MARKS

MARGIN

20
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

H2 Identified potential annual I&C and power hydrogen demand


Hydrogen Demand between 2028 to 2037 (based on primary forecasts from
industry)
Using stakeholder data, over 63 TWh/year of I&C, power, and
transport hydrogen demand is identified within the region by 2037. 80
Hydrogen demand has the potential to grow at an annual rate of
27% between 2028 to 2037. A trend that is anticipated to increase 70
as the UK Government and industries push forward with their
decarbonisation strategies, the Hydrogen Business Model is 60 +27%
established, and further certainty on the construction of a network +27%
annual growth
to 2037
which increases the feasibility and attractiveness of switching to 50
hydrogen for potential users.

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

Announced annual hydrogen production between 2025 to 2037


Hydrogen Production 90

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

The majority of hydrogen produced in the mid-term will be Blue 50


Hydrogen (from Steam Methane Reforming (SMR) or Autothermal
TWh

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

There is a large pipeline of hydrogen production capacity, but 10


according to producer surveys 52% is still in the pre-planning stage
of development. To unlock a rapid scale up of production between 0
2028 2029 2030 2031 2032 2033 2034 2035 2036 2037
2025 to 2032, clarity on support from the UK Government will be
required. Total Production Green Hydrogen Blue Hydrogen

Hydrogen Storage Key figures on storage

High levels of long-term storage will be essential for the UK to


provide energy security, system resilience and flexibility without Up to 4 TWh of potential hydrogen storage by 2037
unabated natural gas in a grid powered by renewables.
ECH₂ can meet over 19% of the UK’s storage requirements of 56
TWh as outlined in National Grid System Transformation scenario East Coast region holds the largest Permian saltfield in
by 2050. 18 the UK for salt cavern development
Note: See methodology section to understand the assumptions and data used in assessing hydrogen demand, production and storage.
CROP MARKS
CROP MARKS

* In the case of Scunthorpe, Cadent have accounted for town demand in pipeline sizing. See chapter 3 for more information.
MARGIN

21
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

Connecting production with demand

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)

131 TWh total annual I&C and power natural


TWh gas consumption in 2022/23 within the region*
140
130
120 83 TWh identified
potential hydrogen
110 production
100
90
80
70
60
50
40
63 TWh identified potential
30 I&C, power and aviation
20 hydrogen demand

10
0
2028 2029 2030 2031 2032 2033 2034 2035 2036 2037

Total Hydrogen Demand Natural Gas Consumption Total Hydrogen Production

Note: Total natural gas consumption is indicative of the scale of natural gas to fuel switch or abate, not a forecast over time.
CROP MARKS
CROP MARKS

MARGIN

22
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.
CROP MARKS
CROP MARKS

MARGIN

23
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS

Image Source: Uniper


CROP MARKS
CROP MARKS

MARGIN

24
MARGIN

24

MARGIN MARGIN
2.1

Hydrogen demand
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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

Top natural gas consuming sites investigated within the


424 East Coast region
Cadent National Gas NGN

Received primary Received primary Secondary data has


Demand sites expected to switch to hydrogen based on a data from 146 top data from 10 sites been collected from
191 set of assumptions gas consuming sites which directly the top 200 natural
in the East Midlands connect to the gas customers and a
network, including National Gas set of assumptions
Demand sites confirmed to switch to hydrogen based on potential hydrogen network in the have been applied
156 forecasts consumption over region on current to ascertain the
time and future natural gas demand, future demand for
decarbonisation future hydrogen at 191 of
Customers who have provided hydrogen forecasts for plans. decarbonisation the sites identified.
53 multiple sites plans and potential
hydrogen demand.

Potential future hydrogen I&C demand profile

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.
CROP MARKS
CROP MARKS

MARGIN

26
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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

Image Source: SSE Thermal


CROP MARKS
CROP MARKS

MARGIN

27
MARGIN

27

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
Sector Identified Sector commitments Potential technologies to Comments by key
hydrogen decarbonise industrial process sector player
demand that uses natural gas

Other

Chemicals “We have processes that are


not practical
Chemical Industries to decarbonise
9.44 TWh Association stated Net- without hydrogen.”
Zero target by 2050. 20

Tronox

Food & Drink “Hydrogen is a potentially


very real option for our
UK Food & Drink decarbonisation.”
3.28 TWh Federation Net-Zero
target by 2040. 21

Steel Pledged to reduce “Hydrogen is a replacement


emissions by 2035, for Natural Gas; it is critical
committing to using for our industrial Process.”
2.85 TWh hydrogen and CCUS. 22

Building “We are looking at a 20%


Materials blend with the intention to
Cement and construction move to 100% hydrogen in
2.69 TWh materials to reach Net- the future.”
Zero by 2050. 23

Healthcare “Hydrogen is a key


decarbonisation technology
NHS has a Net-Zero that a number of NHS Trusts
1.52 TWh will seek to utilise where
target by 2040. 24
technically and
commercially viable.”*

Glass “Hydrogen is above all a


new solution to decarbonise
British Glass association our industrial processes that
1.24 TWh pledge Net-Zero target are unsuited to
by 2050. 25 conventional solutions.”

Manufacturing “Hydrogen could replace


natural gas as the main fuel
Net-Zero aim by 2050 for our lime kilns.”
1.24 TWh and ambition to reduce
emissions by 2035. 26

Automotive “We see hydrogen


Manufacturing Many OEMs are setting generated from renewable
ambitious cross-value sources as an important
0.68 TWh component in achieving
chain decarbonisation
targets by 2040. 27 decarbonisation.”

Education "Green Hydrogen presents


an opportunity to use a
UK’s education sector carbon free fuel for
0.20 TWh targeted to be Net-Zero heating.”
target by 2030. 28

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
CROP MARKS
CROP MARKS

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.
MARGIN

28
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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

It is anticipated that the networks will


build out from areas of large scale
production in the Track-1 Industrial
Clusters and Freeports within the Humber
region, Teesside, and East Midlands. The
ambition will then be to connect demand
locally and expand regionally to meet the
UK Government’s targets to reduce
industrial emissions by two-thirds by 2035.
23.1 TWh/year of hydrogen demand is
spread throughout the East Coast region,
with key centres of demand in the Humber
region (32%), Teesside (23%,), Yorkshire
and East Midlands (33%). Pipeline
infrastructure is required to connect assets
within clusters but also to connect those
clusters to the wider region.
Despite the concentration of demand within
these centres, the sites are geographically
dispersed. The main difficulty in switching to
hydrogen, as indicated by customers, is the
lack of infrastructure that will connect all 270
sites with producers and storage facilities.
1.1 TWh/year hydrogen demand is on the
border of the East Coast region in
Northampton and Tyneside. ECH2 will look to
reach these customers by constructing, or
repurposing, pipeline infrastructure in later
phases subject to market maturity and early
network development.
This also applies to a further 128 GWh/year,
of commercial and industrial demand (1 site)
which is located outside of the demand
centres identified on the map.

Nottingham & Derbyshire South Humber North Humber


33 sites 12 sites 33 sites
33% of demand is from Food & 51% of demand is from Chemical 79% of demand is from Chemical
Drink and Building Materials sector sector sector
Northampton
West Yorkshire South Yorkshire Leicestershire 3 sites
47 sites 21 sites 25 sites 54% od demand
30% of demand is from Chemicals, 64% of demand is from Steel 51% of demand is from Building is from Food &
23% from Glass sector sector Materials, 32% from Food & Drink Drink, 42% from
the Healthcare
sector
Teesside North Yorkshire Tyneside
43 sites 30 sites 22 sites
66% of demand is from Chemicals, 80% of demand is from Food & 31% of demand is from Healthcare,
15% from Steel sector Drink sector 20% from Chemicals sector

Note: See methodology section to understand the assumptions and data used in assessing I&C hydrogen demand.
CROP MARKS
CROP MARKS

MARGIN

29
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

“There are so many variables to factor


“Hydrogen is a lifeline [for “We have manufacturing processes [when considering relocating
organisations] that have no way else to that cannot be electrified unless we operations] … but if all operations close
get to Net-Zero” gain significant investment” in the East Midlands 300 jobs would be
affected”

CROP MARKS
CROP MARKS

MARGIN

30
MARGIN

30

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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: Case study:


British Sugar Wienerberger Ltd
British Sugar is the leading producer of sugar for the “Availability of timely alternatives to natural gas, at scale, and
British and Irish food and beverage markets. The with a price that will allow us, with some optimisation of our
company has set a goal of reducing its carbon footprint processes, to continue to manufacture building products that
by 30% by 2030. are viable for our customers is the main challenge for the
company in decarbonising operations.” – Keith Jackson, Head of
“For full decarbonisation, availability of renewable
Thermal Process & Projects.
sources of energy in dispersed industrial locations, with
sufficient supply capacity and distribution is going to be Wienerberger is currently exploring a range of energy efficiency
critical, and specifically decarbonisation of heat will be and decarbonisation options across the whole product lifecycle,
the most significant challenge as we move towards Net- with electrification and hydrogen key solutions for reducing
Zero.” – Phillip McNaughton, Head of Decarbonisation. dependency on natural gas.

