The NSTA recognises that Bacton has the potential to establish itself as a low carbon hydrogen hub.

This would ensure Bacton remains a key regional energy hub, leveraging existing infrastructure and resource in the region to ensure its low carbon future.

To further understand what a low carbon future for Bacton will look like, the NSTA established five Special Interest Groups (SIGs): Hydrogen Demand, Hydrogen Supply, Infrastructure, Regulatory and Supply Chain and Technology.  Through a collaborative industry approach, they have been working to help demonstrate that a credible project exists and to catalyse the formation of a consortium that will develop and execute a Bacton Energy Plan.

Bacton Interconnecting infrastruture graphic

Bacton Energy Hub Business Opportunity Report

The Bacton Energy Hub Business Opportunity Report summarises the key findings from the five SIGs and outlines the business opportunity that could exist for a consortium to take forward the Bacton Energy Hub vision.

Bacton Energy Hub: Business Opportunity

There is an opportunity for a Bacton hydrogen production hub to be quickly established providing significant contribution to UK Government targets for both hydrogen production and CO2 capture by 2030.

Demand

Significant potental hydrogen demand exists that BEH can ready supply through exising pipeline infrastructure.

Hydrogen demand potential that could be supple by BEH is not considered fo be the limiting factor.

Supply

There is sufficient remaining indigenous hydrocarbons to support the BEH Core Project.

Electrolytic Hydrogen would require a dedicated renewable energy source from offshore wind.

Storage

Material CO2, storage capacity exists in the SNS, which i further supported by NSTA's recent CCS cence round.

The Core Project requires relatively limited hydrogen storage, but a bud out scenario will require offshore storage in a depleted oi and gas reservoir or aquifer

Infrastructure

The existing Bacton terminal could be optimised to support the Core Project.

Trunkines to shore represent the best opportunity for repurposing existing infrastructure.

Regulatory

Regulatory regime requires minimal updates to accommodate hydrogen, but this is common to all UK hydrogen projects.

Technology

A high level of technology maturity exists within CCS enabled hydrogen production. Electrolytic Hydrogen technology is still relatively immature but is scaling up to a Commercial scale. BEH coud benef fom an early grid connection to allow supply of electrolytic hydogen to a large market

Supply chain

There are potential supply chain constraints at a UK level, but there is an opportunity for the BEH to support jobs and skills within the East Anglia region.

Project Economics

BEH project economics are competitive against BEIS Hydrogen production cost estimates.

Bankability

An initial bankabilty assessment indicated that no red flags were identiied, and the BEH has the potential to raise project finance in the future, depending on the final commercial structure, and the technical and other features of the project and the potential of the BEH.

Schedule

In a Base Case scenario, hydrogen production from BEH could be realised by 2030. This requires a consortium to be formed in frst haf of 2023 vith FID achieved in 2025.

 

Link to the Bacton Report Link to the Bacton Report Press Release

Background to the Bacton Energy Hub Special Interest Groups (SIGs) and their reports

The purpose of the Hydrogen Demand SIG, led by Progressive Energy, was to:

  • Quantify potential hydrogen demand by sector in the Bacton Catchment Area.
  • Understand seasonal and diurnal variability in demand across sectors.
  • Understand key sensitivities, drivers, and blockers to demand cases.
  • Assess hydrogen storage requirements and identify storage scenarios.
  • Inform hydrogen supply and infrastructure.


Downloads

Reports

Launch Presentation

 

Core Group members

  • Jacobs
  • National Grid
  • Progressive Energy
  • Summit
  • Northbrook

The purpose of the Hydrogen Supply SIG, led by Summit Energy Evolution, was to:

  • Identify constraints and blockers to using indigenous gas production for blue hydrogen production.
  • Understand and overcome current technological constraints to meet domestic and potentially international low carbon hydrogen demand.
  • Identify, investigate, and progress CCS opportunities in the SNS for the Hub.
  • Determine development, operating and abandonment costs to make a project viable and investable.


Downloads

Reports

Launch Presentations

 

Core Group members

  • Fluor
  • National Grid
  • Neptune
  • Summit

The purpose of the Infrastructure SIG, led by Xodus, was to:

    • Engage industry and local stakeholders to support the project or mitigate blockers.
    • Integrate oil and gas and renewable infrastructure to deliver hydrogen solutions.
    • Identify risk, uncertainty, and possible mitigation to deliver a timely project.
    • Establish a technically feasible and investable concept.
    • Enable hydrogen supply and demand.


    Downloads

    Reports

    Launch Presentation

     

    Core Group members

    • CMC
    • Fluor
    • National Grid
    • Neptune
    • Paradigm
    • Perenco
    • McDermott
    • Cadent

The purpose of the Regulatory SIG, led by Energy Transition Advisory (formerly led by Storegga), was to:

  • Identify barriers and enablers for the Hub.
  • Understand the existing and future regulatory landscape.
  • Outline potential Government funding opportunities to support development of the Hub.

Downloads

Reports

Launch Presentation

 

Core Group members

  • Pinsent and Masons
  • Spirit Energy
  • Altwood
  • ENI
  • ETA
  • Fluor
  • Logo
  • Mace
  • Neptune

The purpose of the Supply Chain and Technology SIG, led by Petrofac and Turner & Townsend, was to:

  • Map the existing local, regional, national, and international capability across the hydrogen value chain.
  • Assess key supply chain and technology gaps.
  • Assimilate best practice and learnings from other clusters to deliver the project at pace.

Downloads

Reports

Launch Presentation

 

Core Group members

  • OPC
  • Paradigm
  • Xodus