The Thoughts Of Chris O’Shea
This article on This Is Money is entitled Centrica boss has bold plans to back British energy projects – but will strategy pay off?.
The article is basically an interview with a reporter and gives O’Shea’s opinions on various topics.
Chris O’Shea is CEO of Centrica and his Wikipedia entry gives more details.
These are his thoughts.
On Investing In Sizewell C
This is a paragraph from the article.
‘Sizewell C will probably run for 100 years,’ O’Shea says. ‘The person who will take the last electron it produces has probably not been born. We are very happy to be the UK’s largest strategic investor.’
Note.
- The paragraph shows a bold attitude.
- I also lived near Sizewell, when Sizewell B was built and the general feeling locally was that the new nuclear station was good for the area.
- It has now been running for thirty years and should be good for another ten.
Both nuclear power stations at Sizewell have had a good safety record. Could this be in part, because of the heavy engineering tradition of the Leiston area?
On Investing In UK Energy Infrastructure
This is a paragraph from the article
‘I just thought: sustainable carbon-free electricity in a country that needs electricity – and we import 20 per cent of ours – why would we look to sell nuclear?’ Backing nuclear power is part of O’Shea’s wider strategy to invest in UK energy infrastructure.
The UK certainly needs investors in UK energy infrastructure.
On Government Support For Sizewell C
This is a paragraph from the article.
Centrica’s 500,000 shareholders include an army of private investors, many of whom came on board during the ‘Tell Sid’ privatisations of the 1980s and all of whom will be hoping he is right. What about the risks that deterred his predecessors? O’Shea argues he will achieve reliable returns thanks to a Government-backed financial model that enables the company to recover capital ploughed into Sizewell C and make a set return.
I have worked with some very innovative accountants and bankers in the past fifty years, including an ex-Chief Accountant of Vickers and usually if there’s a will, there’s a solution to the trickiest of financial problems.
On LNG
These are two paragraphs from the article.
Major moves include a £200 million stake in the LNG terminal at Isle of Grain in Kent.
The belief is that LNG, which produces significantly fewer greenhouse gas emissions than other fossil fuels and is easier and cheaper to transport and store, will be a major source of energy for the UK in the coming years.
Note.
- Centrica are major suppliers of gas-powered Combined Heat and Power units were the carbon dioxide is captured and either used or sold profitably.
- In at least one case, a CHP unit is used to heat a large greenhouse and the carbon dioxide is fed to the plants.
- In another, a the gas-fired Redditch power station, the food-grade carbon dioxide is sold to the food and construction industries.
- Grain LNG Terminal can also export gas and is only a short sea crossing from gas-hungry Germany.
- According to this Centrica press release, Centrica will run low-carbon bunkering services from the Grain LNG Terminal.
I analyse the investment in Grain LNG Terminal in Investment in Grain LNG.
On Rough Gas Storage
These are three paragraphs from the article.
O’Shea remains hopeful for plans to develop the Rough gas storage facility in the North Sea, which he re-opened in 2022.
The idea is that Centrica will invest £2 billion to ‘create the biggest gas storage facility in the world’, along with up to 5,000 jobs.
It could be used to store hydrogen, touted as a major energy source of the future, provided the Government comes up with a supportive regulatory framework as it has for Sizewell.
The German AquaVentus project aims to bring at least 100 GW of green hydrogen to mainland Germany from the North Sea.
This map of the North Sea, which I downloaded from the Hydrogen Scotland web site, shows the co-operation between Hydrogen Scotland and AquaVentus
Note.
- The yellow AquaDuctus pipeline connected to the German coast near Wilhelmshaven.
- There appear to be two AquaDuctus sections ; AQD 1 and AQD 2.
- There are appear to be three proposed pipelines, which are shown in a dotted red, that connect the UK to AquaDuctus.
- The Northern proposed pipeline appears to connect to the St. Fergus gas terminal on the North-East tip of Scotland.
- The two Southern proposed pipelines appear to connect to the Easington gas terminal in East Yorkshire.
- Easington gas terminal is within easy reach of the massive gas stores, which are being converted to store hydrogen at Aldbrough and Rough.
- The blue areas are offshore wind farms.
- The blue area straddling the Southernmost proposed pipe line is the Dogger Bank wind farm, is the world’s largest offshore wind farm and could eventually total over 6 GW.
- RWE are developing 7.2 GW of wind farms between Dogger Bank and Norfolk in UK waters, which could generate hydrogen for AquaDuctus.
This cooperation seems to be getting the hydrogen Germany needs to its industry.
It should be noted, that Germany has no sizeable hydrogen stores, but the AquaVentus system gives them access to SSE’s Aldbrough and Centrica’s Rough hydrogen stores.
So will the two hydrogen stores be storing hydrogen for both the UK and Germany?
Storing hydrogen and selling it to the country with the highest need could be a nice little earner.
