Pale Blue Dot Energy are delighted to announce a new partnership with Carbon Engineering (CE), a leading provider of Direct Air Capture (DAC) technology that captures carbon dioxide (CO2) out of the atmosphere. The companies have announced their intentions to work together to deploy commercial DAC projects in the UK and have signed a Memorandum of Understanding to collaborate on the development of facilities that will contribute towards the removal of millions of tonnes of CO2 from the atmosphere each year. This agreement marks the first partnership between a DAC technology company and a UK development partner and signifies the next step towards establishing a UK DAC industry that will create significant environmental and economic benefits.
The Hydrogen in Scotland report published in September 2020 summarises that Scotland could be producing 121 TWh of hydrogen by 2050 through a combination of hydrogen supplied from the reforming of natural gas with carbon capture and storage (blue hydrogen) and the electrolysis of water (green hydrogen). Acorn Hydrogen will initiate large scale hydrogen production starting with a 200MWt reformer in 2025 at St Fergus in North East Scotland, with the project acting as a catalyst for developing the hydrogen market within Scotland and beyond.
Several key enablers are required to enable hydrogen development at scale, including clarity on the business model to support hydrogen production and use. To further support large scale hydrogen production a further enabler is the need to establish long term potential demand for hydrogen.
With this in mind the Acorn Hydrogen Project is inviting Expressions of Interest from large energy users who are interested in receiving hydrogen, most probably as a low carbon fuel switch. Whether you are an existing or planned site, if you have genuine interest in being supplied hydrogen for your operation then Acorn Hydrogen would like to hear from you.
The input will also help inform the logistics, practicalities and prioritisation of the various routes to market being explored for how hydrogen is moved from points of generation to points of use. Whilst 2025 might appear to be a long time in the future, projects of the scale of Acorn Hydrogen take several years to mature.
Please follow this link to the simple, Hydrogen Demand Expression of Interest form.
A perspective from Sam Gomersall, Pale Blue Dot Energy’s Hydrogen Champion
Scotland could be producing 121 TWh of Hydrogen by 2050, sufficient to meet all its own needs and exporting to Europe. Hydrogen is key to meeting Net Zero and rapid action is required to address climate change. Acorn Hydrogen will initiate large scale hydrogen production by 2025 at St Fergus in North East Scotland and will act as a catalyst for the regional and national hydrogen transformation, enable Net Zero and provide a key stepping-stone for the Just Transition. In the report Hydrogen in Scotland recently completed by Element Energy, the role of the Acorn Hydrogen Project in enabling Net Zero has been assessed based on potential hydrogen growth scenarios.
In 2019, the Climate Change Act, approved by the Scottish Government, set the ambitious target to achieve a carbon neutral Scotland by 2045, five years earlier than the UK Net Zero target. To accomplish these targets, the Committee on Climate Change (CCC) has identified hydrogen and carbon capture and storage (CCS) as indispensable technologies for the transition, highlighting the importance of an early deployment of these technologies beginning in the 2020s.
The Acorn Hydrogen project will be the first large-scale hydrogen project developed in Scotland, located at the St Fergus gas terminal, where 35% of the UK’s annual gas supply enters the National Transmission System. The project is initially planning the construction of a 200 MW hydrogen production plant, that could become operational by 2025, and which would allow for a 2% hydrogen blend by volume into the National Transmission System (NTS). The emissions from the hydrogen production would be captured, transported, and safely stored offshore deep underground, reusing current oil and gas infrastructure, enabled by the sister project, Acorn CCS.
The project is highly scalable, due to large volumes of natural gas feedstock available, the massive offshore CO2 storage capacity and the availability of existing offshore pipeline infrastructure. This means that large volumes of hydrogen can be generated in the 2020s and beyond, offering an opportunity to establish hydrogen infrastructure before other complementary decarbonisation technologies reach scale.
The report considered the potential role for hydrogen in decarbonizing heat through the gas network, either by blending or 100% hydrogen, potential hydrogen use in power generation at Peterhead Power Station and supply of hydrogen for industrial and transport applications. The work looked at the complimentary and evolving roles of blue hydrogen (hydrogen from natural gas with CCS) and green hydrogen (hydrogen from the electrolysis of water).
The report found that Acorn Hydrogen could play an essential role in unlocking benefits across Scotland and the UK, including helping achieve Net Zero, driving economic growth, and developing both physical and intangible assets that could be leveraged in the longer term. In terms of emissions reduction, just displacing natural gas for heat would reduce emissions by 9MtCO2/year.
Large-scale adoption of hydrogen would also result in economic growth and long-term job creation across the hydrogen supply chain. The macro-economic benefits of a Scottish hydrogen economy would be multiple and would cover several sectors, ranging from hydrogen production through reformation and CCUS, to gas grid conversion, and spanning to production and operation of electrolysers and deployment of off-shore wind.
Acorn Hydrogen would bring an opportunity for future hydrogen projects to exploit the physical assets that early deployment of Acorn Hydrogen would enable and are needed in the transition towards Net Zero.
