Agenda item
NORTH NORFOLK HYDROGEN STUDY
|
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
|
|
|
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 |
|
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 |
Decision:
Decision
RESOLVED:
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.
Reason for the decision:
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.
Minutes:
The Portfolio Holder for Sustainable Growth, Cllr P Heinrich, introduced this item. He began by explaining that increasing consideration was 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. He said that the District Council therefore needed 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. The report therefore recommended that the District Council established a budget to commission some research reports into the future opportunities for the Bacton Energy Hub site. It would be a very hi-tech site with good potential for additional employment opportunities.
The Chief Executive said that by commissioning research into the future opportunities for the Bacton Energy Hub site, the Council could take an informed and proactive position in engaging with investors proposing investment at the site to produce hydrogen and in the storage of carbon in depleted offshore gas fields in the southern North Sea. He added that there were some public concerns regarding the production of hydrogen at the site and it was intended that the research would look at all project proposals for the site and that the Council could then take an informed position of the opportunities and implications of such proposals for Bacton. He added that there was no suggestion that hydrogen produced at the site would be used for local transport distribution.
Cllr A Varley, Portfolio Holder for Climate Change and Net Zero, said that it was an ambitious project that would enable the Council to lead the way on sustainable, renewable energy provision. It would also provide ‘green’ jobs in the future, which was to be welcomed.
It was proposed by Cllr A Varley, seconded by Cllr P Heinrich and
RESOLVED:
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.
Reason for the decision:
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.
Supporting documents:
-
FINAL - Bacton Energy Hub positioning report - final, item 12.
PDF 220 KB - Restricted enclosure View the reasons why document 12./2 is restricted