Southampton industrial cluster hopes to become UK’s next hydrogen hub
ExxonMobil, SGN, and Green Investment Group are exploring the potential for a major new hydrogen production and carbon capture facility on the south coast
Southampton’s industrial cluster could be home to a new hydrogen production hub, following an agreement between gas distribution network SGN, Macquirie’s Green Investment Group (GIG), and oil and gas giant ExxonMobil.
ExxonMobil this week announced the three companies have entered into a Memorandum of Understanding (MoU) to explore the potential for hydrogen production and carbon capture in Southampton, one of the largest industrial and port hubs in the UK, in a bid to reduce emissions in the area.
Hydrogen production could commence as early as 2030, according to ExxonMobil, once the technical and commercial feasibility of the plans are confirmed.
“Hydrogen will be key in our journey to net zero, providing a reliable, affordable and practical supply of clean energy to multiple sectors whilst ensuring security of supply,” said Angus McIntosh, director of Energy Futures at SGN. “The creation of hydrogen hubs in and around industry is a great way of achieving scaled hydrogen demand and creating hydrogen economies.”
An initial feasibility study suggests that annual hydrogen demand from the cluster could reach as much as 37 TWh by 2050, including the potential to meet heating demand from 800,000 homes across the South of England.
The study also found that carbon capture could remove an estimated two million tonnes of CO2 a year fromthe hub, including from the initial production of hydrogen from gas.
The proposed conversion of the natural gas network to hydrogen would benefit the local economy, while the carbon removal technology could attract investment in the community and create local jobs, ExxonMobil predicts.
Edward Northam, head of GIG Europe, said: “Hydrogen will play a vital role in decarbonising industrial clusters like Southampton, and so it is extremely positive that our recent exploratory study has concluded that this hydrogen project is both technologically and economically feasible. Getting the project to development will require close partnership with local industry – which is why ExxonMobil, a potential cornerstone producer and user of hydrogen, joining our project is a significant step forward.”
Echoing Northam’s comments, Joe Blommaert, president of ExxonMobil Low Carbon Solutions, said: “We are pleased to be part of this collaboration that includes a technical study to assess the potential for the Fawley facility to play a key role in both hydrogen production and carbon capture and storage solutions. With well-designed policy and regulations, hydrogen can help reduce the emissions of the Southampton industrial area that provides vital products for modern life.”
The project would provide a hydrogen and CCS Hub on the south coast to match planned projects in the north of England and Scotland. The government has announced support for two initial zero carbon industrial hubs, but has signalled that more are likely to be required in support of the UK’s net zero goals.
However, developers and campaigners alike have warned that if such projects are to be delivered significant policy support is likely to be required, while a fierce debate is continuing to rage over how hydrogen should be produced and utilised so as to maximise emissions savings.