On X-energy
These are three paragraphs from the article.
He is also backing a £10 billion plan to build the UK’s first advanced modular reactors in a partnership with X-energy of the US.
The project is taking place in Hartlepool, in County Durham, where the existing nuclear power station is due to reach the end of its life in 2028.
As is the nature of these projects, it involves risks around technology, regulation and finance, though the potential rewards are significant. Among them is the prospect of 2,500 jobs in the town, where unemployment is high.
Note.
- This is another bold deal.
- I wrote in detail about this deal in Centrica And X-energy Agree To Deploy UK’s First Advanced Modular Reactors.
- Jobs are mentioned in the This is Money article for the second time.
I also think, if it works to replace the Hartlepool nuclear power station, then it can be used to replace other decommissioned nuclear power stations.
On Getting Your First Job
These are three paragraphs from the article.
His career got off to a slow start when he struggled to secure a training contract with an accountancy firm after leaving Glasgow University.
‘I had about 30, 40 rejection letters. I remember the stress of not having a job when everyone else did – you just feel different,’ he says.
He feels it is ‘a duty’ for bosses to try to give young people a start.
I very much agree with that. I would very much be a hypocrite, if I didn’t, as I was given good starts by two companies.
On Apprenticeships
This is a paragraph from the article.
‘We are committed to creating one new apprenticeship for every day of this decade,’ he points out, sounding genuinely proud.
I very much agree with that. My father only had a small printing business, but he was proud of the apprentices he’d trained.
On Innovation
Centrica have backed three innovative ideas.
- heata, which is a distributed data centre in your hot water tank, which uses the waste heat to give you hot water.
- HiiROC, which is an innovative way to generate affordable hydrogen efficiently.
- Highview Power, which stores energy as liquid air.
I’m surprised that backing innovations like these was not mentioned.
Conclusion
This article is very much a must read.
Ørsted Raises EUR 7.98 Billion In Oversubscribed Rights Issue
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
Ørsted has completed its rights issue, raising DKK 59.56 billion (approximately EUR 7.98 billion) with a subscription rate of approximately 99.3 per cent, the company said on 6 October.
These two introductory paragraphs add more details.
Existing shareholders were offered new shares at DKK 66.60 (EUR 8.92) each. The demand for shares not taken up via the rights issue was “extraordinarily high,” according to the developer’s announcement of the Rights Issue results, and allocations were capped per application, meaning no subscriptions were required under the underwriting bank syndicate.
As reported in August, the company appointed a syndicate of BNP PARIBAS, Danske Bank A/S and J.P. Morgan SE as Joint Global Coordinators, next to Morgan Stanley & Co International, to jointly underwrite the rights issue for the approximately 49.9 per cent that would not be subscribed to by Ørsted’s majority shareholder, the Danish state (50.1 per cent).
I dread to think what spiteful punishment that Trumpkopf will inflict on Ørsted.
But the oversubscribed Rights Issue may be good news for the UK.
Ørsted has only one major project under development or construction in the UK.
But it is the large Hornsea Three wind farm, which has this opening paragraph on its web site.
Hornsea 3 Offshore Wind Farm will deliver enough green energy to power more than 3 million UK homes. An £8.5 billion infrastructure project, Hornsea 3 will make a significant contribution toward UK energy security, as well as the local and national economy.
Note.
- Ørsted are raising £7.98 billion and spending £8.5 billion, which must do something for the UK’s economy.
- Hornsea 3 will have a generating capacity of 2.9 GW.
- Ørsted are now delivering the world’s single largest offshore wind farm.
- Hornsea 3 will connect to the National Grid at Swardestone in Norfolk.
In Grid Powers Up With One Of Europe’s Biggest Battery Storage Sites, I describe how the 300 MW/600 MWh Swardestone BESS will be built, where Hornsea 3 connects to the grid.
As Swardestone will have 2.9 GW from Hornsea 3 and a powerful battery, I would expect someone will be looking to site a data centre or something with a need for a lot of stable electricity at or near Swardestone.
In Opportunity For Communities To Have Their Say On National Grid Proposals For Norwich To Tilbury Project, I talk about a line of pylons between Swardestone and Tilbury and show this map of the route.
This page on the National Grid web site has an interactive version of this map.
Note.
- The mauve line indicates the route of the Norwich to Tilbury project.
- Swardestone is at the Northern end of the project a few miles South of Norwich.
- Tilbury is at the Southern end of the project on the Thames estuary.
- The project connects Norwich, Ipswich, Colchester and Chelmsford to Hornsea 3 at Swardestone.
- I suspect the project will connect to Ipswich at the Bramford substation.
- The Sizewell nuclear site is to the North-East of Woodbridge and connects to the grid at the Bramford substation.
I know East Anglia well and I would suspect that Norwich, Ipswich, Colchester, Chelmsford and Southend-on-Sea could support one or more data centres.
