North West Hydrogen Alliance (NWHA) has released a report, laying out a blueprint to unlock hydrogen-powered electricity and establish the North West as a leading region in hydrogen-to-power (H2P).
NWHA laid out how by capitalising on the region’s robust industrial heritage and rapidly expanding hydrogen infrastructure, such as HyNet and other world-leading hydrogen production projects, it can become a national leader in H2P. H2P is considered valuable given how it can decarbonise the grid and support renewable energy generation with flexible, dispatchable electricity during times of peak demand or low renewables supply.
However, there are key gaps to overcome, notably the fact flexible H2P projects need enabling transport and storage networks. NWHA did note the government has committed £500 million to this and stressed it now has to move fast to allocate this to the first set of related infrastructure.
The Hydrogen to Power Business Model, meanwhile, needs to be designed to address cross chain risks, with government needing to bring forward a timeline for allocation rounds as soon as possible. This will pave the way for investable projects to be brought forward by developers.
Finally, gas-fired sites that are operating in the Capacity Market should be incentivised to make the switch to hydrogen-firing through the Hydrogen to Power Business Model, or by amendments to the Capacity Market. This should also be the case for new projects too through the forthcoming Decarbonisation Readiness requirements.
Dave Richardson, Interim Chair of the NWHA, said: “The North West is primed to be the first region to realise the potential of Hydrogen to Power and drive the UK’s net zero journey. We have the first large scale hydrogen power plant with EET Hydrogen, rapidly developing transport and storage capabilities through HyNet and the necessary expertise to lead this energy transition. We’re calling on Government to unlock some policy uncertainties, particularly around storage and transport to ensure we can capitalise on the huge potential of Hydrogen to Power for the nation.”
