Renewable energy giant Orsted and energy company Phillips 66 have jointly announced their decision to withdraw funding from the UK Government’s Hydrogen Business Model (HMB) process for their green hydrogen project Gigastack at Hornsea 2, the world’s largest wind farm. The HMB process aims to financially back the initial gigawatts of low-carbon hydrogen projects by 2025.
The Gigastack initiative, situated in the Humber region, had plans to employ a 100MW ITM Power electrolyzer powered by Hornsea 2’s electricity to produce green hydrogen for the Phillips 66 refinery. The goal was to establish a blueprint for expanding electrolysis technology in the UK. However, both Orsted and Phillips 66 have emphasized that a higher level of project maturity and supply chain evolution is essential before advancing.
In a joint statement, the two companies commended the progress achieved thus far in fast-tracking green hydrogen implementation. They stressed that while there has been significant headway, the project requires further development in terms of maturity and supply chain integration to fully unleash its hydrogen-producing potential.
Moreover, ERM Dolphyn, a floating green hydrogen wind power project, has also withdrawn its bid for the Phase 1 demonstrator and will redirect its focus toward securing funding for a larger initiative. Although the exact location of this new endeavor is yet to be confirmed, ERM is engaged in discussions for commercial projects in the North Sea, Celtic Sea, and areas proximate to Ireland.
The HMB process sets a target to support the growth of 10GW of low-carbon hydrogen generation in the UK by 2030, with the initial 1GW either under construction or operational by 2025. Presently, negotiations for financing the first round of projects, totaling 262 MW, are in progress, and another round is slated to commence later this year.
