Investment in Grain LNG
The title of this post, is the same as that of this press release from Centrica.
This sub-heading outlines the deal.
Centrica plc (the “Company”, “Centrica”) is pleased to announce the acquisition of the Isle of Grain liquified natural gas terminal (“Grain LNG”) in partnership1 with Energy Capital Partners LLP (“ECP”) from National Grid group (“National Grid”) for an enterprise value of £1.5 billion. After taking into account approximately £1.1 billion of new non-recourse project finance debt, Centrica’s 50% share of the equity investment is approximately £200 million.
The press release lists these key points.
- Grain LNG delivers vital energy security for the UK, providing critical LNG import/export, regasification and rapid response gas storage capacity to balance the energy system.
- Aligned with Centrica’s strategy of investing in regulated and contracted assets supporting the energy transition, delivering predictable long-term, inflation-linked cash flows, with 100% of capacity contracted until 2029, >70% until 2038 and >50% until 2045.
- Opportunities for efficiencies to create additional near-term value, and future development options including a combined heat and power plant, bunkering, hydrogen and ammonia.
- Highly efficient funding structure, with Centrica’s equity investment of approximately £200 million alongside non-recourse project financing.
- Strong life of asset returns aligned with Centrica’s financial framework, with an expected unlevered IRR2 of around 9% and an equity IRR2 of around 14%+
Underpins delivery of £1.6 billion end-2028 EBITDA target3 – Centrica’s share of EBITDA expected to be approximately £100 million per annum and cash distributions expected to be around £20 million on average per annum for 2026-2028, representing an attractive yield on Centrica’s equity investment - Partnership with ECP (part of Bridgepoint Group plc), one of the largest private owners of natural gas generation and infrastructure assets in the U.S. with direct experience in supporting grid reliability.
This Google Map shows the various energy assets on the Isle of Grain.
Note.
- It appears that works for the 1, 400 MW NeuConnect interconnector to Wilhelmshaven in Germany, are taking place in the North-East corner of the map.
- Grain CHP powerstation is a 1,275MW CCGT power station, which is owned by German company; Uniper, that is in the South-East corner of the map, which can also supply up to 340MW of heat energy recovered from the steam condensation to run the vapourisers in the nearby liquefied natural gas terminal.
- The Grain LNG terminal is at the Western side of the map.
- In the Thames Estuary to the East of the Isle of Grain, I estimate that there are about 1,500 MW of wind turbines.
I find it interesting that two of the assets are German owned.
I have some thoughts.
It Is A Large Site With Space For Expansion
This Google Map shows the whole of the Isle of Grain.
Note.
- The Grain LNG terminal is around the label Wallend.
- The River Medway runs East-West at the bottom of the map.
- Gas tankers deliver and take on gas at jetties on the North Bank of the Medway.
There could be space to expand the terminal, if the RSPB would allow it.
As an example, I asked Google AI, if peregrine falcons nest on chemical plants and got this reply.
Yes, peregrine falcons do nest on chemical plants. They have adapted to using various urban and industrial structures, including chemical plants, for nesting. This is particularly true in areas where natural cliff habitats are scarce.
Peregrine falcons are known for their adaptability, and their population has seen a resurgence in recent decades, partly due to their ability to utilize man-made structures. These structures often mimic their natural cliffside nesting
Cliffs do seem scarce on the Isle of Grain. I also asked Google AI, if peregrine falcons ate small rodents, as several chemical and other plants, where I’ve worked, had a rodent problem. One plant had a cat problem, as there had been so many rats. This was the reply.
Yes, peregrine falcons do eat small rodents, though they primarily consume birds. While their diet mainly consists of other birds like pigeons, doves, and waterfowl, they will also hunt and eat small mammals, including rodents such as mice, rats, and voles. They are opportunistic hunters and will take advantage of readily available prey, including insects, amphibians, and even fish.
I’m sure if Centrica wanted to expand, they’d employ the best experts.
Who Are ECP?
One of the key points of the press release is that this deal is a partnership with ECP (part of Bridgepoint Group plc), one of the largest private owners of natural gas generation and infrastructure assets in the U.S. with direct experience in supporting grid reliability.
The Wikipedia entry for ECP or Energy Capital Partners has this first section.
Energy Capital Partners Management, LP (ECP) is an American investment firm headquartered in Summit, New Jersey. It focuses on investments in the energy sector. The firm has additional offices in New York City, Houston, San Diego, Fort Lauderdale and Seoul.
In August 2024, ECP merged with Bridgepoint Group to form a private assets investment platform.
The Wikipedia entry for the Bridgepoint Group has this first paragraph.
Bridgepoint Group plc is a British private investment company listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.
The company had started as part of NatWest.
Are The Germans Going To Take Away Some Of Our Electricity?
Consider.
- Germany has a big need to replace Russian gas and indigenous coal, and to decarbonise.
- Neuconnect is a 1.4 GW interconnector between the Isle of Grain and Wilhelmshaven in Germany. It is scheduled to be completed in 2028.
- The Grain CHP powerstation is a 1,275MW CCGT power station, which is owned by German company; Uniper, could almost keep NeuConnect working at full power on its own.
- I said earlier, in the Thames Estuary to the East of the Isle of Grain, I estimate that there are about 1,500 MW of wind turbines. One of which is part German-owned.
The Germans are also building a large electrolyser at Wilhelshaven, which is described by Google AI like this.
The Wilhelmshaven Green Energy Hub will initially feature a 500MW electrolyzer, with plans to potentially expand to 1GW, according to Energy Monitor. The hub, a joint project between Tree Energy Solutions (TES) and EWE, aims to produce green hydrogen using renewable energy sources like offshore wind. The 500MW electrolyzer is scheduled to be operational by 2028.
I wouldn’t be surprised to see that the Wilhelmshaven electrolyser were to be powered by British-generated electricity flowing down NeuConnect.
Centrica Says Their Future Development Options Include A Combined Heat And Power Plant
This objective was set in one of the key points.
This is the first paragraph of the Wikipedia entry for the Grain LNG Terminal.
Grain LNG Terminal is a Liquefied Natural Gas (LNG) terminal on the Isle of Grain, 37 miles (60 km) east of London. It has facilities for the offloading and reloading of LNG from ships at two jetties on the River Medway; for storing and blending LNG; for truck loading; and regasifying and blending natural gas to meet UK specifications. The terminal can handle up to 15 million tonnes per annum of LNG, has a storage capacity for one million cubic metres of LNG, and is able to regasify up to 645 GWh per day (58 million cubic metres per day) for delivery into the high pressure gas National Transmission System (NTS). The facility is owned and operated by National Grid Grain LNG Ltd, a wholly owned subsidiary of National Grid.
Note.
- This paragraph was written before the Centrica takeover.
- The terminal also converts liquid natural gas into gas to be distributed around the UK.
The heat needed to convert the liquid natural gas to gas is provided by the Grain CHP power station.
- Currently 340 MW of heat is provided.
- If the Grain LNG terminal is expanded, it will probably need more heat.
I can see Centrica building a combined heat and power (CHP) power station, that can be expanded to meet the current and future needs of gasification at the Grain LNG terminal.
I wouldn’t be surprised to see the CHP power station fitted with carbon capture, as Kent is surely one county, where carbon dioxide can be used in food production, so we can generate our carbon dioxide and eat it.
Centrica Says Their Future Development Options Include Hydrogen
This objective was set in one of the key points.
Consider.
- Centrica are an investor in HiiROC, who have a unique method of generating affordable zero-carbon hydrogen called thermal plasma electrolysis, which uses a fifth of the electricity, that traditional electrolysis does.
- HiiROC can use natural gas as a feedstock. Centrica won’t be short of that at Grain.
- There is space to build a large HiiROC system at the Isle of Grain site.
