Established in 2023, CHIP is a multi-year Joint Industry Programme, led by the Carbon Trust in collaboration with Levidian, National Gas Transmission, Scottish Power, and SSE, focused on delivering the technological advancements needed to accelerate the development of the midstream clean hydrogen sector. CHIP is also supported by the UK Government’s Department for Energy Security & Net Zero.
With the UK Government’s recent launch of GB Energy and Mission Control for clean power by 2030, CHIP is playing a crucial role in reducing technology risks and resolving key industry issues that currently delay the growth of large-scale clean hydrogen projects.
CHIP’s overarching objective is to support the development of clean hydrogen initiatives characterised by tens of megawatts (MW) of production capacity, with a focus on connecting multiple producers and off-takers across the supply chain. To meet this objective, CHIP targets the hydrogen industry’s midstream infrastructure – the infrastructure between where hydrogen is produced and where it is needed. This includes the distribution network, storage, and means of transporting hydrogen.
By focusing on these initial innovation projects, CHIP aims to provide the necessary evidence to establish a reliable and efficient hydrogen supply chain that meets the future needs of the industry. These innovation projects are informed by CHIP’s 2023 Innovation Needs Assessment, which identified and prioritised innovation needs for technologies across the hydrogen supply chain.
The first project, led by HyEnergy and HIVE Hydrogen, aims to evaluate the current state of hydrogen compressors available in the UK market. This initiative will compare the cost and performance of existing technologies, including those from international markets, to understand how well they meet the needs of different use cases. By identifying practical trade-offs and operational barriers, the project aims to highlight opportunities where innovation and demonstration could significantly enhance market offerings.
Another crucial area of focus is hydrogen purification, with ERM spearheading a comprehensive cost-benefit analysis. This project will delve into the purity requirements across various points of the hydrogen supply chain, exploring how different levels of purity impact off-takers and overall system efficiency. The study will assess the extent to which current and near-market purification technologies can meet these demands, and at what cost. Additionally, it will identify where innovation in purification technologies is most needed and could be most impactful, addressing the challenges and barriers to achieving these advancements.
The third project, led by Optimat and Wood, centres on the economic and carbon implications of hydrogen distribution and buffer storage. This initiative will explore the trade-offs between using tube trailers and pipelines for hydrogen distribution and evaluate the commercial viability of on-site buffer storage options such as compressed gas storage tanks. The project will also assess the carbon footprint of various distribution systems and determine how costs and emissions scale with capacity and innovation.
Andrew Lever, Director for Energy Transition at the Carbon Trust, said: “We are excited to embark on these projects, which are critical for the development of a robust and efficient hydrogen supply chain.
“Our work in collaboration with our industry partners and innovators will help to de-risk future projects, enabling the next wave of clean hydrogen development and supporting the UK’s commitment to achieving net zero emissions.”
Dr Mike Lloyd, Head of Sustainability and Innovation Funding at Levidian, said: “Having first started talking to the Carbon Trust about the concept of CHIP in early 2022, I am delighted that Levidian became one of the programme’s founding partners and am excited to see the outputs from the first set of projects being funded by this industry-led initiative supported by DESNZ.”
James Ferguson, Hydrogen Technology Engineer at SSE, said: “We are very pleased to be supporting these high value projects alongside the members of the CHIP consortium. The findings of the projects will help us develop SSE’s upcoming hydrogen projects, especially by reducing risk.”