Conclusion
I asked Google AI, who owns Hornsea 1 and received this reply.
Hornsea 1 is owned by a partnership including Ørsted, Equitix, TRIG, GLIL, Octopus, and Brookfield, with Ørsted also providing the operational management. A 2018 agreement between Ørsted and Global Infrastructure Partners (GIP) originally established the 50/50 joint venture for the project.
I then asked Google AI, who owns Hornsea 2 and received this reply.
The ownership of the Hornsea 2 wind farm is shared between several entities, including a 37.55% stake held by Ørsted, a 25% stake each by AXA IM Alts and Crédit Agricole Assurances, and a 12.45% stake held by Brookfield. The wind farm is located offshore in the UK’s North Sea, approximately 89 km off the Yorkshire coast.
In November 2019, I also wrote World’s Largest Wind Farm Attracts Huge Backing From Insurance Giant.
It does seem to me that Ørsted are past masters of developing a wind farm, then selling it on and using that money to develop the next wind farm.
The Rights Issue just makes that process easier.
Ørsted In Talks To Sell Half Of Huge UK Wind Farm To Apollo
The title of this post, is the same as that as this article in The Times.
This is the sub-heading.
The US investment giant is eyeing a 50 per cent stake in the Danish energy company’s £8.5 billion Hornsea 3 project off the Yorkshire coast
These are the first three paragraphs, which add more detail.
An American investment giant is negotiating a deal to buy half of what will be the world’s largest off-shore wind farm off the coast of Yorkshire from the troubled Danish energy company Ørsted.
New York-based Apollo, which oversees assets of about $840 billion, is in talks with Ørsted about acquiring a 50 per cent stake in Hornsea 3, an £8.5 billion project that started construction in 2023 and will be capable of powering more than three million UK homes.
A transaction would be a boost for Orsted, which has come under pressure in recent months from rising costs and a backlash against renewables in the United States by President Trump. Orsted started the process of selling a stake in Hornsea 3 in 2024 and said last month that it had an unnamed preferred bidder for the asset, which the Financial Times first reported was Apollo.
I have written several times about Ørstedregularly building a large wind farm and then selling it, so they must be doing something right.
In World’s Largest Wind Farm Attracts Huge Backing From Insurance Giant, I wrote about how Aviva bought Hornsea 1 from Ørsted.
One of the guys at Aviva explained that these sort of investments gave the right sort of cash flow to fund insurance risks and pensions.
Now that Trump has attempted to give his kiss of death to wind power in the United States, will US funds be looking for quality investments like Hornsea 3 in the UK and other large wind farms in France, Germany, Norway, Japan and Korea?
Already, Blackrock are investing billions to build a massive data centre at Blyth, where there are Gigawatts of offshore wind power and an interconnector to Norway, so that UK and Norwegian wind can be backed up by UK nuclear and Norwegian hydropower.
Highview Power And Ørsted
I wrote Highview Power, Ørsted Find Value In Integrating Offshore Wind With Liquid Air Energy Storage in November 2023.
I would have thought, that by now a battery would have been announced in one of Ørsted’s many projects.
I asked Google AI if Highview Power and Ørsted were still talking about liquid air energy storage and received this reply.
Yes, Highview Power and Ørsted are still actively involved in Liquid Air Energy Storage (LAES), having completed a joint study in late 2023 on combining LAES with offshore wind to benefit the UK grid, and the findings were presented to the government for its long-duration energy storage (LDES) consultation. They believe LAES can reduce wind curtailment, increase energy productivity, and support grid resilience, with potential projects aligned with offshore wind farm timelines.
Perhap’s Ørsted are getting their finances aorted first?
Conclusion
The Times They Are A-Changing!
How Will The UK Power All These Proposed Data Centres?
On Wednesday, a cardiologist friend asked me if we have enough power to do Trump’s UK AI, so I felt this post might be a good idea.
Artificial Intelligence Gave This Answer
I first asked Google AI, the title of this post and received this reply.
The UK will power proposed data centres using a mix of grid-supplied low-carbon electricity from sources like offshore wind and through on-site renewable generation, such as rooftop solar panels. Data centre operators are also exploring behind-the-meter options, including battery storage and potential future nuclear power, to meet their significant and growing energy demands. However, the UK’s grid infrastructure and high energy prices present challenges, with industry calls for grid reform and inclusion in energy-intensive industry support schemes to facilitate sustainable growth.
Google also pointed me at the article on the BBC, which is entitled Data Centres To Be Expanded Across UK As Concerns Mount.
This is the sub-heading.
The number of data centres in the UK is set to increase by almost a fifth, according to figures shared with BBC News.
These are the first three paragraphs.
Data centres are giant warehouses full of powerful computers used to run digital services from movie streaming to online banking – there are currently an estimated 477 of them in the UK.
