The £0.9 billion estimated infrastructure investment and £82 M/annum operating expenditure for HyNet represent a lower cost compared to alternative large scale hydrogen decarbonisation projects, with similar CO2 savings.
This is due to:
- The concentration of industry in a relatively small geography. This creates consistent demand, avoiding the need for hydrogen storage.
- Hydrogen blending for homes and businesses means existing domestic appliances do not have to be replaced.
- Close geographical proximity and timing of depletion of offshore gas fields for CO2 storage and the potential to use existing pipeline assets.
HyNet is a ‘low’ regrets project as the UK explores the pathways to reduce carbon emissions by 2050. This is because it is cost-effective without further extension beyond the initial project scope. It is also low cost for the decarbonisation of heat compared with alternatives, such as electrification.