Case study: Case study:


Liberty Steel Hanson
Liberty Steel needs around one million Hanson UK is a leading supplier of heavy
tonnes of hydrogen by 2035 to reduce building materials to the construction
emissions across its operations. industry. With these industries requiring
high levels of energy, Hanson is working
“One of the key barriers to widespread on sustainable low-carbon building
adoption of hydrogen is the lack of materials and solutions for the future.
network infrastructure which connects
producers with users.” - Ed Heath-Whyte, Hydrogen is seen as a solution for
Head of Environment and Sustainability. reducing carbon emissions whilst
maintaining productivity, but scale,
Liberty Steel is exploring the feasibility of cost and integration with the wider
end-to-end Green Hydrogen production, production plants are all key
transport and end use as part of the challenges.
Sheffield-based HYDESS project. If
successful, the project can be rolled out “Hydrogen is critical for industrial
nationally. decarbonisation. The challenge with
hydrogen is generating it affordably
and at the scale we need. That’s where
we see pipeline connection to future
hydrogen infrastructure as a decent
solution.” - Elliot Wellbelove, Carbon
Innovation Manager.

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.
CROP MARKS
CROP MARKS

MARGIN

31
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
Industrial and commercial case studies (cont.)

Case study: University


of Nottingham
“One of the biggest challenges for the University is decarbonising the way it heats buildings and water. The University can use
hydrogen to decarbonise the existing heating system infrastructure without the need for extensive capital investment and disruption.”
- Andy Nolan, Development and Sustainability Director.
The University of Nottingham has a strong and varied hydrogen research portfolio, focusing on hydrogen storage and utilisation. The
University currently generates its own hydrogen through electrolysis, but having a pipeline supply could allow the University to
explore new opportunities.

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.

Case study: Forterra

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.
CROP MARKS
CROP MARKS

MARGIN

32
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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

38.5% of the UK electricity was


generated from natural gas in 2022.
Hydrogen-fuelled power stations offer a
low, or zero carbon, flexible alternative
that can make use of the UK’s existing
gas infrastructure to provide a resilient
and flexible energy system. 29
64 power sites make up 55% of total
potential hydrogen demand in 2037. This
emphasises the critical role of hydrogen
fuelled power (and gas with post-
combustion CCUS) in supporting the
ambitions to deliver decarbonisation
targets through electrification and having
a Net-Zero power system by 2035. 30
South Humber and Nottinghamshire &
Derbyshire represent the two largest
power demand centres in the region,
potentially requiring over 31 TWh/year
of hydrogen by 2037. A cost effective
way to meet this demand is via a
hydrogen transmission and distribution
network that delivers low-carbon
hydrogen from key production centres
across the region, most notably in the
Humber region and Teesside to a range
of sites including ex-coal-fired power
station sites. 31
Based on forecasts received from power
companies, Project Union will play an
important role in meeting this demand by
transporting hydrogen across the region
and offering direct connections to large
users.

Consortium Members - Power Nottinghamshire & Teesside


Derbyshire
29 59% 5 1%
power sites of total Power power sites of total Power
demand demand

South Humber North Humber

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.
CROP MARKS
CROP MARKS

MARGIN

33
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

Case study: West Case study:


Burton Energy Mercia Power Response
West Burton is committed to Mercia Power Response, a key provider of
decarbonising its power stations so it flexible power response services to the UK grid, is
can continue to provide flexible and currently looking at the feasibility of changing assets
efficient energy to the grid. It is to use hydrogen. One of the biggest challenges for
currently exploring how it can convert the company is ensuring that there is a reliable
its Combined Cycle Gas Turbines (CCGT) hydrogen supply to give the business the confidence
to run on a blend of hydrogen and to switch to hydrogen.
natural gas.
“It is very exciting to be a part of ECH₂ as it helps us
“ECH₂ could support the West Burton to ensure the future of our business by establishing a
decarbonisation strategy by enabling clear, reliable and secure hydrogen supply in the
the development of the critical Midlands for power generation.” - Courtney Depala,
infrastructure needed to supply Research and Development Director.
hydrogen at scale to the West Burton
plant.” - Heather Wilkinson, Growth and
Strategy Manager.
Case study:
Statera
Statera is developing a combination
of green hydrogen production,
hydrogen storage and hydrogen
fuelled thermal generation projects
to provide energy storage and
dispatchable generation and
support the further growth of
intermittent renewable energy
sources.

“ECH₂ is critical to our objectives as


it will enable us to connect our
existing thermal generation projects
in both Teesside and the Humber
region, as well as others in
development, to both hydrogen
production and storage to enable
their transition to a low-carbon fuel
source” -Charlie Hill, Hydrogen
Director

Case study: Keadby Hydrogen Power Station

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.
CROP MARKS
CROP MARKS

MARGIN

34
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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

Low-carbon hydrogen is expected to play a


role in decarbonising heavier transport
applications (HGVs), aviation, and shipping,
where energy density requirements,
infrastructure constraints, and re-fuelling
times favour hydrogen-based fuels. 12 32
According to the UK Government’s
'Hydrogen Transportation and Storage
Infrastructure’ report, hydrogen demand for
domestic transport could reach up to 21
TWh/year by 2035. However, there is
uncertainty about the scale and growth of
hydrogen demand in transportation, with
the question of which decarbonisation
technology will dominate, and the timing of
infrastructure rollout, making it difficult to
forecast at scale. 33 34
That said ECH2 has obtained a forecast from
East Midlands Airport of 5.6 TWh/year
hydrogen for zero-emission vehicles and
ground and aircraft power units. More
customers are expected to convert
operations and technology to hydrogen as
the market and policy environment evolves
for this case. The region is also home to
Altalto a commercial scale waste-to-jet-fuel
facility being built in Immingham by
Velocys.
In the East Coast region, there are numerous
hydrogen transport projects funded by the
UK Government to either drive innovation in
carbon neutral transport technology or to
demonstrate the technology on a large scale
in the ‘real world’. 12
• Road: Several cities and local authorities
in the Yorkshire and Nottingham region
have received funding to deploy zero-
emission buses, including hydrogen, Key figures on transport
under the ZEBRA Programme. 35
• Marine: 40 marine hydrogen projects have
been funded under the three strands of 1 Transport Hub - Tees Valley is the UK first transport hub, receiving £20m to
the Clean Maritime Demonstration encourage the growth and development of hydrogen in transport. 38
Competition (CMDC), many in the region,
such as Project Mayflower which aims to 4 Hydrogen re-fuelling stations – Between 2027 and 2032 multiple refueling
supply 20 MW of Green Hydrogen to the stations will be developed across Teesside and South Yorkshire. 39 4o
Port of Immingham. 12 36
• Aviation: £55.8m will be available to 2 Ports - Immingham Port and Tees Valley are major freight transport hubs
support SAF projects across the UK investigating the role of hydrogen for the port operations and shipping. 41 42
through to construction. In addition,
funding will be provided to the ULEMCo
project at Teesside Airport to produce 3 Airports - East Midlands, Teesside International and Leeds airports, have
hydrogen-fuelled ground vehicles. 12 37 stated their intentions to use hydrogen to decarbonise part of their airport
operations. 43 44

Note: Potential hydrogen demand for transport has only been quantified within this report where specific sites provided primary data for hydrogen forecasts.
CROP MARKS
CROP MARKS

MARGIN

35
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

Connecting I&C and


power in towns
As networks start to invest in repurposing or
building new pipelines to reach large I&C
customers across the region, it is possible to
build in the optionality to convert the existing
gas distribution network to enable the
transportation of low-carbon hydrogen to
towns. This could be a solution for
decarbonising additional hard-to-abate
industries, commercial buildings, homes that
are hard-to electrify and hospitals.

Profile of pilot town


conversions
In 2025, the UK Government announced plans
for a series of hydrogen pilot towns, inviting
gas networks to put forward potential
locations.
Four of the potential locations identified are
within the ECH2 region in Scunthorpe, Hull,
West Yorkshire, and Teesside.
These towns are considered options due to
their proximity to hydrogen production and
demand centres, which host a wide range of
I&C customers. In Scunthorpe and West
Yorkshire, over half of identified hydrogen
demand is from I&C and power customers.
Of the 7.8 TWh/year of hydrogen demand
identified in the pilot towns, ECH₂ expects to
connect to 57% of demand by 2030,
irrespective of the UK Government’s decision
on hydrogen for heat. Transitioning the
network to supply hydrogen to key customers Note: Pilot town and regional rollout to residential users is dependant on
including the NHS, food & drink decisions from UK Government.
manufacturers, chemical and steel producers,
and power generators.
Whilst residential demand has not been
factored into ECH2 routing options at this
Scunthorpe Pilot Town West Yorkshire Pilot Town
stage, it is important that ECH2 plans are 61% of demand is required for 131 66% of demand is required for 84
developed in line with any town pilots and industrial, 517 commercial sites and 1 industrial and 182 commercial sites
networks are ready to unlock opportunities for power site
over 100k homes that choose to take 15,396 properties could be decarbonised
advantage of hydrogen for heat from 2026 58,154 properties could be decarbonised via hydrogen
(pending decision by UK Government). via hydrogen

Teesside Pilot Town Hull Pilot Town


21% of demand is required for 14 25% of demand is required for 40
industrial, 182 commercial sites and 1 industrial and 178 commercial sites
power site
18,398 residential sites could be
15,341 residential sites could be decarbonised via hydrogen
decarbonised via hydrogen

Note: See methodology section to understand the assumptions and data used in assessing hydrogen demand in towns.
CROP MARKS
CROP MARKS

MARGIN

36
MARGIN

MARGIN MARGIN
2.2

Hydrogen
Production
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

Types of low-carbon hydrogen production methods

Estimated 2030 hydrogen


Technology
Characteristics construction production GHG
group
period emissions ranges 45

• Created by Steam Methane Reforming (SMR) or Autothermal ATR with CCS:


Reforming (ATR) plants which separate hydrogen from natural gas 16 gCO₂e/MJ
Blue 3-4 years
with the addition of carbon capture and storage (CCS) technology SMR with CCS:
to capture and store the carbon dioxide produced by the process. 21.4 gCO₂e/MJ

• Created through electrolysis. Clean electricity from the power grid


or surplus renewable energy sources is delivered to electrolysers Grid electrolysis:
to split water into its components of hydrogen and oxygen, 78.4 gCO₂e/MJ
Green emitting zero carbon dioxide in the process. 1 – 3 years Renewable
• Various types of electrolysers can be used in producing Green electrolysis:
Hydrogen such as Alkaline electrolysis (ALK), Proton-exchange 0.1 gCO₂e/MJ
membrane (PEM), and solid oxide electrolysis (SOE).

