DELIVERING THE DECARBONISATION OF THE NORTH WEST INDUSTRIAL SECTOR

SUMMER 2019

THE NORTH WEST ENERGY AND HYDROGEN CLUSTER

2 North West Energy and Hydrogen Cluster

THE NORTH WEST ENERGY AND HYDROGEN CLUSTER

CREATING THE

UK’S FIRST LOW CARBONINDUSTRIAL CLUSTER BY 2030

“This collaboration represents one of the most vibrant clusters in the UK with a wide range of energy intensive industry partners. This is a game-changing opportunity.

We believe, with appropriate Government support, that this will result in the North West meeting the challenge of becoming the UK’s first low carbon industrial cluster by 2030.”

Richard Carter, Chairman of the North West Business Leadership Team Managing Director UK & Ireland of BASF plc

NEW JOBS CREATED

AT LEAST

33,000OVER

£4bnINVESTMENT

North West Energy and Hydrogen Cluster 3

WHAT THE CLUSTER OFFERS

The North West is leading the UK in developing an innovative, sustainable, and low-cost multi-vector energy system. Our partnership of companies, regional leaders and our network of academic experts have been brought together, under the leadership of the North West Business Leadership Team (NWBLT). The Cluster covers the traditional industrial powerhouses of the Liverpool and Manchester City Regions as well as Cheshire and Warrington.

With substantial planned investment from world-leading companies, the Cluster will meet the challenge of becoming the UK’s first low carbon industrial Cluster by 2030. This will save in excess of 10 million tonnes of carbon per year from harder-to-reach sectors in the wider economy.

The Cluster is home to one of the country’s leading Hydrogen / Carbon Capture Utilisation and Storage (CCUS) projects, HyNet. This brings an integrated approach to low carbon hydrogen production using CCUS and distribution of hydrogen for transport, industry and domestic heating. This project meets Government policy objectives for industrial decarbonisation being both low risk and low cost and will secure and grow high value manufacturing jobs.

SMART GRIDS

SMALL MODULAR NUCLEAR

RENEWABLES: TIDAL & WIND

HYDROGEN

Hydrogen Production

Hydrogen Storage

Hydrogen for Heat

H2

Hydrogen for Transport

Hydrogen for Industry

CARBON CAPTURE USAGE AND STORAGE

CO2

CO2

H H

Industrial CCUS

H2

CO2

Manchester

Northwich

Chester

Deeside

LiverpoolBirkenhead Warrington

Ellesmere Port

Runcorn

UK’S LARGEST CONCENTRATION OF MANUFACTURING AND

CHEMICALS PRODUCTION

THE DECARBONISATION OF THE

POWERFUL LEADERSHIP COLLABORATION

4 North West Energy and Hydrogen Cluster

DELIVERING

INDUSTRY LED CLUSTER ALREADY

CO2

Manchester

Northwich

Chester

Deeside

LiverpoolBirkenhead Warrington

Ellesmere Port

Runcorn

The North West is, and has always been, at the forefront of UK manufacturing and home to a concentration of energy intensive users. Supported by a skilled workforce, we are traditionally strong in textiles, shipping and engineering. We can boast the largest concentration of advanced manufacturing and chemical production in the UK. This includes leading ICT, biotechnology, pharmaceuticals, aerospace, and telecommunications businesses. We have excellent air, rail and road transport links – plus the iconic Port of Liverpool that continues to serve as a key international transport hub.

THE STRENGTH OF NORTH WEST

North West Energy and Hydrogen Cluster 5

IT’S ALL HAPPENING...