- The hydrogen could be taken away by tanker ships.
Like the electricity , which will use the 450 mile NeuConnect interconnector, the hydrogen could even be exported to Wilhelmshaven in Germany by pipeline.
Wilhelmshaven is being setup to be a major German hub to both generate, import and distribute hydrogen.
I asked Google AI, how much hydrogen a GWh would produce and received this answer.
A GWh of electricity can produce approximately 20-22 tonnes of hydrogen through electrolysis, depending on the efficiency of the electrolyzer. Modern commercial electrolyzers operate at an efficiency of roughly 70-80%, meaning they require about 50-55 kWh of electricity to produce 1 kg of hydrogen. A GWh (1 gigawatt-hour) is equal to 1,000,000 kWh, and 1 tonne of hydrogen contains roughly 33.33 MWh of energy.
As it is claimed on the web that HiiROC is five times more efficient than traditional electrolysis, it could need around 10-11 kWh to produce one kg. of hydrogen.
1 GWh would produce between 90-100 tonnes of hydrogen.
Centrica Says Their Future Development Options Include Ammonia
This objective was set in one of the key points.
I asked Google AI if ammonia can be produced from hydrogen and received this answer.
Yes, ammonia (NH3) can be produced from hydrogen (H2) through a process called the Haber-Bosch process. This process involves combining hydrogen with nitrogen (N2) from the air, under high temperature and pressure, in the presence of a catalyst.
Ammonia has a large number of uses, including making fertiliser and the powering of large ships.
I asked Google AI, if there are small Haber-Bosch processes to make ammonia from hydrogen and nitrogen and received this answer.
Yes, there are efforts to develop smaller-scale Haber-Bosch processes for ammonia production. While the traditional Haber-Bosch process is typically associated with large industrial plants, research and development are exploring ways to adapt it for smaller, distributed production, particularly for localized fertilizer or fuel applications.
I wondered if Centrica are involved in the efforts to develop smaller-scale Haber-Bosch processes for ammonia production.
Google AI gave me this quick answer.
Centrica is involved in research related to the Haber-Bosch process, particularly in the context of transitioning to a low-carbon energy future. They are exploring how to adapt the Haber-Bosch process, which is crucial for fertilizer production but also a significant source of CO2 emissions, to utilize renewable energy sources. This includes investigating the use of green hydrogen produced from water electrolysis and renewable electricity. Centrica is also involved in research related to using ammonia as a fuel, including potentially for power generation
That looks to be a very positive answer. Especially, as local low-carbon fertiliser production could be a very powerful concept.
Centrica Says Their Future Development Options Include Bunkering
This objective was set in one of the key points.
Bunkering is the process of refuelling ships.
I didn’t know much about bunkering, when I started to read Centrica’s press release, but the Wikipedia entry, was a good way to get some information.
This section in the Wikipedia entry is entitled Two Types Of Bunkering, where this is said.
The two most common types of bunkering procedure at sea are “ship to ship bunkering” (STSB), in which one ship acts as a terminal, while the other moors. The second type is “stern line bunkering” (SLB), which is the easiest method of transferring oil but can be risky during bad weather.
Over the years, I have found, that two zero-carbon fuels are under development, for powering ships; hydrogen and ammonia. Others are developing ships powered by naturalo gas.
I asked Google AI if hydrogen can power ships and received this answer.
Yes, hydrogen can power ships. It can be used as a fuel for fuel cells, which generate electricity to power the ship’s propulsion and other systems, or it can be burned in modified combustion engines. Hydrogen offers a zero-emission solution for shipping, with water vapor being the only byproduct when used in fuel cells.
Google AI also told me this.
The world’s first hydrogen-powered cruise ship, the “Viking Libra”, is currently under construction and is scheduled for delivery in late 2026. This innovative vessel, a collaboration between Viking Cruises and Italian shipbuilder Fincantieri, will utilize hydrogen for both propulsion and electricity generation, aiming for zero-emission operation.
I also asked Google AI if ammonia can power ships and received this answer.
Yes, ammonia can be used to power ships and is considered a promising alternative fuel for the maritime industry. Several companies and organizations are actively developing ammonia-powered ship designs and technologies. While challenges remain, particularly around safety and infrastructure, ammonia is seen as a key potential fuel for decarbonizing shipping.
Finally, I asked I asked Google AI if natural gas can power ships and received this answer.
Yes, ships can be powered by natural gas, specifically in the form of liquefied natural gas (LNG). LNG is increasingly used as a marine fuel, offering environmental benefits over traditional fuels like diesel.
It would seem to be a case of you pays your money and makes a choice between one of four technologies; ammonia, hydrogen fuel-cell, hydrogen-ICE and LNG.
I looks to me, that if Centrica provide bunkering services for ships, they have the means to cover most of the market by providing hydrogen and ammonia, in addition to natural gas.
Although, I don’t know much about bunkering, I do feel that the two current methods, that work for oil, could be made to work for these fuels.
This Google Map shows the Thames Estuary.
Note.
- The Port of Tilbury is in the South-West corner of the map.
- London Gateway is indicated by the red arrow.
- The Isle of Grain is in the South-East corner of the map.
- Other ports between Tilbury and the Isle of Grain include Barking, Dagenham, Dartford, Erith, Greenwich, Northfleet, Purfleet, Silvertown and Thurrock.
There was never a more true phrase than – “Location, Location and Location”. And the Isle of Grain would appear to be in the right place to send out a bunkering tanker to a passing ship, that was calling at a port in London or just passing through the Strait of Dover.
This Google Map shows the Thames between London Gateway and the Isle of Grain.
Note.
- London Gateway is indicated by the red arrow.
- The Isle of Grain is in the South-East corner of the map.
It seems to me, that a refuelling philosophy could easily be worked out.
How Large is The Bunkering Market?
I asked Google AI this question and received this answer.
The world bunker fuel market is a multi-billion dollar industry, with the market size valued at USD 150.93 billion in 2023. It is projected to reach USD 242.29 billion by 2032, growing at a CAGR of 5.4% according to SkyQuest Technology. In terms of volume, the global bunker demand was estimated at 233.1 million metric tons in 2023 according to the IMO.
The market is not small!
Energy In – Hydrogen And Carbon Dioxide Out
This article was inspired by this article in the Sunday Times, which is entitled ‘It’s A Slog’: Life Inside Britain’s Last Coal Power Station.
The article is about Ratcliffe-on-Soar power station, which is next to East Midlands Parkway station.
This is the first paragraph of the station’s Wikipedia entry.
Ratcliffe-on-Soar Power Station is a coal-fired power station owned and operated by Uniper at Ratcliffe-on-Soar in Nottinghamshire, England. Commissioned in 1968 by the Central Electricity Generating Board, the station has a capacity of 2,000 MW. It is the last remaining operational coal-fired power station in the UK, and is scheduled to close in September 2024.
I took these pictures of the power station in 2019.
Ratcliffe-on-Soar is the last of a number of large coal-fired power stations, that were built in the area, mainly along the River Trent.
- Rugeley – 600 MW – 1961
- Drakelow – 1630 MW – 1964
- Willington – 800 MW – 1962
- Castle Donington – 600 MW – 1958
- Ratcliffe-on-Soar – 2000 MW – 1968
- High Marnham – 1000 MW – 1959
- Cottam – 2000 MW – 1968
- West Burton – 2000 MW – 1968
Note.
- The date is the commissioning date.
- That is 10,630 MW of electricity.
- There are also a few large gas-fired power stations along the river, that are still operating.
- Both coal and gas-fired stations use the water from the River Trent for cooling.
At the mouth of the river, there is the Keadby cluster of gas-fired power stations.
- Keadby 1 – 734 MW – 1996
- Keadby 2 – 849 MW – 2023
- Keadby 3 – 910 MW – 2027
- Keadby Hydrogen – 900 MW – 2030
Note.