Construction researchers Barbour ABI have analysed planning documents and say that number is set to jump by almost 100, as the growth in artificial intelligence (AI) increases the need for processing power.
The majority are due to be built in the next five years. However, there are concerns about the huge amount of energy and water the new data centres will consume.
Where Are The Data Centres To Be Built?
The BBC article gives this summary of the locations.
More than half of the new data centres would be in London and neighbouring counties.
Many are privately funded by US tech giants such as Google and Microsoft and major investment firms.
A further nine are planned in Wales, one in Scotland, five in Greater Manchester and a handful in other parts of the UK, the data shows.
While the new data centres are mostly due for completion by 2030, the biggest single one planned would come later – a £10bn AI data centre in Blyth, near Newcastle, for the American private investment and wealth management company Blackstone Group.
It would involve building 10 giant buildings covering 540,000 square metres – the size of several large shopping centres – on the site of the former Blyth Power Station.
Work is set to begin in 2031 and last for more than three years.
Microsoft is planning four new data centres in the UK at a total cost of £330m, with an estimated completion between 2027 and 2029 – two in the Leeds area, one near Newport in Wales, and a five-storey site in Acton, north-west London.
And Google is building a data centre in Hertfordshire, an investment worth £740m, which it says will use air to cool its servers rather than water.
There is a map of the UK, with dots showing data centres everywhere.
One will certainly be coming to a suitable space near you.
Concerns Over Energy Needs
These three paragraphs from the BBC article, talk about the concerns about energy needs.
According to the National Energy System Operator, NESO, the projected growth of data centres in Great Britain could “add up to 71 TWh of electricity demand” in the next 25 years, which it says redoubles the need for clean power – such as offshore wind.
Bruce Owen, regional president of data centre operator Equinix, said the UK’s high energy costs, as well as concerns around lengthy planning processes, were prompting some operators to consider building elsewhere.
“If I want to build a new data centre here within the UK, we’re talking five to seven years before I even have planning permission or access to power in order to do that,” he told BBC Radio 4’s Today programme.
But in Renewable Power By 2030 In The UK, I calculated that by 2030 we will add these yearly additions of offshore wind power.
- 2025 – 1,235 MW
- 2026 – 4,807 MW
- 2027 – 5,350 MW
- 2028 – 4,998 MW
- 2029 – 9,631 MW
- 2030 – 15,263 MW
Note.
- I have used pessimistic dates.
- There are likely to be more announcements of offshore wind power in the sea around the UK, in the coming months.
- As an example in Cerulean Winds Submits 1 GW Aspen Offshore Wind Project In Scotland (UK), I talk about 3 GW of offshore wind, that is not included in my yearly totals.
- The yearly totals add up to a total of 58,897 MW.
For solar power, I just asked Google AI and received this answer.
The UK government aims to have between 45 and 47 gigawatts (GW) of solar power capacity by 2030. This goal is set out in the Solar Roadmap and aims to reduce energy bills and support the UK’s clean power objectives. The roadmap includes measures like installing solar on new homes and buildings, exploring solar carports, and improving access to rooftop solar for renters.
Let’s assume that we only achieve the lowest value of 45 GW.
But that will still give us at least 100 GW of renewable zero-carbon power.
What will happen if the wind doesn’t blow and the sun doesn’t shine?
I have also written about nuclear developments, that were announced during Trump’s visit.
- Centrica And X-energy Agree To Deploy UK’s First Advanced Modular Reactors
- Is Last Energy The Artemis Of Energy?
- National Grid And Emerald AI Announce Strategic Partnership To Demonstrate AI Power Flexibility In The UK
- Nuclear Plan For Decommissioned Coal Power Station
- Raft Of US-UK Nuclear Deals Ahead Of Trump Visit
- Rolls-Royce Welcomes Action From UK And US Governments To Usher In New ‘Golden Age’ Of Nuclear Energy
This is an impressive array of nuclear power, that should be able to fill in most of the weather-induced gaps.
In Renewable Power By 2030 In The UK, I also summarise energy storage.
For pumped storage hydro, I asked Google AI and received this answer.
The UK’s pumped storage hydro (PSH) capacity is projected to more than double by 2030, with six projects in Scotland, including Coire Glas and Cruachan 2, potentially increasing capacity to around 7.7 GW from the current approximately 3 GW. This would be a significant step towards meeting the National Grid’s required 13 GW of new energy storage by 2030, though achieving this depends on policy support and investment.
There will also be smaller lithium-ion batteries and long duration energy storage from companies like Highview Power.
But I believe there will be another source of energy that will ensure that the UK achieves energy security.
SSE’s Next Generation Power Stations
So far two of these power stations have been proposed.
Note.
- Both power stations are being designed so they can run on natural gas, 100 % hydrogen or a blend of natural gas and hydrogen.
