SGN and Pale Blue Dot Energy are working together in collaboration with National Grid Transmission to evaluate the potential uses of an exciting new energy option that could find a natural home in the north east of Scotland.
Hydrogen provides a means to eliminate CO2 emissions from the future energy system. When it is used to make energy, the only by-products are water, and CO2 when the hydrogen is made from natural gas.
Pale Blue Dot’s carbon capture and storage project, Acorn, has been voted Transition Economist project of 2020, by industry analysts PE Media Network. The award celebrates the leading lights and most important playmakers from across the global energy sector in the last year.
Acorn was credited for its CCS project based on the North East coast of Scotland. It attracted 54% of a public vote for the new category which recognises the company that has done most to help the transition away from fossil fuels to low carbon energy.
Alan James, Pale Blue Dot’s Managing Director said, “It’s great for the whole team to be recognised for the hard work they do every-day to ensure we are capturing carbon and tackling climate change by the mid 2020s.”
St Fergus in North East Scotland could be home to critical net zero infrastructure. Image Credit: Shell
Pale Blue Dot, the lead developer of the Acorn carbon capture and storage and hydrogen project in Scotland warmly welcomes today’s announcement of a further investment in low carbon technology.
Nick Cooper, CEO of Pale Blue Dot, said,
‘The ability to capture and store significant volumes of CO2 under the North Sea in CCS projects such as Acorn will be a crucial part of the UK’s journey to reaching net zero by 2050. The UK has the geology, the expertise and now the Government will, to make world-scale CCS projects a reality. These ingredients will allow the UK to not only provide global leadership in developing this vital tool to mitigate climate change, but create a whole new industry in carbon management.’
The project, which will be storing CO2 by the mid-2020s will create around 2,000 direct jobs during the five-year construction period of the initial CCS and hydrogen projects and around 300 long term jobs as the projects become operational. As the Acorn carbon management chain grows, the number of new jobs created is expected to grow substantially beyond these initial levels. Crucially, however, because Acorn capitalises on infrastructure that is for the most part already in place, it can be developed cost-effectively and quickly, helping the UK Government to achieve its CCS ambitions as part of a green recovery.
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.