- The date is the commissioning date.
- That is 3,393 MW of electricity.
- Keadby 2 is the most efficient CCGT in the world.
- Keadby 3 will be fitted with carbon capture.
- Keadby 2 has been designed to be retrofitted with carbon capture.
- Keadby Hydrogen will be fuelled by zero-carbon hydrogen.
As the years progress, I can see the Keadby cluster of power stations becoming a large zero-carbon power station to back-up wind farms in the North Sea.
- Hydrogen power stations will emit no carbon dioxide.
- Carbon dioxide from all gas-fired stations will be captured.
- Some carbon dioxide will be sold on, to companies who can use it, in industries like construction, agriculture and chemical manufacture.
- The remaining carbon dioxide will be stored in depleted gas fields.
As technology improves, more carbon dioxide will be used rather than stored.
Other Power Sources In The Humberside Area
In the next few sub-sections, I will list the other major power sources in the Humberside area.
Drax Power Station
Drax power station is a shadow of its former self, when it was one of the power stations fed by the newly discovered Selby coalfield.
These days it is a 2,595 MW biomass-fired power station.
Eastern Green Link 2
Eastern Green Link 2 will be a 2 GW interconnector between Peterhead in Scotland and Drax.
It is shown in this map.
Note.
- Most of the route is underwater.
- It is funded by National Grid.
- Contracts have been signed, as I talk about in Contracts Signed For Eastern Green Link 2 Cable And Converter Stations.
- It is scheduled to be completed by 2029.
This interconnector will bring up to 2 GW of Scottish wind-generated electricity to Drax and Humberside.
Drax has the substations and other electrical gubbins to distribute the electricity efficiently to where it is needed.
2 GW could also reduce the amount of biomass used at Drax.
In the long term, if the concept of the four Eastern Green Links is successful, I could see another Eastern Green Link to Drax to replace imported biomass at Drax.
I also, don’t see why a smaller Drax can’t be run on locally-sourced biomass.
Solar Farms And Batteries Along The River Trent
As the coal-fired power stations along the River Trent are demolished, solar farm developers have moved in to develop large solar farms.
Salt End Power Station And Chemical Works
These two paragraphs from the Wikipedia entry for Salt End describes the hamlet and its power station and chemical works.
Salt End or Saltend is a hamlet in the East Riding of Yorkshire, England, in an area known as Holderness. It is situated on the north bank of the Humber Estuary just outside the Hull eastern boundary on the A1033 road. It forms part of the civil parish of Preston.
Salt End is dominated by a chemical park owned by PX group, and a gas-fired power station owned by Triton Power. Chemicals produced at Salt End include acetic acid, acetic anhydride, ammonia, bio-butanol, bio-ethanol, ethyl acetate (ETAC) and ethylene-vinyl alcohol copolymer (EVOH) with animal feed also being produced on site.
I wonder, if running the complex on hydrogen would give cost and marketing advantages.
Aldbrough Hydrogen Storage Facility
This page on the SSE Thermal web site is entitled Plans For World-Leading Hydrogen Storage Facility At Aldbrough.
This is the most significant paragraph of the page, that is definitely a must-read.
With an initial expected capacity of at least 320GWh, Aldbrough Hydrogen Storage would be significantly larger than any hydrogen storage facility in operation in the world today. The Aldbrough site is ideally located to store the low-carbon hydrogen set to be produced and used in the Humber region.
This is a hydrogen storage facility for a much wider area than Humberside.
Rough Gas Storage Facility
This is the first paragraph of the Wikipedia entry for the Rough Gas Storage Facility.
Rough is a natural gas storage facility under the North Sea off the east coast of England. It is capable of storing 100 billion cubic feet of gas, nearly double the storage capacities in operation in Great Britain in 2021.
In Wood To Optimise Hydrogen Storage For Centrica’s Rough Field, I describe Centrica’s plans to convert the Rough gas storage into a massive hydrogen storage.
The Location Of Aldbrough Gas Storage, Rough Gas Storage, Salt End And Easington Gas Terminal
This Google Map shows between Salt End and the coast.
Note.
- The river crossing the South-West corner of the map is the Humber.
- Salt End with its power station and chemical works is on the North Bank of the Humber, where the river leaves the map.
- Aldbrough Gas Storage is marked by the red arrow at the top of the map.
- Easington Gas Terminal is in the South-East corner of the map.
- According to Wikipedia, gas flows into and out of the Rough Gas Storage are managed from Easington.
Looking at the map, I feel that the following should be possible.
- The two gas storage sites could be run together.
- Salt End power station and the related chemical works could run on hydrogen.
- Salt End will always have a reliable source of hydrogen.
- This hydrogen could be green if required.
All the chemical works at Salt End, could be run on a zero-carbon basis. Would this mean premium product prices? Just like organic does?
Enter The Germans
The Germans have a huge decarbonisation problem, with all their coal-fired power stations and other industry.
Three massive projects will convert much of the country and industry to hydrogen.
- H2ercules, which is a project of OGE and RWE, will create a hydrogen network to bring hydrogen, to where it is needed.
- In Uniper To Make Wilhelmshaven German Hub For Green Hydrogen; Green Ammonia Import Terminal, I describe how Uniper are going to build a hydrogen import terminal at Wilhelmshaven.
- AquaVentus is an RWE project that will use 10.3 GW of offshore wind power in German territorial waters to create a million tonnes per year of green hydrogen.
These would appear to be three of Europe’s largest hydrogen projects, that few have ever heard of.
AquaVentus And The UK
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 delivers hydrogen to Germany.
- There is a link to Denmark.
- There appears to be an undeveloped link to Norway.
- There appears to be an undeveloped link to Peterhead in Scotland.
- There appears to be a link to just North of the Humber in England.
- Just North of the Humber are the two massive gas storage sites of Aldbrough owned by SSE and Brough owned by Centrica.
- 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?
In the last century, the oil industry, built a substantial oil and gas network in the North Sea.
It appears now the Germans are leading the building of a substantial hydrogen network in the North Sea.
These are my thoughts about development of the AquaVentus network.
Hydrogen Production And AquaVentus
This RWE graphic shows the layout of the wind farms feeding AquaVentus.
Note.
- There is a total of 10.3 GW.
- Is one of the 2 GW web sites on the UK-side of AquaVentus, the 3 GW Dogger Bank South wind farm, which is being developed by RWE?
- Is the 0.3 GW wind farm, RWE’s Norfolk wind farm cluster, which is also being developed by RWE?
Connecting wind farms using hydrogen pipelines to Europe, must surely mitigate the pylon opposition problem from Nimbys in the East of England.
As the AquaVentus spine pipeline could eventually connect to Peterhead, there will be other opportunities to add more hydrogen to AquaVentus.
Hydrogen Storage And AquaVentus
For AquaVentus to work efficiently and supply a large continuous flow of hydrogen to all users, there would need to be storage built into the system.
As AquaVentus is around 200 kilometres in length and natural gas pipelines can be up to 150 centimetres in diameter, don’t underestimate how much hydrogen can be stored in the pipeline system itself.
This page on the Uniper web site is entitled Green Wilhelmshaven: To New Horizons.
This is a sentence on the page.
Access to local hydrogen underground storage at the Etzel salt cavern site.
An Internet search gives the information, that Etzel gas storage could be developed to hold 1 TWh of hydrogen.
That would be enough hydrogen to supply 10 GW for a hundred hours.
Note that the UK branch of AquaVentus reaches the UK, just to the South of the massive hydrogen storage facilities at Aldbrough and Rough.
It would appear that both Germany and the UK are connected to AquaVentus through substantial storage.
I am certain, that all country connections to AquaVentus will have substantial storage at the country’s hydrogen terminal.
