22 Nov 2021 | 09:53 UTC

First phase of 20-MW Scottish renewable hydrogen project wins state backing

Highlights

GBP9.4 million support for Whitelee project

10-MW phase to produce 2.5-4 tonnes/day

ITM, BOC, ScottishPower partnership

The first phase of ScottishPower's 20-MW Whitelee Windfarm hydrogen production and storage project has been awarded GBP9.4 million ($12.6 million) of funding by the UK government's Energy Innovation Portfolio competition, the Department for Business, Energy and Industrial Strategy said Nov. 22.

Support for what would be the largest electrolysis project in the UK to date marks an important step in commercial-scale renewable hydrogen production.

"Developed by ITM Power and BOC, in conjunction with ScottishPower's Hydrogen division, the state-of-the-art facility will be able to produce enough green hydrogen per day -- 2.5 to 4 tonnes -- that, once stored, could provide the equivalent of enough zero-carbon fuel for 225 buses travelling to and from Glasgow and Edinburgh each day," BEIS said.

In a first phase, ITM Power is to develop and manufacture a 10-MW electrolyzer at its new factory in Sheffield, while industrial gas company BOC is to handle the project's engineering and operations.

Both will work with ScottishPower Hydrogen to integrate the electrolyzer with the Iberdrola-owned utility's 539-MW Whitelee Windfarm near Glasgow, the UK's largest onshore windfarm.

The facility aims to supply hydrogen to the commercial market by the end of 2023, helping to decarbonize transport across Glasgow, BEIS said. The city intends to become the first net-zero city in the UK by 2030.

S&P Global Platts assessed the price of UK hydrogen (PEM electrolysis, including capex) at GBP15.87/kg ($21.36/kg) Nov. 19, up 253% since the assessment was launched on April 1, driven up by spiraling electricity prices.