- Keadby will share a site with three natural gas-powered power stations and be connected to the hydrogen storage at Aldbrough, so both fuels will be available.
- Ferrybridge will be the first gas/hydrogen power station on the Ferrybridge site and will have its own natural gas connection.
- How Ferrybridge will receive hydrogen has still to be decided.
- In Hydrogen Milestone: UK’s First Hydrogen-to-Power Trial At Brigg Energy Park, I describe how Centrica tested Brigg gas-fired power station on a hydrogen blend.
- The power stations will initially run on natural gas and then gradually switch over to lower carbon fuels, once delivery of the hydrogen has been solved for each site.
On Thursday, I went to see SSE’s consultation at Knottingley for the Ferrybridge power station, which I wrote about in Visiting The Consultation For Ferrybridge Next Generation Power Station At Knottingley.
In the related post, I proposed using special trains to deliver the hydrogen from where it is produced to where it is needed.
Could HiiROC Be Used At Ferrybridge?
Consider.
- HiiROC use a process called thermal plasma electrolysis to split any hydrocarbon gas into hydrogen and carbon black.
- Typical input gases are chemical plant off gas, biomethane and natural gas.
- Carbon black has uses in manufacturing and agriculture.
- HiiROC uses less energy than traditional electrolysis.
- There is an independent power source at Ferrybridge from burning waste, which could be used to ower a HiiROC system to generate the hydrogen.
It might be possible to not have a separate hydrogen feed and still get worthwhile carbon emission savings.
Conclusion
I believe we will have enough electricity to power all the data centres, that will be built in the next few years in the UK.
Some of the new power stations, that are proposed to be built, like some of the SMRs and SSE’s Next Generation power stations could even be co-located with data centres or other high energy users.
In Nuclear Plan For Decommissioned Coal Power Station, I describe how at the former site of Cottam coal-fired power station, it is proposed that two Holtec SMR-300 SMRs will be installed to power advanced data centres. If the locals are objecting to nuclear stations, I’m sure that an SSE Next Generation power station, that was burning clean hydrogen, would be more acceptable.
Consultation Opens For Ferrybridge Next Generation Power Station
The title of this post, is the same as that of this press release from SSE.
These three bullet points act as sub-headings.
- Ferrybridge Next Generation sets out plans for continuing the legacy of power generation at the site, with the potential to bring significant investment to the region.
- Statutory consultation phase launched, inviting communities and stakeholders to have their say on project proposals.
- Hydrogen-enabled project could support the security of supply and offer a clear route to decarbonisation.
These three paragraphs add more detail.
Members of the public are being invited to have their say on plans for a proposed new power station in development, Ferrybridge Next Generation Power Station.
The station is being designed so that it can run on hydrogen, as a lower-carbon alternative to natural gas. It would also be able to operate using natural gas or a blend of hydrogen and natural gas until a technically and commercially viable hydrogen supply becomes available to the site.
With a proposed capacity of up to 1.2GW, Ferrybridge Next Generation Power Station could play an important role in supporting the UK’s energy system in the short term – providing reliable flexible back-up power during periods of peak demand and balancing the system when the wind doesn’t blow or the sun doesn’t shine, while delivering a route to decarbonised power generation in the longer term.
Note.
- A 150 MW/300 MWh Battery Electric Storage System is being developed on the site, which I wrote about in SSE Renewables Announces Construction Of Second Utility-Scale Battery Storage System.
- The last Ferrybridge power station; C had a capacity of just over 2 GW.
- This will be SSE Renewable’s second hydrogen-fired power station after Keadby, which I wrote about in Consultation On Plans For Keadby Hydrogen Power Station To Begin.
- As the press releases says, Ferrybridge Hydrogen-Fired Power Station will be West Yorkshire’s backup for when the wind doesn’t blow and the sun doesn’t shine.
How similar will the two hydrogen-fired power stations be?
Will SSE Be Building Any More In The First Wave Of Hydrogen-Fired Power Station?
This is a paragraph from SSE’s press release.
The station is being designed so that it can run on hydrogen, as a lower-carbon alternative to natural gas. It would also be able to operate using natural gas or a blend of hydrogen and natural gas until a technically and commercially viable hydrogen supply becomes available to the site.
It would appear that the availability of the hydrogen fuel may be a problem.
But places like Aberdeen, Bradford, Brighton, Humberside and Merseyside, do seem to be planning for hydrogen, so all is not lost.
The Monster That Is AquaVentus Is Waking Up
I have written about AquaVentus for some time, but inh the last couple of days, ten references have been found to the project by my Google Alert.
What Is AquaVentus?
AquaVentus has a web page on the RWE web site, from where I clipped this image.
Note.
- The spine of AquaVentus is a pipeline called AquaDuctus to bring hydrogen to Germany.
- This image shows 10.3 GW of hydrogen will be generated and brought to near Wilhelmshaven in North-West Germany.
