The potential value of 60 per cent local content on floating offshore wind powered green hydrogen projects to the UK is up to £68 billion Reimagining a Net Zero North Sea:
An Integrated Energy Vision for 2050 [1] presents three future scenarios for the UK’s energy system. Two of these scenarios predict green hydrogen to make up a significant proportion of the UK’s energy mix. The progressive and transformational scenarios predict 75 TWh and 253 TWh required each year by 2050 respectively.
Figure 2 Integrated Energy Vision Progressive Scenario [1] Figure 3 Integrated Energy Vision Transformational Scenario [1] Meeting these scenarios would require between 9 and 31 projects of similar scale to those considered in the case studies herein to be producing green hydrogen in 2050. This assumes that 50 per cent of the electricity requirements for green hydrogen production are being met by floating offshore wind [2], reflective of an increase in floating offshore wind in the UK’s energy mix as nearshore fixed bottom opportunities are utilised.
Average present value lifecycle spending on one of the case study projects considered herein is circa £5.5 billion. Thus total lifecycle spending across the number of projects required is between £49 and £170 billion depending on the deployment scenario met.
Meeting the UK Government’s 60 per cent local content target therefore represents a £20 - £68 billion opportunity for the UK supply chain.