AquaDuctus
This would appear to be the first part of the AquaVentus network and has its own web site.
The web site is entitled Nucleus Of A Offshore Hydrogen Backbone.
These are the first two paragraphs.
The project partners are focusing on a scalable, demand-driven infrastructure: By 2030, AquaDuctus will connect the first large hydrogen wind farm site, SEN-1, with a generation capacity of approximately one gigawatt. SEN-1 is located in the German EEZ in the northwest of Helgoland. The pipeline will transport at a length of approx. 200 km green hydrogen produced from offshore wind to the German mainland and from there to European consumers via the onshore hydrogen infrastructure.
In the next project stage, AquaDuctus will be extended to the remote areas of the German exclusive economic zone towards the tip of the so-called duck’s bill. By that, additional future hydrogen wind farm sites will be connected. Along its way AquaDuctus will provide interconnection points with the opportunity for linking of adjacent national offshore hydrogen infrastructures originating from Denmark, Norway, the Netherlands, Belgium and United Kingdom which opens the door for Europe-wide offshore hydrogen transport by pipeline.
There is also an interactive map, that gives more details.
This paragraph explains, why the Germans have chosen to bring the energy ashore using hydrogen, rather than traditional cables.
Recent studies show that offshore hydrogen production and transport via pipelines is faster, cheaper, and more environmentally friendly than onshore electrolysis with a corresponding connection of offshore wind turbines via power cables. The German federal government has also recognized this advantage and has clearly expressed its intention to promote offshore hydrogen production in the North Sea.
I suspect, that some UK offshore wind farms will use the same techniques.
Hydrogen Production For The UK
Electrolysers will probably be built along the East Coast between Peterhead and Humberside and these will feed hydrogen into the network.
- Some electrolysers will be offshore and others onshore.
- Turning off windfarms will become a thing of the past, as all surplus electricity will be used to make hydrogen for the UK or export to Europe.
- Until needed the hydrogen will be stored in Albrough and Rough.
Backup for wind farms, will be provided using hydrogen-fired power stations like Keadby Hydrogen power station.
Financial Implications
I reported on Rishi Sunak’s Manifesto Speech, which he made on June 11th. This is an extract
This document on the Policy Mogul web site is entitled Rishi Sunak – Conservative Party Manifesto Speech – Jun 11.
These are three paragraphs from the speech.
We don’t just need military and border security. As Putin’s invasion of Ukraine has shown, we need energy security too. It is only by having reliable, home-grown sources of energy that we can deny dictators the ability to send our bills soaring. So, in our approach to energy policy we will put security and your family finances ahead of unaffordable eco zealotry.
Unlike Labour we don’t believe that we will achieve that energy security via a state-controlled energy company that doesn’t in fact produce any energy. That will only increase costs, and as Penny said on Friday there’s only one thing that GB in Starmer and Miliband’s GB Energy stands for, and that’s giant bills.
Our clear plan is to achieve energy security through new gas-powered stations, trebling our offshore wind capacity and by having new fleets of small modular reactors. These will make the UK a net exporter of electricity, giving us greater energy independence and security from the aggressive actions of dictators . Now let me just reiterate that, with our plan, we will produce enough electricity to both meet our domestic needs and export to our neighbours. Look at that. A clear, Conservative plan not only generating security, but also prosperity for our country.
I can’t remember any reports about an energy security policy, which he outlined in the last paragraph of my extract from his speech.
He also said we would have sufficient electricity to export to our neighbours. As I said earlier some of this energy will be in the form of hydrogen, which has been created by offshore electrolysers.
If we are exporting electricity and hydrogen to Europe, this is likely to have three effects.
- An improvement in Europe’s energy security.
- H2ercules will improve and decarbonise German industry, using UK hydrogen.
- The finances of UK plc will improve.
It looks like there would be winners all round.
Rishi Sunak had the cards and he played them very badly.
It is now up to Keir Starmer, Great British Energy and Jürgen Maier to play those cards to link the energy systems of the UK and Germany to ensure security and prosperity for Europe.
Wood To Optimise Hydrogen Storage For Centrica’s Rough Field
The title of this post, is the same as that of this press release from Wood plc.
These are the first three paragraphs.
Wood, a global leader in consulting and engineering, has been awarded a contract by Centrica Energy Storage (CES) for the redevelopment of the UK’s Rough field in readiness for future hydrogen storage.
The Rough reservoir, located in the Southern North Sea, has been used to store natural gas safely for over thirty years and has the potential to provide over half of the UK’s hydrogen storage requirements.
The front-end engineering design (FEED) contract, awarded to Wood, entails new pipelines, a new unmanned installation, as well as onshore injection facilities at the Easington Gas Terminal, is the first step in making the field hydrogen ready.
Offshore Magazine has this article about the deal, which is entitled Wood Assessing Hydrogen Storage Needs For North Sea Rough Reservoir.
This is a paragraph from the Offshore Magazine article.
Centrica aims to position the Rough Field as the world’s largest long-duration hydrogen storage facility, although FID on the redevelopment project would depend on government support.
It would be a very important project.
Why would Centrica be planning for this massive increase in hydrogen storage?
There could only be one reason.
There is going to be a massive increase in hydrogen production and use.
In Where’s The Plan, Rishi?, I laid out what I believe will happen in the next few years.
- In RWE Goes For An Additional 10 GW Of Offshore Wind In UK Waters In 2030, I detailed how RWE intended to add an extra 10 GW of offshore wind to the seas around the UK.
- As our current offshore wind capacity is around 15 GW, so another 10 GW would surely be very welcome.
- The Germans will develop H2ercules, which is their massive project to create a hydrogen network to bring hydrogen to Southern Germany.
- A hydrogen hub at Wilhelmshaven is being built by Uniper to feed H2ercules with green hydrogen from around the world.
But would it not be better, if instead of feeding H2ercules with hydrogen from around the world, some came from the UK, a few hundred miles across the North Sea?
- RWE are developing the 3 GW Dogger Bank South wind farm, which is not in the best place for a cable to the UK. So could this wind farm have an offshore electrolyser and send the hydrogen to Wilhelmshaven, by pipeline or coastal tanker?
- RWE are also developing the 4.2 GW Norfolk cluster of wind farms to the North-East of Great Yarmouth. It might be better, if the output of these wind farms took a hydrogen route to Wilhelmshaven.
- I also believe that a third offshore electrolyser might be situated North of the Wash to bring more hydrogen to Germany.
- Hydrogen could also be sent from the Rough facility to Wilhelmshaven.
The coastal tanker route gives flexibility, so green hydrogen could be sent as required to the UK mainland.
Rishi Sunak’s Manifesto Speech – June 11
I also reported on Rishi Sunak’s Manifesto Speech, which he made on June 11th. This is an extract
This document on the Policy Mogul web site is entitled Rishi Sunak – Conservative Party Manifesto Speech – Jun 11.
These are three paragraphs from the speech.
We don’t just need military and border security. As Putin’s invasion of Ukraine has shown, we need energy security too. It is only by having reliable, home-grown sources of energy that we can deny dictators the ability to send our bills soaring. So, in our approach to energy policy we will put security and your family finances ahead of unaffordable eco zealotry.
Unlike Labour we don’t believe that we will achieve that energy security via a state-controlled energy company that doesn’t in fact produce any energy. That will only increase costs, and as Penny said on Friday there’s only one thing that GB in Starmer and Miliband’s GB Energy stands for, and that’s giant bills.
Our clear plan is to achieve energy security through new gas-powered stations, trebling our offshore wind capacity and by having new fleets of small modular reactors. These will make the UK a net exporter of electricity, giving us greater energy independence and security from the aggressive actions of dictators . Now let me just reiterate that, with our plan, we will produce enough electricity to both meet our domestic needs and export to our neighbours. Look at that. A clear, Conservative plan not only generating security, but also prosperity for our country.
