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EDF and Eon win funding for industrial hydrogen projects

Industrial hydrogen projects led by EDF and Eon have won government funding to be further developed.

An EDF-led consortium has secured more than £6 million for its Bay Hydrogen Hub – Hydrogen4Hanson scheme to develop nuclear derived hydrogen production at Heysham 2 power station to be used in the production of asphalt.

The consortium claims that coupling solid oxide electrolysis cell (SOEC) technology with nuclear heat and electricity increases hydrogen production efficiency by more than 20% compared to proton exchange membrane (PEM) electrolysis.

Rachael Glaving, commercial director at EDF, said: “Nuclear power can play a vital role in decarbonising industries which rely on fossil fuels. The Bay Hydrogen Hub will do just that and at the same time help the UK reach net zero.”

Meanwhile, the Eon-led team has won just shy of £1 million to demonstrate how hydrogen can be used to decarbonise the production of steel in Sheffield.

Utilising hydrogen production through the electrolysis process, the project will produce hydrogen gas on site at Eon’s Blackburn Meadows biomass power station. The gas will then be stored and transported to local steel product manufacturers.

The two projects are the only schemes to progress to the final phase of the government’s Industrial Hydrogen Accelerator Programme.

They are part of a wider £45.7 million worth of funding announced by the Department for Energy Security and Net Zero (DESNZ) for businesses to “cut emissions and boost home-grown energy”.

In total, 26 projects across three programmes have been awarded funding. They include:

  • 25.7 million in government funding for six winning projects from Phase 2 of the Red Diesel Replacement Competition. They are also receiving £14.2 million of private investment through match funding from the projects.
  • £7 million in government funding for two winning projects from the Final Phase of the Industrial Hydrogen Accelerator Competition. They are also receiving £5.7 million of private investment through match funding from the projects.
  • £13 million for eighteen winning projects from Phase 2 of the Industrial Energy Transformation Fund (IETF). They are also receiving £22.9 million of private investment through match funding from the projects.

Minister for energy consumers and affordability Amanda Solloway said: “As we continue towards our goal of reaching net zero by 2050, we want to ensure businesses have all the support they need to power our transition to a cleaner, cheaper energy system.

“Our funding will support ground-breaking projects in malting, construction and manufacturing so businesses can incorporate green energy into their day-to-day operations.”