Floating offshore wind powered hydrogen: the economic opportunity

Project Summary

The Energy Transition Alliance (ETA), a five year collaboration between the The Net Zero Technology Centre and Offshore Renewable Energy Catapult (ORE), with funding from the Offshore Wind Innovation Hub, performed a quantitative assessment of the opportunity for the UK supply chain for floating wind-powered green hydrogen production. The project determined the economic opportunity for the UK supply chain and highlighted the technological capability and capacity gaps to be closed to realise it.

Industry value:
The study estimated that the potential value of 60 per cent local content on floating offshore wind powered green hydrogen projects to the UK is up to £68 billion.

Key results:
The key findings of the project were:

• Using 60 per cent local content on floating offshore wind powered green hydrogen projects has a potential value to the UK of up to £68 billion
• The levelised cost of hydrogen (LCoH) is heavily influenced by levelised cost of energy (LCoE) – the main driver of LCoH is the cost of electricity
• Significant cost reductions and technological improvements are required to make green hydrogen production from floating offshore wind viable
• The UK supply chain requires investment in high spend areas to meet 60 per cent local content targets

Next steps:
Explore opportunities for new, UK-based technologies in high job creating areas of floating offshore wind and green hydrogen projects.

Want to know more? Download the full report: Floating Offshore Wind Powered Hydrogen – Case Study Review for Local Supply Chains (netzerotc.com)