Richard Cockburn of Womble Bond Dickinson looks at energy transition

New research The UK and the energy transition: Leading the way? shows that certainty is needed more quickly from government on the hydrogen and carbon capture, storage and utilisation (CCUS) business models if the East Coast Cluster is to reach its full potential at speed.

The North East of England has several projects with a key role to play in the energy transition, notably in offshore wind, but also with the first of two carbon capture, usage and storage clusters to be taken forward by the government - the East Coast Cluster, spread across the Humber and Teesside.

The East Coast Cluster aims to develop the infrastructure needed to transport CO2 from emitters across the Humber and Teesside to secure offshore storage in the Endurance aquifer in the Southern North Sea. With nearly half of carbon emissions from UK industrial clusters coming from Britain’s historic engine room of Teesside and the Humber, its potential contribution is significant.

It is clear from the research that hydrogen and CCUS will be vital for decarbonising industrial processes but uncertainty around the business models that support it in the UK is currently hindering investment decisions. Without a quicker resolution, the UK could lose its chance to gain first-mover advantage.

UK industrial locations

It is not just heavy industry which hydrogen can support either; it can contribute to the decarbonisation of transport and heat, as well as providing long-duration energy storage. But in all these cases, finalised policy commitments and adequate support schemes are essential to support the new hydrogen economy and its emerging global supply chain.

It is reassuring to see that those behind the East Coast Cluster include companies involved in the UK oil and gas industry, which have insight and experience which will be invaluable in transitioning to these energy systems.

The UK has optimum geological and geographic conditions for producing hydrogen and storing carbon emissions. Our research reveals that quicker finalisation of the hydrogen and CCUS business models will facilitate faster investment.