SEEL and Progressive Energy signed an agreement for low carbon hydrogen production facility

Sumitomo Corporation, through its wholly-owned subsidiary in the UK Summit Energy Evolution Limited (SEEL), and Progressive Energy announce the signing of a joint development agreement for a low carbon hydrogen production facility located in the vicinity of the Bacton gas terminals, UK.

The project, named the Bacton Hydrogen Hub, aims to provide a significant contribution towards the UK’s low carbon hydrogen targets to support the development of a country-wide sustainable hydrogen economy, in addition to industrial decarbonisation at local and regional scales.

Bacton Hydrogen Hub will primarily focus on the production of CCS-enabled hydrogen, with succession planning for electrolytic hydrogen production. Hydrogen production will be designed to meet regional demand, enabling the switch from fossil gas to low-carbon hydrogen. Initial work will build on work carried out including feasibility studies and a business case on behalf of the North Sea Transition Authority. The scope for re-use and re-purposing of existing infrastructure will also be assessed.

The Bacton gas terminals, located in the southeast of the UK, are nationally important infrastructure. The terminals currently handle approximately one-third of the UK’s North Sea gas production and host a connection to the National Transmission System and interconnector pipelines with NW Europe for the import and export of natural gas.

Combining Progressive Energy’s expertise in low-carbon hydrogen market development and production with Sumitomo Corporation Group’s experience in business development and operations across various industries, the two organisations aim to start producing CCS-enabled hydrogen by 2030, transitioning to electrolytic hydrogen utilising offshore wind after 2040.

Paul Lafferty commented, “SEEL is pleased to have signed this significant JDA with PEL to build upon the excellent work that was performed by the Bacton Energy Hub SIGs and look forward to creating a sustainable low-carbon hydrogen production hub at Bacton.”

Chris Manson-Whitton said, “Reducing our carbon emissions is imperative to securing a sustainable future. We are looking forward to transforming the work completed with the North Sea Transition Authority into a delivery project which underpins the energy transition within the southeast of the UK and beyond”

Stuart Payne said, “This is an important step forward in supporting UK energy security and the drive to net zero by creating a low-carbon hydrogen hub at Bacton.

“The Bacton project, which we got underway in 2020, could provide decades of clean energy for up to 20 million homes, along with supporting carbon storage and wind power and creating skilled jobs as part of the energy transition.

“We wish this project every success and will continue to support it, and others to come, as they develop.”