• Created through the thermal decomposition of naturally occurring


methane in biomass or organic materials. There are several
Not modelled, but
Pyrolysis techniques (fast pyrolysis or hydropyrolysis) which separates Not modelled
expected 2 years
methane into hydrogen and solid carbon (carbon black), which can
then be captured and stored with low GHG emissions.

• Known as natural hydrogen, created from geological hydrogen


found in underground deposits and extracted through fracking.
White • While the concept of white hydrogen is promising, the practicality Not modelled Not modelled
of commercial scale extraction and utilisation is still being
examined.

• 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

The Net-Zero NZHF: Strand 1 Revenue Support


Hydrogen Fund Provides DEVEX support for FEED and Hydrogen Production Business Models (HPBM) will
(NZHF), worth up post-FEED activities support selected electrolytic and CCUS enabled
to £240m, funds hydrogen producers, by paying them a premium,
the development NZHF: Strand 2 calculated as the difference between a Strike Price
and deployment Provides CAPEX support for projects that and a Reference Price.
of new low- do not require revenue support HPBM
CAPEX & carbon hydrogen
DEVEX production to de- NZHF: Strand 3 HAR 1 & 2 CCUS Cluster Sequencing
Support risk investment
and reduce Provides CAPEX for projects requiring an First electrolytic Track-1 and 2 Cluster
lifetime costs. HPBM and sit outside Track-2 Cluster hydrogen allocation Sequencing Process
Sequencing Process round (HAR1) will award allows CCUS enabled
contracts for green hydrogen projects to
NZHF: Strand 4
production up to 250 progress to contract
Provides CAPEX for CCUS enabled MW. HAR2 will award negotiations.
projects that require HPBM and are in contracts up to 750 MW.
Track-2 Cluster Sequencing Process

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
CROP MARKS
CROP MARKS

grey.
MARGIN

38
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

Methodology for assessing production


capacity Key figures on production

ECH₂ has collected primary quantitative and qualitative data


from 22 announced production projects. The majority of these 22 projects have provided hydrogen production forecasts
projects have provided Letters of Support for ECH₂ and engaged as primary data
heavily with the gas networks to inform the development of
their Pre-FEED and FEED studies.
4.4 GW of Green Hydrogen is planned for 2030
Secondary data has been collected on 3 announced production
projects within the region. A set of assumptions have been
applied to calculate the identified annual hydrogen production 58% of UK pipeline of hydrogen production is based in
shown in the methodology section (see pp 97). region

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

production targets. 46 UK 2030


3.7 target for
The East Coast region has seen an increase in Green Hydrogen 5
Green
development projects with some projects procuring Power
Hydrogen
Purchase Agreements (PPAs) and having direct supply 5.2
agreements with offshore wind farms. By 2030, 88% of the UK 4.4
0.7 3.2
Government target of 5 GW of Green Hydrogen could be 0.3
provided within the East Coast region alone. 0 0.1 0.1 0.1
2025 2028 2030 2037
Blue Hydrogen projects remain a significant part of the overall
mix, accounting for 54% of total production capacity by 2037. Blue Hydrogen Green Hydrogen Hydropyrolysis of
biomass

Status of development for the hydrogen production projects


Majority of hydrogen production is in the
within the East Coast region in 2023*
early stages of development*
Whilst the East Coast region has a large pipeline of hydrogen 12
0.4
production, 52% (6 GW) of potential capacity is still in the Pre-
planning stage of development. 10 2.4
With the aid of multiple UK Government funding schemes, 2.8 8
GW of potential hydrogen capacity has progressed to the design 2.8
and engineering phase of development. 46 6.0
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.
CROP MARKS
CROP MARKS

* 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.
MARGIN

39
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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

There are five production hubs within the


East Coast region with 11.6 GW of
announced hydrogen capacity by 2037.
Eight projects in the East Coast region
have been successful in the UK
Government funding allocations,
supporting 1 GW of Blue and Green
Hydrogen under the HAR1, CCUS Cluster
Sequencing and NZHF strand 1 and 2,
demonstrating the role the region can
play in kick-starting the UK hydrogen
economy. 46
bpH2Teesside is selected as one of two
Blue Hydrogen projects moving forward
under Track-1 of CCUS enabled hydrogen
projects, with the Humber being selected
for Track-1 expansion and Viking selected
for Track-2 creating further possibilities
for Blue Hydrogen facilities within the
region. 46 47 35
Five projects were shortlisted under the
first HAR1 in the East Coast region,
totalling to 169 MW. 46 48

Total hydrogen capacity allocated through


UK Government funding schemes**
GW
2,5
2,12
2,0 0,36

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

Teesside North Humber South Humber Yorkshire Nottinghamshire


7 production sites* 6 production sites 5 production sites* 4 production sites* 3 production sites
Blue Hydrogen will be Majority of Blue Majority of Green Only Green Hydrogen One Hydropyrolysis of
primarily produced in Hydrogen will be Hydrogen will be has been announced, biomass plant is being
Teesside, aided by the produced in the North produced in South there is an ambition for considered, using
UK Governments Track- Humber from 4 Humber with some further capacity waste to make
1 announcement production facilities sites using PPA’s expansion hydrogen

* Three confidential production projects have not been included within the map, but have been included within total production figures.
CROP MARKS
CROP MARKS

** Note that 0.26 GW Wider UK capacity entering HAR1 negotiations with UK Government will be reduced to 0.25 GW through final negotiations.
MARGIN

40
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.
CROP MARKS
CROP MARKS

MARGIN

41
MARGIN

MARGIN MARGIN
CROP MARKS CROP MARKS
MARGIN MARGIN
MARGIN

MARGIN
42
42
MARGIN

MARGIN
MARGIN MARGIN
CROP MARKS CROP MARKS
2.3

Hydrogen storage
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

The need for hydrogen storage

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.

Methodology for assessing storage capacity Primary storage data

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.
CROP MARKS
CROP MARKS

MARGIN

44
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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

The East Coast region has a large


availability of existing gas reservoirs and
potential for salt cavern development for
hydrogen storage, with the largest
Permian saltfield in the UK lying between
Humber and Teesside. 50
There is a pipeline of up to 0.7 TWh of
announced salt cavern storage by 2037,
with 3.3 TWh expected from Rough by
2030 and a further 10 TWh by 2050.
In addition to this, the East Coast region
has the potential to unlock further
hydrogen storage through the conversion
of five existing and planned natural gas
storage sites.
Early hydrogen production projects will
rely on on-site storage solutions, however
this is not a suitable long-term solution.
Under National Grid’s System
Transformation scenario 56 TWh of
hydrogen storage will be required by 2050
to enable the UK’s energy system to
achieve Net-Zero through the integration
of hydrogen. 49
ECH₂ can address these needs by
connecting up to 19% of the UK’s 2050
storage requirements to producers and
demand centres in the region.

Storage requirement the East Coast


region can meet by 2050 under a System
Transformation scenario
0 5 10 15 20 25 30 35 40 45 50 55 60
TWh

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

Location Project Type Location Developer Year online Capacity


Aldborough Salt Cavern Hornsea SSE & Equinor 2028 0.32 TWh
North Humber Rough Gas Reservoir North Sea Centrica 2030-2050 10 TWh
Confidential Salt Cavern - - - 0.33 TWh
Teesside Saltholme Salt Cavern Teesside SABIC 2025 0.03 TWh
Note: See methodology section to understand the assumptions and data used in assessing hydrogen storage. One confidential storage project is not included within the map,
CROP MARKS
CROP MARKS

but has been included in total storage figures.


MARGIN

45
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

Case study: Aldbrough

Aldbrough Hydrogen Storage facility is looking to convert


existing natural gas storage in salt caverns.
It is expected to be in operation by early 2028, subject to
positive policy developments and consents being given, with
an initial capacity of at least 320 GWh, which is enough to
power over 860 hydrogen buses a year.
This project offers future storage opportunities for hydrogen
produced at multiple sites across the Humber cluster, with
close proximity to Hornsea 2 offshore wind providing
renewable power for Green Hydrogen.

Note: All quotes and case studies have been provided by the named companies.
CROP MARKS
CROP MARKS

MARGIN

46
MARGIN

MARGIN MARGIN
03

East Coast Hydrogen


Delivery Plan
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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

The total length of


the network will be
approximately
1,840 km

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.
CROP MARKS
CROP MARKS

MARGIN

48
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

Existing network design

The UK’s existing gas network is split into different


transportation systems and pressure tiers. The country is served
by the National Transmission System (NTS). This is the
backbone of natural gas transportation throughout the country
and is owned and operated by National Gas.
At a regional and local level, natural gas is distributed by Gas
Distribution Networks (GDNs), such as NGN and Cadent. The
GDNs build, own, operate and maintain the distribution
systems which are broken into two main tiers:
1. Local Transmission System (LTS): a high pressure network
responsible for the transport of gas within a region.
2. Distribution network: a medium and low pressure system
responsible for distributing gas around cities, towns and
villages.
ECH2 will focus on converting and expanding the high and
medium pressure network – with Cadent and NGN enabling
hydrogen supply to large I&C and Power users, potential town
trials and future transport demand.
National Gas will focus on repurposing the NTS between the
Humber and Teesside clusters, Theddlethorpe, and other large
production and storage locations in the region and beyond.
This will ensure wider system resilience and flexibility.

