Energy_Transition

Renewables giant RES and Octopus Energy link for $4bn UK green hydrogen push

Partners signal investments by 2030 in bid to supply large industrial users with renewable H2

Britain's Prime Minister Boris Johnson gets out of a a branded electric taxi during a visit to the HQ of Octopus Energy in London.
Britain's Prime Minister Boris Johnson gets out of a a branded electric taxi during a visit to the HQ of Octopus Energy in London.Foto: Leon Neal/AP/Shutterstock/Leon Neal/AP/Shutterstock/NTB scanpix

RES and Octopus Energy will spend £3bn ($4.1bn) building UK green hydrogen production plants powered by wind and solar, the companies said.

UK-based RES – one of the world’s largest developers of green power plants – and fast-growing energy group Octopus plan to invest the money by 2030 to jointly develop, own and operate renewables-powered H2 facilities.

“The aim is to make the most of green electrons when they are generated in abundance on sunny and windy days by storing them as green hydrogen, helping the UK become more energy independent,” the partners said.

The H2 would be sold to large industrial users that are currently reliant on ‘grey’ hydrogen made from unabated fossil fuels, with RES/Octopus claiming they could build a green supply base that is “reliable and cost-competitive”.

No details were given of the location of the projects or when the first projects might be up and running.

The UK is pursuing a twin-track hydrogen strategy based on green hydrogen from renewables and significant projects involving ‘blue’ H2 produced using fossil gas linked to carbon capture and storage. The nation's government has indicated it will use contract-for-difference (CfD)-based support mechanisms, similar to those successfully offered to the offshore wind sector, in a bid to stimulate project investments, but has given few details so far.

The Octopus Energy end of the partnership will be handled by Octopus Renewables, the group’s generation arm. Co-head Alex Brierley said: "When we started investing in wind and solar farms we believed that these technologies would outcompete fossil fuel generation and disrupt global energy markets.

"That day has come, and with those cost reductions there is now the opportunity to help major industrial companies make an obvious choice and use green hydrogen."

Analysis of green hydrogen to date has focused on how quickly renewable H2 can close the price gap with existing grey supplies that are significantly cheaper.
But Recharge this week reported claims that the current gas-price spike has made green hydrogen currently cheaper to produce than the blue or grey varieties in European markets.

RES and Octopus Energy claimed the future green hydrogen supplies would be “insulated from present and future gas price volatility”.

(Copyright)

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Published 14 October 2021, 11:45Updated 14 October 2021, 11:45
UKEuropesolarRESOctopus Energy