ScottishPower sets up hydrogen business, targets industry, transport, food

ScottishPower has set up a dedicated green hydrogen business with first projects launched next year to focus on high-temperature industrial processes, heavy transport and food and drink sectors, the Iberdrola-owned utility said Dec. 21.

In November, Iberdrola outlined plans to develop 600 MW of electrolysis-based green hydrogen capacity in mainland Europe by 2025.

"As we move towards Net Zero, electrification will only take us about 80%-90% of the way, what's left is a number of sectors and industry that will require further support," said Barry Carruthers, ScottishPower's hydrogen director.

"We can take our expertise and knowledge in the development and operation of renewables and apply it to the roll-out of green hydrogen in areas where electrification can't reach," he said.

Earlier this year ScottishPower, electrolysis company ITM Power and industrial gas company BOC announced a partnership to develop green hydrogen production facilities with clusters of refueling stations across Scotland.

The partnership targets local authorities and others with fleets of heavy duty vehicles. It aims to supply hydrogen to the commercial market within two years.

"The new hydrogen business will continue with this work and look to replicate its success with other partnerships over the coming years," ScottishPower said.

It would look to work with the steel, petrochemicals, ammonia and distillery sectors, making "a substantial contribution" to the UK government's goal of 5 GW of low-carbon hydrogen production by 2030.

"As with all new, emerging technologies, we need a mechanism from government to allow the investment needed to boost competition in green hydrogen," Carruthers said, referencing the UK's support for offshore wind, and the resultant cost efficiencies.

Scotland is well-placed to run electrolysers using its vast wind power resource. In November, UK balancing costs exceeded GBP200 million, largely due to constraint costs on north-south transition lines caused by surplus wind power generation in Scotland. Using this excess wind generation would provide a low-cost feedstock to electrolysis assets while reducing network system costs.

On Sunday, Dec. 20, UK wind generation peaked at 17.28 GW between 1300-1330 GMT, a new record, National Grid said. Wind represented 43.2% of the generation mix at the time. Scottish wind capacity stands at 9.5 GW, with a further 14 GW consented or in planning.

Presenting the government's Energy White Paper Dec. 14, Secretary of State for Business Alok Sharma said "we will switch to new, clean fuels such as hydrogen for heat, power and industrial processes."

A dedicated hydrogen strategy would be published in early 2021, he said.

Working with industry, the government aimed for 5 GW of low-carbon hydrogen production by 2030, producing 42 TWh of hydrogen per year by then, with an interim target of 1 GW installed by 2025.

Some GBP240 million would be available through the Net Zero Hydrogen Fund up to 2024/25, it said.

"A variety of production technologies will be required to satisfy the level of anticipated demand for clean hydrogen in 2050. This is likely to include methane reformation with CCUS [carbon capture, utilization and storage], biomass gasification with CCUS and electrolytic hydrogen using renewable or nuclear generated electricity," the white paper said.

The UK currently produces 27 TWh/year of conventional hydrogen.