"This project is a feasibility study into a large-scale power-to-gas (P2G) demonstration project. P2G technology aims to solve the challenge of accommodating intermittent renewable electricity generation on the grid by producing zero-carbon fuel. P2G systems respond flexibly to absorb electricity at times when generation exceeds demand, helping the electricity system to accommodate renewable generation which may otherwise be wasted. The electricity splits water into hydrogen and oxygen. The low-carbon hydrogen gas has several uses: as a transport fuel; in industry to displace methane used for heat or fossil-fuel derived hydrogen in chemical processes; and it can also replace some or all of the methane in the gas network to decarbonise heating. P2G systems hold significant potential to help to decarbonise the electricity and gas networks as well as enabling energy storage by absorbing excess energy on the electricity grid and storing it (e.g. in salt caverns), ready to be injected into the gas network.

One hydrogen for heat project is underway in the UK; HyDeploy will inject hydrogen into a closed private gas network. Other P2G systems are operating worldwide. However, these projects are generally small scale and in the UK no project has yet injected hydrogen into the public gas network, nor have they trialled the impact of providing grid balancing services on the economics of gas production. Several projects are in place to understand the feasibility of injecting into the gas network and to determine the regulatory changes which would be required. This project aims to explore the options, costs, and key design elements of a large-scale P2G system which could be deployed in Cheshire. The objectives are: to produce sufficient evidence (technical and economic) to enable the demonstration project to be financed and built; to raise awareness of the potential for such systems to transform and decarbonise the energy sectors; and to produce a detailed design for a large-scale electrolyser system. The project partners in this application include ITM Power, a UK manufacturer of PEM electrolysers; INOVYN, a chemical company with hydrogen experience which owns the site under consideration; Storengy, a gas storage company operating a site in Cheshire; Cadent, who operate the local gas distribution network and are promoting the NW of England as an international centre for hydrogen expertise; and Element Energy, a low carbon energy consultancy with expertise in business planning for innovative energy projects."