Allowing for the construction, operation and maintenance of instrastructure for CO2 transportation, the DCO will bring the HyNet cluster closer to execution, with final investment decision expected by September 2024.

The pipeline will transport CO2 for storage in a depleted natural gas field beneath Liverpool Bay, where project developers estimate a storage capacity of 130 million tonnes of CO2.

With an estimated annual storage capacity of 4.5 million tonnes of CO2 in the first phase, the storage project is anticipated to start operations in 2025.

By 2030, HyNet is anticipated to boast a 30TWh per year low-carbon hydrogen production capacity across four plants.

EET Hydrogen entered final negotions with the government for its 350MW low-carbon hydrogen plan in February (2024), with construction expected to begin later this year.  The company has plans for a second plant with 1GW of capacity.

Read more: EET Hydrogen enter final negotiations with UK Government for 350MW hydrogen plant

Previously known as Vertex Hydrogen, EET Hydrogen last year (2023) revealed it had signed agreements to supply over 1GW of low-carbon hydrogen to leading industrial names within the HyNet Cluster.

Pipeline developer Eni has welcomed the government’s DCO. Claudio Descalzi, CEO of Eni, said, “This decision marks a significant step towards establishing a significant new industry for the country.”

CCS’ role in cleaning up existing hydrogen production

HyCO4 plant, Rotterdam © Air Products

So often in this industry we find ourselves discussing the decarbonisation potential of hydrogen and how it could repower polluting industry, transport and more

But almost equally as often, one crucial aspect is avoided – the current production of hydrogen is a huge emitter of carbon dioxide (CO2).

900 million tonnes of CO2 emitted in 2022 could be linked to the unabated fossil fuel-based production of hydrogen1, according to the International Energy Agency (IEA). Over 100 million tonnes more than what aviation sector emitted in the same year2.

The reason being global use of the energy carrier reached 95 million tonnes in 2022 – but just 0.7% (0.66 million tonnes) was met by low-emission hydrogen1. And for some time yet, it does not appear that green hydrogen will be able to move the needle.

In January (2023), the IEA’s Renewables 2023 report downgraded its predicted renewable power capacity dedicated to hydrogen production between 2023 and 2028 to 45GW. While offering a “reality check” on renewable-based hydrogen momentum, the agency said of all the global projects announced to use renewable for hydrogen production this decade, only 7% of the proposed capacity is expected to come online by 20303.

Blue or low-carbon hydrogen has continued to be a complicated and often contentious topic. While green hydrogen purists argue that it extends the life of fossil fuel usage and suggest carbon capture technology is not viable, blue hydrogen supporters say it is an effective pathway to cut a high level of emissions in the short-term…

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