Equinor, AMRC in second Humber low carbon hydrogen project funding bid

Equinor and the University of Sheffield's Advanced Manufacturing Research Centre have submitted a co-funded bid into the UK government's Net Zero Hydrogen Fund for a 1.2-GW low carbon hydrogen production facility in the Humber, northeast England, Equinor said June 22.

The Hydrogen to Humber (H2H) Production 2 project is in addition to Equinor's 600-MW H2H Saltend project, also on Humberside.

"These projects alone could deliver 18% of the Government's 10-GW of hydrogen production capacity by 2030 target, making the Humber the UK's foremost hydrogen hub," Equinor said.

The H2H Production 2 project could be operational by 2028, Equinor said.

While both projects would produce hydrogen from natural gas with carbon capture and storage, a technology was yet to be selected, a company spokesperson said.

"We'll be choosing a contractor in the next few months," the spokesperson said.

There are two main technologies for producing hydrogen from natural gas -- autothermal reforming, or ATR, and steam methane reforming.

In Platts latest hydrogen price wall, UK ATR+CCS hydrogen averaged $4.38/kg in May versus $6.47/kg for UK SMR+CCS hydrogen, S&P Global Commodity Insights data showed.

Equinor and AMRC's GBP16.4 million bid into the Net Zero Hydrogen Fund would be 50% privately funded, with the grant supporting development of the project up to a final investment decision in 2025.

AMRC is to develop a "digital twin" of a hydrogen supply chain for the project, identifying opportunities for UK manufacturing.

The government's GBP240 million Net Zero Hydrogen Fund is administered by UK Research and Innovation.

Produced hydrogen could be used in decarbonizing heavy industry, power production, low carbon chemicals production and domestic heating trials, Equinor said.

Equinor with UK utility SSE is planning to develop the world's first utility-scale 100% hydrogen power station at Keadby in Lincolnshire and a hydrogen storage facility at Aldbrough in East Yorkshire.

In partnership with gas distribution network operator Cadent, meanwhile, Equinor recently announced plans for hydrogen town trials in northern Lincolnshire, targeting domestic heating.

UK: SELECTED GAS TO H2 WITH CCS PROJECTS

Source: Hydrogen Production Assets database, S&P Global Commodity Insights