Tools and options for hydrogen and CCS cluster development and acceleration – UK case study, ELEGANCY project

Abstract

Development of hydrogen and Carbon Capture and Storage (CCS) in the United Kingdom is investigated for the UK by research in the ELEGANCY Project to accelerate carbon dioxide (CO2) emissions reduction. Industry plans and concepts including large-scale production of hydrogen with CCS (H2-CCS) are used to estimate the potential magnitude and rate of CO2 supply for the Grangemouth and Teesside industrial sites. Annual emissions reductions from these two sites by CCS operations could exceed 30 million tonnes (Mt) by 2035 and 50 Mt by 2045. Implementation of carbon-negative technologies would increase these estimated reductions. The application of the H2-CCS chain tool to Great Britain has identified the resource and technology needs for scaling up the H2 economy. It has also highlighted challenges to overcome such as the increased costs, magnitude of H2 and CO2 storage requirements, reduction in upstream emissions, etc. Importantly, there is an urgent need for policy makers, regulators, suppliers, and consumers to coordinate their efforts to achieve timely progress towards net-zero in a socially responsible manner. An application of the business model and business case assessment methodology and tools to the delivery of large-scale H2-CCS infrastructure for decarbonising residential heating in the north of England is presented. A resulting high-level system business model which allows the removal of the investment barriers and addresses major business risks to investment is defined through realistic risk allocation and collaboration between the public and private sectors. A conceptual business case is articulated with a strategic rationale consistent with support for UK energy system decarbonisation and the UK government’s legal 2050 net-zero emissions target. Recommendations for achieving the first phase of infrastructure development ensuring low regrets outcomes and flexible real options are described.