Need for optionality

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:

Customer Connection Optionality Natural gas security of supply


Where a customer has options on which network to connect to, Decisions on when, where and how the network is converted
a collaborative approach will be adopted, taking account of will need to take account of maintaining natural gas network
customer preferences. This may impact preferred routes. resilience.

NTS repurposing decisions Cost-benefit analysis


NGN’s routing strategy is designed around specific National Routing, and decisions on repurposing vs new build, will evolve
Gas pipelines, a change to National Gas pipeline conversion as CBAs are refined with preferred routes maximising value for
strategy will impact NGN’s preferred routing. money.

Environmental & planning constraints Storage volumes & timing


Routes may be adjusted following environmental and land Decisions on storage locations will impact routing, with a need
survey findings. Extended consenting timelines could impact to connect capacity into the hydrogen network to ensure
route prioritisation and which users are connected when. resilience.

Demand volumes & timing 2026 decision on residential heat


Demand volumes and timings will evolve as the project UK Government’s decision may alter options with routes potentially
develops, requiring adjustments to phasing plans. adjusted slightly to include pilot towns and a wider regional rollout.
CROP MARKS
CROP MARKS

MARGIN

49
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

• Ensuring all routing options are capable of connecting sufficient production to


the system, building in optionality to enable sites to connect into the network
as they reach maturity
Reliability • Integrate with private pipelines to increase capacity and efficiency, improve
reliability and reduce costs
• Maintain flow assurance across both the natural gas and hydrogen systems
throughout the transition

• Ensure routing enables connection with planned hydrogen storage facilities,


providing critical system flexibility and resilience
System • Account for customers' on-site storage plans and the impact that storage
flexibility availability and requirements could have on design options
• Building a high pressure backbone which allows cheaper and easier medium
pressure connections as demand evolves

• Routing should avoid impacting on environmentally sensitive and heavily


populated areas
Minimal • Existing sites should be considered for development before new land rights
disruption are secured
• Construction approaches should consider the use of trenchless technologies,
where cost effective and technically viable

• 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

• Routing and phasing requires optionality, creating flexibility in how network


objectives can be met given uncertainty around policy, pipeline design (new
Optionality build vs repurposed), final routing of each network, third party commercial
decisions (users, producers, land owners and storage providers) etc.

• 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)

• Design network to meet I&C and power demand, providing optionality to


I&C and connect future residential heat and transport demand
power led • Identify cornerstone customers of the network to determine the scale and
geography of phasing
CROP MARKS
CROP MARKS

MARGIN

50
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

National Gas initial routing options and phasing Key Information

Connects 27 TWh/year of power


hydrogen demand and 1.3 TW year
industrial demand through direct
connects by 2030 increasing to 31.1
TWh/year and 1.4 TWh/year by 2037

Supports NGN to connect 11.4 TWh by


2030 and 12 TWh/year of hydrogen
demand by 2037

Provides storage options for Cadent via


connections at Scunthorpe and
Immingham

Connects over 3.6 TWh potential


hydrogen storage capacity from Rough
Gas Reservoir and Aldbrough by 2030

Up to 330 km of existing natural gas


pipeline has the potential to be
repurposed. If pipelines cannot be
repurposed, new build pipelines options
will be assessed

Saves up to 5 MtCO₂/year through fuel


switching from natural gas by 2030 and
6 MtCO₂/year by 2037

This is the first section of Project Union,


a nationwide hydrogen transmission
network

2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037

Project Union Phase 1


Repurpose
FEED
pipelines

New build pipelines


FEED
constructed

Wider Project Union Expansion


CROP MARKS
CROP MARKS

Key FID Best case timings Contingency timings


MARGIN

51
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

Project Union map Section 1 of Project Union

Project Union will deliver a hydrogen transmission backbone


for the UK linking strategic hydrogen production sites, with
storage and demand.
The development of this transmission system will require a
starting point with sufficient low-carbon production
capabilities, storage capacity, network connectivity and
concentrated demand. The East Coast region fulfils these
requirements, centralising concentrated industrial sites, large
scale gas storage and offshore wind capacity. The first phase of
Project Union is therefore the connection of the Humber
region, Teesside and Theddlethorpe. With further expansion to
other Industrial Clusters planned throughout the 2030’s.
By taking a phased approach to repurposing existing assets, up
to 25% of the UK’s current natural gas transmission pipelines
could be converted to hydrogen, alongside the integration of
new pipeline as necessary. This ensures a cost effective
transition whilst maintaining resilience of the UK energy
system and operability of the natural gas network.
CROP MARKS
CROP MARKS

MARGIN

52
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

NGN initial routing options and phasing Key Information

Connects 12.6 TWh/year I&C and Power


hydrogen demand by 2037

Multiple connection points into the


National Transmission pipeline providing
access to storage at Aldbrough and
Rough

The total length of the network will be


950 km

Up to 440 km of existing natural gas


pipeline will be repurposed

Saves over 2 MtCO₂/year through fuel


switching from natural gas by 2037

Enables nearly 50% of total regional I&C


and power natural gas demand to switch
to hydrogen by 2037

Integrates with bp and Kellas pipelines


in Teesside providing wider network
security and resilience

2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037

Private pipelines constructed

Repurpose Project Union Phase 1


pipelines

New build pipelines constructed

FEED Local rollout

FEED Wider regional rollout


CROP MARKS
CROP MARKS

Key FID Best case timings Contingency timings


MARGIN

53
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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 approach to defining it’s routing and phasing options

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.

Delivering a regional rollout Repurposing the GDN network

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.

Integrating the GDN with private pipelines within the region

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.
CROP MARKS
CROP MARKS

MARGIN

54
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

Cadent initial routing options and phasing Key Information

Connects 16.7 TWh/year I&C and power


hydrogen demand by 2037

Phase 1 North will build approximately


130 km of new pipeline

Phase 1 South will build approximately


140 km of new pipeline

The total length of the network will be


approximately 560 km

Saves over 3 MtCO₂/year through fuel


switching from natural gas by 2037

Enables 74% of total regional industrial


natural gas demand to switch to
hydrogen by 2037

Potential storage capacity will be


connected through integration with the
Hydrogen NTS

2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037

FEED Phase 1 North Construction

FEED Phase 1 South Construction

Note: The scale and timelines


Northern Section Expansion Phase
of future phases are dependent
on future industrial hydrogen
demand and sub-regional
Southern Section Expansion Phase
production, and the policy
decision on the use of hydrogen
North/South Integration and Expansion Phase
for home heating.
ECH₂ Industrial Distribution Project
CROP MARKS
CROP MARKS

Key FID Finalise Pre-FEED Best case timings Contingency timings


MARGIN

55
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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 approach to defining its routing and phasing options

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.

Phasing of construction Timings for construction

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.

ECH₂ Industrial Distribution Project

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.
CROP MARKS
CROP MARKS

MARGIN

56
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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

• Feasibility report • Delivery Plan • Dedicated hydrogen • North/South connection of • Connection to


• Initial routing • Pre-FEED and FEED pipeline within, and Derbyshire and neighbouring projects
outline studies between, the Humber Nottinghamshire with (e.g. HyNet)
Outcomes

• 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
CROP MARKS
CROP MARKS

MARGIN

57
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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
CROP MARKS
CROP MARKS

MARGIN

58
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

Key activities Key deliverables

• 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.

• Develop a detailed delivery timeline, including key milestones • Programme timeline


Programme up to FID and beyond to the start of construction/repurposing • Detailed Programme Management
Plan • Update ECH2 Programme Management Plan to enable progress, Plan
costs and risks of subsequent phases to be monitored

• 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

• Review and evaluate supply-chain, resourcing and • Supply-chain strategy


Supply-chain,
procurement risks • Procurement plan
resourcing &
• Identify mitigation measures to provide confidence that the • Resourcing strategy
procurement programme can deliver to quality and time

• Engage statutory bodies and local communities • Consortium events


Stakeholder • Engage system users through the Consortium Group to collect • Public consultations
feedback & feedback on pipeline route • Public Engagement events
consultations • Consulting public stakeholders on the design and construction
process ensuring broader public needs are met through the project
CROP MARKS
CROP MARKS

MARGIN

59
MARGIN

MARGIN MARGIN
CROP MARKS CROP MARKS
MARGIN MARGIN
MARGIN

MARGIN
60
60
MARGIN

MARGIN
MARGIN MARGIN
CROP MARKS CROP MARKS
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
DRAFT FOR DISCUSSION

04

Defining the ECH₂


Opportunity

CROP MARKS
CROP MARKS

MARGIN

61
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

1. Delivers UK Government commitments

ECH₂ aligns to the UK’s wider ambition of delivering growth through a


leading low-carbon hydrogen economy by:
→ Tackling the low-carbon energy needs of the UK’s largest Industrial Clusters,
connecting hydrogen supply with demand
→ Aiding sectors and customers to achieve their decarbonisation
commitments, supporting the UK Net-Zero ambitions by 2050

2. Creates a pathway to decarbonise the East Coast


region

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).

3. Supports hydrogen value chain development

→ Connecting demand with supply, utilising the gas networks’ customer


relationships to grow the nascent hydrogen market.
→ Collecting cross value chain support from 122 stakeholders by joining Image Source: Centrica
the Consortium Group and providing hydrogen forecasts or/and letters Storage, Rough
of support.

