SSE Thermal & Equinor Plan for Hydrogen & Carbon Capture Projects
Equinor and SSE Thermal have unveiled plans to jointly develop two first-of-a-kind, low-carbon power stations in the UK’s Humber region, comprising one of the UK’s first power stations with carbon capture and storage technology, and the world’s first 100% hydrogen-fuelled power station. The plans, underpinned by a new cooperation agreement between the two companies, would support the UK’s transition to net zero and accelerate the decarbonisation of the Humber, the UK’s largest and most carbon-intensive industrial cluster. The projects have the potential to create thousands of skilled jobs and revitalise a key industrial heartland.
The two decarbonised power stations, which would form a ‘clean power hub’ near Scunthorpe, North Lincolnshire, would be among the first in the world to utilise CCS and hydrogen technologies. Keadby 3 and Keadby Hydrogen would replace older, carbon-intensive generation on the electricity grid, providing flexible and efficient power to support intermittent renewable generation and maintain security of supply through the net zero transition.
These projects would also result in the Humber making a significant contribution to the UK’s 2030 targets for CCS and hydrogen. Keadby 3 could deliver 15% of the target for 10MT of carbon captured annually by 2030, while the demand from Keadby Hydrogen could account for a third of the 5GW hydrogen production goal.
The Keadby 3 and Keadby Hydrogen projects are both in the development stage and the companies will continue to engage government, regulators and stakeholders. Final investment decisions will depend on the progress of policy frameworks that are commensurate with the delivery of this critical net zero enabling infrastructure. The projects would utilise the parallel hydrogen and CO2 pipeline infrastructure being developed by the Zero Carbon Humber (ZCH) partnership – which includes Equinor and SSE Thermal – and offshore CO2 infrastructure developed by the six-member Northern Endurance Partnership (NEP), which includes Equinor. Both ZCH and NEP won public funding from the UK’s Industrial Strategy Challenge Fund in March.
Equinor’s H2H Saltend project will be the first to connect into the ZCH infrastructure and will come online by the mid-2020s. Like the additional hydrogen that would be produced for the Keadby Hydrogen project, H2H Saltend will provide low-carbon hydrogen to already-identified customers.