October 13, 2020
HyNet launches its vision
On 9th October, a new HyNet North West report was launched to share the project vision with all stakeholders. Titled “HyNet North West: Accelerating towards a Net Zero Cluster”, the vision document shows a clear deployment plan for the project and how it will grow from first operation in 2025 to deliver even more material decarbonisation in 2030 and beyond.
The report highlights the economic benefits associated with HyNet North West in respect of job creation and economic growth. It also sets out a clear set of business models and associated policy mechanisms across the hydrogen and carbon capture and storage (CCS) chain, which will provide comfort to investors and enable the project to reach financial close.
To read the report, please click here.
Beginning of planning and design process
Before construction and operation of HyNet North West can begin, we will secure the relevant planning permissions. The carbon dioxide and hydrogen pipelines are of a scale that mean they are classified as Nationally Significant Infrastructure Projects (NSIPs) under the Planning Act 2008.
This means that rather than obtaining planning permission from the relevant local planning authorities, we need to apply to the Secretary of State for Business, Energy and Industrial Strategy (BEIS) for a special type of permission known as a Development Consent Order (DCO).
The DCO process involves a series of consultations with stakeholders and local communities before we submit our application, to eventually arrive at a design for the project that best fits the needs of local people and ensures its safety.
The carbon dioxide pipeline will be the first of the DCO applications to come forward for consent. We will begin this pre-application conversation with a public consultation in early 2021.
For further information on the DCO process for HyNet North West, please click here.
IDC Funding Submissions and Awards
As part of the HyNet North West project, a consortium of partners has submitted a bid for Phase 2 deployment funding under the UKRI (UK Research and Innovation) IDC (Industrial Decarbonisation Challenge) Programme. If we are successful in our bid, this funding will enable us to begin detailed engineering design and continue engagement with stakeholders and communities.
The Phase 2 deployment bid was submitted by Progressive Energy on behalf of consortium of partners. In the current absence of long-term policy mechanisms, which would enable private sector funding, this Government support would take the project to a final investment decision (FID) in 2022.
This submission follows the awarding of Phase 1 deployment funding under the same programme in April 2020 to develop the bid for Phase 2 support.
At the same time, a related consortium of partners has successfully submitted a bid for funding for a Phase 2 ‘Cluster Plan’, also under the IDC Programme. This will be used to set out a clear roadmap for how the North West will decarbonise industry, protect jobs and help the UK meet its legally binding net zero targets.
This too follows the awarding of funding for a Phase 1 Cluster Roadmap to a consortium which included Peel Environmental, Progressive Energy, the University of Chester, Cheshire & Warrington Local Enterprise Partnership, Mersey Dee Energy, North West Business Leadership Team, and the Liverpool City Region Growth Company.