Gas network operator SGN, Macquarie’s Green Investment Group (GIG) and Esso Petroleum have signed a memorandum of understanding to explore the use of hydrogen and carbon capture in the Southampton industrial cluster.
Esso said an initial feasibility study by SGN and GIG shows the annual hydrogen demand from the cluster, which is home to ExxonMobil’s Fawley complex, could rise to 37TWh by 2050 – if it included heating demand from 800,000 homes across southern England.
It says hydrogen with carbon capture would help reduce emissions in the area’s industrial sector and stimulate the local economy through the conversion of the natural gas network.
The feasibility study estimated that carbon capture facilities could initially capture approximately 2 Mt of carbon dioxode2 per year, including from initial hydrogen production of around 4.3TWh of hydrogen per year. The company said, “If technical and business feasibility is confirmed, and with the right government support, hydrogen production could commence as early as 2030.”
Angus McIntosh, director of energy futures at SGN, said: “The creation of hydrogen hubs in and around industry is a great way of achieving scaled hydrogen demand and creating hydrogen economies. We are pleased to partner in this project to explore decarbonisation of the Solent area and build on the outputs of the feasibility study. This project can kick start a net zero industrial cluster in Southampton and stimulate net zero gas networks across the South of England.”