SGN, Macquarie’s Green Investment Group (GIG), and Esso Petroleum Company, Limited (an ExxonMobil subsidiary) announced the signing of a Memorandum of Understanding (MoU) to investigate the use of hydrogen and carbon capture to assist in reducing emissions in the Southampton industrial cluster.
Southampton is home to one of the largest industrial sectors in the United Kingdom and serves as a critical link in the country’s energy supply chain as well as a vital gateway for international trade.
According to an initial feasibility analysis conducted by SGN and GIG, the cluster’s annual hydrogen consumption, which includes the heating needs of 800,000 houses in the South of England, might reach 37 TWh by 2050. Increased usage of hydrogen with carbon capture would assist cut emissions in the area’s industrial sector and stimulate the local economy through natural gas network conversion, while also reducing emissions from household heating and transportation.
Carbon capture plants may initially absorb around 2 million tonnes of CO2 per year, including from initial hydrogen production of approximately 4.3 TWh per year, according to the feasibility assessment. This might also draw major investment to the neighborhood, sustaining existing jobs and stimulating local job development. If technological and business feasibility are established, and the appropriate level of government backing is provided, hydrogen production might begin as early as 2030.
Angus McIntosh, Director of Energy Futures at SGN said: “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. The creation of hydrogen hubs in and around industry is a great way of achieving scaled hydrogen demand and creating hydrogen economies. We are pleased to partner in this project to explore decarbonisation of the Solent area and build on the outputs of the feasibility study. This project can kick start a net zero industrial cluster in Southampton and stimulate net zero gas networks across the South of England.”
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.”
Joe Blommaert, president of ExxonMobil Low Carbon Solutions said: “Hydrogen has the potential to help provide customers with access to affordable, reliable energy while minimising emissions. 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.”
