Harland & Wolff Group Holdings plc (AIM: HARL), the UK quoted company focused on strategic infrastructure projects and physical asset lifecycle management, is pleased to share the findings of the Large-Scale Hydrogen Concept Study by Atkins, in connection with the Company’s Islandmagee Gas Storage Facility (the “Report”) that was initiated last year and has now been completed with a formal report issued to the Company.
The Report documents the work carried out in order to provide further design definition on the selected concept of integrating hydrogen processing and storage at the Company’s Islandmagee Gas Storage Facility. This phase of the work has further developed the Company’s strategy, to utilise at least one of seven currently permitted salt caverns by a capacity offtake partner to store hydrogen combined with a suitably sized hydrogen compression and dehydration train in order to meet the gas quality parameters specified by a grid operator.
The findings of the Report state that, subject to regulatory approval, hydrogen can be stored in the salt caverns and withdrawn to a hydrogen grid when required. The Large-Scale Hydrogen Concept design, developed by Atkins as part of the Ballylumford Power-to-X consortium, takes into account the existing natural gas design at the Company’s facility and the potential to utilise the site for the Ballylumford Power-to-X project. It also takes account of the existing subsurface design carried out during the natural gas design phase in 2018.
The key outcomes of the pre-FEED stage of this project are as follows:
· Integrating hydrogen onto the Islandmagee Gas Storage Facility is technically feasible based on existing technologies and can be located on the current Islandmagee site utilising many of the shared benefits of the location.
· The Report concluded that additional capital expenditure required to integrate hydrogen compression, dehydration, and cooling into the Company’s Islandmagee Gas Storage Facility would be approximately £168 million, with no incremental costs for drilling, leaching and creation of a salt cavern.
· The Report determined that development of the salt caverns for hydrogen would follow a similar methodology to that proposed with the existing design for the gas storage facility. Whilst specific wellheads and associated equipment could be utilised to enable hydrogen storage, additional costs would need to be incurred and further operating protocols put in place for hydrogen venting around existing leaching and de-brining equipment. However, in general, there is minimal difference from a cavern perspective as to what gas medium is stored.
· The Report found that re-use of planned natural gas plant facilities wherever possible to develop the hydrogen facilities would be economically and operationally prudent so that systems are not re-designed for hydrogen unless required. Shared systems would include, inter alia:
o Controls and operations of the facility from a common system and location.
o Electrical systems such as switch rooms and transformers.
o Utilities such as nitrogen, instrument air, drainage and chemicals.
o Cavern creation equipment including seawater lift pumps, leaching equipment, and debrining tanks as well as other associated equipment.
The Company believes that this study and the Report’s findings takes it one step further in future proofing the project and preparing it for the transition from a natural gas to a hydrogen led economy. The findings of this study will be shared with the Company’s current and future counterparties which will stimulate further detailed conversations on mechanisms to monetise the project. The Company will make further announcements in due course in relation to this project.
Harland & Wolff Group Holdings plc
John Wood, Chief Executive Officer
Seena Shah, Head of Marketing & Communications
+44 (0)20 3900 2122
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