Centrica And Equinor Agree Major New Deal To Bolster UK Energy Security
The title of this post, is the same as that as this news item from Centrica.
This is the sub-heading.
Centrica and Equinor have today announced a £20 billion plus agreement to deliver gas to the UK. The new deal will see Centrica take delivery of five billion cubic meters (bcm) of gas per year to 2035.
These three paragraphs add more detail to the deal.
The expansive ten-year deal continues a long-term relationship with Equinor that dates back to 2005 bringing gas from Norway to the UK.
In 2024, the UK imported almost two-thirds (66.2%) of its gas demand, with 50.2% of the total imports coming from Norway1. This is an increase from the UK importing around a third of its gas requirements from Norway in 20222 and underlines the strategic importance of the Norwegian relationship to UK energy and price security.
The contract also allows for natural gas sales to be replaced with hydrogen in the future, providing further support to the UK’s hydrogen economy.
I believe there is more to this deal than, is stated in the news item.
These are my thoughts.
Where Does AquaVentus Fit In?
The AquaVentus web site has a sub heading of Hydrogen Production In The North Sea.
This video on the web site shows the structure of the project.
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.
- There appears to be an extra link, that would create a hydrogen link between Norway and Humberside.
- Just North of the Humber are the two massive gas storage sites of Aldbrough owned by SSE and Brough 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.
RWE
I should add that AquaVentus is a project of German energy company; RWE.
It should be noted that RWE are the largest generator of electricity in the UK.
They will soon be even larger as they are developing these offshore wind farms in British waters.
- Dogger Bank South – 3 GW
- Norfolk Boreas – 1.4 GW
- Norfolk Vanguard East – 1.4 GW
- Norfolk Vanguard West – 1.4 GW
Note.
- This is 7.2 GW of electricity.
- The three Norfolk wind farms wwere possibly acquired at a bargain price from Vattenfall.
- None of these wind farms have Contracts for Difference.
- RWE are developing large offshore electrolysers.
- East Anglia is in revolt over pylons marching across the landscape.
I wonder, if RWE will convert the electricity to hydrogen and bring it ashore using AquaVentus, coastal tankers or pipelines to existing gas terminals like Bacton.
The revenue from all this hydrogen going to Germany could explain the rise in Government spending, as it could be a Magic Money Tree like no other.
HiiROC
HiiROC is a Hull-based start-up company backed by Centrica, that can turn any hydrocarbon gas, like chemical plant waste gas, biomethane or natural gas into turquoise hydrogen and carbon black.
I asked Google about the size of Norway’s chemical industry and got this reply.
Norway’s chemical industry, including oil refining and pharmaceuticals, is a significant part of the country’s economy. In 2023, this sector generated sales of NOK 175 billion (approximately €15.2 billion), with 83% of those sales being exports. The industry employed 13,800 full-time equivalents and added NOK 454 billion (approximately €3.9 billion) in value.
Isn’t AI wonderful!
So will Norway use HiiROC or something similar to convert their natural gas and chemical off-gas into valuable hydrogen?
If AquaVentus were to be extended to Norway, then the hydrogen could be sold to both the UK and Germany.
A scenario like this would explain the option to switch to hydrogen in the contract.
Aldbrough And Brough
Earlier, I said that just North of the Humber are the two massive gas storage sites of Aldbrough owned by SSE and Brough owned by Centrica.
I have read somewhere, that Germany is short of hydrogen storage, but I’m sure Centrica and SSE will help them out for a suitable fee. Centrica are also thought to be experts at buying energy at one price and selling it later at a profit.
Conclusion
I have felt for some time, that selling hydrogen to the Germans was going to be the Conservative government’s Magic Money Tree.
Has this Labour government decided to bring it back to life?
Site Investigations Underway At RWE’s Three Norfolk Offshore Wind Project Sites
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
RWE has kicked off geophysical and geotechnical site investigations at the Norfolk Boreas, Norfolk Vanguard East, and Norfolk Vanguard West offshore wind project sites in the UK, rights to which the German company acquired from Vattenfall earlier this year.
All three projects in RWE’s 4.14 GW wind farm off the Norfolk coast, at last seem to be making progress.
According to the Wikipedia entry for the List Of Offshore Wind Farms In The United Kingdom, this is the last status.
Norfolk Boreas
Owner: RWE
Turbines: Vestas
Status: Contract for Difference – Round 4
Commissioning Date: 2027
Norfolk Vanguard East
Owner: RWE
Turbines: Vestas
Status: Early Planning
Commissioning Date: Before 2030
Norfolk Vanguard West
Owner: RWE
Turbines: Vestas V236-15.0 MW
Status: Early Planning
Commissioning Date: Before 2030
Note.
- All three Norfolk wind arms, will be using Vestas turbines.
- The data for Norfolk Vanguard West shows that Vestas V236-15.0 MW turbines will be used.
- In SeAH To Deliver Monopiles For Vattenfall’s 2.8 GW Norfolk Vanguard Offshore Wind Project, I discussed the monopiles for the Norfolk wind farms. Will these be standardised across the Norfolk wind farms?
- In RWE Orders 15 MW Nordseecluster Offshore Wind Turbines At Vestas, I speculated that RWE had standardised on these large turbines for their North Sea wind farms, which would surely be a sensible action to take.
Using the same large turbines and monopiles for a number of wind farms, will surely give advantages in manufacture, installation, operation and and servicing for RWE, SeAH Wind and Vestas.
