The Bacton area off the coast of Norwich could contribute to the UK’s energy transition by becoming a significant hydrogen production site for London and the South East, said the Oil & Gas Authority (OGA).
But the OGA warned that action was needed now to avoid the premature decommissioning of infrastructure and lost hydrocarbon opportunities.
In December 2020, the authority commissioned Progressive Energy to conduct a study on the potential for hydrogen demand in Bacton and the South East of England. bityl.co/6634
The study evaluated the demand and potential for generation of hydrogen in the Bacton area; to develop understanding of the potential requirements for future hydrocarbon production and repurposing of infrastructure to enable this; and to develop a future vision for the Southern North Sea and Bacton.
“The Southern North Sea has been a critical part of the UK’s energy system for half a century and could continue to have a key role to play for decades to come; with Bacton playing an instrumental role,” said the OGA in a statement.
“A sustainable market for this hydrogen is expected to develop and it is anticipated that blue hydrogen will be the most commercially viable option in the 2030s and early 2040s.
“This will provide the time for the maturation of green hydrogen technology and for green hydrogen to become more cost competitive on an industrial scale by the late 2040s and early 2050s.”
IMMEDIATE ACTION
The OGA added that the Southern North Sea had sufficient indigenous hydrocarbon reserves to provide the feedstock required to meet the increasing blue hydrogen demand.
This would create value while also helping to meet UK energy demands and supporting the UK’s transition to net zero.
Blue hydrogen generation could utilise the existing hydrocarbon infrastructure and extensive CO2 storage potential in the Southern North Sea, with green hydrogen being used to redeploy constrained wind energy.
The Southern North Sea can therefore make a valuable contribution to decarbonising the UK energy mix.
The OGA added: “However, action is required now to ensure the continued production and development of natural gas in the near term; this will be needed to protect existing infrastructure and to ensure feedstock availability for blue hydrogen.
“Failure to act now could see infrastructure prematurely decommissioned and hydrocarbon opportunities lost, which would have a credible impact on realising this value for the region.”