It is now nineteen days since Rishi made that speech and I can’t remember any reports about an energy security policy, which he outlined in the last paragraph of my extract from his speech.
He particularly mentioned.
- New gas-powered stations
- Trebling our offshore wind capacity
- Having new fleets of small modular reactors.
He also said we would have sufficient electricity to export to our neighbours. As I said earlier some of this energy will be in the form of hydrogen, which has been created by offshore electrolysers.
If we are exporting electricity and hydrogen to Europe, this is likely to have three effects.
- An improvement in Europe’s energy security.
- H2ercules will improve and decarbonise German industry, using UK hydrogen.
- The finances of UK plc will improve.
It looks like there will be winners all round.
Conclusion
Centrica’s plan for a massive hydrogen store at Rough, close to SSE’s existing gas storage in the salt caverns at Aldbrough, would appear to make sense, if the UK’s excess of offshore wind is converted into green hydrogen, which is then stored and distributed as needed.
Where’s The Plan, Rishi?
In RWE Goes For An Additional 10 GW Of Offshore Wind In UK Waters In 2030, I detailed how RWE intended to add an extra 10 GW of offshore wind to the seas around the UK.
As our current offshore wind capacity is around 15 GW, another 10 GW would surely be very welcome.
My post also outlined H2ercules, which is Germany’s massive project to create a hydrogen network to bring hydrogen to Southern Germany.
I also gave details of the hydrogen hub at Wilhelmshaven, which is being built by Uniper to feed H2ercules with green hydrogen from around the world.
I believe that some of this hydrogen for H2ercules will take a short trip across the North Sea from UK waters, after being created by offshore electrolysers.
Rishi Sunak’s Manifesto Speech – June 11
I also reported on Rishi Sunak’s Manifesto Speech, which he made on June 11th. This is an extract
This document on the Policy Mogul web site is entitled Rishi Sunak – Conservative Party Manifesto Speech – Jun 11.
These are three paragraphs from the speech.
We don’t just need military and border security. As Putin’s invasion of Ukraine has shown, we need energy security too. It is only by having reliable, home-grown sources of energy that we can deny dictators the ability to send our bills soaring. So, in our approach to energy policy we will put security and your family finances ahead of unaffordable eco zealotry.
Unlike Labour we don’t believe that we will achieve that energy security via a state-controlled energy company that doesn’t in fact produce any energy. That will only increase costs, and as Penny said on Friday there’s only one thing that GB in Starmer and Miliband’s GB Energy stands for, and that’s giant bills.
Our clear plan is to achieve energy security through new gas-powered stations, trebling our offshore wind capacity and by having new fleets of small modular reactors. These will make the UK a net exporter of electricity, giving us greater energy independence and security from the aggressive actions of dictators . Now let me just reiterate that, with our plan, we will produce enough electricity to both meet our domestic needs and export to our neighbours. Look at that. A clear, Conservative plan not only generating security, but also prosperity for our country.
It is now nine days since Rishi made that speech and I can’t remember any reports about an energy security policy, which he outlined in the last paragraph of my extract from his speech.
He particularly mentioned.
- New gas-powered stations
- Trebling our offshore wind capacity
- Having new fleets of small modular reactors.
He also said we would have sufficient electricity to export to our neighbours. As I said earlier some of this energy will be in the form of hydrogen, which has been created by offshore electrolysers.
If we are exporting electricity and hydrogen to Europe, this is likely to have three effects.
- An improvement in Europe’s energy security.
- H2ercules will improve and decarbonise German industry, using UK hydrogen.
- The finances of UK plc will improve.
It looks like there will be winners all round.
Rishi also said this, in his speech.
As Putin’s invasion of Ukraine has shown, we need energy security too.
The gas-powered stations, offshore wind farms and the fleets of small modular reactors, will be part of the equation.
But I believe, we need three other components to complete our energy security.
- The upgrading of the National Grid.
- The building of four x 2 GW interconnectors between Scotland and Eastern England.
- Large amounts of energy storage.
Note.
- The Great Grid Upgrade and the four x 2 GW interconnectors are being planned.
- In Huge Boost To UK Supply Chain As National Grid Launches The Great Grid Partnership With Seven New Industry Partners, All United In The Drive To Deliver The Great Grid Upgrade, I describe how National Grid has setup the Great Grid Partnership to deliver the Great Grid Upgrade.
- In UK Infrastructure Bank, Centrica & Partners Invest £300M in Highview Power Clean Energy Storage Programme To Boost UK’s Energy Security, I describe how the big boys do a deal with Highview Power to create affordable batteries for the UK and the world.
- In Grid Powers Up With One Of Europe’s Biggest Battery Storage Sites, I describe how the very large Swardeston BESS is to be built near Norwich.
- In Mercia Power Response & RheEnergise Working Together To Build Long Duration Energy Storage Projects In The UK, I describe another UK-developed long duration energy storage system, which is now being planned.
- In National Grid Shares Proposals For Green Electricity Projects In Lincolnshire And West Norfolk, Needed To Boost Home-Grown Energy Supplies And Progress Towards Net Zero, I describe National Grid’s projects in the East of England.
- In UK ESO Unveils GBP 58 Billion Grid Investment Plan To Reach 86 GW of Offshore Wind By 2035, I show how we’re not that far away from 86 GW by 2035.
- In 400k For National Grid Innovation Projects As Part Of Ofgem Fund To Help Shape Britain’s Net Zero Transition, I describe how National Grid is using innovation to help target net-zero by 2035.
- In Iberdrola Preparing Two East Anglia Offshore Wind Projects For UK’s Sixth CfD Round, I describe how Iberdrola is getting 1.7 GW ready for commissioning in 2026.
- In National Grid To Accelerate Up To 20GW Of Grid Connections Across Its Transmission And Distribution Networks, I describe how National Grid are accelerating the development of the electricity networks. 10 GW of battery storage is a collateral benefit.
These ten projects, most of which are financed and/or underway, would appear to be good foundations, on which to build the Great Grid Upgrade.
It looks to me, that National Grid, RWE, Centrica, Iberdrola and others, by just doing what comes naturally have offered the next government a road to a future.
It will be interesting, what gets said before the election.
The Core Of Sunak’s Manifesto
I have a feeling, that the core of Sunak’s manifesto is a massive German project called H2ercules, which is intended to bring low-carbon hydrogen to industry in South Germany.
There will be a massive hydrogen hub at Wilhelmshaven on the North-Western coast, which is being built by Uniper, from which hydrogen will be imported and distributed.
I suspect that the Germans aim to source the hydrogen worldwide from places like Australia, the Middle East and Namibia. It would be brought from and round the Cape by tanker. The Suez route would be too risky.
But RWE, who are one of the UK’s largest electricity suppliers, are planning to deliver 7.2 GW of electricity in British waters on the Dogger Bank and North-East of Great Yarmouth.
Both wind farms would be difficult to deliver profitably to the UK, because Eastern England already has enough electricity and the Nimbies are objecting to more pylons.
I believe that RWE will build offshore electrolysers and coastal hydrogen tankers will take the hydrogen to Wilhelmshaven.
H2ercules will be fed with the hydrogen needed.
By the end of the next parliament, the Germans could be paying us substantial sums for green hydrogen, to decarbonise their industry.
Rishi Sunak hinted in his speech, that we will be exporting large amounts of energy.
Much of it will be in the form of green hydrogen to Germany.
If we need hydrogen for our industry, we would create it from some of our own wind farms.
H2ercules
H2ercules is a project that will create the German hydrogen network.
The H2ercules web site, introduces the project with these two paragraphs.
