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Reference Number NIA2_SGN0021
Title Hydrogen Navigator
Status Completed
Energy Categories HYDROGEN and FUEL CELLS(Hydrogen, Hydrogen production) 30%;
HYDROGEN and FUEL CELLS(Hydrogen, Hydrogen storage) 30%;
HYDROGEN and FUEL CELLS(Hydrogen, Hydrogen transport and distribution) 30%;
OTHER CROSS-CUTTING TECHNOLOGIES or RESEARCH(Energy system analysis) 10%;
Research Types Applied Research and Development 100%
Science and Technology Fields ENGINEERING AND TECHNOLOGY (Mechanical, Aeronautical and Manufacturing Engineering) 100%
UKERC Cross Cutting Characterisation Systems Analysis related to energy R&D (Other Systems Analysis) 100%
Principal Investigator Project Contact
No email address given
SGN - Southern England
Award Type Network Innovation Allowance
Funding Source Ofgem
Start Date 01 July 2022
End Date 30 September 2022
Duration ENA months
Total Grant Value £350,000
Industrial Sectors Energy
Region South East
Programme Network Innovation Allowance
 
Investigators Principal Investigator Project Contact , SGN - Southern England (99.999%)
  Other Investigator Project Contact , SGN - Scotland (0.001%)
  Industrial Collaborator Project Contact , SGN (0.000%)
Web Site https://smarter.energynetworks.org/projects/NIA2_SGN0021
Objectives Using McKinseys hydrogen and natural gas balancing and optimisation tool, this project seeks to deliver holistic mapping of different supply and demand opportunities, including but not limited to, the UKs own indigenous potential, rather taking a pan European and international view recognising the likely competition for hydrogen sources. This project proposes to begin to fill this knowledge gap and ensure future developments and projects are optimised in terms of scale and location in line with the needs of the networks and connected customers. At a high level, this project proposes to: Analyse hydrogen supply developments to determine there is sufficient supply to future network demands in Scotland the South-East of England (at a competitive price).Evaluate alternatives for the optimal way to transport and export hydrogen and the relevance/role of the NTS.Review the implications of the recently published “Hydrogen Strategy” and other key policy initiatives and consult with key stakeholders to understand how the hydrogen economy is evolving in practise.Provide evidence of international and indigenous hydrogen resources available to give confidence to key stakeholders.This piece of work is strategically important for strategic net zero planning and is likely to impact on SGNs suite of energy system transition project. This proposal is a desktop exercise utilising McKinseys powerful hydrogen and natural gas balancing and optimisation tool (Navigator™) and will deliver the following outputs:Work-Package 1: DemandHigh level validation of Hydrogen demand for sectors such as residential, industrial and transport based on publicly available sources.Residential and commercial electrification of heat and uptake of hydrogen. Sensitivities on substitution of natural gas with hydrogen assuming government directive from 2026 onwards.Sensitivity analysis of global industry remaining within the UK or shifting, and potential increase in industry due to hydrogen availability including illustration of key factorsWork-Package 2: Supply and TechnologyScale of opportunity for Green and Blue Hydrogen, target price and locations. Particular focus on evaluating whether there is adequate supply potential and whether the demand can be met through indigenous sources vs import, with resilience sensitivity analysis for geopolitics and market factors.Green and blue hydrogen supply and costs: Cost of Electrolyser; Cost of CCS; Carbon Dioxide price; suitability of pipelines for transportation versus other modes; potential demand and supply centres and projection of infrastructure needed.Optioneering on UK landing locations/key sources particularly in South East/Scotland.Flows and utilisation levels of existing pipelines and potential for blending and retrofit for Hydrogen. Repurposing sensitivity of NTS including potential for offshore pipeline and implications of no NTS availability scenario.Storage requirements.CAPEX required to retrofit infrastructure and incremental OPEX to manage infrastructures with blended gases.Characterisation of sources of hydrogen from indigenous to import, including green, blue, turquoise, nuclear, biohydrogen etc.Implications of technology scale up (e.g., renewable generation and storage, CCS, heat pumps, batteries) and changes to share in energy production and transmission.Projection of import/ export flows including shipping and piping costs. Identification of critical current and future assets in the upstream supply chain, include EU (particularly Italy) and North Africa for pipelines and high output, low-cost international supply opportunities.Work Package 3: Policy, Implementation, Regulation and FinancingIncorporate key information and learnings from SGN (e.g., Southampton, London and IoG).Align forecasted view with external stakeholders and sources.Prepare document for discussion with 3 5 key stakeholders to make the case for a hydrogen system transformation from 2026.Timeline to availability and characterisation of dependencies such as major port upgrades, new pipelines etc.High level assessment of investment opportunities in hydrogen infrastructure in the UK.Key Deliverables and OutcomesProvide materials and analyses to SGN for stakeholder presentations and management (e.g. UK and Scottish Governments) to effect hydrogen enabled system transformation,Identify investment opportunities that emerge on H2 transport as a consequence.Deliver a presentation in SGNs template with a clear and compelling narrative of the case for investing in hydrogen At a high level, this project has the following objectives: Provide materials and analyses aligned with the detailed scope to SGN for stakeholder presentations and management (e.g. UK and Scottish Governments) to effect hydrogen enabled system transformation and strategic planning.Identify investment opportunities that emerge on H2 transport as a consequence.Deliver a presentation in SGNs template with a clear and compelling narrative of the case for investing in hydrogen
Abstract This project will utilise McKinseys powerful hydrogen and natural gas balancing and optimisation tool, Navigator™, to analyse hydrogen demand, supply, storage and import developments across SGNs networks in Scotland and the South-East of England. This project will detail and assess indigenous and international hydrogen supply options and projects under development and quantify the supply required in time to ensure the Energy System Transition of the gas networks to 100% hydrogen can be delivered in an affordable, practical and energy secure way. This project is critical in the system transformation planning of the conversion of SGNs networks.
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Added to Database 14/10/22