RWE and SGN join forces for domestic heat green hydrogen partnership

RWE and SGN are set to supply Scottish towns and rural communities with sustainable hydrogen gas through a new partnership.

On 14 June, SGN announced that a Memorandum of Understanding (MoU) had been signed between itself and RWE. This will see them investigate the development of electrolysers, powered by RWE's 10 onshore windfarms in Scotland which boast a combined capacity of 213MW, to supply homes and businesses with hydrogen through Scotland's gas network.

Specifically, the partnership will be looking into decarbonising homes and businesses connected to the networks of Campbeltown, Stornoway, Oban, Thurso and Wick, which are connected to the mains gas network and currently supplied by LNG and LPG. When swapped with hydrogen, this could save 21,000 tonnes of carbon each year, potentially decarbonising as many as 9,500 properties.

It will look to define just how much hydrogen is needed, the requirements to convert these networks over to hydrogen, and the supply of green electrolytic hydrogen from RWE's nearby onshore wind farms. In doing so, the project could also unlock onshore wind farm developments in grid-constrained areas, offering a use for the green power generated.

The coming months will also see a feasibility study carried out into a 100MW electrolyser at RWE's Markinch CHP biomass plant. This could produce green hydrogen from local and grid connected renewable energy, connecting into SGN's gas network in Fife, building on the work already underway in Levenmouth as part of its H100 Fife project.

The knowledge and experience gained from these studies will allow for a better understanding of the practicalities and economics of the entire hydrogen cycle. According to SGN, it will be an important precursor to a potential funding application under the Net Zero Hydrogen Fund.