A hydrogen development company, HYRO Energy, has been established by Octopus Energy Generation, through two of its funds, and RES.
By 2030, HYRO Energy wants to build 700MW worth of green hydrogen electrolyser capacity.
The business will make advantage of RES’ “decades of renewable development experience,” Octopus Energy Generation’s connections to potential green hydrogen end users in industry, and its capacity to produce green power.
Both the Octopus Renewables Infrastructure Trust (ORIT) and Sky funds of Octopus Energy Generation have committed to contribute up to £5 million to HYRO.
ORIT and Sky, who will each own 25% of HYRO, are investing under the same conditions, with preferred rights to support the development of the electrolyser projects and exclusive rights to contribute additional development money over and above each fund’s initial £5 million commitment.
The UK Government has shortlisted three of HYRO’s early pipeline projects, with a combined 30MW of electrolyser capacity, to receive continuous income support under the Hydrogen Business Model, which aims to close the operating cost gap between low carbon hydrogen and high carbon fuels.
Contracts will be given to the chosen projects by the Department for Energy Security and Net Zero in the fourth quarter of 2023.
The parent business of well-known brands like Andrex, Kimberly-Clark, and HYRO are collaborating on two of their shortlisted projects to replace petrol with green hydrogen in UK industries in order to cut emissions and improve energy security.
According to plans, electrolysers will be installed at two Kimberly-Clark factories in Wales and Kent to produce green hydrogen by using electricity from renewable resources like wind and solar. This hydrogen will then be stored and fed into boilers that can burn hydrogen inside the factories, taking the place of boilers that currently burn industrial natural gas.
The heat generated will be applied to the procedures used to make tissues and toilet paper.
The aggregate capacity of the two electrolyser installations will be 22.5 MW.
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