Neptune Energy signs agreements to advance UK blue hydrogen program

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The privately funded operator, Neptune Energy, has signed a series of new agreements to advance its blue hydrogen and carbon dioxide transport and storage program project on England’s east coast.

Neptune has entered into a memorandum of understanding with an anonymous organization specializing in the production of industrial gas for the development of the blue hydrogen plant, which would be located at the former site of the Theddlethorpe Gas Terminal (TGT) in Lincolnshire. .

He signed a separate memorandum of understanding with the privately-backed PX Group, which would operate a new power plant for the installation of blue hydrogen and act as an investor in the development.

In addition to serving CO2 transmitters in the South Humber area, Neptune introduced the option to ship CO2 several blocks in the southern North Sea.

He has signed other MoUs with Carbon Collectors, a company specializing in the collection, transport and storage of CO2 using marine solutions, and with an electricity generation company that would have its CO emitted2 stored by Neptune.

Launch of CCS by mid-decade

Under the working title of “DelpHYnus,” Neptune said its proposed development is well positioned to provide an operational carbon capture and storage (CCS) center by 2025 for the CO shipped.2 and large-scale blue hydrogen production from 2027.

As previously revealed by Upstream, the company submitted an application to the Oil & Gas Authority (OGA) regulator in May this year, covering several blocks in the southern North Sea located to the south and southwest of the Cygnus gas field operated by Neptune. .

Neptune’s director of new energies, Pierre Girard, said the project had gone from a “high-level concept to a much more detailed technical proposal in a short period of time” and that the company and its partners have engaged ” significant resources and expertise to bring the proposal to this level of maturity ”.

He added: “Our experience in carrying out offshore projects that are technically similar to DelpHYnus’ CCS offering is complemented by the expertise of our partners and, as one of the low carbon gas producers from the UK, we are well positioned to develop this project at a sustained pace. with the potential to provide an operational CCS hub from 2025 for the CO shipped2 and large-scale blue hydrogen from 2027, helping to meet the ambitions set by the British government in its 10-point plan.

“Geographically, the location of the project is important and may lead to the creation of a low carbon hub around our existing Cygnus facility to provide new decarbonation opportunities. ”

Pipeline plans

The development would reallocate existing pipelines for CO transport and storage2, keeping costs low and reducing environmental impacts, while enabling rapid development of the delivery system, said Neptune.

In addition to the new blue hydrogen plant, Neptune offers the transport and storage of emissions from the South Humber industrial area with a new CO2 South Humber pipeline to TGT, as well as the possibility of hosting CO2 shipped from more remote locations.

Gerrard said the deal with Carbon Collectors would provide shipping solutions that could use an offshore offloading process to serve transmitters across the UK that cannot connect via a pipeline.

He said this could include the ability to connect to other storage sites within the company’s portfolio, including its L10 CCS development in the Netherlands.

Engineering groups have signed

Neptune commissioned engineering services company Worley to do conceptual engineering work for the normally unmanned installation that is part of the development of DelpHYnus, and a specialized subsea engineering company to work on the elements. system subs, including manifold and CCS pipeline.

An anonymous third engineering partner is studying the costs, time estimates and planning processes associated with onshore elements of the development, including the blue hydrogen plant and pipelines between TGT and the South Humber area.

Neptune was supported in the coordination of the project by Goal7, which partners with organizations for the development of sustainable, clean and affordable energy projects.

Neptune has previously said he’s engaged with CO2 hydrogen emitters and buyers in the South Humber industrial area and “these discussions have led to the belief that there is a demand for both transportation and storage service and for the supply of blue hydrogen.”

His bid for the OGA is for the same area for which the regulator said in March it had received a bid, suggesting that Neptune is competing with at least one other operator for the area, although this remains unconfirmed.

It is understood that the OGA could take up to six months to decide which company to license the storage to.

In documents viewed by Upstream in May, Neptune said he believed DelpHYnus would be fully aligned with the UK government’s goals of achieving zero carbon emissions by the middle of the decade.


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