These two paragraphs introduce AquaVentus.
Hydrogen is considered the great hope of decarbonisation in all sectors that cannot be electrified, e.g. industrial manufacturing, aviation and shipping. Massive investments in the expansion of renewable energy are needed to enable carbon-neutral hydrogen production. After all, wind, solar and hydroelectric power form the basis of climate-friendly hydrogen.
In its quest for climate-friendly hydrogen production, the AquaVentus initiative has set its sights on one renewable energy generation technology: offshore wind. The initiative aims to use electricity from offshore wind farms to operate electrolysers also installed at sea on an industrial scale. Plans envisage setting up electrolysis units in the North Sea with a total capacity of 10 gigawatts, enough to produce 1 million metric tons of green hydrogen.
It is not an unambitious project.
North Sea Hydrogen Co-operation: AquaVentus And Hydrogen Scotland
The title of this section is the same as that of this page on the Hydrogen Scotland web site.
This is the introduction.
Hydrogen Scotland signed a comprehensive Memorandum of Understanding (MoU) with AquaVentus at Offshore Europe in Aberdeen. The partnership aims to unlock the North Sea’s vast potential for hydrogen production and establish Scotland as a key supplier to European markets through the development of shared infrastructure.
Both partners are committed to intensifying research activities and advocating for the rapid scale-up of a European hydrogen economy.
By joining forces, members of AquaVentus and Hydrogen Scotland can help advance the development and deployment of technologies along the entire value chain – from production through transport and storage to the use of hydrogen for decarbonising the energy system. In addition, both organisations intend to intensify their supporting activities and jointly advocate for the accelerated ramp-up of a European hydrogen economy.
This map of the North Sea, which I downloaded from the Hydrogen Scotland web site, shows the co-operation.
Note.
- The yellow AquaDuctus pipeline connected to the German coast near Wilhelmshaven.
- There appear to be two AquaDuctus sections ; AQD 1 and AQD 2.
- There are appear to be three proposed pipelines, which are shown in a dotted red, that connect the UK to AquaDuctus.
- The Northern proposed pipeline appears to connect to the St. Fergus gas terminal on the North-East tip of Scotland.
- The two Southern proposed pipelines appear to connect to the Easington gas terminal in East Yorkshire.
- Easington gas terminal is within easy reach of the massive gas stores, which are being converted to hold hydrogen at Aldbrough and Rough.
- The blue areas are offshore wind farms.
- The blue area straddling the Southernmost proposed pipe line is the Dogger Bank wind farm, is the world’s largest offshore wind farm and could evebtually total over 6 GW.
- RWE are developing 7.2 GW of wind farms between Dogger Bank and Norfolk in UK waters, which could generate hydrogen for AquaDuctus.
This cooperation seems to be getting the hydrogen Germany needs to its industry.
These five paragraphs outline a position paper by AquaVentus.
This opportunity for German-British cooperation on hydrogen is highlighted in a position paper presented by AquaVentus alongside the signing of the MoU. This paper addresses how the requirements of German-British cooperation – as outlined, for example, in the July 2025 Kensington Treaty between the UK and Germany and the European Commission’s Common Understanding published in May 2025 – can be met.
The position paper highlights the significant potential of hydrogen production in Scotland, the necessity of imports for Germany, and references transport infrastructure already under planning. It thus lays the foundation for cross-border hydrogen trade between Germany and the United Kingdom, and for deeper European cooperation in the hydrogen sector, with three essential prerequisites:
Firstly, the networking of producers and consumers across national borders is critical for a successful market ramp-up
Secondly, beyond this synchronised production and transport infrastructure, regulatory frameworks must also be harmonised. Hybrid connection concepts (pipes & wires) that integrate both electricity and hydrogen networks provide the necessary flexibility for future energy needs, enable efficient use of renewable energy and ensure cost-effective grid expansion
Thirdly, the development from a national core network to a European Hydrogen Backbone is emphasised. Projects such as AquaDuctus can serve as a nucleus for building a pan-European hydrogen network that will shape Europe’s energy infrastructure in the long term. For the authors, strengthened cooperation with the United Kingdom is not only a sound energy policy and economic decision, but also a key contribution to European energy resilience.
Note.
Scotland And AquaVentus Partner On North Sea Hydrogen Pipeline Plans
The title of this post, is the same as that of this article on H2-View.
These four paragraphs introduce the deal and add some detail.
Hydrogen Scotland has committed to working with the AquaDuctus consortium on cross-border infrastructure concepts to connect Scotland’s offshore wind power to hydrogen production in the North Sea.
Under a Memorandum of Understanding (MOU), the two organisations plan to combine Scotland’s offshore wind with AquaVentus’ offshore electrolysis expertise, linking export and import goals across the North Sea.
