Industrial facilities operator px Group has agreed to join forces with Cerulean Winds for the development of three onshore green hydrogen production sites in the UK.
Cerulean’s ambitious, £10 billion plans centre on the construction of 200 floating wind turbines in the central North Sea and west of Shetland, with the bulk of electricity used to power offshore oil and gas platforms, lowering their emissions.
The fledgling, London-based firm’s plans hinge on Marine Scotland granting it seabed leases, “even conditionally”, by the end of the third quarter of 2021, and funding being provided.
If the proposals progress, excess power of 1.5 GWh would be diverted from the wind farms to green hydrogen plants, which would be located in St Fergus, near Peterhead, Shetland and on Humberside.
Under the agreement, px Group would be responsible for lease and ownership arrangements for the sites and for obtaining planning permissions and permitting.
Px, owned by Aksiom Services Group following its acquisition of private-equity firm Bluewater’s stake, would also operate the hydrogen generation facilities and associated onshore infrastructure, including substations and grid connections.
The firm operates North Sea Midstream Partners’ gas terminal at St Fergus, which is hosting the Acorn carbon capture and storage and hydrogen project.
It also owns Saltend Chemicals Park in Hull, home of Equinor’s Hydrogen to Humber CCS and hydrogen project, which is the bedrock of the Zero Carbon Humber initiative.
Teesside-headquartered px doesn’t currently have a footprint in Shetland.
But bosses at Cerulean have held discussions with Shetland Islands Council (SIC) about the potential for a site at Sullom Voe Terminal, operated by London-listed oil firm EnQuest.
And Cerluean has been working closely with those behind the Orion project, which seeks to build out offshore wind, hydrogen and platform electrification around Shetland.
Project lead Gunther Newcombe, former operations director at the Oil and Gas Authority, said earlier this year that EnQuest was “very much engaged” with Orion, primarily a partnership between SIC and the Net Zero Technology Centre.
Geoff Holmes, chief executive of px, said: “We are delighted to be working with Cerulean on this potentially ground-breaking project.
“As an owner and an operator, px Group has over 25 years hands-on experience in developing cleaner energy projects and reducing emissions.
“Operating and managing infrastructure which supports the UK’s energy transition is core to our business and we are thrilled to be able to support the decarbonisation of offshore facilities in the North Sea.”
Cerulean founding director Dan Jackson said: “px Group’s expertise and asset base make it a valuable addition to our UKCS decarbonisation proposition.”
Mr Jackson again pressed the case for Cerulean to be awarded seabed leases for the wind farms.
Cerulean, which has submitted a formal request for those leases, hopes to make a final investment decision early next year, followed by first power in 2024.
© Supplied by Big PartnershipMr Jackson said Cerulean’s schedule, which may seem optimistic, was driven by the timescales set out in the North Sea Transition Deal, which calls for a reduction in offshore emissions of 10% by 2025, 25% by 2027 and 50% by 2030.
He added: “Timing is absolutely crucial in this. Everything hinges on those leases being granted, even conditionally, by this autumn so we can move ahead on schedule.
“The risk of not moving quickly on basin-wide decarbonisation would wholly undermine the objectives set out in the North Sea Transition Deal and delay the potential of making a significant impact on reducing emissions from onshore industrial assets.”