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Energy / Government commits funding to SVT hydrogen plant study

THE UK Government has pledged funding towards a study into the creation of a green hydrogen plant at Sullom Voe Terminal (SVT).

The study is for a 50MW plant, but it would have potential expansion to 300MW over phases.

The funding is going to Veri Energy, a subsidiary of SVT operator EnQuest set up to oversee new energy production at the site in the transition away from fossil fuels.

Veri Energy said the project would also involve production of derivatives, as well as hydrogen itself. It said it will harness resources like wind and tidal power to generate hydrogen through advanced electrolysis technology.

The project is set to receive £1.74 million of a total £21 million in funding that has gone to seven projects towards developing low carbon hydrogen in the UK.

Veri Energy chief executive Salman Malik. Photo: Hans J Marter/Shetland News

Veri Energy CEO Salman Malik said: “We are pleased to have been selected by the Net Zero Hydrogen Fund to receive funding to support a Front-End Engineering and Design study for a 50MW green hydrogen plant at the Sullom Voe Terminal.

“This is significant first step in support of our ambitions to produce multi gigawatts of green hydrogen as Sullom Voe by leveraging existing skills and infrastructure.

“Significant additional work is required to establish feasibility of the project.

“Collaboration with local and national governments, Shetland’s community, and strategic partners, will be critical to our success.”

SIC chief executive Maggie Sandison. Photo: Shetland News

Shetland Islands Council (SIC) chief executive Maggie Sandison said: “This is the first hydrogen project for Shetland, and we are delighted that Veri Energy has received funding support to progress a Front-End Engineering and Design study.

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“This is clear recognition from the UK government of the strategic importance of the Sullom Voe Terminal and its significance to Scotland as a whole.”

Northern Isles MP Alistair Carmichael said: “Hydrogen is going to be an important part of our future energy mix and it is good to see this very visible indication of the just transition happening.

“Even so this is just the start of the process. Large scale projects are important but smaller initiatives have a role to play too.”

In a project statement, Veri Energy said green hydrogen production represents an “important pillar” of the strategy to transform Sullom Voe into a green energy hub, which will “support protection and creation of new jobs”.

“With government funding, we can further enhance the building blocks we already have in place, ensuring the project’s success and maximising its positive impact on the community and the environment,” it added.

Other projects being proposed at a revamped SVT include the facilitation of carbon capture and storage.

In this case it would involve taking CO2 emissions from industrial processes, transporting it via pipeline and storing it underground offshore.

Meanwhile green hydrogen production is also being discussed for the former Scatsta Airport site, with Statkraft plus partners involved in negotiations with the SIC over the lease of land.

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