Investment Group sign MoU to explore potential for Southampton Hydrogen hub
SGN, Macquarie’s Green Investment Group (GIG) and Esso Petroleum Company, Limited (an ExxonMobil affiliate) announced today that they have signed a Memorandum of Understanding (MoU) to explore the use of hydrogen and carbon capture to help reduce emissions in the Southampton industrial cluster. Southampton has one of the largest industrial sectors in the United Kingdom, and is both a critical element of the country’s energy supply chain and an important gateway for trade in global markets.
Study estimates that carbon capture facilities could initially capture approximately 2 million tonnes of CO2 per year
If technical and business feasibility is confirmed, and with the right Government support, hydrogen production could commence as early as 2030
An initial feasibility study by SGN and GIG shows the annual hydrogen demand from the cluster, which is home to ExxonMobil’s Fawley complex, could rise to as much as 37 TWh by 2050, including the heating demand of 800,000 homes across the South of England. An increase in the use of hydrogen with carbon capture would help reduce emissions in the area’s industrial sector and stimulate the local economy through the conversion of the natural gas network, while helping reduce emissions from domestic heating and transport.
The feasibility study estimated that carbon capture facilities could initially capture approximately 2 million tonnes of CO2 per year, including from initial hydrogen production of around 4.3 TWh of hydrogen per year. This could also attract significant investment in the community, support existing employment and stimulate the creation of local jobs. If technical and business feasibility is confirmed, and with the right Government support, hydrogen production could commence as early as 2030.
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