National Grid Gas Distribution
Robert Cairns – Project Delivery Specialist, Tony Nixon – Business Sponsor
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Gas Distribution Networks
The proposal is to replace the existing pressure reduction equipment with an integrated energy recovery and hydrogen electrolysis equipment package. The hydrogen gas will be generated from the power generated and immediately injected into the gas grid. The main elements to this technology are:
- Pre-heat (if required)
- Turbo expanders
- Hydrogen electrolysis
- Gas analysis and injection
The feasibility report delivered by AMEC in June 2014 has shown that this technology is technically possible and early indications are that it is commercially viable. On this basis, National Grid Gas Distribution wishes to proceed with funding a development. There are several funding mechanisms that can be drawn upon and each of these will require commercial justification. Therefore, there is a need for a well thought out and solid business case to be developed so that National Grid can make an informed decision.
To increase the accuracy of the estimated costs, there will be a need to develop the ‘scheme of arrangement’ for the proposed installations. From these engineering drawings quoted costs can be obtained.
Equally the other non-financial benefits need also to be fully understood and this will need further investigation.
This proof of concept will be divided into two main work streams.
The objective of this work package is to understand what information is already available, how mature the technology is (TRL level) and to get an approximate feel for the cost of the equipment.
Commercial and financial review
The objective of this work package is to understand, given the costs and technical risks, how attractive is this technology, will the regulator support its introduction and what ownership models will work best for the network.
The success of the initial feasibility study has acted as a precursor to prove the ability for demonstration projects in the UK and potentially the programmed rollout of many such installations once the project is proven successful.
To allow this decision to be made, Amec will produce a report which will highlight;
- Recommendation of sites appropriate sites where technology may be applied
- Breakdown of costs to install equipment and maintain
- The derived benefits, financial and non-financial
A decision can then be made as to whether a field trial would be beneficial and highlight the possibility of success into a programmed roll out.