HyNet (Offshore) - Hydrogen and CCS

HyNet is one of the most advanced, low risk and cost-effective full chain hydrogen and CCUS industrial decarbonisation projects in the UK, which can transform the North West of the UK into the world's first low carbon industrial cluster by 2030\.

The UK has passed legislation to deliver Net Zero emissions by 2050\. Significant progress has been made in the decarbonisation of power. However, little progress has been made in the decarbonisation of the 'hard to reach' sectors of the economy including industry, heat and heavy transport.

The North West is one of the largest and most energy intensive industrial clusters in the UK, encompassing parts of North East Wales, Cheshire, Warrington, Liverpool City Region and Greater Manchester. It is home to 4 million people and generates annual industrial emissions of 6 million tonnes of CO2\.

HyNet was conceived in 2016 with the objective of decarbonising the entire industrial cluster to Net Zero, directly aligning with the Industrial Clusters Mission. While industrial decarbonisation is the anchor, the project builds the infrastructure backbone for a full regional hydrogen economy, and leverages the opportunity to repurpose for future CCUS service the existing oil and gas facilities at Point of Ayr and offshore in Liverpool Bay. CO2 storage is provided in depleted and well known gas fields.

HyNet is centred in the industrial complex between Ellesmere Port and Runcorn. Bulk low carbon hydrogen production facilities will be constructed at Stanlow Refinery, providing hydrogen for various uses. A dedicated network will transport hydrogen from production to demand points and hydrogen storage assets. The HyNet CCUS network will provide the infrastructure to transport and store the CO2 produced as a by-product of the hydrogen production process and CO2 from a number of the UK's largest industrial emitters, including Stanlow Refinery, Ince Fertiliser plant and Padeswood Cement plant located in this cluster.

HyNet is innovative and unique in that it:

* Delivers a full-chain hydrogen project, including production, distribution and storage, to decarbonise industry and to provide an infrastructure for cross-sectoral decarbonisation;
* Repurposes existing oil and gas assets in Liverpool Bay for CO2 transport and storage to minimise project cost and risk.

Following extensive development to date, the activities described in this grant fund proposal will allow HyNet to enter a development programme of engineering and consenting activities which will deliver a Final Investment Decision (FID) ready project, subject to appropriate business models and commercial agreements.