© Supplied by Peel Ports Group Statkraft is exploring the development of a green hydrogen production facility at Hunterston in Scotland after signing an agreement with the port operator.
The Norwegian developer exchanged an option agreement with Clydeport, part of Peel Ports Group, to consider the potential development at its Hunterston PARC facility.
Located at the former coal terminal in Ayrshire, Peel Ports said the proposed facility would be for the production, storage, and export of hydrogen.
Under the plans, the production facility will be linked to the existing jetty at the site via a pipeline which will allow for hydrogen exports from the UK in the form of ammonia.
Peel Ports said the development of the green hydrogen facility represents a “significant investment” and will “support many jobs in the local economy”.
The green hydrogen proposal comes amid wider investment at the site, in areas ranging from offshore wind to subsea cable manufacturing and long duration energy storage.
Hunterston hydrogen development ‘exciting’
Peel Ports managing director for port services Lewis McIntyre said the hydrogen collaboration with Statkraft is a “very exciting new development” for Hunterston.
“Hydrogen is vital to the energy transition, and we’re proud to play our part in making such a development possible here on the west coast of Scotland,” McIntyre said.
© Supplied by XLCC“It is testament to Hunterston’s vast potential to house a range of innovative renewables projects.
“Not only are we bringing a brownfield site back into economic use, it will contribute massively to inward investment and job creation in a region that desperately needs it.”
Hunterston energy transition projects
The proposed green hydrogen facility is among several energy transition projects taking shape at Hunterston.
Subsea cable manufacturer XLCC is progressing plans to build the UK’s first high-voltage, direct current (HVDC) cable factory at Ayrshire, which could create 1,200 jobs.
The £1.4bn project forms part of plans from XLCC parent company Xlink plans to build an interconnector between the UK and Morocco.
Meanwhile, Highview Power is also looking to build the world’s largest liquid air energy storage (LAES) facility at the port, with another planned for Aberdeenshire.
The proposals come as Peel Ports progresses plans for a £150m redevelopment of the Hunterston site’s marine yard to support offshore wind developments.
The Hunterston site is ideally located for offshore wind projects off the west coast of Scotland, including ScottishPower’s MarramWind and ESB’s Malin Sea Wind.
© Supplied by Peel Ports GroupPeel Ports said talks are underway with “several more potential customers”, with the wider Hunterston site set to generate an estimate £3.5bn of inward investment creating more than 5,000 jobs.
Statkraft green hydrogen investment
Statkraft principal hydrogen project manager Stuart Marley said Hunterston is an “ideal location” for the proposed facility give its location and “outstanding infrastructure”.
“Hydrogen is an important tool in addressing the emissions from carbon-intensive industries, and we look forward to progressing our plans for the site,” Marley said.
The announcement comes shortly after Statkraft said it would pause the development of new green hydrogen projects amid “disappointing” results in the sector.
While Statkraft has pressed pause on new green hydrogen investments, the firm said it will continue developing its “existing mature portfolio of projects in the UK”.
The Norwegian state-owned firm secured two shortlisted green hydrogen projects in the UK government’s second hydrogen allocation round (HAR2) in April.
