Hydrogen: a Businessclick to Opportunity Edit Master for the Title Style North East Regionclick to Edit Master Subtitle Style

Hydrogen: A BusinessClick to Opportunity edit Master for the title style North East RegionClick to edit Master subtitle style

Chair: David Caine, ERM Click to edit> Scotland’s Master Plan for Hydrogen title- Dave Holman, style Scottish Enterprise Session 1: > OGA and the Energy Transition - Andy Samuel, Oil & Gas Authority Hydrogen Click> Hydrogen to edit Master for remote subtitle communities style - Mark McKean, The Crown Estate Policy > Phased Hydrogen, H100 etc. - Angus McIntosh, Scottish Gas Network Scotland’sClick to edit Plan Master for title style Hydrogen Click to edit Master subtitle style

Speaker: Dave Holman, Scottish Enterprise

> Back to contents Hydrogen Scotland David Holman Scottish Enterprise 1st October 2019

www.scottish-enterprise.com Hydrogen Scotland David Holman Scottish Enterprise 1st October 2019

www.scottish-enterprise.com Global Hydrogen

www.scottish-enterprise.com Hydrogen Roadmap Europe

www.scottish-enterprise.com Hydrogen Scotland

www.scottish-enterprise.com No grid connection. Large gas transmission pipe to St Offshore wind potential. Fergus. Projects & Opportunities Power to Gas Kirkwall, Shapinsay, Eday. Electrolysers, trailer logistics, fuel cell, van fleet, ferry. H2 for Project SWIFT. CMAL LCITP project. Feasibility only to power, heat, chemicals (Flotta) and transport. look at green hydrogen production and supply to Significant constrained wind and high fuel inter island ferry & buses. Significant constrained prices. Number of ongoing projects of wind. Circular Economy project, local energy hub – interest. hydrogen production, oxygen use. Both Thurso & Wick have independent gas networks, currently supplied by LNG using Speyside & Tain. CCU and hydrogen opportunity at road tanker whisky distillery cluster. Hydrogen for heat, feedstock for chemicals, biorefining, green fuels. St Fergus. Project ACORN. Aberdeen Vision Project. Blue hydrogen. Inverness to Fort William. Potential extension of gas network? Inverness – Rail Aberdeen. Buses (JIVE), H2 vehicles, depot currently used for diesel refueling AECC FC-CHP, Net Zero Solution Centre, ERM Dolphyn. Hydrogen Coast Oban. Independent gas network. Currently Concept. supplied by LNG using road tanker. Dundee. JIVE2 bus fleet. MVV EfW project/hydrogen production. Michelin Glasgow. First LEZ in Scotland (2018). Low Energy Innovation Park carbon vehicle strategy. HV Systems. St Andrews. Innovation and research East Kilbride. Scottish Hydrogen Park cluster around fuel cell technology. approach at SE Tech Park Centre for Innovation in Energy Storage . Mull of Kintyre. Macrihanish – potential H100 site. Eden Campus. Campbeltown – independent gas network supplied by LNG. Timberlink project. Levenmouth. Hydrogen Office. Smart local energy system. H100 potential Chapelcross, Annan. Redevelopment site with grid site. connection. Road and rail transport nearby. Grangemouth. Largest industrial H2 user at refinery. Chemicals cluster. CCU, longer term www.scottish-enterprise.com CCS. Hydrogen Assessment Project

Hydrogen Illustrative Pathway Potential of Energy Hydrogen in Strategy the gas grid Electricity and Policy Gas Vision Commitment Paper Annual Energy Statement Hydrogen Assessment Project

www.scottish-enterprise.com CCC Net Zero

• UK Net zero by 2050

• Scotland net zero by 2045. (70% by 2030 and 90% by 2040).

• No-where to hide anymore….there’s no 80% reduction target with a 20% window for breathing space.

• Significant reference to hydrogen in terms of industrial decarbonisation, heat, heavier vehicles and back up storage.

• Both blue hydrogen with CCS and green hydrogen.

