Leading energy companies announce new zero-carbon UK partnership
In the United Kingdom (UK), Drax Group, Equinor, and National Grid Ventures have signed a Memorandum of Understanding (MoU) committing them to work together to explore how a large-scale carbon capture usage and storage (CCUS) network and a hydrogen production facility could be constructed in the Humber in the mid-2020s.
This is the first significant action from industry since the UK Committee on Climate Change (CCC) recently published its Net Zero report, which found that CCUS and hydrogen technology developed in regional industrial clusters is essential if Great Britain is going to achieve a ‘net zero’ carbon economy by 2050.
The Committee on Climate Change was clear – the UK needs both bioenergy with CCS and hydrogen production at scale by 2030 to achieve a ‘net zero’ carbon economy. This partnership is committed to meeting this challenge putting Great Britain at the heart of the global energy revolution. With Drax’s carbon negative power station, the Humber region could lead the world in new technologies that can deliver for the climate and the economy, helping to create a cleaner environment for future generations whilst creating new jobs and export opportunities for British businesses, said Will Gardiner, Drax Group CEO.
The partnership could lead to the Humber becoming the world’s first net-zero carbon region and home to a new world-leading hydrogen economy.
We’re excited to be working with National Grid Ventures and Equinor on this project – for decades the Humber has been a strategically important industrial cluster for the UK – it has the skills, industrial capability as well as offshore storage to transform itself into a cutting-edge low carbon hub, said Gardiner.
The three companies will work together to:
- Explore the opportunity to scale-up the innovative bioenergy carbon capture and storage (BECCS) pilot project at the Drax Power Station in order to create the world’s first carbon negative power station in the 2020s;
- Explore the potential development of a large-scale hydrogen demonstrator within the Drax site by as early as the mid-2020s – in line with the CCC’s recommendation that hydrogen should be produced at scale in at least one industrial cluster by 2030;
- Explore the strategic opportunities in developing a cutting-edge hydrogen economy in the region.
Drax Power Station in North Yorkshire is already capturing a tonne of carbon dioxide (CO2) a day from its innovative bioenergy carbon capture and storage (BECCS) pilot project. If it is scaled up it could serve as the ‘anchor’ for a regional CCUS network capturing millions of tonnes of carbon each year from nearby industrial emitters.
As a global leader in CCS and a major gas supplier to the UK for many decades, we are committed to helping shape sustainable solutions for a low carbon future. We are pleased to be partnering with Drax and National Grid Ventures in looking at how the Humber region can be a launch pad for wider decarbonisation in the UK economy and be an example for others to learn from. Globally we must see substantial decarbonisation of industry and energy in the years ahead, and we believe CCS and hydrogen must play a significant role in this, said Irene Rummelhoff, Equinor’s Executive Vice President for Marketing, Midstream, and Processing.
The consortium has the collective expertise and credibility to deliver on the CCC recommendation for large-scale trials of hydrogen, development of CCS transport and storage infrastructure, and the deployment of BECCS at scale.
We all agree that we must act now to start delivering a ‘net-zero’ carbon economy. That’s why we’re delighted to be working together with Equinor and Drax. This is a project of great potential for the UK and the Humber region and we look forward to leveraging our skills and expertise to enable this transition. We have seen rapid progress in decarbonising energy through established technologies such as wind power, solar and electricity interconnectors. CCUS and hydrogen create a new pathway to greater decarbonisation of the energy system and provide a platform for decarbonising other areas of our economy, which will be to the benefit of current and future generations, said Jon Butterworth, COO, Global Transmission, for National Grid Ventures.
A study outlining the technical, economic and societal opportunities for CCUS and hydrogen in the Humber region will be published by the partners later this year.