A faster ramp-up of the hydrogen economy in Germany is more important than ever in order to drive forward the decarbonisation programme, put the German energy system on a more robust footing, and thus contribute towards a green security of supply. What this needs is a geographical realignment of the infrastructure for energy in gas form: Instead of flowing from the east of Germany to the west and south of the country, the gas – natural gas now, hydrogen in the future – will have to make its way in future from generation locations in the north-west to centres of consumption located mainly in the west and south. That also means that new sources will have to be connected, and gaps in existing pipeline networks will have to be closed. To speed up this vital process, OGE and RWE have developed the national infrastructure project “H2ercules”, which is intended to supply consumers in Germany’s south and west with domestically produced green hydrogen from the north of the country, in addition to imported sources. This will involve connecting up the electrolyser capacities that are currently being planned and developing more besides. RWE wants to create up to 1 GW of additional electrolyser capacity as part of the H2ercules project. For the connection component, OGE is planning to put 1,500 km of pipelines in place. For the most part, this will mean converting pipelines from the existing natural gas network to hydrogen, supplemented by newly constructed facilities. Converting natural gas pipelines is not only the more cost-efficient solution, but it also allows for a faster schedule. The system is expected to be supplemented by the planned hydrogen storages of RWE.
The current plan is to complete the project in three stages between 2026 and 2030, in order to connect industries to the hydrogen supply as soon as possible. The aim of this collaboration across multiple value levels is to resolve the chicken-and-egg problem on a super-sized scale and also smooth the way forward for other projects.
Note.
There will be a lot of conversion of the existing natural gas network to hydrogen.
RWE wants to create up to 1 GW of additional electrolyser capacity as part of the H2ercules project.
The second paragraph indicates to me, that they want to move fast.
This map from the H2ercules web site, indicate the proposed size of the network in 2030.
These three paragraphs describe how H2ercules will be developed.
OGE and RWE are both strong companies that aim to combine forces as part of the H2ercules project in order to overcome this Herculean task. While the task for OGE will be to convert the required gas pipelines to hydrogen and construct new pipelines, RWE will expand its electrolyser capacity and import green hydrogen in addition. Gas-fired power stations with a capacity of at least 2 GW will be converted to hydrogen, and new H2 -storages as well as H2-storages repurposed from gas storages on the Dutch border will be connected to the hydrogen supply system.
H2ercules also opens up new opportunities to connect Germany’s future centres of hydrogen consumption to key import routes, first via pipelines from Belgium and the Netherlands, and later via Norway and also from southern and eastern Europe, with the added prospects of import terminals for green molecules in Germany’s north. The project is thus contributing significantly to the creation of a European hydrogen market.
The first additional companies and organisations have already indicated their interest in this project, and it is expected that in the future smaller businesses will benefit in addition to large-scale customers, as the entire industry is guided towards a decarbonised future.
These are my thoughts.
Why Is It Called H2ercules?
I suspect, it’s nothing more, than the Germans wanted a recognisable and catchy name.
- Name selection is not helped by the German for hydrogen, which is wasserstoff.
- Hercules is Herkules in German, which doesn’t really help.
- Projekt Wasserstoff isn’t as memorable as H2ercules, which at least isn’t English.
It looks to me, that the Germans have come up with a good acceptable compromise.
The Wilhemshaven Hydrogen Import Terminal
German energy company; Uniper is building a hydrogen import terminal at Wilhemshaven to feed H2ercules and 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.
Wilhelmshaven and Great Yarmouth are 272 miles or 438 kilometres apart, so a pipeline or a tanker link would be feasible to export hydrogen from Notfolk to Germany.
I suspect RWE will 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.
RWE’s Norfolk Wind Farms
What is interesting me, is what Germany company; RWE is up to. Note 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, I wrote about the purchase in RWE And Vattenfall Complete Multi-Gigawatt Offshore Wind Transaction In UK.
This map from RWE shows the three wind farms, with respect to the Norfolk coast.
Could it be, that RWE intend to build a giant offshore electrolyser to the East of Great Yarmouth?
- The planning permission for an electrolyser, which is eighty kilometres offshore, would be far easier, than for one onshore.
- The hydrogen pipeline between Norfolk and Germany would be less than 400 kilometres.
- Hydrogen could also be brought ashore in Norfolk, if the price was right.
- The Bacton gas terminal is only a few miles North of Great Yarmouth.
But the big advantage, is that the only onshore construction could be restricted to the Bacton gas terminal.
Adding More Wind Farms To The Electrolyser
Looking at the RWE map, the following should be noted.
South of Norfolk Vanguard East, there is the East Anglian Array wind farm, which by the end of 2026, will consist of these wind farms.
- East Anglia One – 714 MW – 2020
- East Anglia One North – 800 MW – 2026
- East Anglia Two – 900 MW – 2026
- East Anglia Three – 1372 MW – 2026
Note.
- The date is the commissioning date.
- There is a total capacity of 3786 MW
- All wind farms are owned by Iberdrola.
- There may be space to add other sections to the East Anglian Array.
I doubt, it would be difficult for some of Iberdrola’s megawatts to be used to generate hydrogen for Germany.
To the East of Norfolk Boreas and Norfolk Vanguard East, it’s Dutch waters, so I doubt the Norfolk cluster can expand to the East.
But looking at this map of wind farms, I suspect that around 4-5 GW of new wind farms could be squeezed in to the North-West of the the Norfolk Cluster and South of the Hornsea wind farms.
The 1.5 GW Outer Dowsing wind farm, which is being planned, will be in this area.
I can certainly see 8-10 GW of green electricity capacity being available to electrolysers to the North-East of Great Yarmouth.
Conclusion
UK offshore electricity could be the power behind H2ercules.
- The hydrogen could be sent to Germany by pipeline or tanker ship, as the distance is under 400 kilometers to the Wilhelmshaven hydrogen hub.
- Extra electrolysers and wind farms could be added as needed.
- The hydrogen won’t need to be shipped halfway round the world.
The cash flow won’t hurt the UK.
.
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.
Coal Sales Could Lose Tens Of Millions For Consumers
The title of this post, is the same as that of this article on The Times.
These two paragraphs outline the story.
A huge stockpile of coal bought for emergency use in power stations this winter is due to be resold at a loss of tens of millions of pounds to consumers.
National Grid funded the procurement of hundreds of thousands of tonnes of coal as part of a deal to keep open five coal-fired units this winter. The estimated £368 million cost of the “winter contingency contracts”, which includes an undisclosed sum for the coal purchases, is being recouped via energy bills.
Note.
- None of the coal has been burned, as the weather was warmer than expected,
- It is now sitting in various places around the country.
- It will probably sell at a loss and there will be transport costs.
I will look at the mathematics of disposal.
Burning Fossil Fuels
On the Internet, I have found these figures.
- If you burn a kilogram of natural gas you create 15.5 KWh of electricity and 2.75 kilograms of carbon dioxide.
- If you burn a kilogram of coal you create 2.46 KWh of electricity and 2.38 kilograms of carbon dioxide.
This means that natural gas and coal create 0.18 and 0.97 kilograms of carbon dioxide respectively for every KWh generated.
I believe these figures say, that if we have to use a fossil fuel, gas will be much better than coal for climate change reasons.
The Size Of The Problem
We are talking about 130,000 tonnes of coal for EDF and 400,000 for Drax. Uniper’s figure is not stated. Let’s say they make the coal pile up to 600,000 tonnes.
Burning this pile will generate 1,476,000 KWh or 1.476 GWh of electricity and create 1428,000 tonnes of carbon dioxide.
Effect On Total UK Carbon Dioxide Emissions
According to government figures on the Internet in 2021 we emitted 107.5 million tonnes of carbon dioxide.
Burning all that coal in a year, would add less than 1.5 % to our carbon dioxide emissions. Perhaps we should burn it strategically over a number of years, when there are energy supply problems, as it is after all a crude form of energy storage.