The finances should also be more beneficial.
These are my thoughts.
Will The Norfolk Wind Farms Produce Hydrogen For Germany?
Consider.
- As Hornsea 4 wind farm makes landfall in Norfolk, Norfolk should have enough renewable electricity.
- The Norfolk Nimbies will object to more electricity transmission lines across Norfolk.
- H2ercules, which is the large German hydrogen network will need lots of green hydrogen.
- Wilhelmshaven, which will be the main hydrogen feed point for H2ercules, is just across the North Sea at Wilhelmshaven.
- There are no Houthis roaming the North Sea.
- Hydrogen could be transported from the Norfolk wind farms to Wilhelmshaven by pipeline or coastal tanker.
- German companies are building the Norfolk wind farms.
I believe that there is a good chance, that the Norfolk wind farms will produce hydrogen for Germany.
This will have the following benefits.
- Germany will get the hydrogen it needs.
- The hydrogen link will improve energy security in Europe.
- The UK government will receive a nice cash flow.
The only losers will be the dictators, who supply Europe with energy.
Do RWE Have A Comprehensive Hydrogen Plan For Germany?
What is interesting me, is what Germany company; RWE is up to. They are one of the largest UK electricity producers.
In December 2023, they probably paid a low price, for the rights for 3 x 1.4 GW wind farms about 50 km off North-East Norfolk from in-trouble Swedish company; Vattenfall and have signed contracts to build them fairly fast.
In March 2024, wrote about the purchase in RWE And Vattenfall Complete Multi-Gigawatt Offshore Wind Transaction In UK.
Over the last couple of years, I have written several posts about these three wind farms.
March 2023 – Vattenfall Selects Norfolk Offshore Wind Zone O&M Base
November 2023 – Aker Solutions Gets Vattenfall Nod To Start Norfolk Vanguard West Offshore Platform
December 2023 – SeAH To Deliver Monopiles For Vattenfall’s 2.8 GW Norfolk Vanguard Offshore Wind Project
Then in July 2023, I wrote Vattenfall Stops Developing Major Wind Farm Offshore UK, Will Review Entire 4.2 GW Zone
Note.
- There does appear to be a bit of a mix-up at Vattenfall, judging by the dates of the reports.Only, one wind farm has a Contract for Difference.
- It is expected that the other two will be awarded contracts in Round 6, which should be by Summer 2024.
In December 2023, I then wrote RWE Acquires 4.2-Gigawatt UK Offshore Wind Development Portfolio From Vattenfall.
It appears that RWE paid £963 million for the three wind farms.
I suspect too, they paid for all the work Vattenfall had done.
This transaction will give RWE 4.2 GW of electricity in an area with very bad connections to the National Grid and the Norfolk Nimbies will fight the building of more pylons.
So have the Germans bought a pup?
I don’t think so!
Where Is Wilhemshaven?
This Google Map shows the location of Wilhemshaven.
Note.
- Heligoland is the island at the top of the map.
- The Germans call this area the Wdden Sea.
- The estuaries lead to Wilhelmshaven and Bremerhaven.
- Cuxhaven is the port for Heligoland, which is connected to Hamburg by hydrogen trains.
This second map shows between Bremerhaven and Wilhelmshaven.
Note.
- Wilhelmshaven is to the West.
- Bremerhaven is in the East.
- The River Weser runs North-South past Bremerhaven.
I’ve explored the area by both car and train and it is certainly worth a visit.
The Wilhemshaven Hydrogen Import Terminal
German energy company; Uniper is building a hydrogen import terminal at Wilhemshaven to feed German industry with hydrogen from places like Australia, Namibia and the Middle East. I wrote about this hydrogen import terminal in Uniper To Make Wilhelmshaven German Hub For Green Hydrogen; Green Ammonia Import Terminal.
I suspect RWE could build a giant offshore electrolyser close to the Norfolk wind farms and the hydrogen will be exported by tanker or pipeline to Germany or to anybody else who pays the right price.
All this infrastructure will be installed and serviced from Great Yarmouth, so we’re not out of the deal.
Dogger Bank South Wind Farm
To make matters better, RWE have also signed to develop the 3 GW Dogger Bank South wind farm.
This could have another giant electrolyser to feed German companies. The wind farm will not need an electricity connection to the shore.
The Germans appear to be taking the hydrogen route to bringing electricity ashore.
Energy Security
Surely, a short trip across the North Sea, rather than a long trip from Australia will be much more secure and on my many trips between the Haven Ports and The Netherlands, I haven’t yet seen any armed Houthi pirates.
RWE And Hydrogen
On this page on their web site, RWE has a lot on hydrogen.
Very Interesting!
H2ercules
This web site describes H2ercules.
The goal of the H2ercules initiative is to create the heart of a super-sized hydrogen infrastructure for Germany by 2030. To make this happen, RWE, OGE and, prospectively, other partners are working across various steps of the value chain to enable a swift supply of hydrogen from the north of Germany to consumers in the southern and western areas of the country. In addition to producing hydrogen at a gigawatt scale, the plan is also to open up import routes for green hydrogen. The transport process will involve a pipeline network of about 1,500 km, most of which will consist of converted gas pipelines.
Where’s the UK’s H2ercules?
Conclusion
The Germans have got there first and will be buying up all of our hydrogen to feed H2ercules.
The Anonymous Widower 