4. Catalyses wider system benefits

→ 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
CROP MARKS
CROP MARKS

MARGIN

62
MARGIN

MARGIN MARGIN
4.1

Delivers on the UK
Government
commitments
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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 evolution of the UK hydrogen policy landscape

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)

British Energy Consultations Net-Zero Heat and Transition to a Net-


Security on Hydrogen Strategy Building Zero Energy System:
Jet Zero Strategy Business Models Strategy Smart Systems and
Strategy Flexibility Plan

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
CROP MARKS
CROP MARKS

MARGIN

64
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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

Policy commitments How ECH₂ will support

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

CROP MARKS
CROP MARKS

MARGIN

65
MARGIN

65

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
East Coast Hydrogen alignment with UK policy
(cont.)

Policy commitments How ECH₂ will support

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

British Energy 10 GW of hydrogen production by  Potential to connect over 10 GW of hydrogen capacity by


Security 2030, with at least half of this total 2030 within the region, with 4.4 GW coming from 17 Green
Strategy coming from Green Hydrogen Hydrogen facilities*
April, 2022 1 GW of electrolytic hydrogen is in  Provide low-carbon hydrogen to 64 power sites within the
construction or operational by 2025 region, providing flexible power generation and plugging
the gap of intermittent renewable electricity *

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
CROP MARKS
CROP MARKS

MARGIN

66
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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

Pre-FEED Funding mechanism for Ambition


completion FEED Milestone
Delivery Workstream
Plan launch Exact timelines will depend on whether
new build/repurposing
ECH₂ milestones

FEED

Detailed design, planning, land rights and


consents, procurement

Connection of repurposed pipeline


Connection of the network
into further regions and
future growth opportunities
Build and connection of new pipeline

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

Target of 2 Target of 10 Net-Zero power Net-Zero UK Net-


GW installed GW installed system & core domestic Zero
H2 production H2 production national aviation
capacity capacity hydrogen and airport
network operations

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
CROP MARKS
CROP MARKS

MARGIN

67
MARGIN

MARGIN MARGIN
CROP MARKS CROP MARKS
MARGIN MARGIN
MARGIN

MARGIN
68
68
MARGIN

MARGIN
MARGIN MARGIN
CROP MARKS CROP MARKS
4.2

Creates a pathway to
decarbonise the
East Coast region
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.*

Final natural gas consumption in the East Coast region by end


Energy consumption in the East Coast region use in 2022/23
250
Natural Gas is a primary energy source in the East Coast region Industrial and
consuming a total of around 200 TWh, accounting for up to 26% 200 commerical
of the UK’s total natural gas usage in 2022/23. 55 56 46 Residential
42% (85 TWh) of the East Coast region’s natural gas demand is 150 Power
used for power generation in 2022/23, responsible for over 15

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

Potential annual I&C and power demand switching from


Fuel switching in the East Coast region natural gas to hydrogen between 2028 to 2037
140

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)

% of total potential UK I&C and power emissions to be abated


Potential decarbonisation impact by switching to hydrogen within the East Coast region***
116
The UK Government has a good opportunity within the East
Over 9% of total UK I&C
Coast region to provide multiple sectors with an avenue to
and power emissions
decarbonise their operations, utilising existing gas 111
112
10 abated through ECH2
infrastructure to supply low-carbon hydrogen to high energy
consumers. 8
MtCO2

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.
CROP MARKS
CROP MARKS

** 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.
MARGIN

70
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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:

The East Coast region has multiple dispersed I&C gas


Over 4.2 I&C emissions to be abated by switching to low-
connected sites, from the Teesside and Humber clusters down
to the East Midlands. In 2022 these customers consumed over MtCO₂/year carbon hydrogen
46 TWh of natural gas, emitting over 8 MtCO2/year, 1 17 which is
13% of total UK emissions from I&C (62 MtCO2/year). 55 56
Up to I&C sector in the East Coast region could switch
50% from natural gas to hydrogen before 2037
Given the high density of I&C demand within the East Coast
region providing an integrated hydrogen transport pipeline
could enable 33% of the total UK I&C natural gas demand to Up to Total UK I&C annual emissions to be abated
switch to low-carbon hydrogen. 7% through switching to low-carbon hydrogen by 2037

Potential annual I&C demand switching from natural gas to


I&C fuel switching within the region hydrogen between 2028 to 2037
50
Based on primary and secondary data collected from over 270 45
of the East Coast region’s top I&C sites, 50% of the East Coast 40 Based on surveyed
region total I&C sector is estimated to fuel switch from natural 35 customers, 50% total I&C
gas to hydrogen by 2037. 30 demand (23.1TWh) could
switch to hydrogen by 2037
TWh

Based on the customers surveyed, we may see I&C demand for 25


hydrogen surpass demand for unabated natural gas as early as 20
2032. 15
This would tackle the decarbonisation of two of the UK’s largest 10
Industrial Clusters and aid the UK in its plans for meeting the 5
2050 Net-Zero target. 0
However, fuel switching by 2037 will only be possible for most 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037
I&C customers if a transport network is ready and available to I&C hydrogen demand (surveyed customers)
connect supply and demand.
I&C natural gas demand (surveyed customers)
Total regional I&C natural gas demand (2023)

% of total potential UK I&C emissions to be abated by


Potential I&C decarbonisation impact switching to hydrogen within the East Coast region*
62
The East Coast region has two of the largest Industrial Clusters Up to 7% of total UK
within the UK. Last year, the region emitted over 8 MtCO2/year I&C emissions abated
within the I&C sector by consuming natural gas, making it the 4 through ECH2
logical place to start in decarbonising I&C activity and building
up the hydrogen economy.
MtCO2

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.
CROP MARKS
CROP MARKS

* Total UK I&C emissions is indicative of the scale of C02 to abate, not a forecast over time.
MARGIN

71
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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:

The UK Government faces a major challenge to abate emissions


from gas-fired power plants by 2035, which generate 40% of the 6.2 Annual power emissions to be abated by switching
UK's electricity and emit up to 54 MtCO2/year whilst meeting an
expected increase in electricity demand. 30 55 56
MtCO₂/year to low-carbon hydrogen
The two main technologies which can be used to produce low-
carbon, dispatchable thermal power generation to balance
supply and demand are retrofitting power plants with CCUS, or
replacing natural gas with hydrogen. The East Coast region Up to Power sector in the East Coast region could switch
consumes up to 85 TWh of natural gas for power, providing an 41% from natural gas to hydrogen before 2037
opportunity to abate over 15 MtCO2/year. 17
However, there is uncertainty over future efficiencies and costs
related to using hydrogen as a source of dispatchable power
meaning that the precise future balance and direction of low- UK total annual power emissions to be abated from
carbon power generation remains unclear with clarity needed Up to 12%
switching to low-carbon hydrogen
quickly.

Potential annual power demand switching from natural gas to


Power fuel switching within region hydrogen between 2028 to 2037
90
80
Multiple power generators have provided 34.5 TWh in hydrogen Based on surveyed
demand forecasts anticipating the future role and demand for 70 customers, 41% (~35TWh)
hydrogen to generate low-carbon electricity.* 60 total power demand could
switch to hydrogen by 2037
41% of the East Coast region total power sector could switch 50
TWh

from natural gas to hydrogen by 2037, with 64 power sites 40


needing to be connected to a hydrogen network to offer a 30
reliable and flexible low-carbon dispatchable power within the 20
East Coast region. 10
Due to uncertainties around the use of hydrogen as input for 0
low-carbon thermal generation, it is impossible to say if more 2028 2030 2032 2034 2036 2038
sites will adopt the technology before 2040 and when the Power hydrogen demand (surveyed customers)
sector will achieve low-carbon fuel switching. Power natural gas demand (surveyed customers)
Total regional power natural gas demand (2023)

Potential power decarbonisation impact in % of total UK power emissions abated by switching to


hydrogen within the East Coast region*
the East Coast region
42
The East Coast region emits over 15 MtCO2/year through power Over 12% of total UK emissions
generation using natural gas making it a potentially attractive abated through ECh2
6
location for the UK to start decarbonising power activity and
MtCO2

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
CROP MARKS
CROP MARKS

* Total UK power emissions is indicative of the scale of C02 to abate, not a forecast over time
MARGIN

72
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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:

Transport is the UK’s largest carbon emitting sector accounting


Up to 1.4Annual avoided aviation emissions by switching
for 27% of the UK’s total GHG emissions, where 1,300-1,800
one airport to low-carbon hydrogen in the East
MtCO₂e could be saved between 2020 to 2050 by transitioning MtCO₂/year Coast region
away from fossil fuels. 33
Low-carbon hydrogen is an energy solution for harder to
electrify transport where alternative solutions are either At least Hydrogen Re-fuelling Stations to be built within
unavailable or difficult to implement, such as Heavy Goods the East Coast region
4
Vehicles (HGVs), long-haul aviation and international shipping.
The East Coast region is home to multiple pilots and research
projects to demonstrate the potential transport decarbonisation Largest Immingham handles ~46 million tonnes of cargo
with the first multi-modal hydrogen transport hub in Teesside Port every year and is a gateway for trade across the UK
and pilot projects for freight transport hubs in the UK Midlands. (by tonnage) and beyond

Road Transport Aviation Maritime

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

“Increasingly the aviation industry sees hydrogen as a key


component of its decarbonisation strategy. As the operator of East
Midlands Airport we are therefore considering how best to ensure
that low-carbon hydrogen is available in the future for airlines
operating at the airport.” - Miles Pattison, External Affairs.

