The North West’s place at the forefront of hydrogen production

The North West has great potential for hydrogen production, with a lot of infrastructure already in place, but it is important to carefully consider how you will manage demand for all the essential elements of a project.

Anyone who has driven past the vast Stanlow manufacturing complex next to the M56 in Ellesmere Port will be aware of the equally sizable job to decarbonise such a large site. It’s a role that is being taken on by Essar Energy Transition (EET), which is part of the Net Zero North West industrial cluster, in their position as a leading large-scale, low-carbon, hydrogen producer.

The company is planning to deliver its first major hydrogen production facility within the next four years, rapidly followed by a second, larger project. The fuel that is produced in the first installation will help reduce the emissions at EET Fuels’ Stanlow refinery, with the fuel from the second helping to decarbonise industries across the North West.

“This is going to deliver a large-scale regional benefit,” says Michelle Lewis of EET. “It will help other industries and energy users in the region transition to low-carbon energy too. In fact, the reduction of EET Fuels’ emissions will cut 12.5% off the North West’s total emissions,” Lewis explains of the 2mtpa of CO2 that is emitted from Stanlow each year.

Setting new decarbonisation standards

Grangemouth Oil Refinery in Scotland fell victim to its inability to pivot to the challenges of decarbonisation. Stanlow will not be going the same way, as EET has made a commitment to preserve and adapt skilled positions held at Ellesmere Port.

The plant has been in operation for more than a century and directly employs around 800 highly skilled workers, making it well-positioned for the transition to cleaner fuels. Apprenticeships and workforce training are supported, ensuring that both current and future employees are ready for the future.

Stanlow is also strategically important in terms of its location. Unlike Grangemouth, the North West has natural geological features which enable large-scale carbon capture projects such as HyNet.

Several other companies see the availability of hydrogen production and power as a deciding factor on where they should base their operations and Stanlow’s proximity to the carbon capture pipeline leading to storage in the depleted Morecambe Bay gas field is critical for industries looking to reduce emissions.

This transport and storage network is also vital for EET’s planned hydrogen production. To deliver hydrogen at scale at present, the best available technology requires carbon capture to deliver low-carbon hydrogen. However, the ambition is to transition to electrolytic production, when there is sufficient renewable power to produce hydrogen at equivalent scale.

Hydrogen is an essential aspect of the long-term energy mix

While cars will transition away from the internal combustion engine more towards electric vehicles (EVs), there will remain industries such as aviation which will still need liquid fuels.

Sustainable Aviation Fuel (SAF) is another product that EET is investigating and for which Stanlow is strategically important, as it has a pipeline connection running to Manchester Airport and it serves Liverpool Airport too.

Yet for all the justified celebration of hydrogen as a fuel for the future, there is a major consideration which is also essential. Whilst grid connectivity and capacity is often talked about, its production either by electrolysis or by steam methane reforming relies on one other thing: water. There needs to be a resilient and robust supply if ambitious hydrogen production targets are to be successfully met. Hydrogen production is not unique in this respect; energy-from-waste projects and data centres are just two other ‘thirsty’ industries.

The North West’s water and wastewater supplies and networks are managed by United Utilities (UU) and the company is committed to supporting the region’s economic growth and sustainability by supporting water availability.

This is not merely a case of being able to turn on a tap and then having the misplaced confidence that there is enough water to complete a project. Early engagement with United Utilities – or relevant water companies wherever hydrogen production projects are planned – is essential. Regulatory approval is required, there may be a need for additional infrastructure from the water company and plans made with the Environment Agency.

And as well as requiring a consistent supply of fresh water, hydrogen production also results in wastewater. Plans must be in place to process this safely.

Water resource planning is region-specific

The North West has fewer immediate pressures than the South and the East of England, which again makes Stanlow an important location.

“There is a tendency to take water and its availability for granted, which can lead to delays or issues when a project which needs large volumes of water is tabled,” explains Katherine Owens, Head of Sustainability and ESG at United Utilities.

“Water companies are not obstacles to hydrogen development. Far from it, in fact, they are key enablers. Early engagement as soon as you can in your planning stage is critical to ensure you have the supply you need,” she continues.

Richard Blackwell is the director Water Resources West (WRW), through which United Utilities works with many partners. This collaborative group is focused on water availability across sectors including energy, agriculture and industry.

“Demand for water is undoubtedly increasing while availability is decreasing due to climate change and environmental regulations. It’s raining less in the summer and river flows are lower, so there’s less water to take from sources,” he explains.

“There’s also an increasing need to protect the environment, so you need to leave a certain amount in rivers to keep the species in them alive. Increasing demand with reduced supplies was called ‘the jaws of death’ by a former Environment Agency CEO.

“If we don’t plan carefully, we’ll end up in a situation where we don’t have enough water for society’s needs, so there is a need for long-term, collaborative planning,” he adds.

Acquiring new water supplies or licences to abstract from rivers is a time-consuming process that cannot be left out of a project’s planning until the last moment when all other hurdles have been cleared. Far from being an afterthought, it is integral to the plan’s overall success that will help deliver hydrogen fuel for generations to come.