Public Funding for Wales & West Utilities Limited

Green hydrogen has the potential to replace large quantities of natural gas demands in "hard to abate" sectors like industrial heat and transport, however it currently faces certain barriers to widespread adoption. One of these is the requirement for highly purified water, with current electrolysers requiring water which has gone through reverse osmosis, incurring high energy demands and creating large amounts of wastewater. To address this, HydroStar and Wales and West Utilities (WWU) are working together on an Ofgem SIF project focussed on low cost, high resiliency hydrogen production using water that is less pure (tap/rain/effluent water etc). This reduces the barrier of water availability and quality for hydrogen production, enabling a more distributed approach to generation including onsite generation from renewables. Electrolysis can also perform electrocoagulation and flotation, which can clump microplastics/heavy metals/other pollutants together and bring them to the water surface to aid in their removal. HydroStar believe this will clean the water enough to produce hydrogen from. Therefore this project targets contaminated or highly polluted water to produce hydrogen, which is complementary but very different from just using impure water. This enables onsite hydrogen production for businesses with high natural gas demands who wish to reduce their carbon footprint without the need for extensive water infrastructure, whilst reducing environmental damage or wastewater treatment costs. The specific wastewater being targeted is industrial manufacturing process wastewater containing elevated levels of contaminants (heavy metals/fibres) which are toxic to the environment. This project in particular will focus on microplastics, which are not yet regulated but are becoming a large issue within human health, being linked to hormonal imbalances and other illnesses, whilst causing fast passivation of electrodes if not removed prior to electrolysis. This project will conduct engineering design and investigation studies to develop hardware to achieve both electrocoagulation of contaminated water and electrolysis of the remaining water post pollutant removal, and then perform small-scale testing for proof-of-concept at 2kW scale. To achieve this, HydroStar and WWU are collaborating with Cardiff University. This pairs the onsite operational and gas handling experience of WWU and the technology development knowledge of HydroStar with the scientific optimisation of Cardiff. The project will result in the development of a decisive new technology which has applications in many different industrial settings which have high gas demands and wastewater produced who wish to reduce their carbon footprint whilst adopting more sustainable processes within their businesses.

The Milford Haven: Hydrogen Kingdom (MH:HK) is a collaboration between Celtic Sea Power (CSP), ERM Dolphyn (ERM), Wales and West Utilities (WWU) and Offshore Renewable Energy Catapult (OREC) who will answer the question: 'At what point does offshore wind producing green hydrogen become more cost effective than electrically connected projects?' Our ambition is to accelerate the roll out of the full floating wind and marine energy ambition delivering industrial decarbonisation and net zero whilst supporting the Celtic Freeport to create of over 16000 new green jobs and generate £5.5Bn of new investment for the region, which hydrogen will be key to unlocking. It builds on and utilises the highly successful collaborations that have been involved in delivering: Milford Haven: Energy Kingdom (MH:EK): Project that focused on developing diverse, local markets to support the transition to hydrogen and renewables for the major energy infrastructure cluster along the Milford Haven Waterway in Wales. Pembroke Dock Marine (PDM) : Pembrokeshire's Swansea Bay City Deal (SBCD) Investment to deliver the facilities, services and spaces needed to establish a world-class centre for marine energy and engineering. South Wales Industrial Cluster's (SWIC) Cluster Plan and Deployment projects supporting the development of a world leading, truly sustainable industrial cluster, befitting the societal needs of 2030\. Together, partners will deliver a credible, evidence-backed business plan to quantify potential benefits, costs, uncertainties and economic advantages to support timely decision making on green hydrogen's role across the UK using the Southwest Wales's established ecosystem to raise profile, build advocacy and add value. MH:HK will support the development of ERM's TRL level 7 Dolphyn Hydrogen technology through to TRL level 9\. Building on prototype testing being delivered in 2024, the following development of a 10-15MW hydrogen production from floating wind unit, then a 135MW project delivering an estimated 12,000Te of hydrogen per year will be progressed within CSP's Pembrokeshire Demonstration Zone targeting connection to local industrial consumers and WWU's HyLine Cymru project, the planned 100% hydrogen pipeline connecting Pembrokeshire to industry in Neath Port Talbot. There is clear regional appetite to embrace hydrogen. The Celtic Freeport has a target of £3.5bn inward investment from the hydrogen industry with green hydrogen contributing 10% towards Milford Haven Waterway Future Energy Cluster's 20% of UK 2030 production. MH:HK will cement Southwest Wales as a Hydrogen SuperPlace as set out in UK government's Ten Point Plan for a Green Industrial Revolution.

