OGA Launches Energy Hub Study

The UK Oil and Gas Authority (OGA) announced that it has started work to identify the value the establishment of an energy hub at Bacton could lead to by hiring Progressive Energy to conduct an in-depth feasibility study.

Progressive Energy’s analysis will examine several existing ideas within the oil and gas and renewables sectors to assess whether an energy hub at Bacton is viable and set out options that might be explored further by any potential industry consortium, the OGA noted.

The analysis will look at potential hydrogen supply and demand in the area, the integration opportunities for hydrogen and hydrocarbons and the role hydrogen can plan in smoothing out the energy demand peaks and troughs associated with current and future wind farms in and around Bacton, according to the OGA.

It will also review the technology required for blue and green hydrogen production and quantify how many hydrocarbons will still be required for conventional uses during a transition period, the OGA outlined. Once Progressive Energy has completed its report, the OGA will decide on how to proceed with the next stage of the project.

“This is an exciting project that could bring real benefits in terms of the twin goals of maximizing economic recovery and supporting the drive to net zero,” Alistair Macfarlane, the OGA’s southern North Sea area manager, said in an organization statement.

“The OGA-led project will hopefully stimulate energy transition activity at a hub considered to be a leading potential site and, at the same time, bring together organizations interested in creating an exciting future for Bacton,” he added.

“An energy hub located at Bacton would involve a number of sectors, each with their own aspirations. By clearly setting out a vision through the report, hopefully the value of collaboration across all the energy sectors will be compelling and lead to repurposing of existing infrastructure to support the UK’s energy transition,” he continued.

David Parkin, the project director for Progressive Energy, said, “Progressive Energy is very pleased to be bringing our project origination and development expertise to this interesting and important program”. 

“We are excited to be helping the Oil and Gas Authority to identify opportunities to decarbonize and drive the energy transition at, and around, Bacton and are keen to use our skills and experience from developing the HyNet carbon cluster in the North West to bring the huge benefits of a decarbonized energy hub develop to East Anglia,” he added.

Bacton is already home to five gas terminals and is said to be in a large wind power growth area. It is also said to have the potential to produce hydrocarbons into the 2040s.

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