Aberdeen bids for £7.7M to launch Scotland’s first hydrogen valley

This week’s net zero news: UK Offshore Wind; UK’s first hydrogen ready furnace; Hydrogen in North East Scotland

Chief Technology Officer at NZTC, Luca Corradi, and his team closely monitor the global net zero landscape. They follow the trends, policies, investments, and technological innovations that, together, bring the world closer to its shared climate goals. Learn more about our horizon scanning service. This week, Luca and his team look at a new report highlighting UK’s offshore wind progress and the path ahead, the successful installation of the UK’s first hydrogen-ready furnace, and the potential of a ‘hydrogen valley’ in the North East of Scotland.

The Crown Estate’s 2024 Offshore Wind Report looks at the highlights from 2024 and provides examples of how the industry is gearing up for another 25 years

It’s been 25 years since the UK’s first offshore demonstration wind farm in Blyth. Since then, the UK has built the offshore wind industry from just a few turbines — and no offshore wind market—to the second biggest installed capacity in the world. The UK now boasts 15.9 GW of grid connected capacity, hosting 41% of Europe’s offshore wind capacity. In 2024, 1.2GW was added, with two projects in Scotland generating power for the first time. UK offshore wind supplied 49.2 TWh, equivalent to the electricity needs of 52% of UK households.

Figure: UK offshore wind development pipeline capacity

Source: The Crown Estate 2024 Offshore Wind Report

In 2024, the UK offshore wind pipeline increased from 93GW to 95GW. Allocation Round 6 (AR6) saw Contract for Difference (CfDs) awarded to seven offshore wind projects for a total capacity of 5.3GW. But even with CfDs, offshore wind projects are struggling. Ørsted have announced they will not deliver the 2,400MW Hornsea 4 project under the CfD awarded in AR6, citing increased supply chain costs, higher interest rates and an increase in risk. Given Ørsted’s continuing seabed rights, grid connection agreement and Development Consent Order, they will evaluate options for future development of the Hornsea 4 project.

In Scotland, almost 3GW of capacity was fully operational by the end of 2024, with a further 1.3GW in construction. There is a 45 GW pipeline of offshore wind capacity in Scottish waters. This includes operational, committed, under development, pre-planning and identified potential. This includes approximately 24 GW for floating offshore wind. But grid capacity continues to be a significant challenge for certain assets within the Scottish portfolio. As more wind farms start operating, curtailment will increasingly limit wind energy generation.

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Successful installation of the UK’s first hydrogen-ready furnace at the Stanlow oil refinery

Essar Energy Transition (EET) plans to create the world’s leading low carbon process refinery and have successfully completed the installation and connection of its new hydrogen-ready furnace at the Stanlow oil refinery – one of the largest refineries in Europe. By 2030, EET plan to reduce Stanlow emissions by 95%, equivalent to 2MtCO2/year. The new furnace consumes around 10% of Stanlow’s total energy usage and replaces three existing furnaces. Refinery furnaces are critical for heating crude oil and other feedstocks to separate and purify the crude to produce different products. The furnace will be conventionally fuelled until 2028 when it will transition to 100% low-carbon hydrogen from the HPP1 plant.

The furnace can run on 100% refinery off gas (ROG) – gas generated during the refining of crude oil, a blend of ROG or 100% hydrogen. When using ROG, the new furnace reduces the refinery’s CO₂ emissions by approximately 16,000t. When it switches to 100% hydrogen, CO₂ emissions will reduce by around 200,000t. HPP1 is part of the HyNet Cluster and will have a capacity to produce 350MW of blue hydrogen. This will make it the UK’s first large-scale low-carbon hydrogen production plant. The captured CO₂ from HPP1 will be stored at Liverpool Bay which recently reached financial close.

Aberdeen City Council’s £7.7 million bid for North East hydrogen valley project

Aberdeen City Council is bidding for £7.7 million funding from the Clean Hydrogen Partnership under the Horizon Europe programme for the TH2ISTLE project. The project aims to establish a ‘hydrogen valley’ in the North East that integrates production, storage and end-use applications. TH2ISTLE is expected to produce up to 627 tonnes of hydrogen per year by 2028 with the potential to scale up significantly. By integrating five hydrogen production sites across the region, ensuring a steady supply of green hydrogen. It is led by Aberdeen City Council and brings together a consortium of 30 partners, including the Net Zero Technology Centre.

This follows the recent announcement that Aberdeenshire Council has granted planning approval for Statera Energy’s Kintore Hydrogen project. The project aims to deliver 500MW of power in the first phase with plans to scale up to 3GW. This would make it one of the largest hydrogen production projects in Europe. The Scottish Government will have the final say if the project goes ahead.

The TH2ISTLE project aims to establish a hydrogen valley in the North East. This follows Aberdeenshire Council granting planning approval for the Kintore Hydrogen project

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