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
CROP MARKS
CROP MARKS

MARGIN

73
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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:

In 2022, up to 20% of the UK’s total energy demand was for


residential heating, emitting over 56 MtCO2/year.* The scale of Total potential UK annual residential natural gas
Over
the residential decarbonisation challenge is unprecedented, the demand that could be switched to hydrogen within
70 TWh
UK will have to decarbonise around 22 million homes that rely the East Coast region
on natural gas for heat and hot water. 55 56 64
In total, Cadent and NGN distribution networks connect up to
4.4 million homes in the East Coast region, supplying 71 TWh of Residential properties within the four potential UK
Over
natural gas in 2022, or 28% of the total annual residential Government pilot towns that could switch from
100,000
natural gas demand in the UK. 1 17 natural gas to low-carbon hydrogen before 2030
Over 50,000 properties in the East Coast region are off-grid, with
the majority using either heating oil or LPG, providing further
opportunities for ECH₂ to expand its network in the future to Up to UK residential emissions are located within the UK
decarbonise these hard-to-reach homes and alleviate fuel and Government pilot towns and wider rollout regions
16 %
heat poverty, in line with a Net-Zero future. 1

% of total UK residential emissions abated by switching to


Pilot towns within the East Coast region hydrogen within 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

Announced UK Government heating policy decision timeline

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
CROP MARKS

Note: See methodology section to understand the assumptions and data used in calculating residential demand and decarbonisation.
CROP MARKS

* Total UK residential emissions is indicative of the scale of C02 to abate, not a forecast over time.
MARGIN

74
MARGIN

MARGIN MARGIN
4.3

Supports hydrogen
value chain
development
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

Benefits How will ECH₂ achieve these benefits?

• Act as a blueprint for regional network conversion to hydrogen,


supporting the broader ambitions to create a UK wide
Inform future or
A blueprint for future hydrogen network and a UK hydrogen economy
existing
hydrogen transport • Inform the UK Future System Operator (FSO) on how to build
hydrogen
out hydrogen assets to develop a mature, well-functioning
infrastructure hydrogen market through the lessons learned in the strategic projects
network planning that the East Coast region will help inform

• Repurpose existing infrastructure to achieve cost savings,


whilst ensuring wider energy system functionality is
maintained as the industrial hubs decarbonise Preferred routing
• Undertake strategic planning and routing of the network to
Achieve value for money options are
minimise disruption and maximise gains on connecting supply
based on
for both supply and with multiple demand users
forecast demand
demand stakeholders • Alleviate wider system constraints by ensuring the transport
network is ready to connect supply with demand and cost
• Share the knowledge with stakeholders to create efficiencies effectiveness
for subsequent projects and next phases of the ECH₂
programme.

• Facilitate customer and market knowledge through Consortium


events and the ECH₂ website on the latest developments
within the hydrogen landscape
Inform industrial • Utilise networks’ relationships with I&C users to provide clarity ECH₂ website has
decarbonisation on their options to decarbonise using low-carbon hydrogen been launched
strategies and allow hard • Capitalise on the networks’ platform with the UK Government
to abate sectors to to help funnel key messaging from industry on barriers and
challenges to achieving decarbonisation
decarbonise

• Capitalise on the Consortium Group to connect over 100


upstream/cross-value chain providers with down stream users
• Utilise the networks’ knowledge and relationships with large
Facilitate hydrogen I&C users and hydrogen providers within the region to foster

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

• Collect and utilise hydrogen forecasts directly from industrial


users to coordinate the phasing and construction of the
Ensure timely fuel Sites have been
networks’ hydrogen pipelines to ensure transport infrastructure
switching from carbon investigated

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.
CROP MARKS
CROP MARKS

MARGIN

76
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

Hydrogen value Key challenges and risks


Detail Benefits for stakeholders from ECH₂
chain for stakeholders

• Stakeholders • Uncertainty on costs and • Provide information on the benefits


Cross-value chain involved in multiple benefits of hydrogen through Feasibility Study
segments of the • Public acceptance - lack of • Provide greater clarity on potential
hydrogen value understanding and routes and associated costs during
chain education around benefits Pre-FEED and FEED phase
of hydrogen • Be a conduit back to UK Government
• Limited certainty of offtake to support industry’s voice
and supply

Production • Stakeholders • Limited certainty of offtake • Build a realistic picture of hydrogen


focused on the • Public acceptance - lack of demand to 2035 within the East
production and understanding and Coast region
supply of hydrogen education around benefits • Enable early development of
of hydrogen hydrogen transport and storage
• Lack of infrastructure to infrastructure
connect the production with • Create a directory of experts
demand centres

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

Demand • Hydrogen end-users • Lack of infrastructure to • As part of Programme, networks will


including industrial, support testing at scale continue to work with customers,
commercial, power • Limited certainty of supply providing insights on potential routes
and domestic and expertise on hydrogen benefits
stakeholders • The supply of hydrogen in a to help them to make investment
cost effective manner decisions
• The project will establish a
connection to production facilities to
secure Hydrogen supply

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.
CROP MARKS
CROP MARKS

MARGIN

77
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS

Source: British Sugar


CROP MARKS
CROP MARKS

MARGIN

78
MARGIN

78

MARGIN MARGIN
4.4

Catalyses wider
system benefits
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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

power manages UK’s energy supply.


Stored daily variations demand
hydrogen is in energy The growing contribution of intermittent
used to meet 00:00 23:59 demand Nuclear, renewable power and additional
Energy Demand

peak demand solar, electricity demand will create challenges


biomass, in balancing supply and demand.
Store Green Hydrogen pumped-
produced from storage To ensure flexibility and resilience are
curtailed energy maintained, renewables will need to be
Blue complemented by other flexible low-
Hydrogen carbon technologies such as hydrogen-
fired power generation, hydrogen storage
Wind and line-pack. Each providing whole
system flexibility across different time-
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
frames.
Hydrogen can provide significant flexibility benefits

Low-carbon source of Offers seasonal energy


Reduce curtailment
dispatchable power storage

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)

2021 Annual 2022 Total 2050: 56 TWh


Annual costs (£m)

2,000 Cost: £2,321m 200 Cost: >£200m 40


TWh

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.
CROP MARKS
CROP MARKS

MARGIN

80
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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

The East Coast region is an important


industrial heartland within the UK,
contributing £308.2bn a year in Gross
Value Added (GVA). * Bappa Map
Given the region’s significance, it is
important to safeguard jobs, the local
economy and industrial operations as the
UK navigates a ‘green industrial
revolution’.
Based on data from the Office of National
Statistics (2021), Nottingham has the
highest GVA per head in the East Coast
region at £33.6k, followed by York and
West Northamptonshire at £33k per year,
illustrating the economic importance of
these areas. *
The East Coast region is well placed to
grow green jobs, skills and competitive
supply chains, levelling up the economy
through the green growth agenda.
Independent analysis, completed by PWC
on behalf of Cadent, estimates that the
development of a full hydrogen value
chain could provide an additional £27bn
GVA and 360k jobs across the North East,
East Midlands, Yorkshire and Humber
region in the period up to 2050. The East
Coast Cluster alone will deliver 9,000 jobs
at its peak in 2026. 26

Manufacturing is an important economic sector for 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
CROP MARKS
CROP MARKS

the regional GVA per head across the UK and the GVA by industry at current basic prices.
MARGIN

81
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

The UK Industrial Clusters

The UK Government’s Industrial


Decarbonisation Strategy identified 6
Industrial Clusters which emit a combined
total of over 64 MtCO₂ / year in 2021. *
The UK Government aims to have 4 CCUS
clusters online by 2030, to capture and
store 20 -30 MtCO₂/year. This will enable
the wider rollout of Blue Hydrogen. 72 73
Two out of the four CCUS clusters
selected in the Track-1 and 2 sequencing
process are based in the East Coast region.

Connecting the Industrial


Clusters

An integrated hydrogen transport network


can help to enhance the benefits of the
East Coast Cluster and Viking by
connecting eight Blue Hydrogen
production sites with multiple I&C gas
connected sites from the Teesside and
Humber Industrial Clusters to the East
Midlands (see pp 29, 40).
As hydrogen production scales up in the East
Coast region, it opens the opportunity to
provide other industrial areas across the
Midlands with fair access to hydrogen,
realising the wider UK ambition of levelling
up and reinvigorating our industrial
heartlands. 74

Realising the industrial cluster benefits by having an integrated hydrogen transport network to connect
the three selected CCUS clusters

1. Teesside 2. Humber 3. Viking


• Largest chemical complex • Largest industrial decarbonisation • High capture and storage potential
in the UK 75 opportunity in the UK 77 cluster, with up to 11 MTPA by 2030
• Produces 50% of the UK commercially • £15bn private investment available and over 12MTPA by 2034 79
available hydrogen, with ambitions to for Humber-based energy • Harbour Energy obtained a CO2
become the “UK Hydrogen Valley” 76 transition 78 storage license, storing up to 10
MtCO₂/year 80
Benefits in connecting the CCUS clusters

Enable the decarbonisation of up to 36%


Interlink hydrogen production from two Support the growth of the local economy
of the UK industrial cluster emissions,
CO₂ storage projects realising wider by creating over 25,000 green jobs per
accounting for up to 4% of the UK total
system benefits year between 2023-2050 80
green house gas emissions.
* MtCO2 for each cluster estimated from each industrial cluster’s website and supplemented with the UK Governments 2021 ‘Clean Growth Grand Challenge: Industrial Clusters mission’ infographic
CROP MARKS
CROP MARKS

MARGIN

82
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.
CROP MARKS
CROP MARKS

MARGIN

83
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

H2 Village Net-Zero Teesside

Location: Redcar, Teesside Location: Teesside


Details: Dependant on the UK Government decision, by 2025 a Details: Net-Zero Teesside is a full chain CCUS project that will
large scale trial will see 1000-2000 properties converted to provide a CO₂ capture network to transport the captured CO₂
100% hydrogen for heating and hot water. The final decision is and CCGT that will have an electrical output of up to 860 MW of
expected to be made by the end of 2023. low-carbon electricity. 76
How ECH₂ aligns: If a positive decision is taken on hydrogen for How ECH₂ aligns: ECH₂ supports the programme by providing
heat, ECH₂ can provide the infrastructure to provide a wider roll- hydrogen supplies, allowing Teesside industries to have a
out of hydrogen to homes across the region. choice of approach to decarbonising their operations.