Hydrogen presents a stepping-stone in the Just Transition. By leveraging local skills from workers in the oil and gas sector and applying them to hydrogen and CCS, regional supply chain jobs can be protected. Similarly, the relatively low disruption brought in by the use of hydrogen in carbon-intensive sectors, such as power plants or industry, means that current workforce skills would be easily transferred once hydrogen substitutes for natural gas, thus leading to job retention and savings associated with reskilling.
Acorn Hydrogen is key to Scotland’s hydrogen economy. Hydrogen will create economic growth, act as a catalyst for Net Zero and unlock wider long-term growth opportunities which can support the Just Transition.
With the urgent need to act on the climate crisis, the time has come for widespread development of hydrogen projects. Hydrogen has a critical and massive role to play in decarbonizing emissions from heat, industry, transport and power.
“The world is on fire”. Urgent action to address climate change is required, but current actions are too slow. In the UK around half of our emissions are related to heat and most of that comes in the form of natural gas, which emits CO2 at the point of use. Whilst we are making some progress decarbonizing power and transport, little progress is being made decarbonizing heat. Urgent action is required.
Our UK objectives are clear, to be net zero by 2050 (2045 in Scotland). Scotland has also committed to reducing emissions from fossil fuel use by 70% by 2030, only 10 years away. Time is short.
Hydrogen is an energy vector, to be considered in a similar way to electricity and gas, as a means of storing and transporting energy to end users. Using hydrogen is not new. It used to be part of the gas stream prior to our conversion to natural gas.
The time has come to accelerate the deployment of hydrogen as a replacement for natural gas in the gas distribution system, initially as a blend of natural gas and hydrogen. In the UK, several such gas reformation projects are underway; Acorn in Scotland, Hynet in the North West and H21 in Yorkshire.
Other projects are underway to design, test and understand the impact, cost and effect of hydrogen in the gas system. Together these projects create real opportunity for providing low carbon heat for the UK in the short term, which will be essential if we are to meet our climate change objectives.
Producing hydrogen from natural gas without emitting CO2 , requires the use of carbon capture and storage (CCS) to permanently store the CO2 separated from the gas during hydrogen production. Several CO2 storage projects are being assessed around the UK, the most mature project being Acorn CCS in Scotland.
To make the system transformation successful requires us to put a price on carbon and to enable a just transition this needs to be done in a fair and proper way. This carbon pricing structure will take time to develop, which in the interest of climate change, we do not have. In the meantime, these early projects need to get started and government and developers need to work closely together to create interim funding models which support their development.
It is time for urgent action and collaboration to move quickly and develop hydrogen as a replacement for natural gas. It’s time to go back to the future.
Acorn Hydrogen and a number of other exciting hydrogen initiatives received funding last week from the UK Government’s second phase Hydrogen Supply Competition.
Hydrogen presents an exciting opportunity to achieve the global energy transition to a low carbon economy. With its history of innovation and technology development for the oil and gas industry, the North Sea Region could be at the forefront of this transition creating new opportunities and generating employment.
Aberdeen City Council, ERM and Pale Blue Dot Energy are looking forward to co-hosting a one-day conference with support from Opportunity North East, Scottish Enterprise, Invest Aberdeen and the Oil and Gas Technology Centre. Hydrogen: A business opportunity for the North Sea Region will take place on the 1st October 2019 at the Hilton Treetops Hotel, Aberdeen.
This complimentary conference will explore the vision and opportunity for hydrogen as well as its production and applications. We will be joined by representatives from several hydrogen projects throughout the North Sea Region who will introduce their projects as well as share key learnings from their emergence in this market. The event will focus on the opportunities for development of the regional supply chain. Throughout the day there will be time to engage with representatives from both public and private sector developing the hydrogen opportunity.
The conference is aimed at those wanting to understand what is happening in this exciting market, how the technology is evolving, and some of the current projects being developed. It also forms the Hydrogen Transport Economy (HyTrEc2) Project mid-term conference and received EU funding from Interreg North Sea Region.
Aberdeen City Council will also be hosting a Hydrogen Festival throughout this week (30th September – 4th October 2019). A plethora of events including practical examples from the HyTrEc2 partnership on hydrogen deployment, the European picture for transport, heat and power and find out about hydrogen racing cars from the Shell marathon and Arcola Aberdeen schools challenge. You will also be able to drive hydrogen vehicles and view the Toyota Mirai, Hyundai Nexo, hydrogen roadsweepers and hydrogen trucks.
Councillor Philip Bell, Aberdeen City Council’s environmental spokesperson, said: “Hydrogen presents an exciting opportunity to achieve the global energy transition to a low carbon economy.
“With its history of innovation and technology development for the oil and gas industry, the North Sea Region aims to be at the forefront of this transition creating new opportunities and generating employment.”
“We look forward to welcoming delegates to the conference and to the festival, underlining our vision to be a key player in the roll-out of hydrogen technology.”
More information about Hydrogen: A business opportunity for the North Sea Region, including agenda and speakers will be made available over the coming weeks, but if you have any queries please get in contact with Emma Anderson, firstname.lastname@example.org.