What Would I Do With The Savings?
The money saved on the transport and making loss-making sales could be spent on other ways to save carbon emissions, like converting surplus wind energy into hydrogen and blending it with the gas.
I discussed the mathematics of hydrogen blending in UK – Hydrogen To Be Added To Britain’s Gas Supply By 2025.
If we put 2 % hydrogen in our natural gas, this would save nearly 2.5 million tonnes of carbon dioxide emissions in a year. This figure is much bigger than the 1428,000 tonnes of carbon dioxide, that would be created by burning all the coal.
At a level of 2 %, most appliances, boilers and industrial processes would work without change. But a good service would help.
Shell To Develop Blue Hydrogen Plant
The title of this post, is the same as that of this article in The Times.
The article is based on this press release from Shell, which is entitled Shell And Uniper To Work Together On Blue Hydrogen Production Facility In The UK.
These are the three bullet points of the press release.
- Shell and Uniper sign co-operation agreement to progress plans for low-carbon hydrogen production at Uniper’s Killingholme site in North Lincolnshire
- Hydrogen produced could be used to decarbonise heavy industry, transport, heating and power across Humber and beyond.
- Project recently passed eligibility phase for UK Government’s Phase-2 carbon capture, usage and storage Cluster Sequencing Process.
Note.
- The Killingholme site is currently occupied by the 900 MW gas-fired Killingholme power station.
- Heavy industry on Humberside includes chemicals and oil refineries and the Scunthorpe steelworks.
This Google Map shows the location of Killingholme power station.
Note.
- Killingholme power station is marked by the red arrow.
- The river is the Humber.
- The Port of Immingham is on the power station side of the river.
- Cleethorpes Beach is marked by the green dot in the bottom-right hand corner.
- Grimsby is to the North of Cleethorpes.
- Between Grimsby and Killingworth power station is a mass of chemical works.
This second Google Map shows the area to the South-East of the power station.
Note.
- Killingholme power station is marked by the red arrow.
- The Hornsea 02 substation to the North of the power station.
- The large Uniper site to the South of the power station.
- The large number of tanks inland from the port and the chemical works.
I have some thoughts.
A Full Description Of The Project
This paragraph from the press release described the project.
Uniper has signed an agreement with Shell to progress plans to produce blue hydrogen at Uniper’s Killingholme power station site in the East of England. The hydrogen produced could be used to decarbonise industry, transport and power throughout the Humber region.
The Humber Hub Blue project includes plans for a blue hydrogen production facility with a capacity of up to 720 megawatts, using gas reformation technology with carbon capture and storage (CCS).
The captured carbon would be fed through the proposed Zero Carbon Humber onshore pipeline, part of the East Coast Cluster, recently selected as one of two CCS clusters to receive initial government support under the government’s cluster sequencing process.
I suspect that a lot of the plant from the existing Killingholme power station will be repurposed.
This is the specification of the power station.
The Uniper (Formerly E.ON UK) plant consists of two 450 MW Siemens V94.2 gas turbine modules each connected to a heat recovery steam generator using only a single steam turbine in a 2 into 1 configuration. Gas is supplied from a 26-mile pipeline from Theddlethorpe.
When it was built by Powergen (now called Uniper) and opened in April 1993 it was only the second gas-fired power station built in the UK. It was taken out of service in 2002 due to the lower price of electricity and was then restored to full service in August 2005, with one of the 450 MW units returning to service in April 2005.
It was announced that the power station will be closed in 2015.
Will The Project Use The Shell Blue Hydrogen Process?
Will the plant use the Shell Blue Hydrogen Process, that I described in Shell Process To Make Blue Hydrogen Production Affordable?
It appears the Shell Blue Hydrogen Process offers advantages.
- Shell are claiming, that with carbon dioxide costing $25-35/tonne, that their process is more economic than grey or green hydrogen.
- Steam reforming also needs steam, but this new process actually generates steam as a by-product, which further improves the economics, as integrated chemical plants use a lot of steam. Killingholme’s neighbours would probably welcome the steam.
- Shell are reporting capturing 99% of the carbon.
- It looks like savings of between 10 and 25 % are possible.
The most-fervent greens, may claim blue hydrogen is totally wrong.
But if it is more affordable than both grey and green hydrogen and all but one percent of the carbon dioxide is captured, I believe that this should be an option, that is fully investigated.
This appears to be a victory for top-class chemical engineering.
Northern Endurance Partnership
The Northern Endurance Partnership is described on this page of the Equinor web site, where this is said.
BP, Eni, Equinor, National Grid, Shell and Total today confirmed they have formed a new partnership, the Northern Endurance Partnership (NEP), to develop offshore carbon dioxide (CO2) transport and storage infrastructure in the UK North Sea, with bp as operator.
This infrastructure will serve the proposed Net Zero Teesside (NZT) and Zero Carbon Humber (ZCH) projects that aim to establish decarbonised industrial clusters in Teesside and Humberside.
There is also a map.
Note.
- One facility would appear to serve the Tees and the Humber.
It looks like the depleted gas fields could hold a lot of carbon dioxide.
Carbon Capture
Some points from the Equinor press release about carbon capture.
- Blue hydrogen production at Killingholme could see the capture of around 1.6 million metric tonnes (Mt) of carbon a year through CCS.
- The UK Government has set a target to capture 10 Mt of carbon a year by 2030.
- NEP has submitted a bid for funding through Phase 2 of the UK Government’s Industrial Decarbonisation Challenge, aiming to accelerate the development of an offshore pipeline network to transport captured CO2 emissions from both NZT and ZCH to offshore geological storage beneath the UK North Sea.
These projects could could decarbonise a lot of businesses on Teesside and the Humber.
Carbon Capture And Use
The Equinor press release says this about carbon capture and use.
The Northern Endurance Partnership will channel the extensive experience of its members to develop and deliver the offshore transport and storage infrastructure we need to unlock the enormous benefits of deploying CCUS across the Humber and Teesside. We’re delighted to start working together with five really world class energy companies to deliver a solution that will play a critical role in decarbonising the UK’s largest industrial heartland and protecting tens of thousands of jobs in the process.”
Uses include.
- Feeding to salad vegetables, tomatoes, soft fruit and flowers in giant greenhouses.
- Creating sustainable aviation fuel.
- Creating building products like blocks and plaster board.
- Making better concrete.
This is a list that will grow.
Making Hydrogen With An Electrolyser
The Shell press release says this.
Uniper continues to develop a separate green hydrogen project, using electrolytic hydrogen production technology, as part of the overall Humber Hub development at Uniper’s Killingholme site. Uniper, along with its project partners, will shortly complete the Project Mayflower feasibility study, part funded by the Department for Transport’s Clean Maritime Demonstration Competition, administered by InnovateUK, looking at the decarbonisation of port related activities at the Port of Immingham.
Note that the sub station for the 1.4 GW Hornsea 2 wind farm is close to both Killingholme power station and the Uniper web site.
What Will Happen To Shell’s Blue Hydrogen Plant?
I think there are two possible scenarios.
- It will be closed when Uniper’s electrolyser is fully on stream.
- It will become an emergency hydrogen source, when the wind is not blowing.
In both cases it will produce less carbon dioxide, thus leaving more space in the Northern Endurance Partnership.
Conclusion
It looks like there could be a comprehensive hydrogen production facility at Killingholme.
NeuConnect Awards Two Major Contracts
This page on the NeuConnect web site is entitled NeuConnect Awards Over £1.5 billion Of Major Contracts As First Ever UK-German Energy Link Moves An Important Step Closer.
NeuConnect is a proposed interconnector between England and Germany.
- It will have a capacity of 1.4 GW.
- The interconnector will be around 450 miles long.
- It will be HVDC, like many similar undersea power cables.
