Offshore Wind to Hydrogen Project Secures GBP 7.5 Million Funding

The next phase of Gigastack, a renewable hydrogen project, has secured GBP 7.5 million funding as part of the UK’s Department for Business, Energy and Industrial Strategy (BEIS) Hydrogen Supply Competition.

The Gigastack project, led by ITM Power, Ørsted, Phillips 66 Limited, and Element Energy, will show how renewable hydrogen derived from offshore wind can support the UK’s 2050 net-zero greenhouse gas emission target.

As part of the initial feasibility phase of the Gigastack project, which finished in 2019, ITM Power developed designs for a low-cost modular 5MW electrolyser ‘stack’, collaborating with Ørsted to understand the potential synergies with offshore wind farms and with Element Energy to undertake a market analysis and explore business models for the first industrial-scale 100MW electrolysers.

For the second phase of the project, which has now received funding from the department for BEIS, the consortium will conduct a Front-End Engineering Design (FEED) study on a 100MW electrolyser system using staged installations with a nominal capacity of 20MW.

The FEED study will detail the actual design of a hydrogen production system connected to a wind farm and industrial off-taker using ITM Power’s electrolyser stack technology, renewable energy directly from Ørsted’s Hornsea Two offshore wind farm, and with the resulting renewable hydrogen supplied to an industrial off-taker; Phillips 66 Limited’s Humber Refinery.

A key objective of the Gigastack project is to identify and highlight regulatory, commercial and technical challenges for real applications of industrial-scale renewable hydrogen systems.

As part of the second phase, ITM Power will also install and trial both their next-generation electrolyser stack and the semi-automated manufacturing machines required for large-scale and high-volume manufacture of these new large low-cost stacks. This will help validate a complete production system capable of delivering hundreds of megawatts of electrolysers per year.

“Creating renewable hydrogen with offshore wind really has the potential to decarbonise industrial processes, and what is needed now is to scale up the electrolyser technology and bring the cost down,” Anders Christian Nordstrøm, Vice President for Hydrogen, Ørsted, said.

”We’ve seen this happen in offshore wind. With industry and government working together, there has been a rapid deployment and a huge cost reduction. This project aims to do the same with hydrogen. At the right cost, this technology has the potential to play a huge role in meeting the UK’s decarbonisation targets. We’re excited to be part of this project in the Humber region where we are already very active, including constructing the biggest offshore wind farms in the world, Hornsea One and Two, and with them setting the global standard for deployment of offshore wind at scale.”