ExxonMobil signs UK blue hydrogen MoU
SUMMARY
Southampton industrial cluster could demand 37 TWh/year of blue hydrogen
By Dale LunanUS supermajor ExxonMobil said December 8 it had signed a memorandum of understanding (MoU) with its UK affiliate, Esso Petroleum Company Limited, Scotland’s SGN and Macquarie’s Green Investment Group (GIP) to explore blue hydrogen opportunities in the Southampton area of the UK.
Home to one of the largest industrial clusters in the UK, the Southampton area is also a critical link in the country’s energy supply chain and a gateway for trade in global markets.
An initial feasibility study by SGN and GIG suggests annual demand for hydrogen in the cluster, which is home to ExxonMobil’s Fawley refinery and petrochemical complex, could reach as much as 37 TWh by 2050, a figure which would include the heating demand from 800,000 homes across the south of England. Increased use of hydrogen, ExxonMobil said, along with carbon capture and storage (CCS), would reduce emissions from Southampton’s industrial sector and stimulate the local economy through the conversion of the existing natural gas network, much of which is managed by SGN.
“Hydrogen will be key in our journey to net zero, providing a reliable, affordable and practical supply of clean energy to multiple sectors whilst ensuring security of supply,” said Angus McIntosh, SGN’s director of energy futures. “The creation of hydrogen hubs in and around industry is a great way of achieving scaled hydrogen demand and creating hydrogen economies.”
The feasibility study estimated that CCS developments could capture as much as 2mn metric tons/year of CO2, including from initial blue hydrogen production of about 4.3 TWh/year. Pending confirmation of technical and business feasibility, and “with the right government support”, hydrogen production could commence as early as 2030, ExxonMobil said.