- As the title says, it will be the first-ever UK-German energy link.
Wikipedia describes the route like this.
The cable will run between the Greystones substation on the Isle of Grain, in Kent in England to the new Fedderwarden substation in Wilhelmshaven in the Lower Saxony region of Germany. Landfall will be next to Grain Coastal Park, in Kent, and at Hooksiel, near Wilhemshaven in Germany.
Two contracts have been awarded.
- The contract to design, manufacture, install, test and commission the 725km interconnector has been awarded to Prysmian Group.
- The contract to design and build two converter stations in the UK and Germany has been awarded to Siemens Energy.
This sounds like a very simple plan to add an important interconnector between the UK and Germany.
I have some observations and thoughts.
The Isle Of Grain
The Isle of Grain is described in Wikipedia like this.
Isle of Grain (Old English Greon, meaning gravel) is a village and the easternmost point of the Hoo Peninsula within the district of Medway in Kent, south-east England. No longer an island and now forming part of the peninsula, the area is almost all marshland and is a major habitat for diverse wetland birds. The village constitutes a civil parish, which at the 2011 census had a population of 1,648, a net decrease of 83 people in 10 years.
Apart for the birds, over the last few decades it has been home to the following.
- Until 1982, it was the location of a BP oil refinery.
- In the 1990s, the isle was used to make the segments for the lining of the Channel Tunnel.
- Following completion of the Channel Tunnel, the site is now part-occupied by Thamesport, the UK’s third largest container port.
- Next to the former BP site is Grain Power Station, built in the 1970s, which previously burnt oil.
- This power station was demolished in the 2015 and replaced with a 1.275 GW gas-fired power station.
- Another major installation is a new Grain Liquefied Natural Gas (LNG) import facility, which takes heat from the gas-fired power station.
- The Isle of Grain is the landing point for the BritNed undersea power cable between The Netherlands and the UK.
The Google Map shows the Isle of Grain.
Note.
- Thamesport is in the South-West corner
- To its North is the LNG import facility.
- To the North-East of Thamesport is the 735 MW Medway power station.
- There is a rail connection to Hoo Junction on the North Kent Line.
This second Google Map shows the Eastern side of the Isle.
Note.
- Grain Coastal Park, where NeuConnect will make landfall, is marked by the green arrow at the top of the map.
- Towards the South-Eastern corner of the map is the 1.275 GW Grain gas-fired power station.
- To the East of the power station, there is more switchgear than you see in a bad Frankenstein film.
- The smaller square at the bottom with the two white squares could be the converter station for the BritNed interconnector.
I am sure there is space on the island for a connection for NeuConnect.
There is also a total of 2.01 GW of gas-fired power stations on the Isle of Grain.
Wind Power In The Thames Estuary
This Google Map shows the Thames Estuary.
Note that the red arrow indicates the Isle of Grain.
This map from Wikipedia shows the wind farms in the area.
These are the ones that are operational.
- 2 – East Anglia Array – 714 MW
- 8 – Greater Gabbard – 504 MW
- 9 – Gunfleet Sands – 184 MW
- 13 – Kentish Flats – 140 MW
- 15 – London Array – 630 MW
- 27 – Thanet – 300 MW
Note.
- The Isle of Grain is just above the second o in London.
- I have ignored the Ramplion wind farm (21!), as it is too far from the Isle of Grain.
- This is a total of nearly 2.5 GW.
Planned extensions in the area include.
- East Anglia Array – 3.1 GW – Completion date of 2026
But the Wikipedia entry for the East Anglia Array says this about the wind farm.
The target capacity for the entire East Anglia Zone is 7200 MW which could require up to 1200 turbines.
Could we see one of the following?
- A connector from the East Anglia Array to the Isle of Grain.
- One or more new wind farms in the Thames Estuary connected to the Isle of Grain.
- German investment in a wind farm or farms connected to the Isle of Grain.
The Isle of Grain could become an island of energy providing power for London, the South-East of England, Germany and The Netherlands.
An Electrolyser On The Isle Of Grain
Consider.
- There will be plenty of renewable electricity.
- As there is a liquified natural gas terminal, there is plenty of gas storage.
- One or both of the gas-fired power stations can be converted to run on hydrogen.
- As more and more trucks are converted to hydrogen, there will be a large demand for hydrogen for heavy transport.
This must surely make a large electrolyser on the Isle of Grain a possibility.
The BritNed Interconnector
The BritNed interconnector is described like this in Wikipedia.
BritNed is a 1,000 MW high-voltage direct-current (HVDC) submarine power cable between the Isle of Grain in Kent, the United Kingdom; and Maasvlakte in Rotterdam, the Netherlands.
The BritNed interconnector would serve as a link for the foreseeable European super grid project.
Up to now, most of the electricity flow has been to the UK.
But surely, as more wind farms are developed power will flow the other way.
Wilhelmshaven Will Be A German Hub For Green Hydrogen
In Uniper To Make Wilhelmshaven German Hub For Green Hydrogen; Green Ammonia Import Terminal, I described plans by the Germans for a hydrogen hub at Wilhelmshaven.
The original story came from an article with the same name on Green Car Congress.
This is the first two paragraphs.
Under the name “Green Wilhelmshaven,” Germany-based international energy company Uniper plans to establish a German national hub for hydrogen in Wilhelmshaven and is working on a corresponding feasibility study.
Plans include an import terminal for green ammonia. The terminal will be equipped with an ammonia cracker for producing green hydrogen and will also be connected to the planned hydrogen network. A 410-megawatt electrolysis plant is also planned, which—in combination with the import terminal—would be capable of supplying around 295,000 metric tons or 10% of the demand expected for the whole of Germany in 2030.
As I said in the original post, I’m not happy about green ammonia, but the 1.4 GW NeuConnect interconnector has more than enough power to run a 410 MW electrolyser plant at full capacity.
It could even run three electrolysers of this size.
Hooksiel And Wilhelmshaven
NeuConnect will make landfall at Hooksiel.
This Google Map shows Hooksiel and Wilhelmshaven.
Note.
- Hooksiel is the village outlined in red.
- The water to the right of the map is the Jade Bight.
- The square block sticking out into the bight appears to be a container port.
- There appears to be chemical works or oil refineries North of the port.
- Wilhelmshaven is the town to the South of the port.
There would appear to be plenty of space for Uniper to construct Green Wilhelmshaven.
German And UK Wind Power Production
According to this page on Wikipedia, which is entitled Wind Power By Country, in 2020, these were installed wind power in various countries.
- Germany – 62,184 MW
- Spain – 27,089 MW
- UK – 24,665 MW
- France – 17,382 MW
- Italy – 10,389 MW
- Netherlands – 6,600 MW
In 2020 we were 37.5 GW behind Germany.
It looks like we’ll commission 3.3 GW this year and 6.1 in 2023, with Wikipedia saying that 12.9 GW is under development, which should close the gap to a certain extent.
In ScotWind Offshore Wind Leasing Delivers Major Boost To Scotland’s Net Zero Aspirations, I described how Scotland will add 15.1 GW of floating and 9.7 GW of fixed foundation offshore wind.
It looks like initially, we’ll be buying German wind-generated electricity, but in the future the direction could easily change around.
Boris And Olaf
There were mumblings from Boris, that energy was talked about in their meeting in Downing Street last week.
It does appear there is a lot of ways that the UK and Germany can co-operate in the future with respect to energy.
- German finance can be used to build wind farms in UK waters.
- German companies can build the turbines and the interconnectors we need to develop vast offshore wind farms.
- We can supply surplus energy to Germany through the NeuConnect interconnector.
I wouldn’t be surprised if Boris and Olaf had signed a very comprehensive energy co-operation agreement.


























