Two hydrogen projects of UK energy company SSE PLC (LON:SSE) will move to the final stages of the UK government’s Net Zero Hydrogen Fund, the company said today.
The Department for Energy Security and Net Zero announced that after initial due diligence on the shortlisted projects, it has invited 17 projects, totalling 262 MW, to negotiations.
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These include SSE’s Aldbrough Hydrogen Pathfinder and Gordonbush Hydrogen schemes.
Aldbrough Hydrogen Pathfinder is being developed at SSE Thermal’s existing gas storage site in East Yorkshire. It will use green power sourced from the grid via renewable power purchase agreement (PPAs) when supply is abundant. Hydrogen would be produced via a 35-MW electrolyser and stored in a converted salt cavern. It will then fuel a 100% hydrogen-fired open-cycle gas turbine to provide flexible green power to the grid. Hydrogen production is targeted to start by 2025, subject to planning consents and achieving a final investment decision later in 2023.
Gordonbush Hydrogen is intended to produce green hydrogen using renewable energy from SSE Renewables’ 100-MW-plus Gordonbush onshore wind farm in Sutherland. This hydrogen project is now undergoing refinements before a planning application is submitted to the Highland Council, according to the announcement. If built, Gordonbush Hydrogen would produce up to 1,300 tonnes of green hydrogen a year.
The list of projects invited to negotiations can be viewed here: https://www.gov.uk/government/publications/hydrogen-production-business-model-net-zero-hydrogen-fund-shortlisted-projects/hydrogen-business-model-net-zero-hydrogen-fund-negotiations-list-for-allocation-round-2022
