RWE and SGN strike up green hydrogen partnership

Renewable generator RWE and gas distribution network SGN have agreed to explore the potential for heating domestic properties in Scotland with green hydrogen.

A memorandum of understanding (MoU) will see the companies investigate the development of electrolysers powered by RWE’s 10 onshore windfarms, with a combined capacity of 213MW, to supply hydrogen via the gas network.

In its Energy Security Strategy published in April the government announced it was doubling its ambitions for low carbon hydrogen production capacity to 10GW by 2030. Similarly, the Scottish Government’s Hydrogen Action Plan aims to create 5GW of hydrogen by 2030 and 25GW by 2045.

Currently the areas of Campbeltown, Stornoway, Oban, Thurso and Wick are not connected to the mains network and are instead supplied by liquified natural gas and liquified petroleum gas.

The partnership will investigate the decarbonisation of homes and businesses that are connected to these networks which the companies say could save 21,000 tonnes of carbon each year and decarbonise around 9,500 properties. It will define how much hydrogen is needed as well as the requirements to convert the networks.

Additionally, a feasibility study will be conducted into a 100MW electrolyser at RWE’s Markinch CHP biomass plant that could feed green hydrogen into SGN’s gas network in Fife. SGN said this will build on the work it is already undertaking on its H100 Fife project in Levenmouth.

Steve Boughton, RWE director hydrogen development, said: “This MoU is a perfect partnership to develop options for the decarbonisation of domestic and business gas networks, and to help government achieve its ambitions for 10GW of hydrogen production.

“Hydrogen will play an essential role in the pathway to net zero, particularly in industry and homes which are hard to decarbonise, and RWE is perfectly positioned to support the development of the UK hydrogen economy.”

Fergus Tickell, SGN system transformation and business development lead, said: “We’re delighted to partner with RWE which shares our belief that hydrogen gas has a leading role in the decarbonisation of homes, businesses and industry in Scotland and the rest of the UK.

“We’ll explore how hydrogen produced locally can be delivered through the world-class networks we’ve been operating for decades, to all of Scotland’s communities, including in Fife, Campbeltown, Stornoway, Oban, Thurso and Wick. We also look forward to investigating more opportunities across the UK.”