Centrica and FTI Consulting have found large scale hydrogen storage could reduce customer energy costs by as much as £1 billion a year by 2050.
A future energy system, where there is no established hydrogen market, would see the UK at risk from “huge swings” in electricity generation from renewables. There would be no way of addressing shortfalls, nor surpluses either. Illustrating the threat, Centrica and FTI highlighted how come 2050 there could be excess electricity generation 15% of the time and generation from renewables could rise or fall as much as 100GW over the course of a single day, making it incredibly difficult to balance the grid.
Taking a whole-systems approach to explore a net zero future, Centrica and FTI concluded salt caverns and depleted gas fields are needed for hydrogen storage. Salt caverns would be used for short term responses, whereas depleted gas fields – such as Rough – would be used for longer term storage. A hydrogen transportation network will also be needed, with repurposed underground gas pipes becoming a “superhighway” moving renewable electricity as hydrogen, also serving to reduce the volume of above ground electricity transmission infrastructure too.
Chris O’Shea, Group Chief Executive of Centrica, said: “We now have a blueprint for the role that hydrogen could play as a very big battery in a net zero energy system, providing electricity when the wind doesn’t blow, and the sun doesn’t shine. All we need now is the green light from regulators and the government to unlock £2bn of investment to transform our existing Rough storage facility to become the world’s biggest hydrogen storage facility and start building out the energy system of the future.”
