A new deal signed by Octopus Energy will enable the utility to develop green hydrogen projects alongside the company’s 4GW of renewable energy capacity in the UK.
Octopus Energy has partnered with Innova Renewables and Novus to design, implement and operate green hydrogen projects.
The utility’s arm Octopus Hydrogen will design and install electrolysers, compression and mobile hydrogen storage projects for Novus. The electrolysers will be between 2 and 20MW in scale and will be installed at Octopus Energy’s existing and new solar, wind and energy storage projects.
These combined renewable energy and hydrogen sites will be among the first co-located green hydrogen projects in the UK, helping to establish a green hydrogen market and the model for a decentralised production and distribution business.
The green hydrogen production facilities will be directly connected to on-site renewable energy generation which will be purchased via long-term power purchase agreements, producing between 500 and 2500kg of hydrogen per day.
Octopus Energy will provide software for optimal control of the electrolysers. The software will provide the utility with insights regarding the best times to divert renewable energy used to balance the grid for the production of green hydrogen, according to a statement. This will help reduce renewable energy curtailment.
Octopus Hydrogen will be combining the full value chain from production, optimisation and delivery to end-users in the transport sector. The projects will enable the three parties to play a key role in energy transition and help the UK move closer to its 2050 net-zero goal.
Will Rowe, Founder and CEO of Octopus Hydrogen, said: “This is an incredibly exciting step forward on the journey for Octopus Hydrogen. Partnering with Innova and Novus will allow us to develop and establish our decentralised model for green hydrogen production in the UK.
“Through this partnership, we will increase the amount of green hydrogen available in the UK by approximately 25 tonnes per day, enough to decarbonise over 500 long haul HGV’s.
“We need to see electrification wherever possible, for home heating and domestic cars, but we also need green hydrogen to help decarbonise the hard-to-abate parts of the transport sector.”