• Report a game changer for the UK.

www.scottish-enterprise.com Hydrogen Assessment Project

Phase 1 - Internal Connect Scot Govt & agencies & UK Govt Stakeholder Literature Phase 2 - External Engagement review Stage 1 Assessment & Workshops identification of working Phase 3 - Analysis Final Maximise groups Assessment external input Report Includes: Economic Impact, supply chain & foresighting Slide Deck / Mapping / Visual representation www.scottish-enterprise.com Hydrogen Mapping

Aim is to visualise and connect:

• Projects • Resources • Utilities • Transport links

www.scottish-enterprise.com Contact

Thank you

David Holman [email protected]

0141 4685268

www.scottish-enterprise.com SupportingClick to editthe EnergyMaster title style Transition –ClickThe to edit Master OGA’s subtitle style Role

Speaker: Andy Samuel, Oil and Gas Authority

> Back to contents Supporting the energy transition The OGA’s role

Dr Andy Samuel Chief Executive October 2019

© OGA 2019 This presentation is for illustrative purposes only. The OGA makes no representations or warranties, express or implied, regarding the quality, completeness or accuracy of the information contained herein. All and any such responsibility and liability is expressly disclaimed. The OGA does not provide endorsements or investment recommendations. Oil and Gas Authority is a limited company registered in England and Wales with registered number 09666504 and VAT registered number 249433979. Our registered office is at 21 Bloomsbury Street, London, United Kingdom, WC1B 3HF Case for change

MER UK

UK Oil demand and production UK Gas demand and production

Strong 150 150 supply chain, Energy exporting security globally

0 1970 2035 0 1970 2035

Anchor Diversification, Oil production Gas demand Gas production Oil demand skills in UK transition to Oil demand (BEIS 2018 Oil production (OGA Gas demand (BEIS 2018 Gas production (OGA UEP Reference Scenario Mar 2019 projection UEP Reference Scenario Mar 2019 projection net zero 2050

Debate more polarised than ever – quality dialogue and evidence based action required UKCS is a critical energy asset

Huge opportunity ahead OGA current role on energy transition

Maximising Increasing Offshore Licensing of Enhanced Oil Promoting Supporting domestic operating flaring and carbon storage Recovery offshore energy supply chain gas efficiency: venting integration production emissions benefits

OGA fully supports energy transition as set out in our policy 1 9 Carbon capture and storage

Positive steps in BEIS policy development

2019 important year for CCUS with action plan underway OGA’s CCS role

78 Working collaboratively with GtCO2 government and industry 75-175 total UKCS MtCO2 Licensing and permitting CO2 storage authority for carbon storage – resource estimate CCC estimate of annual OGA issued first licence Dec 18 requirement in 2050 Consider re-use as part of the OGA Cessation of Production process large scale (12 MtCO2 per year) Promoting role of CO2 EOR 6-15 CCS projects CCS as blue hydrogen enabler in 2050

to support CCS transport and storage to offset UKCS production emissions <$0.5 (5% of the reduction in operating costs achieved since 2014) boe UKCS Energy Integration project

Funded by £1m grant Activity Schematic Platform Electrification Led by OGA, in collaboration with BEIS Reduce costs and emissions Crown Estate and Ofgem Gas-to-Wire Quantify and help unlock UKCS energy Power from gas offshore, integration opportunities Transmitted to shore

CCS enabler for energy transition – CO2 transport and storage leverage O&G infrastructure Re-use of infrastructure and fields

Potential integrating multiple sources: Power-to-Gas renewables, O&G, and H Offshore windfarms 2 produce hydrogen

Oil and gas companies and supply chain North Sea Wind Power Hub will play a critical role in delivery Large scale hydrogen production Hydrogen: initial findings

Onshore proven but still upside Potential H2 models Activity Schematic Offshore to be piloted (Q13a in Netherlands) Blue - onshore SMR and H2 Re-use potential: SNS, EIS and NNS storage, offshore CCS • Onshore: methane reforming Larger hubs can help capture full potential: • Offshore: wind powered Shetland, Orkney, SNS, EIS and NNS desalination; CO2 storage

Green - onshore electrolysis and H2 storage • Onshore: wind powered electrolysis; H2 storage • Offshore: wind powered desalination

Green - offshore electrolysis and H2 storage • Offshore: wind powered electrolysis on platforms; H2 storage; H2 transportation with re-used

pipelines TNO Schematic: Encouraging industry interest and activity Flotta & Sullom Voe terminals – H2 Norway: Electrification, Offshore Project + renewable power Floating Wind, H2, CCS Caledonia Clean Energy Project Acorn