This project will carry out a feasibility assessment, developing a prototype Decision Making, Collaborative Working and Engagement Toolkit to overcome the non-technical barriers faced in placed-based whole system net zero initiatives. It will examine non-technical barriers surrounding multiple energy vectors: generation (solar, wind, biomass), network (heat, hydrogen, electricity) and demand (space heating, cooling, transport, and power), which are relevant to and appropriate for our study area, i.e., Nelson in Caerphilly County Borough Council (CCBC). The council has identified the opportunities (in their Decarbonisation Action Plan and Decarbonisation Strategy) to decarbonise this area through multiple green energy sources to meet the local energy demand, which includes anchor loads in the form of council owned assets (buildings, fleet) and a nearby business park. This toolkit will account for decarbonisation of deprived areas of CCBC, while bringing co-benefits of investments in the area in the form of addressing fuel poverty, creating green local jobs, improved air quality, lower energy bills. Because of considering a whole system net zero approach, we have identified a number of non-technical barriers such as financing such projects through a combination of public private investments; knowledge and skills required for long-term sustainability of such initiatives; buy-in from a variety of end users (public, domestic, commercial); understanding the key stakeholders to be involved at different stages of design and implementation; interaction between the existing networks and the proposed new ones covering different energy vectors; and finally, de-risking for future private sector investments. Standard approaches offer options appraisal but are not able to consider the local context on decarbonisation options and timing of availability through different energy networks. We will consider the whole network in a local area including gas, electricity and heat networks but also considering local factors such as geography and ethical water consumption. This approach will allow informed decision making by the local authority and support behaviour and will provide a powerful tool for other local authorities. By supporting local authority investment, it will enable the local authority to act as an anchor for innovation leverage private sector investment in low carbon energy. Through this project, taking a whole system approach, we will develop a decision making, engagement and communication toolkit that enables local councils and energy consumers to make informed decisions for decarbonisation by reducing uncertainty. The developed toolkit will be applicable to the wider area for scaling-up or replicating in other areas where similar opportunities/challenges persist.

The South Wales Industrial Cluster (SWIC) is a diverse mix of critical industry from the Pembrokeshire coastline to the Welsh/English border. They have converged with common objectives for decarbonisation and clean growth. Some of the sectors represented include: §Steel making§Oil Refining§Power§Nickel manufacturing§Insulation manufacturing§Chemical§LNG import§The Royal Mint§Whole host of general manufacturing SWIC Deployment will create pathways and opportunities to promote Wales as a leading global player in decarbonised industrial and economic growth. SWIC's goal is Net Zero Carbon (NZC) by 2040\. Regional CO2 emissions are 16 million tonnes annually (5% of UK total), comprising 10 million tonnes direct from industry and 6 million tonnes from power generation. Achieving NZC will provide a significant contribution to the UK's goal of becoming net zero by 2050\. NZC must be realised in the broader context of "People, Planet and Profit". This will be achieved through sustainable clean growth, within a globally-competitive market, maintaining a growing and diverse industrial sector region, which will potentially protect 103,000+ existing jobs. There is potential to grow this number through export of skills and services globally, from a centre of green excellence. SWIC will devise options to support regional hydrogen deployment and to develop Carbon Capture Usage and Storage (as an interim measure). It will nurture symbiosis between industry, cities/towns, transport, and agriculture. It will appraise solutions and select those that have the greatest impact to economic CO2 emission reduction. Deployment will define Partner project scopes to support investment decisions that will advance projects towards construction. The pooled expertise of the deployment Partners and broader SWIC membership will ensure arrival at the best solutions for deriving significant carbon reduction. SWIC, through ongoing engagement, is actively supported by Welsh Government. There is also support for SWIC by local authorities, which aim to ensure that they can provide the necessary jobs to protect the future of their communities. SWIC is actively working with other UK cluster regions to optimise decarbonisation outcomes. SWIC Deployment will provide the UK with lower carbon steel and reduced carbon cement products that form the backbone of the wider UK Infrastructure Industry. Costain is leading the project, supported by a wide breadth of key Partners. Phase2 represents an opportunity to integrate efforts, reinforce a direction and to further scope/define the action required to achieve the SWIC vision.

