Bacton gas terminal’s conversion into a hydrogen energy hub could see it heat up to 20mln homes for decades to come at a cost of £500mln, according to new research.
With plans to start transforming the UK’s national gas transmission system (NTS) to carry greener hydrogen expected by the end of the decade, the report by a consortium of energy companies suggested Bacton had a large part to play in this.
Bacton, which is operated by Shell PLC (LSE:SHEL, NYSE:SHEL), could produce enough hydrogen to meet 40% of the demand in its catchment zone of the East of England and London by 2030, according to the report.
On a national scale, blending 20% hydrogen into the NTS could prevent 1.6mln tonnes of CO2 being emitted each year.
“The Bacton Energy Hub is potentially a major contributor to the greening of the UK economy,” outlined Energy Transition Advisory director Ian Phillips.
The #BactonEnergyHub could produce hydrogen to heat 20mn homes, while also cutting emissions on a path to #netzero, according to a series of reports released by @NSTAuthority.#hydrogen #hydrogeneconomy #bacton #energytransitionhttps://t.co/w68IG8wFnP pic.twitter.com/SkZe11Pfgt
— Hydrogen East (@HydrogenEast) December 15, 2022
Referencing the carbon capture and storage hydrogen project for the North Norfolk based terminal, the report suggested £500mln worth of investment would be needed for the conversion.
Initially producing hydrogen from natural gas and capturing the emissions, Bacton could be brought online as early as 2030 and rely on electrolysis from 2040.
Hydrogen will be injected into a UK gas-fired power station for the first-time next year as part of a pilot run by operator Centrica PLC (LSE:CNA) owned British Gas to test the viability of hydrogen as a replacement fuel.
While the government also hinted on Wednesday that hydrogen-ready boilers may be a requirement in UK new builds by 2026.