Equinor has submitted a funding bid to construct a second major low-carbon hydrogen production facility in the Humber region.
The Norwegian energy giant is partnering with the University of Sheffield’s Advanced Manufacturing Research Centre (AMRC) on the H2H Production 2 project, aiming to produce 1.2GW of hydrogen by 2028.
The partners have submitted a bid of £16.4m to the UK government’s Net Zero Hydrogen Fund, although 50 per cent of the project is privately funded.
A successful bid would be a vote of confidence from the government, but further private and public investment would be required to take a final investment decision, envisaged for 2025, an Equinor spokesperson told news agency Reuters.
Equinor submitted a funding bid this year for the nearby H2H Saltend project, which has a hydrogen capacity of 0.6 GW.
The government unveiled its supply security strategy earlier this year, targeting a ramp up of hydrogren generation for 5GW to 10GW by the end of the decade.
Equinor’s two projects could jointly deliver 18 per cent of the country’s target – as the UK scrambles to ensure its energy independence ahead of future market shocks.
The energy firm made media headlines last week following a massive gas deal with British Gas owner Centrica – which will see one billion more cubic meters of gas enter the UK market for each of the next three winters.
The deal will Equinor deliver enough gas over the coming three years to heat an additional 4.5m homes.
It has also dismissed reports it is set to pull out of the Rosebank field – although it shares industry concerns over the detrimental effect of the windfall tax.