The Scottish government alongside industry partners proposed on Thursday an offshore hydrogen pipeline connecting the country to Europe as part of its ambitions to become a leading green hydrogen exporter.

Aberdeen-based Net Zero Technology Centre (NZTC) revealed in a new report that the “optimal route to market” for Scotland’s green hydrogen is through a new, purpose-built pipeline link through Danish and Norwegian waters. The so-called Hydrogen Backbone Link (HBL) project would run from Flotta in Scotland to Emden in Germany, stirring away from the UK North Sea’s existing oil and gas infrastructure.

With a £2.7 billion ($3.4 billion) capex, the pipeline could supply 10% of the projected European demand by the mid-2030s, creating 700 jobs and delivering an internal rate of return (IRR) of 6%. The research carried out by NZTC studied several route options, including one via the rest of the UK with both new and repurposed onshore pipelines, passing through France, Belgium, Netherlands, Germany and Denmark.

The study modelled a 10-GW pipeline capacity, suggesting transportation costs of €0.32/kg or €0.36/kg, compared to over €1/kg from other routes. NZTC says that Scotland’s “moderately higher green hydrogen production costs [at €2.4/kg] are balanced out by its low cost of transport.”

The proposed route allows for accelerated delivery of green hydrogen from multiple Scottish producers to export markets in Germany and beyond, says Thomas Atherton, senior energy developments consultant at Xodus Group. “The proximity of the route to multiple wind farms areas allows for potential connectivity to wind-powered offshore hydrogen electrolysers in future,” he adds.

With some of Europe’s highest capacity factors for offshore wind (around 60%), Scotland aims to become a net exporter of green energy by 2045, with up to 94 terawatt-hours exported annually to Europe. Earlier this year, the country approved over 30 GW of marine wind projects. The HBL would require 10 GW of wind farm capacity. Its proposed route also closely follows German offshore wind projects.

“The Scottish government recognises the importance of developing hydrogen pipelines to unlock Scotland’s export potential,” comments Scotland’s energy secretary Neil Gray. “We want to work collaboratively with partners across Europe to advance infrastructure which ensures security of supply in Europe and positions the North Sea as a centre for low-cost hydrogen production.”

Project partners, which include Shetland Island Council, EnQuest, Kellas Midstream, Crown Estate Scotland and Shell, now plan to evaluate the next steps required to progress to construction and start-up of the HBL. NZTC has also had contributions from Xodus, DNV-GL, Wood., Wood Mackenzie and Worley. The National Grid and SGN are strategic partners.

Scotland’s major export potential lies in its abundant natural resources, skilled workforce and proximity to an “energy-hungry” market in northwest Europe. However, “to maximise this, will take accelerated and increased government and industry investment, rapid development of infrastructure and cross border collaboration over the next decade,” warns HBL project manager Callum Milne.

The EU is expected to import 333 TWh/y of hydrogen in 2030 and 1,000 TWh/y in 2050. The proposed pipeline could export 35 TWh/y of the gas to the bloc in 2030, increasing to 94 TWh/y in 2050.

Source: NZTC