Green hydrogen venture launches in Gloucestershire

By Nicky Godding

13 June 2023

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A new green hydrogen venture has been launched, backed by Norway-based renewable energy generator Statkraft, asset management company Foresight and Stonehouse, Gloucestershire-based low carbon energy developer Progressive Energy.

Grenian Hydrogen has an initial 200MWe development portfolio of seven projects, 100MWe of which are currently in the engineering and consenting phase; these include the Cheshire Green Hydrogen project, recently shortlisted by government for support through the first Hydrogen Allocation Round (HAR1)

Grenian has signed initial commercial terms with Accelera by Cummins, the zero-emissions brand of global diesel and alternative fuel engines and generators company Cummins Inc, to provide the core electrolyser technology for the initial projects

Grenian will design, build, own and operate hydrogen production facilities and will leverage Progressive’s experience in running commercial-scale hydrogen demonstration projects, for example at Unilever’s Port Sunlight manufacturing plant, to support the conversion of sites to be ‘hydrogen ready’.

Foresight, as one of the UK’s leading investors in Green Hydrogen, will continue to lend its extensive sector expertise in line with its broader sustainable infrastructure strategies.

The flagship 30MWe Cheshire Green Hydrogen at Peel’s Protos site near Ince has been short-listed by Government for a 15-year Low Carbon Hydrogen Agreement. Front End Engineering Design studies and consenting are underway for both Cheshire Green Hydrogen and four other projects: in St Helens in Liverpool, Winnington and Middlewich in Cheshire, and Stretford in Manchester. Three of these are also supported by the Government’s Net Zero Hydrogen Fund.

Grenian has also recently submitted bids to support funding of engineering work in relation to two larger ‘mini-cluster’ projects in Wrexham and Speke (Liverpool). Both of these projects will supply multiple users via local pipeline networks from ‘central’ electrolytic hydrogen production plants. These local networks may ultimately connect into the larger hydrogen distribution network being developed by Cadent as part of the HyNet project.

Grenian will generate electrolytic hydrogen with power contracted from renewable generation within Statkraft’s portfolio. In some cases, local behind-the-meter power will also be sourced, via private wire arrangements, from both new and existing local wind, solar and biomass generation. All power used by Grenian electrolysers will be temporally matched with specific renewable generators.

Adam Baddeley, Chief Executive of Grenian Hydrogen, said: “We’ve been working with Statkraft and Foresight for 18 months now and it’s great to formalise the company and launch our new brand. The diverse skills of each partner means that Grenian brings something unique to industrial hydrogen users, which is not offered by the wider market.

“Progressive is delighted to be leading the development of the initial suite of projects on behalf of Grenian and is already driving the expansion of the portfolio with larger-scale projects, which will be competitive in later auction-based hydrogen allocation rounds run by Government.”

Matt Kelly, Vice President Hydrogen UK at Statkraft UK added: “We are pleased to bring our experience in renewables development and energy markets to Grenian. With many companies already sourcing green energy to meet their electricity needs, this is the next step towards complete decarbonization of industry with clean, renewable hydrogen produced locally and flexibly.”

Chris Holmes, Partner at Foresight, said: “Foresight is delighted to be part of this initiative. We firmly believe in green hydrogen’s potential as a key lever in aiding the energy transition, as evidenced by our other commitments in this sector. The UK’s Hydrogen Strategy and the recent Powering Up Britain announcements, through their combination of policy initiatives, have now accelerated the critical role that green hydrogen will play in the next phase of the UK’s energy transition. This presents an opportunity for Grenian Hydrogen to deliver a much needed low-carbon solution for UK businesses and households”.

Lawyers at Osborne Clarke in Bristol advised Foresight on its involvement in the new venture. Chris Yeo, Bristol-based partner in Osborne Clarke’s corporate team, said: “The UK’s Hydrogen Strategy and the recent Powering Up Britain announcements, through their combination of policy initiatives, have now accelerated the critical role that green hydrogen will play in the next phase of the UK’s energy transition. This presents an opportunity for Grenian Hydrogen to deliver a much needed low-carbon solution for UK businesses and households."

By Nicky Godding

Nicky Godding is editor of The Business Magazine. Before her journalism career, she worked mainly in public relations moving into writing when she was invited to launch Retail Watch, a publication covering retail and real estate across Europe.

After some years of constant travelling, she tucked away her passport and concentrated on business writing, co-founding a successful regional business magazine. She has interviewed some of the UK’s most successful entrepreneurs who have built multi-million-pound businesses and reported on many science and technology firsts.

She reports on the region’s thriving business economy from start-ups, family businesses and multi-million-pound corporations, to the professionals that support their growth and the institutions that educate the next generation of business leaders.