The South Wales Industrial Cluster (SWIC) is a diverse mix of critical industry that have come together to collaboratively achieve common objectives for decarbonisation and clean growth delivering job security. The regions diverse industrial base presents both common and unique challenges. Sectors represented include steel/oil-refining/power/ paper/Nickel/insulation/chemicals/LNG import/Royal-Mint/general-manufacturing. SWIC aims to progress a cluster plan driven by a vision of "developing a world leading truly sustainable industry befitting the societal needs of 2030, 2040, 2050 and beyond" incorporating a circular economy revolution leading to a smarter, greener, and healthier society. SWIC's goal is NZC by 2040\. Current carbon emissions are 16MtCO2/y (5% of UK emissions), comprising 10MTCO2/y direct from industry and 6MTCO2/y from power generation. Achieving NZC will provide a significant contribution to the UK's goal of becoming net zero by 2050\. NZC must be realised in the broader context of 'People, Planet and Profit', achieving truly sustainable clean growth, within a globally competitive market, maintaining a growing, clean vibrant and diverse industrial sector region with potentially 40,000+ new jobs arising. The Phase-2 work will continue to define NZC options for all types of members including two of the largest industrial UK CO2 emitters plus many other large emitting sites from diverse sectors spread across the whole region. Phase2 will identify the best low carbon energy options that will work for multiple industry users and define distinctive 'mini-clusters' in the region. This will inform and assist planning for significant local and regional infrastructure. The 4 coastal 'mini-clusters' will connect the largest CO2 emitters, creating opportunities for carbon capture and use in addition connections to UK carbon storage facilities. Low carbon energy infrastructure including renewables and hydrogen will also be developed. (Q3-appendix). SWIC Plans centre around a 5 stepped approach to NZC, 5 spatial zone types will allow SWIC to take immediate steps toward NZC with a low chance of incurring "Regret Capital". As well as targeting a NZC cluster by 2040, this plan focuses on societal needs, circular economy and clean growth aspirations of the region, tackling the common and unique commercial & operational challenges facing SW industry. SWIC will work with other UK cluster regions to optimise decarbonisation outcomes. Specialist energy consultancy CR Plus are leading the project supported by a wide breadth 20+ key partners. Phase2 represents an opportunity to coalesce efforts, cement a direction and to further scope and define the action required to achieve the SWIC vision.

