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Statera Energy to develop 3GW Kintore Hydrogen project

3/30/2023

Major UK green hydrogen project set to provide secure and clean UK energy
Kintore Hydrogen is targeting full production by 2030
Project granted UK Government funding under Strand 1 of the Net Zero Hydrogen Fund

Statera Energy, a leading UK developer of flexible energy generation and storage technologies which help balance the grid, today announces plans for the development of a major green hydrogen project in Kintore, Aberdeenshire.

Kintore Hydrogen is a 3GW electrolyser project which will use surplus Scottish wind power to create green hydrogen to supply Statera’s power generating facilities and the UK’s most carbon intensive industrial clusters through existing gas transmission pipelines.

The UK Government has today confirmed that Kintore Hydrogen has been a successful applicant in its Net Zero Hydrogen Fund (NZHF) Strand 1 competition, and will receive funding for its Front End Engineering Design (FEED), planning and consenting work. The Government has backed the initial 500MW phase of Kintore Hydrogen’s development. The proposed FEED study has a target completion date in 2024 and the project will be ready for a Final Investment Decision in 2025. The full 3GW of production is expected by 2030.

The project will offer significant benefits to the UK and its transition to net zero. It will enable Scottish wind generation to be used for electrolysis to produce green hydrogen. This will reduce the need for more costly transmission grid reinforcements to convey excess electricity in Scotland to other parts of the UK. The 3GW electrolyser project will also complement the conversion of the UK’s natural gas transmission pipelines to carry a greater share of lower-carbon, green hydrogen, helping decarbonise energy intensive UK industry. This will improve the UK's energy security, as well as creating nationally important infrastructure, unlocking private investment in the green economy, and creating highly skilled local jobs.

Tom Vernon, Managing Director, Statera Energy said:

Kintore Hydrogen is another demonstration of Statera’s commitment to balancing the grid and meeting the challenge of decarbonising the UK’s energy system. The project will produce green hydrogen at scale in an optimal location, offering low-cost, secure and storable energy to the UK system. Kintore will be a flagship project for Statera. Today we welcome Government’s support for this nationally significant project, which will provide a meaningful contribution to the UK’s clean energy ambitions.

Julian Leslie, Head of Networks and Chief Engineer, National Grid ESO said:

Kintore Hydrogen can play a critical role both in alleviating grid constraints and acting as a long duration energy store beyond the expected capabilities of battery storage and pumped hydro. It provides an opportunity to reduce whole system costs whilst also contributing to the decarbonisation of the country’s energy network and maintenance of the UK’s energy security system.

Antony Green, Hydrogen Director, National Gas Transmission said:

Kintore will be a key enabler for the UK’s energy transition, helping meet the national target of net zero by 2050. Repurposing existing gas networks will be critical in connecting hydrogen producers

with hydrogen consumers, to deliver reliable, safe and efficient supplies of the fuel. Project Union, which is the development of a hydrogen transmission backbone, aims to be the most efficient solution for transporting otherwise curtailed Scottish renewable energy for the rest of the UK.

Andrew Bowie MP, Member of Parliament for West Aberdeenshire & Kincardine commented:

Kintore Hydrogen will use low-value, surplus Scottish offshore wind energy to produce hydrogen to power businesses and homes across the UK. If progressed, this world-leading green energy scheme, one of the biggest of its kind in the world, will help to secure the UK's energy supplies, support job creation in West Aberdeenshire and Kincardine, deliver regional economic growth and accelerate the decarbonisation of our economy.

Alexander Stafford MP, Chair of the All Party Parliamentary Group on Hydrogen commented:

Hydrogen is firmly at the heart of the global race to reach net zero carbon emissions, and Kintore Hydrogen confirms the UK's commitment to achieving our ambitious hydrogen targets and leading the world towards a green future. I'm delighted that Statera Energy is seeking to use UK-made technology and UK-based contractors where possible, maximising the opportunities for UK job creation and economic growth that the decarbonisation of our energy system can offer.

Statera Energy has circa 1GW of battery storage and flexible generation in operation or under construction with a further 13GW of hydrogen production, battery storage, flexible generation and pumped storage in development. Its mission is to be the UK leader in providing flexibility resources to help balance a high-renewables electricity system.

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