TIDMITM
RNS Number : 4133G
ITM Power PLC
06 November 2018
6 November 2018
ITM Power plc
("ITM Power", "the Company" or "the Group")
HyDeploy: Hydrogen in the UK Gas Grid
ITM Power (AIM: ITM), the energy storage and clean fuel company,
is pleased to provide an important update on the HyDeploy project,
first announced on 30(th) November 2016. HyDeploy the GBP6.8
million project, funded by Ofgem and led by Cadent and Northern Gas
Networks, is an energy trial to establish the potential for
blending up to 20% hydrogen into the normal gas supply to reduce
carbon dioxide emissions. HyDeploy will run a year-long live trial
of blended gas on part of the University of Keele gas network to
determine the level of hydrogen which could be used by gas
consumers safely and with no changes to their behaviour or existing
domestic appliances. ITM Power is supplying the electrolyser
system.
Commenting on the HyDeploy announcement, Graham Cooley, ITM
Power's CEO, said: "The significance of this announcement, allowing
up to 20% green hydrogen to be injected into a UK gas network, is
hard to overstate. Power-to-gas in the UK is under active
consideration by all gas grid operators and its significance as an
energy storage technique is growing globally. This announcement is
an important advance."
The text of today's HyDeploy announcement is set out below.
Green light for leading-edge hydrogen trial
-- Ground-breaking hydrogen trial gets the green light
-- First of its type in the UK
-- Green hydrogen blended with natural gas to fuel homes at Keele University
A ground-breaking green energy trial that could help Britain
dramatically cut its carbon emissions and open the door to a
low-carbon hydrogen economy has been given the go-ahead by the
Health and Safety Executive (HSE).
In the first trial of its kind in the UK, the HyDeploy project
will inject hydrogen into an existing natural gas network. Hydrogen
is a carbon-free gas that when burned produces just heat and water
and has been mooted as a potential solution to tackling one of the
country's biggest sources of carbon emissions - heating homes and
businesses.
Backed by Ofgem's Network Innovation Competition, the GBP7
million project is being led by gas network Cadent, in partnership
with Northern Gas Networks, Keele University and a consortium of
technical experts.
In a year-long pilot, due to start next year, HyDeploy will
blend up to 20% of hydrogen (by volume) with the normal gas supply
in part of Keele University's gas network. Customers will continue
to use gas as they do today, without any changes needed to gas
appliances or pipework.
Simon Fairman, Director of Safety and Network Strategy, Cadent,
said: "The importance of this trial to the UK is unmeasurable .This
is the first ever practical demonstration of hydrogen in the modern
gas network in the UK. Hydrogen has the potential to address one of
the most difficult sources of carbon emissions - heat. This trial
could pave the way for a wider roll out of hydrogen blending,
enabling us to begin cutting carbon emissions from heat as early as
the mid-2020s, without customers needing to change their gas
appliances or behaviour.
"HyDeploy could also prove to be the launchpad for a wider
hydrogen economy, fuelling industry and transport and bringing with
it new jobs. The recent report of the Intergovernmental Panel on
Climate Change underlines the need for urgent action on carbon
emissions and HyDeploy is an important staging post on that journey
in the UK."
Mark Horsley, Chief Executive, Northern Gas Networks, said:
"Hydrogen is a key piece of the decarbonisation jigsaw, and this
landmark decision allows us to take a huge leap forwards in terms
of its use in meeting climate change targets.
"The HyDeploy project allows us to start making a difference to
emissions today and we're very excited to be a part of it."
Professor Mark Ormerod, Deputy Vice Chancellor and Provost at
Keele University, said: "Energy and sustainability is a key
overarching institutional priority for Keele University, and we are
delighted to be a partner in this important, highly relevant and
prestigious project. HyDeploy will tackle one of the major societal
challenges and has the potential to be highly impactful and lead to
a significant reduction in carbon emissions."
The trial will take place on part of Keele University's private
gas network, serving 17 faculty buildings and 100 domestic
properties.
The hydrogen will be produced by electrolysis. Electrolysers,
produced by hydrogen systems manufacturer ITM Power, use an
electrical current to split water molecules into hydrogen and
oxygen. The electrolyser for HyDeploy will be powered by renewable
energy sources. Construction is due to start at the end of this
year.
The HSE granted HyDeploy an exemption to the current limit of
0.1% hydrogen in the UK gas network after the project gathered
extensive evidence to demonstrate the hydrogen blend would be 'as
safe as natural gas'. The exemption is similar to that granted to
allow the first bio-methane producers to inject biogas into the
natural gas network.
Gas safety checks were carried out in the homes and buildings in
the trial area. Laboratory tests were carried out on a range of gas
appliances as well as extensive research on the effect of hydrogen
on the different materials found in the gas network. The Health and
Safety Laboratory has been overseeing all safety aspects of
HyDeploy, providing expert impartial advice to the project.
Keele University was viewed as the perfect test site, owning and
operating its own private gas network, independent of the UK's
wider gas network. The University is working with businesses,
academics and graduates to create Europe's first 'at scale'
multi-energy-vector smart energy network demonstrator - where new
energy-efficient technologies can be researched, developed and
tested in a real world environment.
HyDeploy is led by Cadent in partnership with Northern Gas
Networks, Keele University, the Health and Safety Laboratory (HSL),
integrated hydrogen energy systems manufacturer ITM Power, and
independent clean energy company Progressive Energy. It is
supported by testing, inspection and certification world leaders
KIWA Gastec and specialist engineering consultancy Otto Simon.
Fast facts
-- Heating homes and industry accounts for nearly half of all
energy use in the UK and one third of the country's carbon
emissions.
-- If hydrogen were blended with natural gas across the UK at a
similar level to HyDeploy, it could save around 6 million tonnes of
carbon dioxide emissions every year, the equivalent of taking 2.5
million cars off the road.
-- Hydrogen was a major component in 'town gas', gas created
from coal and used widely throughout Britain before the discovery
of North Sea gas in the 1960s. Up to 60% of the gas (by volume)
being used by consumers was hydrogen.
-- Across Europe, permitted levels of hydrogen in the gas supply
vary, from 0.1% in the UK to up to 12% in parts of the
Netherlands
To find out more visit www.hydeploy.co.uk
For further information, please visit www.itm-power.com or
contact:
ITM Power plc
Graham Cooley, CEO +44 (0)114 244 5111
Investec Bank plc (Nominated Adviser and
Broker)
Jeremy Ellis / Chris Sim / Alexander Ruffman +44 (0)20 7597 5970
Tavistock (Financial PR and IR)
Simon Hudson / Nick Elwes / Barney Hayward +44 (0)20 7920 3150
About ITM Power plc
ITM Power manufactures integrated hydrogen energy solutions for
grid balancing, energy storage and the production of green hydrogen
for transport, renewable heat and chemicals. ITM Power was admitted
to the AIM market of the London Stock Exchange in 2004. In
September 2017 the Company announced the completion of a GBP29.4m
working capital fundraise. The Company signed a forecourt siting
agreement with Shell for hydrogen refuelling stations in September
2015 and subsequently a deal to deploy a 10MW electrolyser at
Shell's Rhineland refinery. The company entered into a Strategic
Partnership Agreement with Sumitomo Corporation in July 2018 for
the development of multi-megawatt projects in Japan. Additional
customers and partners include National Grid, Cadent, Northern Gas
Networks, RWE, Engie, BOC Linde, Toyota, Honda, Hyundai, Anglo
American among others. www.itm-power.com
-ends-
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