SGN, Macquarie’s Green Investment Group (GIG) and Esso Petroleum Company, revealed that they have signed an MOU to explore the use of hydrogen and CO₂ capture to help reduce emissions in the Southampton industrial cluster.

Southampton has one of the largest industrial sectors in the UK, and is both a critical element of the country’s energy supply chain and an important gateway for trade in global markets.

An initial feasibility study by SGN and GIG shows the annual hydrogen demand from the cluster, which is home to ExxonMobil’s Fawley complex, could rise to as much as 37 TWh by 2050, including the heating demand of 800,000 homes across the south of England. An increase in the use of hydrogen with CO₂ capture would help reduce emissions in the area’s industrial sector and stimulate the local economy through the conversion of the natural gas network, while helping reduce emissions from domestic heating and transport.

The feasibility study estimated that carbon capture facilities could initially capture approximately 2 MMtpy of CO₂, including from initial hydrogen production of around 4.3 TWh of hydrogen per year. This could also attract significant investment in the community, support existing employment and stimulate the creation of local jobs. If technical and business feasibility is confirmed, and with the right support, hydrogen production could commence as early as 2030.

"Hydrogen will be key in our journey to net zero, providing a reliable, affordable and practical supply of clean energy to multiple sectors whilst ensuring security of supply," said Angus McIntosh, Director of Energy Futures at SGN. "The creation of hydrogen hubs in and around industry is a great way of achieving scaled hydrogen demand and creating hydrogen economies. We are pleased to partner in this project to explore decarbonization of the Solent area and build on the outputs of the feasibility study. This project can kick start a net zero industrial cluster in Southampton and stimulate net zero gas networks across the South of England.”