PUBLIC/PRIVATE SECTOR FUNDING

PROJECT FUNDED BY BEIS

HOME TO THE LARGEST ENERGY RECOVERY FACILITY IN EUROPE GENERATING

564 GWhHOURS PER YEAR

£2.9mMULTI-GIGAWATT TIDAL ENERGY PRODUCTION FACILITY IN THE RIVER MERSEY AND LIVERPOOL BAY TO DELIVER POWER BY 2029

FACILITY FOR BUSINESSES TO USE TO DEVELOP HYDROGEN AND FUEL CELL PROJECT INNOVATION

MANCHESTER FUEL CELL INNOVATION CENTRE

£4.1m

GVA TO THE UK ECONOMY BY 2050 AND CREATE NEARLY

BY THE MID-2020s

HYNET WILL ULTIMATELY PROVIDE AN EXTRA

£17billion

6000 jobs HYDROGEN–POWERED BUSES ON THE STREETS OF THE LIVERPOOL CITY REGION BY 2020

CENTURION 100MW POWER-TO-GAS (P2G) ENERGY STORAGE FEASIBILITY STUDY IN RUNCORN, CHESHIRE

25 6 North West Energy and Hydrogen Cluster

UNIVERSITY OF CHESTER, FACULTY OF SCIENCE & ENGINEERING KNOWLEDGE TRANSFER FUNDING IN PLACE

(HYDEPLOY 2)

UK’S FIRST HYDROGEN BLENDING PROJECT WITH FUNDING FROM CADENT / NORTHERN GAS NETWORKS VIA OFGEM NETWORK INNOVATION COMPETITION

THE CREATION OF A A NETWORK WHERE ENERGY COSTS ARE CUT BY AT LEAST

20%U-BATTERY COULD CONTRIBUTE SIGNIFICANTLY TO THE ECONOMY WITH MACROECONOMIC BENEFITS OF

£2.8billion DIRECT GVA

£14.9m

WALNEY EXTENSION, OPENED IN 2018, IS PRESENTLY THE LARGEST OFFSHORE WIND FARM IN THE WORLD PRODUCING

659MW

HYNET HYDROGEN / CCUS PROJECT SIZED TO STORE UP TO

MILLION TONNESOF CO2 PER YEAR

10

North West Energy and Hydrogen Cluster 7

7000 GWhOF ENERGY STORAGE AVAILABLE IN THE REGION

INVESTMENTS MADE

£170mAT PROTOS (£1.5BN PLANNED) IN 50MW WINDFARM AND 22MW BIOMASS

THE OPPORTUNITY

Substantially decarbonising regional industry by 2030, and getting to net zero emissions by 2040, is an opportunity that presents significant economic benefits, both regionally and nationally. It will create and protect high value-add jobs, and position the UK at the forefront of global industrial emissions reductions. We have the industry and infrastructure to deliver alongside natural geological assets such as the Irish Sea gas fields, with the capacity for decades of emissions disposal. The Cheshire salt caverns are perfectly positioned for hydrogen storage.

By 2030, our industry and innovation-led approach will reduce carbon emissions by over ten million tonnes per year and create in excess of

33,000new jobsinvestment from world leading companies

Over

£4bn

8 North West Energy and Hydrogen Cluster

OUR INDUSTRY SUPPORT

Our Cluster brings together key players from different – and sometimes competing – projects. Leading industry figures at Chair, CEO and Senior Executive level are working together to share knowledge and best practice. Representation includes senior members of the City Regions, Local Enterprise Partnerships, Academia and the North West Hydrogen Alliance.

NWBLTNorth West Business Leadership Team

Hynetleading integrated Hydrogen and Carbon Capture, Utilisation and Storage project

NWHANorth West Hydrogen Alliance

Cheshire Energy HubIndustry funded energy sector support organisation

LCR Low CarbonLiverpool City Region Low Carbon group

Arup

Atkins

BASF

Electricity NW

Manchester Metropolitan University

Orsted

Peel Group

Siemens

The University of Manchester

Unilever

University of Chester

University of Liverpool

Urenco

Cadent

Centuruion

CF Fertilisers

Essar

Ibstock Brick

Jaguar Land Rover

Johnson Matthey

North West Hydrogen Alliance

Novelis

NSG Group (Pilkington)

