RWE is contributing to meeting the UK’s Net Zero targets by developing a green hydrogen project on our existing Pembroke Power Station site. The green hydrogen, produced by splitting water into hydrogen and oxygen in an electrolyser, will be used in local industry and as a fuel for future hydrogen-powered Heavy Goods Vehicles (HGVs). Electricity from renewables will power the hydrogen production process, providing a clean zero carbon fuel for end users.
The company completed a feasibility study with Jacobs in April 2022, which demonstrated that the project is possible. The next step is to complete detailed engineering studies known as FEED (Front End Engineering Design). Once we complete studies to ensure the project has minimal impact on the local environment, we will seek to obtain planning permission.
The electricity required for the electrolyser will likely come from an offshore wind farm and be delivered through the national grid network. The project recently received an offer from National Grid to connect the project, the required renewable capacity will be secured before the final investment decision.
Hydrogen is expensive to make and certainly more expensive than the counterfactual fuel, in this case natural gas. To bridge this funding gap, the project will be applying for financial support from the UK Government that will help with both the capital cost of the electrolyser and the operating costs.
Subject to planning permission construction could begin in 2025 with completion 2026. The project is part of RWE’s “Pembroke Net Zero Centre (PNZC)” initiative which is a key component of the “South Wales Industrial Cluster (SWIC)”, which is an industrial partnership that aims to decarbonise industrial South Wales. This project will be amongst the first in a number of projects that will help to achieve that goal.