Shell and Uniper to work together on blue hydrogen production facility in the UK
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Uniper has signed an agreement with Shell to progress plans to produce blue hydrogen at Uniper’s Killingholme power station site, in the East of the UK. The hydrogen produced could be used to decarbonise industry, transport and power throughout the Humber region.
Called the ‘Humber Hub Blue Project’, it includes plans for a blue hydrogen production facility with a capacity of up to 720 MW, based on natural gas reforming together with carbon capture ultilisation and storage (CCUS).
The captured carbon will be fed through the proposed Zero Carbon Humber onshore pipeline, part of the East Coast Cluster, recently selected as one of two carbon capture and storage schemes to receive initial government support under the Government’s Cluster Sequencing Process (seeprevious IFRF blog for details).
The Humber Hub Blue Project recently passed the eligibility criteria for Phase 2 of the UK Government’s Cluster Sequencing Process. Successful projects which could be eligible for Government funding will be shortlisted from May 2022. Phase 2 projects are expected to take final investment decisions from 2024 and to then be operational from 2027.
Blue hydrogen production at Killingholme could see the capture of approximately 1.6 MtCO2/y, making a significant contribution to the UK Government’s target to capture 10MtCO2/y by 2030.
The agreement follows a memorandum of understanding signed by both companies in 2021 to explore accelerating the development of a hydrogen economy in Europe. Shell and Uniper will now jointly progress process design studies and site development activity, with a view to taking the project to Front End Engineering and Design (FEED) by 2023.
According to Axel Wietfeld, CEO of Uniper Hydrogen, “the Humber Hub Blue Project is a key part of Uniper’s hydrogen ambitions in the UK and we’re extremely pleased that Shell is joining us on this initiative”.
David Bunch, Shell UK’s Country Chair added, “Shell is ready to play our part in ensuring an orderly transition to net zero while bolstering the UK’s energy security. We plan to invest up to £25 billion in the UK energy system over the next decade subject to Board approval, and more than 75% of this is for low and zero-carbon technology. Hydrogen and CCS will be key to these plans. They can also help stimulate economic growth and jobs. That is why it is critical that both government and industry continue to work together to drive change.”