Octopus Hydrogen, a division of Octopus Energy, and BayWa’s renewables division have signed a memorandum of understanding (MoU) to work together on green hydrogen production facilities at clean power sites around the UK.
Octopus Hydrogen will deploy electrolysers, compression, and mobile hydrogen storage alongside chosen BayWa r.e. solar and wind facilities as part of the strategic cooperation.
Initial projects in the BayWa r.e. project pipeline in the United Kingdom have the ability to produce up to 6500 kilos of green hydrogen per day, with initial deliveries due next year.
On-site renewable energy generating will be directly connected to the hydrogen production facilities.
With electricity being a major element in green hydrogen production costs, Octopus Hydrogen believes this method is advantageous since it ensures low electricity costs for the electrolyser.
The electrolyser will utilise approximately 30-40% of the renewable energy generated on-site, while the remainder will be fed into the grid. On-site hydrogen generation also prevents the possibility of renewable energy output being curtailed owing to grid congestion.
Octopus Hydrogen will produce green hydrogen that will be stored and transported to customer sites, providing an “end-to-end hydrogen supply solution” and assisting in the decarbonisation of local sectors including commercial transportation.
Octopus Hydrogen is already engaged on a number of projects, including supplying green hydrogen to ZeroAvia’s R&D centre at Cotswold Airport, an initiative that will provide some of the first green hydrogen in the south-west of the United Kingdom.
Octopus Hydrogen’s founder and CEO, Will Rowe, said:
“We want to develop and establish a decentralised model for green hydrogen production.
“Our partnership with BayWa r.e. plays an important role by providing excellent renewable sites and the opportunity to share expertise.
“Collaboration helps to unlock the potential of the green hydrogen market in the UK and beyond.”
BayWa r.e. has already taken part in a number of green hydrogen efforts, including the SinneWetterstof Hydrogen Pilot Project in the Netherlands.
The alliance will benefit from the company’s “valuable experience and expertise” in hydrogen project development as well as wind and solar site management.
BayWa r.e. is pursuing the development of more than 2GW of onshore wind and solar projects across the UK and Ireland as part of its aim to build up its hydrogen efforts in Europe.