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Hydrogenus

10MW Hydrogen Connectrolyser Feasibility & Environmental Study

In this pioneering study, Sweco provided evidence and delivered key insights into the practicalities of local hydrogen ‘hubs’, specifically targeting a UK knowledge gap whilst directly addressing the client’s challenges in the transition to a low-carbon economy. 

Sweco’s role in brief

  1. Scenario modelling capturing the nature of the end-use demand and power source (Sweco UK)
  2. Functional engineering design of the hydrogen hub (Sweco Belgium)
  3. Financial (affordability) modelling of the construction, operation and maintenance of the hydrogen hub (Sweco UK)
  4. Economic modelling to understand the environmental, health and wider benefits associated with the hydrogen hub (Sweco UK)

Project background

It is widely considered that hydrogen power is set to play a significant role in the societal transition towards net zero. Crucially, hydrogen has the potential to help in the decarbonisation of sectors that are proving difficult to electrify at present, including transportation and heavy industry. Hydrogen can be produced from renewable sources, does not emit harmful pollutants or greenhouse gases, and can be easily stored and transported, although safety and technical considerations must always be taken into account. 

The UK Government has set a target of reaching 5GW of low-carbon hydrogen productive capacity by 2030. In recognition of a number of constraints seemingly hindering the rollout and uptake of this technology in the UK, Sweco was commissioned to assist in the development of a feasibility study for HydroGenus, specifically focusing on the installation of a 10MW hydrogen production facility.

Hydrogen has huge potential to help us decarbonise and achieve a sustainable tomorrow. We need to consider how we can deploy this technology at scale and pace whilst ensuring it is done so in a manner that protects and enhances our natural environment, helps us achieve a just transition and also fully embraces circular economy principles.

Becky McLean Head of Sustainability – Sweco Energy, Water & Environment division

This report broadly aimed to identify and set out what the key constraints and opportunities are in the prevailing policy context, achieved through the formulation of functional design and implementation plans, calculation of balance of plant requirements to meet transportation / heavy industry needs, and an overview of the economic costs and benefits associated with a plant of this productive capacity.

In a broader sense, this report and assessment forms part of the Connectrolyser feasibility study for the alpha stage of the Strategic Innovation Fund Project. The study and analysis undertaken is to determine the benefit the Connectrolyser could provide by designing a hydrogen generation facility that also acts as a flexible energy demand/generation resource to reduce power network curtailment in the UK electricity distribution network. The implementation of Hydrogen as a fuel is at a critical stage in the UK, with a need to increase the scale of its production and affordability in the pursuit of achieving net zero.

For further information surrounding the Connectrolyser concept, take a look at the video below:

The challenge

For this pivotal project, engineers from within Sweco Belgium’s Hydrogen team, supported by environmental and transportation experts in the UK, took the lead on the technical design of the Connectrolyser. 

The Sweco team were also faced with the challenge of conducting an appraisal for the hydrogen production facility at a very provisional planning stage. As such, the financial and economic analyses were underpinned by several assumptions, informed through in-house knowledge and experience on similar projects, and a review of contemporary literature. Notably, parameters surrounding the efficiency and running costs of hydrogen fuel cell buses were sourced from recent academic studies and informed the economic modelling. Furthermore, in the absence of a specific geographical site, research was undertaken to estimate the land lease cost across the projected lifespan of the Connectrolyser, in line with industrial land values in the UK. 

Additionally, the Sweco team faced significant challenges with regards to the design and costing of the infrastructure, given the early stages of project maturity and the volatility of the energy market and associated plant. With significant experience in the design and development of hydrogen production plants in continental Europe, Belgium’s Hydrogen specialists were able to use existing quotes and realised equipment costs associated with other projects to reliably inform the costings of the proposed infrastructure.  

Our approach – a breakdown of expertise

Strategic narrative and objective setting for optioneering process
  1. Formulation of key policy objectives (PO) and critical success factors (CSFs) to assess the deliverability of options, in line with the relevant policies and strategies set by the UK Government 
  2. Using POs and CSFs, a multi-criteria assessment (MCA) of all options, leading to the identification of a preferred option with which to proceed
Financial modelling
  1. Modelling of capital expenditure (CAPEX) associated with the construction of the Connectrolyser 
  2. Modelling of operational and maintenance expenditure (OPEX) associated with the running and upkeep of the Connectrolyser 
  3. Following well-established methods of cost quantification and inflation / risk application 
Economic impact assessment
  1. Modelling of several scenarios, altering the nature of end-use demand (transportation – fuel cell buses vs heavy industry – fuel cell HGVs) and power source (grid vs renewables) 
  2. Modelling of implementation costs, including CAPEX and OPEX in each scenario
  3. Quantitative assessment of air quality and greenhouse gas emission benefits in each scenario  
  4. Qualitative assessment of wider health and wider economic benefits in each scenario 
  5. Following well-established methods of optimism bias application 
Qualitative risk assessment
  1. Undertaken to understand and document the impact and severity of technical and strategic risks 
  2. Providing commentary on potential mitigation measures 
Co-ordination with Sweco Belgium who provided expertise on
  1. Functional design and implementation plans for end user offtake 
  2. Specification of electrolyser and balance of plant requirements through an evaluation of factors such as efficiency, capacity, and compatibility with local grid conditions according to current technologies, installation options, and required footprints 

Transforming society together

As the UK makes progress towards net zero, it is widely anticipated that hydrogen will play a central role in the switching of the transportation and industrial sectors away from fossil fuels. In documenting and evaluating the key constraints and opportunities in the prevailing UK policy context, this feasibility study is to aid in the acceleration of the UK’s hydrogen productive capacity.  