The AquaDuctus pipeline is a planned offshore hydrogen link designed to carry green hydrogen through the North Sea, using a pipes and wires hybrid approach. The German consortium plans 10GW of offshore electrolysers in the North Sea, producing around one million tonnes of green hydrogen.
The pipeline design allows offshore wind farms to deliver electricity when the grid needs it, or convert power into hydrogen via electrolysis and transport it through pipelines.
Germany is embracing hydrogen in a big way.
- I introduce AquaVentus in AquaVentus, which I suggest you read.
- AquaVentus is being developed by RWE.
- AquaVentus connects to a German hydrogen network called H2ercules to actually distribute the hydrogen.
This video shows the structure of AquaVentus.
I clipped this map from the video.
Note.
- The thick white line running North-West/South-East is the spine of AquaVentus, that will deliver hydrogen to Germany.
- There is a link to Esbjerg in Denmark, that is marked DK.
- There appears to be an undeveloped link to Norway, which goes North,
- There appears to be an undeveloped link to Peterhead in Scotland, that is marked UK.
- There appears to be a link to just North of the Humber in England, that is marked UK.
- Just North of the Humber are the two massive gas storage sites of Aldbrough owned by SSE and Rough owned by Centrica.
- Aldbrough and Rough gas storage sites are being converted into two of the largest hydrogen storage sites in the world!
- There appear to be small ships sailing up and down the East Coast of the UK. Are these small coastal tankers, that are distributing the hydrogen to where it is needed?
When it is completed, AquaVentus will be a very comprehensive hydrogen network.
I believe that offshore electrolysers could be built in the area of the Hornsea 4, Dogger Bank South and other wind farms and the hydrogen generated would be taken by AquaVentus to either Germany or the UK.
- Both countries get the hydrogen they need.
- Excess hydrogen would be stored in Aldbrough and Rough.
- British Steel at Scunthorpe gets decarbonised.
- A 1.8 GW hydrogen-fired powerstation at Keadby gets the hydrogen it needs to backup the wind farms.
Germany and the UK get security in the supply of hydrogen.
Conclusion
This should be a massive deal for Germany and the UK.
Powering The Humber Energy Revolution
The title of this post is the same as this story on the Centrica web site.
This is the sub-heading.
From the UK’s largest industrial carbon emitter to a clean energy powerhouse, the Humber is ready to be transformed.
These are the first two paragraphs, which add more detail.
We’re prepared to invest £2 billion to keep Rough open and transform it into one of the world’s largest hydrogen storage facilities. This bold move is vital for the UK’s energy security, accelerating the energy transition and unlocking thousands of green jobs. But to make this vision a reality, we need strategic support from government.
We’ve spent time in the Humber, speaking with local communities and industry leaders to understand how this region’s infrastructure shapes lives and powers the nation.
It looks to me, that Centrica have got fed up with our useless, squabbling politicians and decided to act.
There is also a video to watch.
Centrica Secures Investment Stake In Gasrec Helping Boost UK Bio-LNG Ambitions
The title of this post, is the same as that of this press release from Centrica.
This is the sub-heading.
Centrica has secured a minority stake in Gasrec, the UK’s largest dual provider of bio-LNG (bio-Liquified Natural Gas) and bio-CNG (bio-Compressed Natural Gas) to the road transport sector,
These first two paragraphs give more details.
Gasrec says the investment will drive the next phase of its infrastructure ambitions, with plans to open a UK wide network of open-access refuelling stations supplying renewable bio-LNG for the decarbonisation of heavy goods vehicles.
Centrica is taking a 16% stake and becomes one of three major shareholders in Gasrec, alongside global integrated energy company bp and private family office 44 North.
I have some thoughts.
Does Running A Truck On bio-LNG or bio-CNG. Reduce Carbon Emissions?
This paragraph from the press release, gives the thoughts of Chris O’Shea, who is Group Chief Executive, Centrica.
Chris O’Shea, Group Chief Executive, Centrica plc, said: “Demand for bio-LNG for transport is growing fast as more HGV operators make the switch – drawn by a clean, ready-to-use fuel which slashes CO2 emissions by up to 85 per cent in comparison to diesel*. This investment in Gasrec enhances our collaboration with the leading company in the sector, and puts us in a strong position to energise a vital sector of the industry on its journey to net zero.”
As Centrica is a public company, with shareholders, who would take a dim view of Mr. O’Shea telling porkies, I suspect we can assume that the following is true.
Drawn by a clean, ready-to-use fuel which slashes CO2 emissions by up to 85 per cent in comparison to diesel.
The asterisk in the full quote, refers to this note.
Low Carbon Vehicle Partnership, Innovate UK and Office for Low Emission Vehicles, Low Emission Freight & Logistics Trial (LEFT), Key Findings, November 2020. Using specific feedstocks CO2 reductions of 200% are achievable.
