TIDMHARL
RNS Number : 3447W
Harland & Wolff Group Holdings PLC
17 April 2023
This announcement contains inside information
17 April 2023
Harland & Wolff Group Holdings plc
("Harland & Wolff" or the "Company")
Islandmagee Energy - Concept Study Findings
Harland & Wolff Group Holdings plc (AIM: HARL), the UK
quoted company focused on strategic infrastructure projects and
physical asset lifecycle management, is pleased to share the
findings of the Large-Scale Hydrogen Concept Study by Atkins, in
connection with the Company's Islandmagee Gas Storage Facility (the
"Report") that was initiated last year and has now been completed
with a formal report issued to the Company.
The Report documents the work carried out in order to provide
further design definition on the selected concept of integrating
hydrogen processing and storage at the Company's Islandmagee Gas
Storage Facility. This phase of the work has further developed the
Company's strategy, to utilise at least one of seven currently
permitted salt caverns by a capacity offtake partner to store
hydrogen combined with a suitably sized hydrogen compression and
dehydration train in order to meet the gas quality parameters
specified by a grid operator.
The findings of the Report state that, subject to regulatory
approval, hydrogen can be stored in the salt caverns and withdrawn
to a hydrogen grid when required. The Large-Scale Hydrogen Concept
design, developed by Atkins as part of the Ballylumford Power-to-X
consortium, takes into account the existing natural gas design at
the Company's facility and the potential to utilise the site for
the Ballylumford Power-to-X project. It also takes account of the
existing subsurface design carried out during the natural gas
design phase in 2018.
The key outcomes of the pre-FEED stage of this project are as
follows:
-- Integrating hydrogen onto the Islandmagee Gas Storage
Facility is technically feasible based on existing technologies and
can be located on the current Islandmagee site utilising many of
the shared benefits of the location.
-- The Report concluded that additional capital expenditure
required to integrate hydrogen compression, dehydration, and
cooling into the Company's Islandmagee Gas Storage Facility would
be approximately GBP168 million, with no incremental costs for
drilling, leaching and creation of a salt cavern.
-- The Report determined that development of the salt caverns
for hydrogen would follow a similar methodology to that proposed
with the existing design for the gas storage facility. Whilst
specific wellheads and associated equipment could be utilised to
enable hydrogen storage, additional costs would need to be incurred
and further operating protocols put in place for hydrogen venting
around existing leaching and de-brining equipment. However, in
general, there is minimal difference from a cavern perspective as
to what gas medium is stored.
-- The Report found that re-use of planned natural gas plant
facilities wherever possible to develop the hydrogen facilities
would be economically and operationally prudent so that systems are
not re-designed for hydrogen unless required. Shared systems would
include, inter alia:
o Controls and operations of the facility from a common system
and location.
o Electrical systems such as switch rooms and transformers.
o Utilities such as nitrogen, instrument air, drainage and
chemicals.
o Cavern creation equipment including seawater lift pumps,
leaching equipment, and debrining tanks as well as other associated
equipment.
The Company believes that this study and the Report's findings
takes it one step further in future proofing the project and
preparing it for the transition from a natural gas to a hydrogen
led economy. The findings of this study will be shared with the
Company's current and future counterparties which will stimulate
further detailed conversations on mechanisms to monetise the
project. The Company will make further announcements in due course
in relation to this project.
Harland & Wolff Group Holdings plc +44 (0)20 3900
John Wood, Chief Executive Officer 2122
Seena Shah, Head of Marketing & Communications investor@harland-wolff.com
media@harland-wolff.com
Cenkos Securities plc (Nominated Adviser &
Broker)
Stephen Keys / Callum Davidson / Dan Hodkinson
(Corporate Finance) +44 (0)20 7397
Michael Johnson (Sales) 8900
----------------------------
Liberum Capital Limited (Joint Broker)
Nicholas How / Edward Mansfield / Lucas Bamber +44 (0)20 3100
/ Antonia Brown 2000
----------------------------
About Harland & Wolff
Harland & Wolff is a multisite fabrication company,
operating in the maritime and offshore industry through five
markets: commercial, cruise and ferry, defence, energy and
renewables and six services: technical services, fabrication and
construction, decommissioning, repair and maintenance, in-service
support and conversion.
Its Belfast yard is one of Europe's largest heavy engineering
facilities, with deep water access, two of Europe's largest
drydocks, ample quayside and vast fabrication halls. As a result of
the acquisition of Harland & Wolff (Appledore) in August 2020,
the company has been able to capitalise on opportunities at both
ends of the ship-repair and shipbuilding markets where there will
be significant demand.
In February 2021, the company acquired the assets of two
Scottish-based yards along the east and west coasts. Now known as
Harland & Wolff (Methil) and Harland & Wolff (Arnish),
these facilities will focus on fabrication work within the
renewables, energy and defence sectors.
In addition to Harland & Wolff, it owns the Islandmagee gas
storage project, which is expected to provide 25% of the UK's
natural gas storage capacity and to benefit the Northern Irish
economy when completed.
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