With the UK Government’s recent launch of GB Energy and Mission Control for clean power by 2030, CHIP is playing a crucial role in reducing technology risks and resolving key industry issues that currently delay the growth of large-scale clean hydrogen projects. CHIP’s overarching objective is to support the development of clean hydrogen initiatives characterised by tens of megawatts (MW) of production capacity, with a focus on connecting multiple producers and off-takers across the supply chain. To meet this objective, CHIP targets the hydrogen industry’s midstream infrastructure; that between where it is produced and where it is needed. This includes the distribution network, storage, and means of transporting hydrogen. By focusing on these initial innovation projects, CHIP aims to provide the necessary evidence to establish a reliable and efficient hydrogen supply chain that meets the future needs of the industry. These innovation projects are informed by CHIP’s 2023 Innovation Needs Assessment, which identified and prioritised innovation needs for technologies across the hydrogen supply chain.
In these initial innovation projects, CHIP is tackling uncertainties across three essential technology groups within the hydrogen supply chain.
The first project, led by HyEnergy and HIVE Hydrogen, aims to evaluate the current state of hydrogen compressors available in the UK market. This initiative will compare the cost and performance of existing technologies, including those from international markets, to understand how well they meet the needs of different use cases. By identifying practical trade-offs and operational barriers, the project aims to highlight opportunities where innovation and demonstration could significantly enhance market offerings.
Another crucial area of focus is hydrogen purification, with ERM spearheading a comprehensive cost-benefit analysis. This project will delve into the purity requirements across various points of the hydrogen supply chain, exploring how different levels of purity impact off-takers and overall system efficiency. The study will assess the extent to which current and near-market purification technologies can meet these demands, and at what cost. Additionally, it will identify where innovation in purification technologies is most needed and could be most impactful, addressing the challenges and barriers to achieving these advancements.
The third project, led by Optimat and Wood, centres on the economic and carbon implications of hydrogen distribution and buffer storage. This initiative will explore the trade-offs between using tube trailers and pipelines for hydrogen distribution and evaluate the commercial viability of onsite buffer storage options such as compressed gas storage tanks. The project will also assess the carbon footprint of various distribution systems and determine how costs and emissions scale with capacity and innovation.
Andrew Lever, Director for Energy Transition at the Carbon Trust said:
“We are excited to embark on these projects, which are critical for the development of a robust and efficient hydrogen supply chain.”
“Our work in collaboration with our industry partners and innovators will help to de-risk future projects, enabling the next wave of clean hydrogen development and supporting the UK’s commitment to achieving Net Zero emissions.”
Dr Mike Lloyd, Head of Sustainability and Innovation Funding at Levidian said:
“Having first started talking to the Carbon Trust about the concept of CHIP in early 2022, I am delighted that Levidian became one of the programme’s founding partners and am excited to see the outputs from the first set of projects being funded by this industry-led initiative supported by DESNZ.”
James Ferguson, Hydrogen Technology Engineer at SSE said:
“We are very pleased to be supporting these high value projects alongside the members of the CHIP consortium. The findings of the projects will help us develop SSE's upcoming hydrogen projects, especially by reducing risk.”
CHIP’s collaborative approach brings together industry leaders to address technology uncertainties through innovative solutions. By focusing on the technologies needed in the next three to five years, CHIP aims to bridge the gap between hydrogen producers and multiple off-takers, ultimately accelerating the UK’s clean energy transition.
About the Carbon Trust
The Carbon Trust is a global climate consultancy driven by the mission to accelerate the move to a decarbonised future. We have been climate pioneers for over 20 years, partnering with businesses, governments and financial institutions to drive positive climate action. From strategic planning and target setting to activation and communication - we turn ambition into impact. To date, our 400 experts have helped set 200+ science-based targets and guided 3,000+ organisations and cities across five continents on their route to Net Zero.
About CHIP
The Clean Hydrogen Innovation Programme (CHIP) is a collaborative industry initiative established to address the technological challenges in the midstream of the clean hydrogen supply chain. Through joint innovation projects, CHIP aims to reduce technology risks and support the deployment of large-scale hydrogen projects across the UK.
