HYDROGEN BACKBONE LINK CONNECTING SCOTLAND TO EUROPE
Repurposing and Routing – Having reviewed multiple options for existing pipeline repurposing, the study concluded that whilst feasible, the technical complexities of repurposing and the current utilisation for hydrocarbons means that a new purpose-built pipeline route is preferable.
The new build pipeline would connect Scotland’s east coast with Emden in Germany to deliver a direct link to market at pace to meet anticipated demand growth and with favourable economics when compared to other global sources. Economics – The CAPEX investment needed to realise this new pipeline is estimated at ca£2.7 billion. The resulting transportation tariff of 32pence/kg will yield a 6% initial rate of return for investors.
Balancing the (albeit higher) production and (predicted lower) transportation costs, Scottish green hydrogen will be cost competitive to other globally sourced hydrogen from countries and regions with lower production costs such as Canada, Chile and the Middle East. Enabling Technology – The technology we need to deliver the backbone is generally well developed, however there remain several key areas where investment is needed to rapidly develop, reduce cost and scale up solutions to enable the system to function.
Emerging compressor technologies, such as turbo, electrochemical and compact centrifugal designs require accelerated development and scale up. In parallel, experimental testing of existing meter and valve designs with hydrogen as a test medium is required to verify calibration ranges and confirm the operational limits.