The Octopus Energy Group is set to expand into the green hydrogen sector, touting the benefits of the technology for "parts of the economy electrification can’t reach".
It is planning to bring to market a locally distributed ‘green hydrogen as a service’ proposition as part of a new division of the company, Octopus Hydrogen.
Set to launch in Autumn 2021, the green hydrogen is designed to serve sectors such as heavy goods transportation, energy storage, industrial applications and aviation.
The move follows Octopus Energy Group acquiring Octopus Renewables, bringing a portfolio of more than 300 clean energy assets with a combined capacity of 2,800MW across six countries together with the company’s supply business which currently serves two million domestic customers.
Its Kraken platform is now used by 2.2 million customers in the UK alone, with the software used by energy companies including E.On and Good Energy in the UK, and companies like Origin Energy and Hanwha Corporation in Australia.
Together, its large renewables portfolio and Kraken platform means the Octopus Energy Group is “uniquely positioned to drive down costs and help customers drive the transition to a competitive and 100% green economy”, the company told Current± in a statement.
Green hydrogen picks up pace in the UK
Green hydrogen is increasingly drawing focus from both the government and companies looking to invest in a solution for decarbonising challenging sectors. In March, the UK government announced a £171 million Industrial Decarbonisation Fund for green tech projects focused on hydrogen and carbon capture and storage (CCS), which built on the National Infrastructure Strategy announced in November 2020.
Among the nine projects set to be funded by the scheme are Zero Carbon Humber – which will include one of the world’s first at-scale low carbon hydrogen production plants, as well as CO2 and hydrogen pipelines – and the South Wales Industrial Cluster – which will see solar giant Lightsoure bp develop solar powered green hydrogen for direct use in the steel manufacturing on site.
Other energy suppliers are also becoming increasingly interested in the sector, with ScottishPower submitting a planning application for up to 40MW of solar along with up to 50MW of battery storage and a 20MW electrolyser as part of its Green Hydrogen for Scotland project this April. Hydrogen companies are also expanding their operations, with Logan Energy announcing former SSE CEO Ian Marchant is to become chair of the board this week.
In a report produced by the International Renewable Energy Agency in March, it suggested that if global warming is to be curbed, green hydrogen must take over from fossil fuels in a number of sectors. It expects 30% of electricity to be dedicated to green hydrogen and the fuel’s derivatives such as ammonia and methanol by 2050. In order to reach this point, the green hydrogen sector needs to scale up massively, with almost 5,000GW of hydrogen electrolyser capacity needed, up from just 0.3GW today.