A 拢1.6 billion plan to put Britain鈥檚 largest gas storage facility back to use in a new hydrogen-fuelled Net Zero era has been unveiled.
Just 19 miles off the East Yorkshire coast, a proposal to convert the huge Rough reservoir to handle the low carbon fuel - just as it did with gas - is being explored.
Bosses at Centrica Storage believe government delivering the right funding mechanism for the overhaul could provide a solution for the intermittent nature of both production and demand, while creating 350 permanent jobs and protecting hundreds more.
Thousands could be supported in construction, with new platform, pipeline and wells required..
Greg McKenna, chief executive, said: 鈥淲e have some grand plans for Rough, subject to government backing. It is a 拢1.6 billion development, no-one is going to spend 拢1.6 billion if there isn鈥檛 some guaranteed return. We are looking for some government support model - it doesn鈥檛 need money to go into it. If we can get a regulated model from government we are prepared to go ahead and convert.鈥
Rough鈥檚 storage element closed in 2017, with the infrastructure having survived beyond its initial design life. The other 50 per cent of the field is still producing natural gas, though it is anticipated to come to an end in February 2023.
鈥淭he plan was to shut it down, which is a real shame to lose jobs, but also, Rough is the jewel in the crown of such reservoirs,鈥 Mr McKenna said.
鈥淭he great thing is how it just fits in with the whole strategy on the Humber, with H2H, a big hydrogen reformer there, all the wind farms sitting off the coast potentially producing hydrogen and the Gigastack project across the river in Lincolnshire too. There could be all this excess hydrogen and you have to put it somewhere.
鈥淲hen you look at the region we are superbly placed for the whole hydrogen economy and decarbonisation. We have got some of the largest polluters in the region, responsible for a lot of the CO2 because we are an industrial hub - we produce steel, oil, all of which is large industrial processing. The fact we can produce hydrogen here, store hydrogen here, that will make a significant difference in reducing CO2 emissions in the 海角视频.鈥
Flagging up the wider Zero Carbon Humber initiative, with carbon capture, and hydrogen-fuelled power proposed for both Triton at Saltend and SSE in Keadby, he said: 鈥淎ll these projects are ready to go, they just need the reassurance from government on how the market will work. If that reassurance is there we are talking billions and billions of infrastructure ready to go.鈥
Rough is described as the 鈥楪oldilocks鈥 of the sector as it meets requirements on temperature, size and proximity to land. Located 2.5 km below the seabed, the reservoir is 10km long, 3km wide and 100ft thick. Completely sealed by impervious stone, the sponge-like formation is 3,000 times the size of the Wembley pitch.
Of the work involved, Mr McKenna said: 鈥淲e would re-use about half of the wells and one platform, with a new topside, and lay a new (pipe) line alongside the existing one.
鈥淲e would also need to upgrade the Easington terminal with new compressors.鈥
It is envisaged that construction roles could peak at 1,000 at Easington and offshore, with a further 1,000 in the local area over a three to four year period.
One possible cost saving is to use CO2 as a cushioning gas in the reservoir, rather than methane. Academic studies are being looked at with universities in a move that would further embed the project in ongoing pan-Humber work.
A cap and floor model on profit and losses while selling services to the open market or a rateable value as seen previously with gas - roughly estimated at 拢4 a customer - are seen as viable options to include in the anticipated Hydrogen White Paper, expected before the 海角视频 hosts COP26 - the UN Climate Change Conference in November.
Business and Energy Secretary Kwasi Kwarteng has been out to Rough, and the team is optimistic.
鈥淲e are hoping the government white paper will be supportive of storage - hopefully there will be some clarity on what a support mechanism could look like鈥, Mr McKenna said. 鈥淓veryone is looking for that in the hydrogen arena, we just need that clarity to say 鈥榳e鈥檙e going with this鈥.
鈥淭he whole region could become a showpiece for the hydrogen agenda.鈥
While operations at Rough could draw to an end, Easington鈥檚 mid-term future is secure with a contract to process from the Tolmount gas field soon to come online - stretching through to at least 2030.