Our project will focus on the development of a specification that the energy sector (end users, energy suppliers, traders, technology platform providers and associated ancillary services) can use to create an end-to-end trading solution from local building level to national energy markets. This will enable organisations of all types and sizes to realise maximum energy and cost savings through the use of an innovative trading platform, whilst also reducing the need for costly grid reinforcement by better balancing available energy demand. Currently, there are many suppliers responsible for supplying energy to buildings. They need to keep their energy supply balanced with individual site needs and demands, which in turn can impact the National Grid and the amount of energy needed to be generated at any time. Each energy supplier has their own systems and approaches to maintain this equilibrium. Our project will develop a common framework specification for the key technology integrations required to enable trading between energy suppliers and among their customers from local to national level. This specification will also create opportunities for energy bill reductions of up to 25% by optimising the use of energy in the whole system by better balancing demand and supply at a local level and by developing multiple microgrids. The innovative key technology component will be the specification of the integration between local and national electricity markets across a number of different energy suppliers using a common process. Our solution will have the ability for different buyers and sellers of energy and flexibility to trade using a common interface. A common set of standards harmonising the disparate processes that are emerging will give confidence to end users in industry, commerce and the public sector. With increasingly intermittent generation, such as wind and solar, and unpredictable charging by electric vehicles, greater optimisation and more accurate forecasting will be required throughout our whole energy system, reducing risks from unplanned power cuts and costly reinforcement of local energy supply networks. The project will consider upcoming regulatory changes to the marketplace when designing the common specification and approach. This project is about liaising with the key organisations in the energy system to develop a common set of processes, to deliver huge energy cost savings to consumers across the UK, with great potential to export this approach globally.

"A national transition from natural gas to hydrogen is increasingly seen as a likely, perhaps necessary, component of full decarbonisation by 2050\. Large scale hydrogen markets may provide essential cross-vector system balancing and inter-seasonal energy storage for an energy system dominated by the UK's abundant renewables, especially high-capacity factor, offshore wind and marine resources. This gas to hydrogen transition can most effectively build out from the UK's critical natural gas infrastructure. The Milford Haven Waterway is at the centre of nationally important energy infrastructure, with major energy related investment underway, targeting efficiency and decarbonisation. Facilities include South Hook LNG terminal, Dragon LNG terminal, RWE's 2.2GW CCGT, and National Grid's NTS pipeline that connects the Milford Haven Waterway with other assets like Grain LNG terminal, in Kent, and St Fergus gas terminal, Aberdeenshire. The Milford Haven Energy Kingdom Detailed Design project will focus on developing diverse, local seed markets to support the transition, to hydrogen and renewables, of the cluster of major energy infrastructure along the Milford Haven Waterway. This transition will occur via a mixture of pathways available locally -- meeting heating and transportation needs of local communities, including via fuel cell vehicles; creating transport solutions for Pembrokeshire's 4.2 million annual tourists; H2 production from curtailed onshore wind and solar generators; and improving off-take markets for offshore renewables in the South-Western Approaches, including the consented Pembrokeshire Demonstration Zone (PDZ). Project partners Pembrokeshire County Council, Riversimple, Milford Haven Port Authority, Wales and West Utilities, and Offshore Renewable Energy Catapult, with assistance and support from Energy Systems Catapult, RWE, Western Power Distribution, Arup and Welsh Government Energy Services, will design a local, renewables-hydrogen energy system for the Milford Haven Waterway. This will feature a flexibility trading platform to lower costs for consumers using hydrogen-ready hybrid heat pumps and hydrogen fuel cell vehicles, and to help lift constraints on local development of solar, wind and offshore renewable power generation. A novel system architecture will allow integration from national to local network levels, and future integration of major natural gas infrastructure and current and future large-scale hydrogen infrastructure. The project will immediately build hydrogen-ready features and technologies into the Port's housing, commercial and renewables projects and will allow local people to test real-world hydrogen vehicles and home heating equipment."

