MEMBER NEWS: Aberdeen Hydrogen Hub set to move forward

February 3, 2022
MEMBER NEWS: Aberdeen Hydrogen Hub set to move forward

Courtesy of Aberdeen & Grampian Chamber of Commerce.

Plans which could eventually see Aberdeen become a pioneering exporter of hydrogen look set to take a major step forward.

Aberdeen City Council’s City Grown and Resources Committee will today be asked to sign-off proposals to create a joint venture with bp to deliver its Aberdeen Hydrogen Hub (AHH) project.

Councillors will also hear details on the proposed joint venture structure, governance, obligations, associated risks and the return on investment expected to the council through participation in the scheme.

Council officers have recommended that, subject to compliance with subsidy control legislation, councillors approve the appointment of bp as joint venture partner to deliver the Aberdeen Hydrogen Hub Strategic Partnership, following a public procurement procedure, and approval of the business case.

New entity

If approved, the plans will see bp and the council create a new company to deliver the plans.

A key part of the programme will involve the creation of Scotland’s first scalable green hydrogen production facility.

Phase 1, which involves delivery of a green hydrogen facility, is targeting first operations from 2024.

Options could include using power drawn from a new solar farm, green power purchase agreements and a private wire grid connection to generate hydrogen for buses, heavy goods vehicles and large vans.

Future phases could then see production scaled up through further investment to supply larger volumes of hydrogen for rail, freight and marine, as well as supply of hydrogen for heat and potentially export.

Potential

Aberdeen City Council, in partnership with Opportunity North East (ONE) and Scottish Enterprise (SE), appointed Element Energy in 2019 to review the business case for the hydrogen sector in Aberdeen following successful pilot projects – including the Aberdeen hydrogen bus project and Council fleet deployment – but continuing market failure for wider commercial adoption of hydrogen.

The report concluded that collating hydrogen demand across fleets, increasing production and supply of green hydrogen by connecting to large scale renewable generators, and coordinating supply chain and training could lower the price of hydrogen and catalyse use by other growth sectors seeking to decarbonise (heat, industry, maritime, rail etc).

This would then create significant economic opportunities as part of an energy transition in the North-east; unlocking new economic opportunities worth upwards of £700million gross value added to Scotland’s economy by 2030, as well as thousands of high-value jobs in Aberdeen and the surrounding region.

Phased development

It is envisaged that the AHH will be developed in three phases in response to growing demands for hydrogen:

  • Phase 1: initial production for public sector consumption including the provision of a resilient, cost effective supply of hydrogen on a commercial basis to the market to support both existing and proposed transport projects.
  • Phase 2: expansion in the short to medium term to connect to larger volume utilisation of hydrogen – rail, trucks and marine use.
  • Phase 3: hydrogen for heat and export. Whole system approach to supply and demand. Innovation, skills and transition hub to support expansion of the local supply chain. Pursue the ambition for Aberdeen to be the centre of a brand new energy production business, exporting hydrogen to the world. Recent ScotWind announcements may support the future delivery of Phase 3.

Read this story on the AGCC website here.

Get in touch

AREG is the original energy transition organisation, working on behalf of members to empower the energy supply chain and champion its expertise. Please get in touch if you have any questions or would like to find out more about membership.

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AREG has played an important role in the growth of Scotland’s renewable energy sector, engaging the supply chain and developing the European Offshore Wind Deployment Centre. However, we are only at the very beginning of the transition that AREG was established to both lead and support so there are still opportunities for companies to get into the constantly evolving renewables supply chain. We look forward to continuing our work together as renewables builds on its place as Scotland’s main source of power, and as we seek to deliver real change in the crucial areas of heat and transport.

Scottish Renewables
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Aberdeen & Grampian Chamber of Commerce has worked closely with AREG since its formation. The recent progress in the developments of offshore wind projects by Equinor and Vattenfall are as a result of the work of the group over many years. The north-east is known as the oil and gas capital of Europe. At the Chamber, we believe the region must evolve its position to being recognised as the energy capital. Whilst hydrocarbons will continue to be essential in driving our economy for years to come, the generation of renewable resources will play an increasingly important role in providing cost-effective power, innovative development and economic growth.

Aberdeen & Grampian Chamber of Commerce
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The enthusiasm and dedication of the early group that would become AREG was fundamental in us choosing to launch All-Energy in Aberdeen. The first tiny show was held in 2001, and AREG’s Chairman at the time, Jeremy Cresswell, played such an active role that I often describe him in terms such as All-Energy’s ‘midwife’. All-Energy is now the UK’s largest renewable and low carbon energy exhibition and conference in terms of number of attendees, space booked, and number of exhibiting companies. As AREG became firmly established, their presence and support for the event grew spectacularly over the years. We thank them most sincerely for their invaluable input.

All-Energy
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Vattenfall has forged a strong working relationship with AREG through the development of the European Offshore Wind Deployment Centre. AREG has worked tirelessly on behalf of the North East and it can take enormous credit for the growth of sustainable energy in the region and the path it has cleared for the region to capture further investment.

Vattenfall
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Aberdeen City and Shire is emerging as a key location for renewables by successfully transferring its world-class oil and gas expertise into the sector and AREG has done much to advance this through a broad range of initiatives. It has acted as a catalyst in driving further investment in the local economy by engaging with companies, Government, public bodies and existing projects and we have been pleased to support their efforts. Scottish Enterprise will continue to engage with AREG as we increase Scotland’s use of renewable energy.

Scottish Enterprise