Agenda item

Executive Summary

Increasing consideration is being given to the potential of the Bacton Energy Hub playing a major role in the UK’s future energy security strategy as our national economy looks to transition to Net Zero, moving away from reliance on natural gas to sources of low carbon and renewable energy, including hydrogen and carbon capture and storage.

The District Council therefore needs to understand the implications and opportunities presented for the future of the Bacton Energy Hub site through commissioning some research into how hydrogen production and carbon capture and storage might be accommodated on the site and understand the potential benefits which might be realised for the North Norfolk economy through such investments in terms of jobs, training, supply chains etc.

This report therefore recommends that the District Council establishes a budget to commission a research report into the future opportunities for the Bacton Energy Hub site.

Options considered

Commission research into the future opportunities for the Bacton Energy Hub site so that the Council is able to take an informed and proactive position in engaging with investors proposing investments at the site to produce hydrogen and in the storage of carbon in depleted offshore gas fields in the southern North Sea.

Do nothing – not considered to be an appropriate position for the Council as potentially major proposals are developed for the Bacton Energy Hub site

Consultation(s)

The Council has held initial meetings with the North Sea Transition Authority, National Grid Gas Transmission, Cadent, and the Hydrogen Capital and Hydrogen Valley projects about the potential of future investments at the Bacton Energy Hub site.

However, these conversations are at a very early and formative stage and have not provided the Council with much information such that it can take an informed position of the opportunities and implications of such proposals for the Bacton site.

The Council therefore wishes to commission some initial, independent, research into these project proposals in order that it can, in due course, represent the interests of local communities and businesses in the further development of proposals made for the site.

Recommendations

Cabinet is recommended to establish an initial budget as detailed in the exempt appendix funded from the Corporate Plan Delivery Plan Reserve to commission a piece of independent research of the opportunities being proposed for the future of the Bacton Energy Hub site, particularly as a location for the production of hydrogen and the capture and storage of carbon, in order that the Council can take an informed position with respect to these significant proposals in support of the UK’s Net Zero ambitions.

Reasons for recommendations

To position North Norfolk strongly in respect of developing proposals for the Bacton Energy Hub to make a significant contribution to the UK’s Net Zero strategy and ambitions.

Background papers

North Sea Transition Authority (NSTA): Bacton Energy Hub - The move to <br/>net zero (nstauthority.co.uk)

North Sea Transition Authority (NSTA): Carbon Capture and Storage - The move to <br/>net zero (nstauthority.co.uk)

Capital Hydrogen

Hydrogen Valley

Wards affected

Bacton, Trunch, Mundesley

Cabinet member(s)

Cllr Tim Adams, Leader of the Council

Cllr Adam Varley, Cabinet member for Net Zero and Climate Change

Cllr Paul Heinrich, Cabinet Member for Sustainable Growth

Contact Officer

Steve Blatch, Chief Executive

Tel: 01263 516232

Email: steve.blatch@north-norfolk.gov.uk

Links to key documents:

Corporate Plan:          

Environment, Coast and Climate Change

Sustainable Business Growth

Medium Term Financial Strategy (MTFS)                                

None directly, but the Bacton Energy Hub site is one of the largest business rated premises in the District and so contributes to our business rate base

Council Policies & Strategies

North Norfolk Local Plan

Net Zero Strategy and Action Plan

North Norfolk Coast Shoreline Management Plan

Corporate Governance:

Is this a key decision 

No

Has the public interest test been applied

Part exempt (Paragraph 3 of Section 12A of the Local Government Act 1972) in terms of the budget to be established so as not to compromise procurement regulations in seeking prices / proposals for the research study.

Details of any previous decision(s) on this matter

None