Peel Group

Progressive Energy

SNC Lavalin

Unilever

Atkins

BOC

Cadent

Costain

INOVYN

Peel Environmental

Shell

University of Chester

Burns & McDonnell

BGS

C-Tech Innovation

Cadent

EA Technology

Encirc

Essar

National Grid

Peel Environment/Protos

Scottish Power Energy Networks

Storengy

University of Chester

Urenco

ABB

Alstom

Arup

BRE

BOC Linde

Cadent

Cammell Laird

INOVYN

Jaguar Land Rover

MTC / AMRC

Orsted

Pilkington

SP Energy Networks

Unilever

North West Energy and Hydrogen Cluster 9

The North West Cluster consists of several near-term demonstration projects including HyNet, HyMotion, HyDeploy, HySecure, Centurion and BOC St Helens. We have a low-cost and low-risk approach to carbon capture utilisation and storage (CCUS). The Clusters’ deployment of low-carbon energy resources also includes wind, solar, smart grid, tidal and small modular nuclear.

2017Energy Innovation District formally designated as an exemplar concept

2022HyNet Financial Investment Decision for Industrial CCUS

2022Covanta commence operation of 49MW Energy from Waste Facility

201750MW Frodsham Windfarm commissioned

2020Phase 2 of Protos Microgrid established

2019Powerhouse Energy announce commercial scale decentralised hydrogen production facility

2019HySecure Hydrogen Storage Project launched

2024First Phase CCUS scheme commisioned

201821.5MW Biomass facility commisioned at Protos

2018The launch of the Burbo Bank extension

2020Biogas to grid scheme established at Protos

2025HyNet - Hydrogen Production facility operational

2018UKPR commence construction of 20MW battery at North Road, Ellesemere Port

2020National Research Centre: UK Geoenergy Observatory created

2025The fully established mid Cheshire energy storage cluster

A ROAD MAP TO DELIVERY

10 North West Energy and Hydrogen Cluster

2020Energy masterplan for integrated multi-vector energy system

2025HyNet delivers hydrogen to industry and 1 million CO2 savings each year

2018MMU Fuel Centre Innovation Centre opens

2020Smart Substation Rollout - £10M

2029Mersey Tidal Project

2019Project Centurion - 100MW Power-to-Gas feasibility study underway at Runcorn

202010MW Advanced Conversion Technology facility commissioned at Protos

2029Transactional Energy System Operational

2019Ubiquitous EV charging infrastructure across the subregion - £7.5M

2021Competitive tariffs for energy - collective purchasing scheme for SMEs

2029Hynet - project extensions

2019Hydrogen refuelling trial established

2030Regional industrial cluster substantially decarbonised

North West Energy and Hydrogen Cluster 11

2019HyNet Pre-FEED study launched

“There is no better place to be leading the clean-growth agenda than the North West – harnessing our world-class innovation track record, academic expertise and the energy-intensive industry that’s located here – through working together we can co-create the UK’s first low carbon, and in time zero carbon, industrial cluster further cementing our international reputation and bringing new jobs and capital investment to the region.”

Christine Gaskell CBE, Chairman of the Cheshire and Warrington Local Enterprise Partnership

This prospectus is printed on paper that has been sustainably sourced, FSC® certified and made with ECF pulp

For further information visit https://nwblt.com/energy-hydrogen-cluster/

“We are rightly planning for the long term and a zero carbon future, and we are taking urgent action now. In the Liverpool City Region our low carbon sector is already worth £2 billion a year to our economy, while employing 22,000 people and we stand ready to play a key role in creating the UK’s first low carbon cluster.”

Steve Rotheram, Mayor of the Liverpool City Region

“Doing things differently doesn’t just mean a new set of policies – it means a new approach altogether. I want Greater Manchester to be the best place in the world to grow up, get on and grow old: clean, green and vibrant.

“Cities, and city-regions, will make the difference on climate change and, in working to decarbonise in the North West, we can create a blueprint for the world. It wouldn’t be the first time. We can change ourselves, and we can inspire change in others.”

Andy Burnham, Mayor of Greater Manchester