What’s going on here?
Spanish oil storage firm Exolum is pioneering the use of existing oil networks in the UK for green hydrogen transport and storage, backed by both major investors and government support.
What does this mean?
Exolum’s pilot project in Britain marks a groundbreaking effort to repurpose existing oil infrastructure for the storage and transport of green hydrogen. Utilizing liquid organic hydrogen carriers (LOHC), this initiative allows hydrogen to be safely moved in liquid form, presenting a promising solution to overcome current challenges in the hydrogen supply chain. With major stakeholders like CVC, Macquarie, OMERS, and Credit Agricole onboard, the project gains solid financial backing. Located at the British freight port of Immingham, and with a substantial £505,000 contribution from the UK government, this endeavor is not only innovative but strategically significant. The plan to transport 20 metric tons of hydrogen through a 1.5-kilometer pipeline aspires to prove scalability. A forthcoming report on this pilot’s economic and technical viability could potentially shape future green hydrogen policies and investments.
Why should I care?
The bigger picture: Hydrogen takes the fast lane.
This project highlights an essential shift in how energy infrastructures can adapt to support cleaner energy sources. As global markets push towards sustainable energy alternatives, leveraging existing oil networks for green hydrogen could accelerate this transition dramatically. The success of Exolum’s test might pave the way for widespread adoption of green hydrogen, offering a blueprint for similar transformations worldwide.
For markets: A green signal for investors.
Exolum’s collaboration with notable investors signals confidence in the potential of green hydrogen. Should this pilot prove successful, the technology could attract increased investment and policy support, adding momentum to the green energy sector. This project not only enhances the appeal of green hydrogen technologies but also reinforces the UK’s position as a hub for sustainable innovation, potentially spurring market growth and investor interest.