Harland & Wolff (LON: HARL) has announced the findings of a large-scale hydrogen concept study by Atkins regarding its Islandmagee Gas Storage Facility.
The study found that integrating hydrogen onto the Islandmagee Gas Storage Facility is “technically feasible based on existing technologies”, however, an additional capital expenditure of £168 million would be needed.
This cost covers the integration of hydrogen at the facility through compression, dehydration, and cooling.
The investment will carry “no incremental costs” for drilling, leaching and creation of a salt cavern.
The firm states that “there is minimal difference from a cavern perspective as to what gas medium is stored.”
The report found that existing systems at the site can work with hydrogen, however, wherever possible developing hydrogen facilities would be “economically and operationally prudent”.
The systems that will be shared between existing work and hydrogen integration include controls and operations of the facility from a common system and location, electrical systems, utilities such as nitrogen, instrument air, drainage and chemicals and Cavern creation equipment.
Late last year it was reported that Harland & Wolff had cancelled diversification plans that would see it become a renewables developer, and would instead focus on its core markets of fabrication and maritime work.
Asked what impact this would have on the company’s operations, a spokesperson said it would retain its developer status for existing projects – such as the long-running Islandmagee gas storage project – but would cease to back further energy projects and instead “keep developing Harland & Wolff as a fabricator for energy project developers.”
“We do not envisage ourselves to be energy project developers, rather, a business that enables project developers to fabricate a number of different structures and component parts in order for them to install and monetise their respective projects,” they added.