"PROJECT AIMS Model commercial feasibility of a low-carbon, multi-vector energy system in Caldicot that includes: 1. A retrofitted district heating network, directing heat from water extraction generated by Network Rail at Severn Tunnel (Sudbrook) to homes/businesses via a centralised water sourced heat pump (existing gas network left in-situ as back up).[\[ER1\]][0] 2. Tying in renewable electrical generation from the local Council owned5MW solar farm with additional photovoltaic (PV) capability, utilising batteries and storage walls during excess generation. 3. Creation of a self-balancing virtual private network (VPN) that tests a new regulatory market structure (with consideration given to benefits, avoided costs, value-flow[\[JF2\]][1] ), supporting new billing methodologies and other local benefits. 4. Removing single-phase electric cabling and installing 3-phase electric power supply cables to new and existing buildings, supporting electric vehicle (EV) charging, and reducing network transmission losses. 5. Use of Vehicle to Grid (V2G) units to enable EV batteries to be used to balance the LV system and optimise the local use of PV generation and maximise value 6. Modelling the impact of interventions and develop detailed plan for a demonstrator project. Modelling this integrated network across demand profiles generates knowledge regarding: * Electrical, heat and cooling demands * Storage and backup systems e.g. Flow rates/hydraulics and battery storage * Space footprint needed for heat recovery and electrical storage systems * Integration of low-grade heat supply with existing gas infrastructure to obtain required operating temperature * Impacts on Pumping Station operations (e.g. peak discharging) * Associated energy cost and carbon savings * Regulatory/governance and contractual insight across the electricity, gas, storage, water, heat (markets and pricing), rail and insurance sectors * Industrial Heat Recovery associated with the rail industry (Sudbrook). KEY OBJECTIVES 1. Test to commercial viability of above for new-build and retrofit homes/businesses 2. Determine social (bill reduction) and environmental benefits (CO2 reduction) from above interventions DETAILS OF HOW IT IS INNOVATIVE * Testing the degree to which disparate systems can be integrated and achieve efficiencies by working together in a managed multi vector large-scale combination. * Modelling the demand profile (by discharging from a range of generators at peak times and charging at high generation/low demand times) to determine reliability and tolerances/constraints, to achieve secure supply, within a Virtual Private Network. * Creation of innovative controls for 3-phase cables to achieve fully balanced phases, reducing or removing circulating currents in the Neutral. OUTPUTS Plan for demonstrator project to create a case studies/best practice for the wider UK. [0]: file:///C:/Users/Emma%20Richardson/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/22PZ82ZU/V5%2024-07-2018%20CALDICOT%20BID.docx#_msocom_1 [1]: file:///C:/Users/Emma%20Richardson/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/22PZ82ZU/V5%2024-07-2018%20CALDICOT%20BID.docx#_msocom_2"

Under the UK's ambitious decarbonisation trajectory, the role of the UK's gas network infrastructure is changing significantly. Between 2014 and 2020, an estimated £7.6 billion is to be invested in the UK's gas networks to modernise and adapt these systems in response to their evolving function in the UK's energy infrastructure system. At present, Gas Distribution Network Operators (GDNOs) do not yet have an integrated forecasting system to show how the complex interactions of new heating technology adoption (such as heat pumps, combined heat and power, district heating, etc.), new distributed gas sources (e.g. from biomethane, low carbon hydrogen and unconventional gas injection into the gas grid) and climate change will impact on the demand and supply levels across different areas of their networks in future. In this project, we will test the feasibility of a new type of forecasting tool that can be used by GDNOs to better understand how these complex factors will impact on gas distribution network infrastructure requirements to minimise costs, optimise the matching of supply and demand, improve energy security and reduce the carbon intensity of the gas network, with the potential to save GDNOs and UK gas consumers as much as £130 million per annum.

To realise the potential of renewable energy to reduce greenhouse gas emissions, it is recognised that flexible energy storage is required; ideally for long periods of time, even seasonally. The production of renewable combustible gases such as synthetic methane is an emerging technology that can bridge that gap. Synthetic methane is synthesised by an innovative biomethanation process using hydrogen produced by electrolysis and carbon dioxide from sources such as water treatment, anaerobic digestion and industrial processes. Rapid response electrolysis provides a means of balancing intermittent renewable generation and solving electricity grid frequency problems arising from their increasing use. The UK gas infrastructure has the capacity to store and distribute over three times the energy distributed by the electricity network and represents an underutilised asset for the storage of renewable energy. Synthetic methane production is unique in being able to link the electricity and gas networks as a means of balancing renewable energy production, provide long-term storage of energy, decarbonising the largest source of heat in the UK and improve security of supply.