Exxon and its partners SGN and Macquarie’s Green Investment Group (GIG) announced they have signed a Memorandum of Understanding (MoU) to explore the creation of a hydrogen hub and carbon capture technologies in the Southampton industrial cluster.
According to the companies, the project would aim to increase the use of hydrogen with carbon capture to help reduce the emissions in the area. It could also stimulate the local economy through the conversion of the natural gas network and would contribute to the decreasing of emissions from domestic heating and transport.
SGN and GIG conducted an initial feasibility study that shows the annual hydrogen demand from the cluster could rise to as much as 37 TWh by 2050, including the heating demand of 800,000 homes across the South of England.
It also estimated that carbon capture facilities would initially capture around 2 million tons of CO2 per year, including from initial hydrogen production of approximately 4.3 TWh per year. The next phase would be technical and business feasibility which if confirmed could head start production in the hydrogen hub in 2030. That is under the condition the right government support is also provided.
Exxon has increased investments into hydrogen with carbon capture as it sees it as a viable pathway to reduce emissions. The president of ExxonMobil’s Low Carbon Solutions business, Joe Blommaert claims that hydrogen will be needed to reduce the emissions of the Southampton industrial area that provides vital products for modern life.