Octopus and BayWa r.e. form green hydrogen partnership

Octopus Hydrogen and BayWa r.e. have agreed to work together to install green hydrogen production facilities at renewable generation sites across the UK.

The partnership will initially see Octopus install 30MW of electrolysers, along with compressors and hydrogen storage, at wind and solar farms developed by BayWa.

The electrolysers will be directly connected to the wind and solar farms, consuming around 30 to 40% of their output. They will be controlled using new software developed by Octopus to make the best use of the available generation and help balance the power grid.

Octopus said co-location will minimise the costs of electricity needed to power the electrolysers, whilst avoiding the potential curtailment of the renewable generation due to network congestion. The electrolysers will produce up to 6.5 tonnes of green hydrogen each day that will be distributed to local customers in sectors such as commercial transport.

Commenting on the signing of a memorandum of understanding between the two companies, Octopus Hydrogen founder and chief executive Will Rowe said: “We want to develop and establish a decentralised model for green hydrogen production. Our partnership with BayWa r.e. plays an important role by providing excellent renewable sites and the opportunity to share expertise. Collaboration helps to unlock the potential of the green hydrogen market in the UK and beyond.”

Stefan Tait, head of energy storage and hydrogen in the UK at BayWa r.e., added: “BayWa r.e. and Octopus Hydrogen share a commitment to delivering net zero and green hydrogen has a significant role to play in our collective journey.

“Our partnership with Octopus builds on the innovative work we are already doing across Europe in producing green hydrogen from renewable energy and we look forward to jointly deploying these concepts to help meet the UK’s energy transition targets.”

Octopus Hydrogen was formed last year as part of the Octopus Energy Group.