OGTC NZSC and ONE ET Park

H21

Clean Gas Project

HyNet Electrification

Zero Carbon Humber SNS GTW and CCS

FLEXIS demo area

Netherlands: H2, electrification, CCS

We all need to work together to get projects over the line as soon as possible HydrogenClick to editfor RemoteMaster title style CommunitiesClick to edit Master subtitle style

Speaker: Mark McKean, The Crown Estate

> Back to contents Hydrogen for Remote Communities

Mark McKean

1 Who we are and what we do

• Investing in property, natural resources and people to generate lasting value for Scotland. • Scottish Crown Estate spans length and breadth of Scotland. Includes rural estates, commercial property, mineral and salmon fishing rights, just under half of the foreshore and almost all of the seabed. • Return all revenue profit to Scottish Government. Building the blue economy

• Offshore renewables • Ports & harbours • Marine tourism • Local energy systems • Carbon capture, utilisation & storage • Oil & gas, telecommunications • Sustainable aquaculture The Energy Landscape is changing ….

Offshore wind costs have reduced significantly over the past 8 years The Energy Landscape is changing ….

All vehicles

EV Uptake

www.fes.nationalgrid.com/fes-document/ Our energy system is www.carbonbrief.org/analysis-uk-electricity-generation-2018-falls-to-lowest-since-1994 challenged to respond to our changing demand The Energy Landscape is changing ….

Community-owned operational renewable energy projects in Scotland, June 2016 Source: Energy Saving Trust

Communities interest in and ownership of energy assets has increased The Energy Landscape at present …. The energy sector is a key to responding to the net zero challenge What does this mean for Communities?

Increasing opportuniti es for regional/loc al/ island solutions Source: Wind and Sun

Decentralised Source: Surf and Turf Drive to capitalise on capturing energy storage ‘spilled’ energy generation from and systems renewable technologies utilising hydrogen for communities

Source: Equinor Scalable renewable generation solutions enabling a zero carbon future

Source: AES What we’ve done to explore this further

https://www.crownestatescotland.com/media-and-notices/news-media-releases- opinion/new-study-can-help-coastal-communities-benefit-from-local-energy-solutions What we’ve considered - Six (model) Scenarios

SCENARIO 1a: SMALL WAVE 1. FRAMING CONNECTING TO REMOTE ISLAND SYSTEM SITUATION WITH PRIVATE NETWORK Situation OPTIONS SCENARIO 1b: WAVE TO Options AQUACULTURE Selection SELECTION SCENARIO 2: TIDAL CONNECTING INTO LARGE ISLAND WITH SIGNIFICANT INDUSTRIAL USERS 2. ASSESSMENT

FEASIBILITY & SCENARIO 3:TIDAL CONNECTING TO Techno-economic modelling CASE STUDIES ECONOMICS REMOTE MAINLAND PORT WITH Case studies MARITIME HYDROGEN SYSTEM Regulatory issues INVESTMENT SCENARIO 4: TIDAL ARRAY WITH Investment options OPTIONS BATTERY STORAGE PROVIDING AN Barriers & opportunities ALTERNATIVE GRID UPGRADE 3. RECOMMENDATIONS SCENARIO 5: LARGE SCALE FLOATING RECOMMENDA- CONCLUSIONS Defining specific actions TIONS WIND WITH OFFSHORE ELECTROLYSIS AND USE OF GAS PIPELINES

3 Tidal Connecting to Remote Mainland Port with Maritime Hydrogen System (Scenario 3 in Study) THEORETICAL POTENTIAL BENEFITS OF THIS ENERGY SYSTEM AND WHICH STAKEHOLDERS SUMMARY OF PROPOSED ENERGY COULD POTENTIALLY BENEFIT SYSTEM Tidal developers Local community Other* Integration into Offering potential for local energy larger deployment if x x systems viable.

Diversity of Provides tidal generator revenue streams with range of revenue streams. Could x potentially include heat,

O2 and electricity. Conceptual model Decarbonisation of Vessels are a major vessels / port contributor to carbon x x emissions in coastal communities. FUELING PORT Air quality benefits Reduction of pollutants in local area through x x move to hydrogen ELECTRO- vessels. 5 MW Tidal LYSER Mainland Marketing for port Could help attract and vessels companies to port and x x people to the area.

