Dublin and London, Wednesday 26 May 2021
ESB and dCarbonX have signed a Memorandum of Understanding for the joint assessment and development of Irish offshore green hydrogen subsurface storage. This partnership represents another milestone in Ireland’s emerging hydrogen economy as part of its transition to a low-carbon future.
Under this agreement, ESB and dCarbonX will work together on licensing, environmental studies, site selection, project sanctioning, offshore infrastructure development, commissioning and operations in areas that are adjacent to ESB’s existing and planned future infrastructure.
This partnership covers all subsea energy storage offshore in Ireland and will also support the creation of a proposed new ‘Green Hydrogen Valley’ centred around the Poolbeg peninsula in Dublin, which will enable green hydrogen production and storage that can be used to decarbonise heavy transport, shipping, industry and power generation.
Padraig O’Hiceadha, ESB Strategy Manager, Generation and Trading, said: “ESB recognises that hydrogen produced from renewable electricity will play a significant role in the decarbonisation of many sectors. To that end, we plan to use our existing capabilities and future renewable growth to become a leading player in large scale renewable hydrogen production, thereby enabling renewable electricity, in the form of electrons or green molecules, to meet the energy requirements of Ireland’s future zero-carbon economy. We are proud to partner with dCarbonX to develop the many opportunities in this emerging industry.”
Ireland’s clean energy transition requires a balance of solutions which includes the production of green hydrogen. When wind farms produce more electricity than can be used, the excess renewable electricity can be converted into green hydrogen - without producing greenhouse gas emissions - and stored as a fuel to be later used for when the wind isn’t blowing.
Tony O’Reilly, dCarbonX CEO, said: “The large-scale underground storage of green hydrogen is the critical element to Ireland fully exploiting its significant indigenous wind energy resources both for domestic consumption and overseas export. Our partnership with ESB leverages on our core subsurface capabilities, offshore operating expertise and project management skills to deliver the required subsurface energy storage solutions. We are excited to be working with a company of the calibre of ESB on this significant energy transition project which is of Irish and European strategic importance.”
The large-scale storage of green hydrogen is a cornerstone of future low carbon, resilient and reliable energy sectors. Storing green hydrogen at scale in subsurface offshore caverns is a safe and cost-effective solution, enabling the large-scale deployment of intermittent renewable energy whilst also improving national security of supply and reducing system energy losses.
Media Enquiries: Grainne Burns, ESB’s Press Office, 00353 87-9536640
Notes to Editors
ESB operates across the Irish electricity market; from generation, through transmission and distribution to the supply of customers with an expanding presence in the British power generation market. In addition, ESB extracts further value through supplying gas and energy services and using its networks to carry fibre for telecommunications. ESB is the owner of the distribution and transmission networks in the Republic of Ireland (managed by ESB Networks) and Northern Ireland (via Northern Ireland Electricity Networks Ltd). In 2020 ESB had a 29% share of generation in the Irish all-island market (via ESB Generation and Trading) and a 34% share of electricity supply in the Irish all-island market (via Electric Ireland) with 1.5 million customer accounts. www.esb.ie
dCarbonX Ltd is a pioneering GeoEnergy company established to develop subsurface hydrogen storage, carbon sequestration & geothermal baseload assets to facilitate the Energy Transition. Based in London & Dublin, dCarbonX Ltd is using its proprietary knowledge base to originate & build a portfolio of high-value Energy Transition assets offshore Ireland & the United Kingdom. dCarbonX is strategically supported by Stena Drilling, AGR, Fugro, & CGG.
dCarbonX is being advised by Lambert Energy Advisory (LEA) on the milestone ESB hydrogen storage partnership and its ambitious wider plans for growth in Europe’s fast-expanding new energy sector. LEA is one of the world’s leading energy-focused corporate finance firms having advised on c.$150 billion of energy-related transactions in recent years. LEA has also been at the forefront of advising on the rapid growth potential of the offshore wind industry and other new energy sectors, such as hydrogen and carbon storage.
About Green Hydrogen
Green hydrogen is produced by using renewable electricity such as wind to split water into its basic elements of hydrogen and oxygen. Green hydrogen is a carbon-free gas that can be safely stored and used as a replacement fuel for heavy transport, shipping, industry and backup power generation.
Decarbonising the electricity network and achieving Ireland’s goal of net-zero carbon by 2050 requires the large-scale development of green hydrogen from renewable sources. Green hydrogen is required to transform industries where direct electrification is not feasible such as heavy transport, shipping, industrial processes and backup power generation.