Statkraft, Foresight and Progressive Energy have formed a joint venture company, Grenian Hydrogen, to develop green hydrogen projects in the UK.
The partnership draws upon the unique skills and experience of each organisation and offers a bankable solution to major manufacturers seeking to switch away from natural gas to decarbonise operations using hydrogen. Grenian will make the transition seamless for customers by designing, building, owning and operating hydrogen production facilities and will leverage Progressive’s experience in running commercial-scale hydrogen demonstration projects, for example at Unilever’s Port Sunlight manufacturing plant, to support the conversion of sites to be ‘hydrogen ready’.
Foresight, as one of the UK’s leading investors in green hydrogen, will continue to lend its extensive sector expertise in line with its broader sustainable infrastructure strategies.
The flagship 30MW Cheshire Green Hydrogen (CGH) at Peel’s Protos site near Ince has been short-listed by government for a 15-year Low Carbon Hydrogen Agreement (LCHA).
Front End Engineering Design (FEED) studies and consenting are underway for both CGH and four other projects: in St Helens in Liverpool, Winnington and Middlewich in Cheshire, and Stretford in Manchester. Three of these are also supported by Strand 1 (Round 1) of the government’s Net Zero Hydrogen Fund.
Grenian has also submitted Strand 1 bids to support funding of engineering work in relation to two larger ‘mini-cluster’ projects in Wrexham and Speke (Liverpool). Both sites will supply multiple users via local pipeline networks from ‘central’ electrolytic hydrogen production plants. These networks may ultimately connect into the larger hydrogen distribution hub being developed by Cadent as part of the HyNet project.
Grenian will generate electrolytic hydrogen with power contracted from renewable generation within renewables giant Statkraft’s portfolio. In some cases, local behind-the-meter power will also be sourced, via private wire arrangements, from both new and existing wind, solar and biomass generation. To meet the requirements of the LCHA, all power used by Grenian electrolysers will be temporally matched with specific renewable generators.
Grenian has signed an initial commercial agreement with Accelera by Cummins, the zero-emissions brand of Cummins Inc, to supply the core electrolyser equipment for the new production plants. Accelera manufactures a patented PEM (Proton Exchange Membrane) technology, which has a strong track record of commercial operation and is able to offer improved performance when directly coupled to renewables compared with traditional alkaline technology.
The JV announcement follows the signing of an initial collaboration agreement by the three partners in October 2022.
Progressive Energy’s and chief executive of Grenian Hydrogen Adam Baddeley said: “We’ve been working with Statkraft and Foresight for 18 months now and it’s great to formalise the company and launch our new brand. The diverse skills of each partner means that Grenian brings something unique to industrial hydrogen users, which is not offered by the wider market.
“Progressive is delighted to be leading the development of the initial suite of projects on behalf of Grenian and is already driving the expansion of the portfolio with larger-scale projects, which will be competitive in later auction-based hydrogen allocation rounds run by government.”
Vice president hydrogen UK at Statkraft UK Matt Kelly, said: “We are pleased to bring our experience in renewables development and energy markets to Grenian.
“With many companies already sourcing green energy to meet their electricity needs, this is the next step towards complete decarbonization of industry with clean, renewable hydrogen produced locally and flexibly.”
Partner at Foresight Chris Holmes added: “Foresight is delighted to be part of this initiative. We firmly believe in green hydrogen’s potential as a key lever in aiding the energy transition, as evidenced by our other commitments in this sector.
“The UK’s Hydrogen Strategy and the recent Powering Up Britain announcements, through their combination of policy initiatives, have now accelerated the critical role that green hydrogen will play in the next phase of the UK’s energy transition. This presents an opportunity for Grenian to deliver a much-needed low-carbon solution for UK businesses and households.”