* Others include vessel operators and public sector Large Scale Offshore Wind with Offshore Electrolysis and Use of Gas Pipelines (Scenario 5 in Study) THEORETICAL POTENTIAL BENEFITS OF THIS ENERGY SYSTEM AND WHICH SUMMARY OF PROPOSED ENERGY SYSTEM

STAKEHOLDERS COULD POTENTIALLY community BENEFIT Developers Local Other* Overcomes grid Provides export route constraint for the energy. May x x open up new areas.

Delivers Large scale hydrogen x renewable heat at production. scale

Postpones Offers potential to decommissioning repurpose assets x of pipelines coming to end of life.

Reduced electrical No connection needed Conceptual model connection for to island. x wind farm 100 MW Offshore Floating Wind Electrolyser Employment Through deployment benefits locally of large scale wind x x farm. Gas Mainland Pipelines gas network

* Others include electrical infrastructure operators, gas pipeline operators, and the public sectors What else we are doing ScotWind Leasing • Understanding opportunities for energy systems with offshore renewable developments, potential developments and operating assets in Scotland –

A case study on the wider value of local energy systems alongside offshore renewables, including remote hydrogen projects What else is happening

To support the cost-effective deployment of offshore wind, the sector will establish a System Management and Optimisation Task Group which will explore innovative solutions to support grid integration. This will include managing variability of demand and supply, and the potential for generation and storage of hydrogen for other key applications in a decarbonised energy system. What can Communities take away from all this activity?

• There is a growing interest in linking local/regional communities with decentralised energy and the hydrogen economy; • Demonstration projects and innovation success are key to cost reduction; • Good knowledge of our local energy networks and demand requirements (data, constraints, opportunities) will inform and support development; • Public sector, communities and technology developers collaboration is important for development of local hydrogen systems; • Scotland’s seas remain a valuable national resource that can be utilised as part of Scotland’s hydrogen future. Thank you

www.crownestatescotland.com [email protected]

@CrownEstateScot SGNClick Energy to edit Futures Master title– style SGN PhasedClick to edit Hydrogen Master subtitle style

Speaker: Angus MacIntosh, SGN

> Back to contents SGN Energy Futures

SGN Phased Hydrogen Angus McIntosh Director of Energy Futures

October 2019 A reminder of SGN

Upgrade 1,000km mains replaced per year

Connect 20,000 connections (5,000 fuel poor) per year Emergency 230,000 calls 50,000 repairs per year

Aberdeen Vision Project Facilitation of demand and applications for hydrogen

Acorn Hydrogen /Carbon Capture SMR - Hydrogen production from natural gas with CCS at St Fergus

Acorn CCS Transport and storage of CO2

SMR plant

• Delivers approx. 35% of UK gas

• Existing Industrial Site

• Opportunity for Hydrogen blending on a large scale

• Key Transport Hub – Aberdeen Buses/Marine/Rail

• CO2 Transport via Existing Structure

• CO2 Storage capacity offshore

• Current proposed options for hydrogen pipeline route.

• 450mm diameter pipeline based on 100% conversion of Aberdeen gas network

• Project to determine and consider all aspects related to Hydrogen storage requirements

50 Project Cavendish Hydrogen for South London

Network Site 1 conversion Appliance Features stimulus Site 2 (BEIS)

Generation, storage and Site 3 CCS

Construction Collaborative Parallel Demonstration evidence toward conversion 100% H2

55 Worcester Bosch 2019 Building the Evidence - Scotland

1600000

1400000

1200000

1000000

800000

600000

400000 Emissions Reduction (Tonnes) Reduction Emissions

200000

0 Biomethane Avoided Propanation 2021 2022 2023 2024 2025 2026 Avoided Nitrogen Ballasting Hydrogen Leakage Contribution Aberdeen Vision Industrial By-Product Project Cavendish 5 8 GD3 Potential Carbon EnabledReduction by GD2 R&D 8000000 7000000 6000000 5000000 4000000 3000000 2000000 1000000 Emissions Reduction (Tonnes) Reduction Emissions 0 2027 2028 2029 2030 2031 2032

Biomethane Avoided Propanation Avoided Nitrogen Ballasting Hydrogen Leakage Contribution Aberdeen Vision Industrial By-Product Project Cavendish Rollouts of 100% Hydrogen Networks H2 Supergrid?