East Midlands Hydrogen Hydrogen Valley

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.

Tees Valley Hydrogen


Project Union
Transport Hub
Location: Teesside Location: UK wide
Details: Tees Valley Hydrogen Transport Hub will foster Details: Project Union will deliver a “first-of-a-kind” hydrogen
collaboration across UK Government, academia and industry to transmission backbone for the UK. The c. 2,000km hydrogen
explore the benefits of using hydrogen in various transport backbone will link hydrogen production sites, including
models such as trains, cars and freight. 83 Industrial Clusters with demand and storage. 16
How ECH₂ aligns: The ECH₂ network will deliver hydrogen to How ECH₂ aligns: Stage one of Project Union is being designed
pilot projects and hydrogen re-fuelling stations to test hydrogen as part of ECH2, supporting the connection of consumers outside
for transport and then inform policy makers on the outcomes to of Industrial Clusters and enabling options for cost effective
enable critical decisions. hydrogen transport options to be scaled nationally.
CROP MARKS
CROP MARKS

MARGIN

84
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
05

Programme dependencies
and enabling actions

CROP MARKS
CROP MARKS

MARGIN

85
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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

Potential funding FEED


FEED decision

Detailed design

Pre- Planning, land rights and consents


constructio
n
Procurement

Repurposing

Repurposi
ng Connection

New build

Commissioning
New build

Connection Initial route


construction
completion

Expansion into other regions


Expansion

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.
CROP MARKS
CROP MARKS

MARGIN

86
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

How does this affect


Key dependency Risks for ECH₂ Critical enabling actions Responsibility
the project

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

the right incentives for • Networks’ costs go


investment. up due insufficient
incentives

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

CROP MARKS
CROP MARKS

MARGIN

87
MARGIN

87

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

How does this affect


Key dependency Risks for ECH₂ Critical enabling actions Responsibility
the project

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

deployment beyond to enable the


timing identified production to
materialise.

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

raising awareness of the


Programme.

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
CROP MARKS
CROP MARKS

MARGIN

88
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

Managing ongoing uncertainty for the Programme

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

Next steps for the Programme

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.
CROP MARKS
CROP MARKS

MARGIN

89
MARGIN

MARGIN MARGIN
CROP MARKS CROP MARKS
MARGIN MARGIN
MARGIN

MARGIN
90
90
MARGIN

MARGIN
MARGIN MARGIN
CROP MARKS CROP MARKS
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
Glossary

AGI Above Ground (hydrogen) Infrastructure HMG His Majesty's Government

ALK Alkaline Electrolysis HSE Health & Safety Executive

ATR Autothermal Reforming IEA International Energy Agency

CAPEX Capital expenditure IMRRP Iron Mains Risk Reduction Programme

CB Carbon Budget I&C Industrial and Commercial

CB6 Carbon Budget 6 LEP Local Enterprise Partnerships

CBA Cost-Benefit Analysis LPG Liquefied Petroleum Gas

CCC Climate Change Committee LTS Local Transmission System

CCGT Combined Cycle Gas Turbines MoU Memorandums of Understanding

CCS Carbon Capture and Storage Mt Megatonnes (million tonnes)

CCUS Carbon Capture, Utilisation and Storage MtCO₂ Megatonnes of CO₂

CHP Combined Heat & Power NGN Northern Gas Networks

CMDC Clean Maritime Demonstration Competition NIC National Infrastructure Commission

Natural gas users, potential hydrogen NHS National Health Service


users, hydrogen producers and storage
Consortium developers and local authorities that NTS National Transmission System
Group provided information about their hydrogen
plans and/or letters of support for ECH₂ NZHF Net-Zero Hydrogen Fund
development OPEX Operating expense
DCO Development Consent Order PEM Proton-Exchange Membrane
Department for Energy Security and Net- PPA Power Purchase Agreement
DESNZ
Zero
Pre-FEED Preliminary Front-End Engineering Design
DEVEX Development expenditure
Programme Partners National Gas, Cadent and NGN
Area covering Teesside, North Yorkshire,
East Coast West Yorkshire, Humberside, South Cost mechanism for GDNs within a defined
region Yorkshire, Lincolnshire, Nottinghamshire, RIIO-GD
price control period
Derbyshire, Leicestershire
SMR Steam Methane Reforming
ECH₂ East Coast Hydrogen Programme
SOE Solid Oxide Electrolysis
FEED Front End Engineering Design
TWh Terawatt-hour
FES Future Energy Scenarios
T&S Transport & Storage
FID Final Investment Decision
UKETS The UK Emissions Trading Scheme
FSO Future System Operator

GDN Gas Distribution Network

GHG Greenhouse Gas

GVA Gross Value Added

GWh Gigawatt-hour

First and Second Hydrogen Electrolytic


HAR1/HAR2
Allocation Round

HGV Heavy Goods Vehicle


CROP MARKS
CROP MARKS

MARGIN

91
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
Bibliography

1. East Coast Hydrogen, “Feasibility Report”, 2021


2. Committee on Climate Change, “The Sixth Carbon Budget: the UK's path to Net-Zero”, 2020
3. NIC, "Second National Infrastructure Assessment“, 2023
4. Greater Lincolnshire, “An Energy Strategy”, 2019
5. North East & Yorkshire Net-Zero Hub, website
6. West Yorkshire Combined Authority, West Yorkshire Climate and Environment Plan, 2021
7. HMG, “British Energy Security Strategy,” 2022
8. HMG, “Jet Zero Strategy”, 2022
9. HMG, "Hydrogen transport and storage infrastructure: minded to positions“, 2023
10. HMG, "Powering up Britain“, 2023
11. HMG, "Hydrogen Business Model / Net-Zero Hydrogen Fund: negotiations list for allocation round 2022“, 2023
12. HMG, “Hydrogen Strategy – August Update”, 2023
13. HMG, "Hydrogen Blending in GB Gas Distribution Networks“, 2023
14. East Midlands Hydrogen, website
15. Ofgem, “Hydrogen Village Trial Detailed Design Studies – Decision”, 2022
16. Ofgem, “National Gas Project Union Feasibility Phase – Decision”, 2023
17. Cadent, NGN, and National Grid natural gas consumption data
18. National Grid, “Future Energy Senarios”, 2023
19. Cadent, NGN, and National Grid primary data
20. CIA, “Press release: UK chemical industry accelerates in race to Net-Zero”, 2021
21. FDF, “Roadmap to Net-Zero: Overview for the UK food and drink sector”, 2021
22. MakeUK, “UK Steel Net-Zero Steel – A vision for the future of UK steel production”, 2022
23. MPA, “UK Concrete and Cement Industry Roadmap to Beyond Net-Zero”, 2023
24. NHS, “Delivering a ‘Net-Zero’ National Health Service,” 2020
25. British Glass, “Glass sector Net-Zero strategy 2050,” 2015
26. MakeUK, “Manufacturing Sector Net-Zero Roadmap,” 2022
27. HMG, “Transport decarbonisation plan,” 2021
28. HMG, “Sustainability and climate change: a strategy for the education and children’s services systems,” 2022
29. National Grid, “Britain's Electricity Explained: 2022 Review,” 2022
30. HMG, “Net-Zero Strategy: Build Back Greener,” 2021
31. HMG, “Hydrogen Transportation and Storage Consultation” 2023
32. HMG, “First Special Report - The role of hydrogen in achieving Net-Zero: Government Response to the Committee’s Fourth
Report” 2022
33. HMG, “Hydrogen Transportation and Storage Infrastructure Assessment of Requirements up to 2035,” 2022
34. NGN, “East Coast Hydrogen front end engineering and design study, ” 2023
35. HMG, “Zero-Emission Bus regional Areas (ZEBRA) scheme – winners,” 2022
36. HMG, “Multi-year clean maritime demonstration competition,” 2022
37. ULEMCo, “ULEMCo To Convert Aircraft Tow Vehicles To Hydrogen Combustion Hybrid,” 2021
38. HMG, "Tees Valley multi-modal hydrogen transport hub", 2021
39. BetaTechnology, "Doncaster Hydrogen Feasibility Study," 2022
40. Soguard, "Hydrogen Re-fuelling stations in the UK," website
CROP MARKS
CROP MARKS

MARGIN

92
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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
CROP MARKS
CROP MARKS

MARGIN

93
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
86. HMG, “Consultation on a UK low carbon hydrogen certification scheme”, 2023
87. HMG, “Hydrogen production and industrial carbon capture business models”, 2023

CROP MARKS
CROP MARKS

MARGIN

94
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
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.

I&C and power hydrogen demand data collection


Cadent National Gas NGN
Cadent requested data from the National Gas undertook a UK NGN developed forecasts on the potential demand for
top 180+ natural gas consuming wide data collection exercise to hydrogen-based on the top 200 natural gas customers
sites across North East help inform the network design across North & Central Yorkshire, North of England & East
Lincolnshire and Nottingham. of Project Union. This included Coast Yorkshire.
all large industrial and power
146 sites confirmed an intention customers that connect directly Secondary data was collected for all the top 200 natural
to switch from natural gas to to the NTS. gas sites operated by identified customers, including:
hydrogen providing forecasts. • 2022/23 annual natural gas consumption (Xoserve),
Forecasts from 10 directly
These forecasts include: • industrial sector,
connected customers within the
• Potential hydrogen demand East Coast region were received. • location,
over time in 2030, 2035, and • site specific plans which impact future demand,
These forecasts include:
2035+, • site potential for accepting a hydrogen blend,
• Current natural gas demand • Potential hydrogen demand
• site plans for electrification or other alternative
for 2022/2023, over time in 2025, 2028,
energy supply.
2030 and 2037.
• Site location(s), Based on the above, NGN identify 191 sites for further
• Current and future expected
• Site business operation, investigation, collecting primary data to forecast potential
natural gas demand for
• Ability to blend or fuel hydrogen demand out to 2037.
2022/2023, 2025, 2028,
switch to 100% hydrogen, 2030, and 2037. NGN also collected qualitative information from these 191
• Decarbonisation plans. • Site location, sites, including on (i) Net-Zero or sustainability plans, (ii)
specific projects/initiatives underway, (iii) type of natural
• Site business operation,
gas burning technologies used, and (iv) capability/appetite
• Decarbonisation plans. to accept hydrogen.

