A project that aims to export liquefied hydrogen from Scotland to Germany has commissioned a design for a liquefied hydrogen tanker that would be the largest of its kind.

LH2 Europe aims to produce 35,000t/yr of green hydrogen from an electrolyser in Scotland and ship it to ports in continental northwest Europe. It has signed a provisional offtake deal with one major port and is in negotiations with a supplier to provide the required renewable power from offshore wind. Negotiations with three providers of finance are also ongoing, and the developers want to reach agreements with a portfolio of three or four offtakers.

The developers have completed a feasibility study and will start a full Feed study towards the end of this year, with FID scheduled for 2024 and first production in 2027. The project will need to have raised €600mn ($632mn) by the time it reaches FID.

“We are using the LNG business model from the 1980s and 1990s as a building block,” Peter Wells, CEO of LH2 Europe, tells Hydrogen Economist. Wells is one of three ex-Shell employees involved in the project.

Vessel specifications

A new type of liquid hydrogen tanker—designed by engineering consultants C-Job Naval Architects—will transport the liquid hydrogen to terminals on the continent, with three ports specifically targeted. The tanker would be 141m long and have a capacity of 37,500m³. The project would involve installing liquid hydrogen storage infrastructure at import destinations for discharge. The vessel would be commissioned six months before the first delivery of hydrogen in 2027.

“We are using the LNG business model from the 1980s and 1990s as a building block” Wells, LH2 Europe

“This tanker design is a key step in providing the infrastructure to make that clean energy future a reality. Current vessels in operation are not able to deliver hydrogen at the scale we expect will be required to meet the needs of the market,” says Wells.

Liquefaction is one of a number of technologies being touted as a solution for shipping hydrogen.

The Susio Frontier is the only commercially operating liquid hydrogen tanker. The 115m vessel has a storage capacity of 1,250m³ and completed its first voyage earlier this year.

Subsidy challenge

The LH2 Europe project is targeting heavy-duty road transport applications in Germany, claiming it can undercut diesel prices in that market without subsidies. The project does not need subsidies to reach FID but would likely apply for any scheme the UK introduced, according to Wells.

“Of course, if there was a contract for difference (CfD) it would benefit us,” he says.

The UK is finalising details of its support schemes for hydrogen projects, including the likely introduction of a CfD for production of the fuel.

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Author: Tom Young