Centrica could be being conservative with their claims.
Decarbonising Buses, Locomotives And Trucks
Despite what Elon Musk, would have us believe, electric trucks will not dominate the future of freight transport.
An electric truck would be the vehicle equivalent of asking Usain Bolt to run a hundred metres with a large refrigerator on his back.
Trucks are going to need a fuel without a weight penalty and with a long range.
I asked Google for information about Cummins diesel, natural gas and hydrogen engines and received this AI Overview.
Cummins offers engines powered by diesel, natural gas, and hydrogen. While diesel engines are well-established, Cummins is also developing both natural gas and hydrogen engines, particularly focusing on hydrogen as a pathway to zero-carbon solutions for various applications. Cummins utilizes a fuel-agnostic platform, meaning a common base engine can be adapted for different fuel types, including diesel, natural gas, and hydrogen.
Recently, GB Railfreight purchased thirty Class 99 locomotives from Stadler.
- They can use electrification, where it exists.
- Where electrification doesn’t exist, they can use an onboard Cummins diesel engine, which is built in Darlington.
- In electric-mode, they have 6.2 MW of power, and are the most powerful locomotives ever to run on UK railways.
- In diesel-mode, they have 1.8 MW of power, which is more than enough to haul a large container train in and out of Felixstowe.
I had thought that at some future date, Cummins would convert these locomotives to electro-hydrogen.
But now that Gasrec is providing bio-LNG and bio-CNG, GB Railfreight, have the option of converting both hydrogen and biomethane.
Similar logic can be applied to Wrightbus’s Streetdeck Ultroliner, one version of which is fitted with a Cummins engine, that can be converted to electric, hydrogen or natural gas, which of course includes biomethane. This page on the Wrightbus web site describes the bus.
Wrightbus are also going back into coach manufacture, as I wrote about in Wrightbus Goes Back To The Future As It Relaunches The Contour Coach. As with the Streetdeck Ultroliner, Cummins seem to be providing one of the power units.
It seems to me, that the zero- and low-carbon revolution in transport will generate a need for the availability of biomethane, hydrogen and natural gas fuel for transport all over the country.
Gasrec with around twenty biomethane fuelling points around the country, seem well-placed to supply the biomethane in bio-LNG or bio-CNG form.
Could Gasrec Deliver Hydrogen?
Various bus companies in the UK, have had difficulty getting the fuel for their hydrogen buses.
I believe that delivering hydrogen would be very similar to delivering LNG and if Gasrec can deliver LNG successfully and safely, they probably have the technology to do the same for hydrogen.
Centrica Seem To Be Assembling An Interesting Consortium
These are some deals, that I have reported on this blog, that involve Centrica.
- Centrica, along with Hyundai, Kia, Siemens and others have backed Hull-based hydrogen start-up; HiiROC, who can produce affordable hydrogen from any hydrocarbon gas including natural gas, where it is needed.
- Centrica have invested in Sizewell C. Will they be using their share of the electricity to make affordable pink hydrogen using HiiROC?
- In Centrica And Ryze Agree To Develop Hydrogen Pathway, I talked about how Centrica and Ryse were aiming to bring hydrogen to the masses.
- In Recurrent Energy’s Middle Road Project Sold To Centrica, I talked about a Centrica investment in solar power.
- In Aberdeen’s Exceed Secures Centrica Rough Contract, I talked about how Centrica were redeveloping the Rough gas storage site for hydrogen.
- In Lhyfe And Centrica To Develop Offshore Renewable Green Hydrogen In The UK, I talked about developing offshore hydrogen.
- In Centrica Announces Hydrogen Ready Combined Heat And Power Partnership With 2G, the title says it all.
- In Centrica Signs UK Biomethane Agreement With Yorkshire Water And SGN Commercial Services, Centrica appear to be sourcing biomethane from Yorkshire Water.
- In Centrica Invests In Renewable Energy Storage Capabilities To Boost UK’s Energy Security And Accelerate Transition To Net Zero, I talk about Centrica, Goldman Sachs and others, investment in liquid-air energy storage company; Highview Power.
- In British Gas Owner Mulls Mini-Nuke Challenge To Rolls-Royce, I talk about rumours that Centrica might invest in SMRs.
Note.
- A lot of these deals are are about hydrogen production.
- Some of these deals are about biomethane production.
- None of these deals talk about getting hydrogen and biomethane to customers.
It appears to me, that Gasrec have a model that works to get hydrogen, methane and biomethane from production and storage to the end customers.
Developing A Rural Hydrogen Network
In Developing A Rural Hydrogen Network, I talked about supplying all those millions of off-gas grid properties with hydrogen for heating, agricultural and industrial purposes, in the countryside of the UK.
Gasrec have the technology to decarbonise the countryside.
Conclusion
Gasrec would appear to be a very useful partner for Centrica.
The Anonymous Widower 