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Gas distributor SGN is working with engineering firm Wood on plans for new hydrogen pipelines across its network in Scotland and southern England.
Wood will deliver three preliminary front end engineering and design (pre-FEED) studies over the next 12 months, which will define the projects’ scope and determine the route and design of new pipelines and associated transmission infrastructure.
The plans also include repurposing existing natural gas infrastructure, linking hydrogen producers with consumers seeking to use hydrogen to lower their carbon emissions.
The H2 Caledonia project combines two pre-FEED projects in Scotland’s central belt and Fife’s east coast which will explore the development of low carbon hydrogen production across Scotland. Additionally they will integrate with the ongoing Aberdeen Vision study, where Wood is also completing the pre-FEED.
Meanwhile the H2 Connect project will focus on the development of hydrogen infrastructure and imports in the Southampton/Solent region of central southern England, and future expansion plans for hydrogen production and storage.
SGN’s hydrogen solutions lead Fergus Tickell said: “To meet the UK and Scottish governments’ respective net zero commitments, the system transformation of the gas networks to 100% hydrogen offers customers and policymakers a potentially low-disruption and cost-effective decarbonisation pathway for home heating and industry. The projects represent continued preparation of our gas network to distribute greener alternatives to help meet government net zero targets.
“H2 Caledonia and H2 Connect are key drivers in demonstrating how the gas industry can safely and practically transport hydrogen through its network of pipes, plus the strategic planning required for system transformations, while converting gas networks in an affordable and practical way that guarantees the continued security of supply to consumers and businesses.”
Azad Hessamodini, executive president of consulting at Wood, said: “We are delighted to be further growing our relationship with SGN, working together on these hydrogen projects which are instrumental in decarbonising existing UK gas networks and offering sustainable, low carbon fuel across the country.”
On Monday (15 May) US private equity firm Apollo Global issued a short statement announcing that it was ditching takeover plans for Wood.
Apollo’s fifth and final proposal to acquire Wood at a price of 240p per share, resulted in Wood engaging with the US-firm. However a statement by Apollo today said that “it does not intend to make an offer for Wood”.
“The board remains confident in Wood’s strategic direction and long-term prospects and believes that, following a transformative year in 2022, including new executive leadership and a new strategy, Wood is well placed to deliver substantial value for shareholders,” Wood said in a statement.
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