UK developer Cerulean Winds has inked an agreement with industrial facilities operator PX Group to support the development of onshore green hydrogen plants and associated industrial infrastructure that will link up with a 200-turbine floating wind project in the North Sea.
Cerulean’s proposal will have the capacity to generate three gigawatt-hours of electricity.
The company said that around half of this will be used for green hydrogen plants and the other half used to electrify oil and gas operations in the North Sea.
The onshore hydrogen plants will be in the north of England, northeast Scotland and in the Shetland Isles.
Under the agreement, PX Group would be responsible for lease and ownership arrangements for the sites and for obtaining planning permissions and permitting.
This would include obtaining the outline approvals prior to more detailed engagement with local government, regulatory and environmental stakeholders, the developer said.
Cerulean Wind founding director Dan Jackson (pictured, right) said: “PX Group’s expertise and asset base make it a valuable addition to Cerulean’s UK continental shelf decarbonisation proposition.
“This project which would see the offshore industry helping cut emissions from onshore industrial sites, is a real turning point in the shift towards a joined-up approach to tackling accelerating the decarbonisation of the UK’s on and offshore industrial facilities.
“The North Sea Transition Deal calls for a reduction in offshore emissions of 10% by 2025, rising to 25% in 2027 and 50% by 2030. The Cerulean proposal would exceed these targets.
“Crucially though, the green power would be used to generate green hydrogen which can be used to decarbonise other industrial sectors.”
The project has an estimated cost of £10bn and the developer said it has formally requested seabed leases from the UK and Scottish authorities.
Cerulean Winds added that it wants a decision by the third quarter of this year so that it can progress the scheme to meet the timescales set out in the North Sea Transition Deal.
Jackson said: “Everything hinges on those leases being granted, even conditionally, by this autumn so we can move ahead on schedule.
“The risk of not moving quickly on basin-wide decarbonisation would wholly undermine the objectives set out in the North Sea Transition Deal and delay the potential of making a significant impact on reducing emissions from onshore industrial assets.”