Statkraft is to progress plans for a green hydrogen facility at Hunterston, the former coal terminal in Ayrshire, Scotland.
Clydeport – part of Peel Ports Group, the UK’s second largest port operator – has exchanged an option agreement with Statkraft to explore the potential development at its Hunterston PARC (Port and Resource Campus) site.
The proposed facility would be used for the production, storage and export of hydrogen.
Linked to the existing jetty at the site via pipeline, it will allow hydrogen to be exported from the UK on vessels in the form of ammonia.
Lewis McIntyre, managing director for port services at Peel Ports Group, said: “This is a very exciting new development for Hunterston.
“Hydrogen is vital to the energy transition, and we’re proud to play our part in making such a development possible here on the west coast of Scotland.
“It is testament to Hunterston’s vast potential to house a range of innovative renewables projects. Not only are we bringing a brownfield site back into economic use, it will contribute massively to inward investment and job creation in a region that desperately needs it.”
Earlier this month, Statkraft announced it would stop developing new green hydrogen projects due to market uncertainty.
However, it said it would continue to develop its UK portfolio of projects and seek investors to take them into construction and operation.
Statkraft’s principal hydrogen project manager Stuart Marley said: “Hunterston is an ideal home for this facility, given its location and outstanding infrastructure.
“Hydrogen is an important tool in addressing the emissions from carbon-intensive industries, and we look forward to progressing our plans for the site.”
There are several renewables projects at advanced stages at Hunterston, including XLCC’s UK-first undersea energy cable factory, Highview Power’s world’s largest Liquid Air Energy Storage (LAES) facility, and Bakkafrost’s onshore aquaculture facility.
Peel Ports Group has been granted planning permission for the £150m redevelopment of the site’s marine yard, which it intends will house a facility to support offshore wind developments.
Although it is currently in talks with several developers already, the company is open to proposals for alternative uses for the marine yard.
Talks are underway with several more potential customers, with the entire Hunterston site on track to generate £3.5bn in inward investment and create over 5000 jobs.