The UK’s Hydrogen Strategy sets a target for 5 GW of green hydrogen production capacity in the UK by 2030. It is anticipated that around half of this hydrogen will be produced via electrolysis, which means adding significant demand to electricity networks. Currently, there are knowledge gaps on the likely operating behaviour and demand characteristics of electrolysers, and how they will interact with electricity networks. The HERACLES project will take the first steps to solving this problem by developing an understanding of where electrolytic hydrogen plants can best be deployed in WPD’s licence areas, and identify the type and level of data required to ensure the optimum operation of electrolysers on the network.
Benefits
HERACLES will develop learning of the potential growth and impact of hydrogen electrolysers on distribution networks and how best to strategically optimise those connections.
Hydrogen will likely play a prominent role in the decarbonisation of UK plc, due to the UK’s extensive gas infrastructure. It will contribute to the decarbonisation of transport, through hydrogen fuel cells or hydrogen combustion, and heating, through hydrogen boilers or hybrid heat pumps. Taking a Whole System approach to decarbonisation means that electricity networks should ensure that they are not the barrier to the growth of green hydrogen.
Optimising the capacity available on electricity networks for the uptake of electrolysers will reduce reinforcement costs funded by network customers and therefore the cost of these benefits.
HERACLES will also investigate potential additional customer benefits from the growth of hydrogen production. There is significant potential for these electrolysers to offer new types of flexibility and interoperability and to embed these in connection agreements.
Additional reinforcement deferment benefits may also be seen in the use of hydrogen for transport. Hydrogen may prove to be a more cost-effective low carbon transport option for rural and heavy industry applications than electric vehicles, and the growth in hydrogen transport would obviate the need to provide network infrastructure for EV charging in those areas.
Learnings
Outcomes
- The project has generated a set of reports on learning of the potential impact of the development of green hydrogen production capacity in the UK for DNOs, and the challenges and opportunities herein.
- A electrolyser site selection optimisation tool has been created for potential trial in further Network Innovation Allowance (NIA) or BAU activity.
- A methodology has been developed for forecasting potential hydrogen requirements of carbon intensive industries and the electrical capacity required to produce it.
- The project has highlighted that currently the electricity network does not feature highly in the processes for developing hydrogen electrolyser projects and there is a significant need for networks to become a more prominently featured stakeholder.
- A series of potential next steps within BAU and innovative activities has been identified.
Lessons Learnt
HERACLES is a first step towards understanding the challenge of green hydrogen production to Distribution Network Operators (DNOs). As such, implementation of its outcomes would be multidirectional, including integrating the knowledge developed into Business as Usual (BAU) activity, BAU development of new capabilities and potentially follow on innovation funded projects to address specific challenges which have been identified.
WP3 produced a series of suggested next steps for DNOs to build on HERACLES, which will be found in Section 3 of the final report.