Additional hydrogen demand


Transport demand
Potential hydrogen demand for transport has only been quantified within this report where specific sites provided primary data for
hydrogen forecasts (eg East Midlands Airports). For illustrative purposes, maps within the report include a number of publicly
announced hydrogen for transport initiatives which may also become users of hydrogen network’s users in future.
Residential demand
Residential demand is not included in the total hydrogen demand analysis. Residential demand is quantified separately to illustrate
the potential impact on ECH2 in the event UK Government determines that hydrogen will have a role in residential heat. We have
assumed a 100% switch of residential natural gas users to hydrogen throughout this document in order to illustrate the maximum
scenario. In future planning for pilot towns and working with the electricity distribution network operators, this assumption will be
refined for each town to account for expected electrification of residential heat on a location by location basis.
Town demand
Town Pilot demand is not included in the total hydrogen demand analysis. Town Pilot demand is based on expected residential
demand within the identified pilot areas (based on same approach as above). It also includes I&C and Power demand from sites that
provided data and are located within the pilot areas.

Sector demand and location analysis


Demand data is presented in 10 ‘hydrogen demand clusters’ within the East Coast region based on the location (post code) of sites.
Any demand outside of the ECH2 catchment area, such as Cumbria, Northumberland and Barrick upon Tweed, is not included in the
analysis.
Demand data is presented in four categories: (i) Industrial & Commercial (I&C), (ii) Power, (iii) Transport, and (iv) Residential. Within
I&C, data has been presented in 9 sub-sectors.
CROP MARKS
CROP MARKS

MARGIN

95
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
Appendix: Methodology | hydrogen demand
continued

Demand sector definitions

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.

Additional hydrogen demand assumptions

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.
CROP MARKS
CROP MARKS

MARGIN

96
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
Appendix: Methodology | hydrogen production

Hydrogen production methodology

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.

Hydrogen production data collection

Primary data Secondary data


Hydrogen production forecasts have been collected from 22 Three hydrogen production sites have been identified through
hydrogen projects. desktop research. These sites are included in the total
production capacity analysis based on data and assumptions
These forecasts include: gathered from: Press releases, UK Government funding
• Potential hydrogen supply (TWh or kg) over time in 2030, allocations (HAR1, NZHF, or CCUS cluster sequencing) and
2035, and 2037+, BloombergNEF.
• Site location,
Data on these sites is in the process of being confirmed with
• Technology type, primary hydrogen forecasts through ongoing network
• Year online, engagement.
• Plant capacity (GW),
• Status of development,
• Probability of funding (if applicable),
• Private hydrogen network designs (if applicable),
• On-site hydrogen storage capacity (if applicable),
• If Green Hydrogen, the renewable energy source.

Hydrogen production assumptions

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]).

Due to differing production dates between the networks,


For all Green Hydrogen electrolysis projects, it is assumed 7 production is kept constant between the yearly data points
that power values have been provided as electrolysis input provided. No linear increase or assumption has been made.
5 power (MWe) unless otherwise stated. These have been
converted to MW H2 (LHV) production capacity at Operations commence as stated in public literature unless
approximately 71% efficiency based on industry data. 8 otherwise stated in direct communications with the gas
networks/developers.

Production load factors and availability assumptions

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
CROP MARKS
CROP MARKS

MARGIN

97
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
Appendix: Methodology | storage

Hydrogen storage methodology

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.

Hydrogen storage data collection

Announced hydrogen storage Current or potential natural gas storage sites


Announced hydrogen storage forecasts have been collected Data on additional natural gas storge sites has been collected
from four storage providers operating within the East Coast via a literature review on the current natural gas storage and
region. potential natural gas storage capacity in the UK. This is based
on:
These forecasts include:
• National Gas’ ‘2022 Gas Ten Year Statement’,
• Potential storage capacity (kg, nmcm or GWh),
• Technology type, • North Sea Energy’s ‘Project Atlas’, and
• Year online, • Atkin’s ‘Hydrogen Cavern Storage – WS10 & WS11’ report.
• Site location,
• Injection and withdrawal rate (nmcm/h) and pressure
required (barg),
• Possibility to store blended hydrogen or 100% hydrogen.
• Information on development status, risks, potential growth
in storage capacity over time.

Hydrogen storage data analysis


Storage capacity
Potential hydrogen storage capacity has been estimated based on primary data gathered by the networks from the sites. The total
energy capacity for each site was estimated on the basis of the volumetric capacities stated. Throughout our analysis we have
assumed a Lower Heating Value (LHV) of 33.4kg/H2.
On-site storage capacity collected from production sites has not been included within the total potential capacity figures for ECH2, as
facilities will be used mainly by the individual producer and not for wider energy network balancing.
Additional potential hydrogen storage (eg from potential to convert existing and planned natural gas) has not been quantified for the
purposes of this report.
Total hydrogen storage requirements
Total potential UK hydrogen storage requirements are based on the System Transformation scenario from National Grid’s ‘Future
Energy Scenarios 2022’ report.

Hydrogen storage assumptions

The Hydrogen NTS will connect into the majority of


The UK Government’s Lower Heating Value (LHV) of
announced storage sites to provide national energy system 3
1 resilience through Project Union. It is then assumed that hydrogen (KWh) is 33.4 kg/H2
the GDN’s will connect into the NTS pipelines in the future
for wider flexibility options.
The capacity of natural gas storage sites are indicative of
It is assumed that storage commences at the beginning of 4 the potential for future hydrogen storage capacity, but are
2 the year each of the projects comes online. not assumed as actual hydrogen storage capacity.
CROP MARKS
CROP MARKS

MARGIN

98
MARGIN

MARGIN MARGIN
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS
Appendix: Methodology | decarbonisation & fuel
switching

Decarbonisation methodology

Decarbonisation data analysis


The Delivery Plan outlines the total I&C and power decarbonisation potential from switching from natural gas to low-carbon
hydrogen.
The same carbon intensity factor for natural gas is used for all demand sites, except transport, where the carbon intensity value used
is for aviation turbine fuel as the data relates to East Midlands Airport only.
The abated MtCO2 is estimated by applying the carbon intensity values outlined in the assumptions to the stated potential hydrogen
demand over time between 2028 to 2037. Total forecast hydrogen demand (TWh) within the I&C and power sectors is estimated
based on Cadent and National Gas primary and NGN secondary data (see pp 26).
Potential abated emissions is compared against the UK’s total provisional emissions for 2022 as stated in the UK Government DUKEs
dataset.
Residential decarbonisation has been estimated using the same methodology and assumptions to showcase the potential emissions
to be abated within the pilot towns and wider rollout region. These figures are not included to the total decarbonisation calculation
as it is still uncertain and dependant on the UK Government’s decision on hydrogen for heat.

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

Fuel switching potential

Fuel switching data analysis


The Delivery Plan has estimated the potential volume of I&C and power natural gas demand that could switch to low-carbon
hydrogen between 2028 and 2037.
Total forecast hydrogen demand (TWh) within I&C and power sectors is estimated based on Cadent and National Gas primary and
NGN secondary data (see pp 26). The fuel switching potential is set against the sum of all the potential hydrogen sites current natural
gas consumption for 2022/2023. Note, the natural gas demand of the user/site is based on a moment in time and reflects demand
when forecasts were shared, it does not include any assumptions on future energy demand profile.
The transport and residential sector hydrogen demand fuel switching potential has not been estimated due to the uncertainty
surrounding future hydrogen demand.
Furthermore, the site level fuel switching potential has been set against the wider regions natural gas demand to calculate the scale
of which ECH2 can help fuel switch the I&C and power sectors. The networks own data has been used to calculate the total natural
gas demand for 2022/2023, split by residential, power, industrial, commercial sectors, for the entire East Coast region.

Hydrogen fuel switching assumptions

It is assumed that no new processes will be implemented


It is assumed that 100% of natural gas consumption will
1 switch to low-carbon hydrogen. 3 to require hydrogen. New hydrogen demand is assumed to
derive from production increase in same processes.

The potential for a future increase or decrease in each


2022/2023 total natural gas consumption is indicative of
sites natural gas demand due to energy efficiencies, site
2 closures or a change in activity is not factored into the 4 the scale of natural gas to fuel switch or abate, not a
forecast over time.
calculation.
CROP MARKS
CROP MARKS

MARGIN

99
MARGIN

MARGIN MARGIN
CROP MARKS CROP MARKS
MARGIN MARGIN
MARGIN

MARGIN
100
MARGIN

MARGIN
MARGIN MARGIN
CROP MARKS CROP MARKS
CROP MARKS MARGIN MARGIN

MARGIN
MARGIN

CROP MARKS

© ECH₂ 2023
ECH₂ and its logo are trademarked and protected
CROP MARKS
CROP MARKS

MARGIN

101
MARGIN

MARGIN MARGIN

You might also like