Our work will help the UK better realise its net zero ambitions and strategy, whereby more pragmatic solutions to hydrogen energy production and demand may be required to increase uptake of alternative fuels. An example being the implementation of smaller, 10MW plants across a wider range and number of cities and regions before looking at larger stand-alone production facilities. This has the potential to stimulate up-skilling and increase economic productivity in a more surgical manner (in areas within significant local inequality) via the transition to a greener economy.   

This report follows on from the SIF Discovery Project stage, considering the three emerging Hydrogen Demand Personas of end users for the hydrogen generated from the Connectrolyser system, the potential balance of plant needed, and also the technical considerations for the development of this scale of hydrogen plant. It considers the current policy framework in the UK and the drivers for hydrogen development. Finally, it provides information on indicative economic costs for construction and operating this type of infrastructure.

I would like to thank all of the Sweco team for their valued efforts and detailed report which was produced in a very short timescale to meet the delivery programme.

Bob Brotherton Technical Director at FES Support Services Ltd

Hydrogen fuel can be produced using renewable energy, and can be stored and transported in a practical manner. As such, it lends itself to transportation and heavy industry uses, sectors that have to date proven difficult to decarbonise under the UK’s current Hydrogen Strategy, and Green Business Growth aspirations. 

Sustainable mobility and transport:
  • Hydrogen fuel is anticipated to play a significant role in the decarbonisation of the transport and heavy industry sectors.
  • Hydrogen fuel cell buses do not produce emissions of PM, NOX, or CO2 and as such offer a much cleaner transport option for urban centres where high concentration of pollutants lead to public health challenges.
Energy transition:
  • The supply of hydrogen, and hence the installation of hydrogen production infrastructure, must be increased in the UK as we transition to a net-zero society.
  • Local hydrogen production facilities of this size are to be strategically located around the UK, serving industries and communities, whilst relieving pressure on the existing electricity network.
  • Hydrogen has the potential to aid in the decarbonisation of several sectors that have proved difficult to electrify.
Feasibility study and indicative economic appraisal conducted for: 
  • A 10MW hydrogen production facility, producing 180kg/h at 30-40 barg pressure.
  • Consisting of 2 x 5MW containerised electrolyser packages, housing the electrolyser cell stacks/separator system, and the gas/liquid separators.
  • Proposed configuration would require an overall electrical input of 13.5 MW at the onset of operations.
  • Different demand ‘personas’ were considered, evaluating the impacts of varying end-use mixes split between transportation (fuel-cell buses) and industrial uses.

Key findings and benefits

The outcome of the SIF Discovery Project summarised that electrolyser electricity network distribution connections must be affordable and available to ensure a successful and timely rollout.  It also concluded that “hydrogen hubs at around 10MW scale are expected to emerge to serve industry and communities throughout UK Power Networks’ region and elsewhere in the UK”. The adoption of this approach is considered necessary to help alleviate the pressure on the electricity network due to increasing demands, considering the current and projected increase in the use of electric vehicles (EVs) and heat pumps.

In a case where 100% of demand is met by transport uses, specifically the powering of a replacement Hydrogen fuel cell bus fleet, air quality and greenhouse gas reduction benefits were estimated in the region of £100m.

In a case where 50% of demand is met by transport uses (fuel cell buses), and 50% of demand is met by industrial uses (freight), air quality and greenhouse gas reduction benefits were estimated in the region of £150m.

Potential wider economic benefits associated with productivity and skills were considered both qualitatively and quantitively, via benchmarking against other Hydrogen production facilities across the country with a similar production scale and use.  Overall, this presented the potential for an additional £60 to £150 million Gross Value Added (GVA) and up to 200 new jobs, excluding any additional operating income that may be generated by the production facility.

I am most proud of the fact that Sweco UK and Sweco Belgium were able to strengthen cross-boundary collaboration and knowledge sharing, delivering high quality outcomes as part of the wider Sweco Group.

Sweco UK’s Economics team successfully delivered a pivotal environmentally-focused economic assessment on an energy project, demonstrating our capabilities across the wider economic appraisal discipline, which can be of huge benefit to our partners across the Environmental and Energy markets.

Benjamin Short Transport Economist

Project contacts:

Becky McClean (Project Executive) 

Luc Boonen (Technical Hydrogen Expert) 

Nathaniel Chin (Economic Specialist)