The plan to make the North West a world-leading pioneer in the drive towards creating a hydrogen economy has received £33m in government backing as part of its Industrial Decarbonisation Challenge.

HyNet North West is a collaboration between public and private sector organisations working towards creating a safe and efficient supply line of bulk, low-carbon hydrogen, which will alleviate the UK’s reliance on natural gas.

The grant from UK Research and Innovation, the Department for Business, Energy and Industrial Strategy’s science R&D funding arm, will allow HyNet to accelerate to a Final Investment Decision in 2023 for the initial phase, and hopefully become operational in 2025.

Further elements of the project will follow, resulting in the distribution of up to 30TWh / year of low carbon hydrogen being distributed by 2030, ­enough to displace 45% of natural gas used across the region. It is considered essential for UK Government to deliver several objectives within its 10-point plan for a green industrial revolution, as well as the local net zero targets of Cheshire West & Chester in 2045, Liverpool City Region in 2040 and Greater Manchester in 2038.

David Parkin, Director of Progressive Energy and HyNet Project Director said: “We know we cannot reach net zero without decarbonising industry. HyNet North West is a game-changing project of strategic importance. It is uniquely developed to be low-cost and deliverable and will begin decarbonising the north west by 2025.

“It will unlock a low carbon future economy in North West England and North Wales, not only reducing emissions but also creating and safeguarding jobs. We are pleased to be working with Government on making the Green Industrial Revolution a reality.”

HyNet is being developed by a consortium of regionally-located partners: Progressive Energy, Cadent, CF Fertilisers, Eni UK, Essar, Hanson, INOVYN (part of the INEOS Group) and the University of Chester.

From 2025, they hope the first phase of their plan will be operational, meaning natural gas will be converted into low-carbon hydrogen at Essar Oil’s Stanlow Refinery and carbon dioxide safely captured and stored offshore in the Liverpool Bay gas fields. A new pipeline network will transport the clean hydrogen to power industry, fuel buses, trains and heavy goods vehicles, to generate electricity, and to heat homes across North West England and North Wales.

That should lead to a reduction in carbon dioxide emissions of up to 10 million tonnes every year by 2030 – the equivalent of taking four million cars off the road. By then, HyNet will already be delivering 80% of the Government’s new UK-wide target of 5GW of low carbon hydrogen1 for power, transport, industry and homes.

Steve Fraser, CEO Cadent, said: “When we first unveiled the plan for HyNet North West just three-and-a-half years ago, we knew quickly we were onto something big. This is a once-in-a-generation moment to effect real change.

“Replacing fossil gas with hydrogen will achieve incredible carbon savings, create thousands of jobs and position the North West as a world-leader in this technology. Cadent and the whole HyNet consortium is determined to make that happen.”

HyNet has been under development for four years with work so far including extensive engineering studies and demonstration projects.

Environmental survey work, supported by funding from the Cheshire & Warrington Local Enterprise Partnership Growth Fund, has recently begun and consultation with stakeholders, including the general public, will begin later this year as the planning process to gain consent for development.