Osborne Clarke advises Foresight on its involvement in new green hydrogen joint venture to develop electrolytic hydrogen projects in the UK

Oct 13, 2023

International legal practice Osborne Clarke has advised Foresight on its involvement in a new green hydrogen joint venture, Grenian Hydrogen, to develop electrolytic hydrogen projects in the UK alongside Statkraft and Progressive Energy.

Launching with an initial development portfolio of 200M across seven projects, 100M of which are currently in the engineering and consenting phase, Grenian has signed initial commercial terms with Accelera by Cummins to provide electrolyser technology for the initial projects.

The partnership draws upon skills and experience of each organisation to offer a bankable solution to major manufacturers seeking to switch away from natural gas to decarbonise operations using hydrogen.

Grenian's flagship 30MWe Cheshire Green Hydrogen (CGH) project at Peel's Protos site near Ince has already been shortlisted by the UK Government for a 15-year Low Carbon Hydrogen Agreement (LCHA).

The companies say front-end engineering and design (FEED) studies are underway for the CGH project as well as four others in St Helens in Liverpool, Winnington and Middlewich in Cheshire, and Stretford in Manchester, three of which are supported by Strand 1 (Round 1) of the government's Net Zero Hydrogen Fund (NZHF).

Grenian has also submitted Strand 1 (Round 2) bids to support funding of engineering work for two larger "mini cluster" projects in Wrexham and Speke, that are planned to supply users via a local pipeline network from electrolytic hydrogen production plants, which could connect into a larger hydrogen network being developed by Cadent for the HyNet project.

Renewable energy to power the hydrogen production will be contracted from Statkraft's portfolio. The partners have said, "In some cases, local behind-the-meter power will also be sourced, via private wire arrangements, from both new and existing local wind, solar and biomass generation. To meet the requirements of the LCHA, all power used by Grenian electrolysers will be temporally matched with specific renewable generators."

Chris Holmes, Partner at Foresight, added, "The UK's Hydrogen Strategy and the recent Powering Up Britain announcements, through their combination of policy initiatives, have now accelerated the critical role that green hydrogen will play in the next phase of the UK's energy transition. This presents an opportunity for Grenian Hydrogen to deliver a much needed low-carbon solution for UK businesses and households."

Chris Yeo, Partner in Osborne Clarke's corporate team who advised Foresight on the transaction said, "We're delighted to have supported Foresight on this transaction, and we hope to see Grenian play a key part in facilitating the UK's transition to a low carbon future."

Osborne Clarke has an established and well-respected position as one of the leading law firms advising on renewable energy projects and transactions. As businesses strive to meet the challenges of decarbonisation, Osborne Clarke is supporting its clients on projects to procure, fund and develop the sustainable infrastructure, buildings and land use of the future. The team's experience and understanding of the energy sector means they are well placed to advise on your decarbonisation journey.