New £26M hydrogen contract with Japan helps UK overcome energy issue

A Japanese energy business is due to sign a £26 million deal to construct green hydrogen projects in Wales, giving the United Kingdom a significant boost in its hydrogen ambitions.

The municipal council of Bridgend, Wales, has inked an MOU with Marubeni, a Japanese corporation that specializes in green energy. Following the company’s selection of Wales as the preferred UK location for a green hydrogen demonstration project, the agreement outlines plans to create a new 5MW-class green hydrogen venture. This program intends to construct a green hydrogen energy plant capable of producing and balancing the supply and storage of low-cost green energy.

Hydrogen has also been considered as a fuel for heavy-duty, long-distance transportation, as well as a method of storing electricity generated by intermittent renewable energy sources such as solar and wind.

Through this agreement, the Welsh Government expects the initiative to create clean fuel for fleet vehicles ranging from council gritters to recycling and garbage collection trucks.

The company is also investigating the feasibility of using hydrogen fuel to heat structures such as schools, residential dwellings, and local swimming pools.

Minister for Climate Change Julie James added: “We are thrilled to witness this memorandum of understanding between Marubeni and Bridgend County Borough Council because this fascinating and ambitious initiative has the potential to contribute to our net-zero aspirations.

Recent increases in energy costs have highlighted the significance of developing indigenous, cleaner, and greener energy sources.

“Initiatives such as the hydrogen demonstrator project are crucial for giving proof of a sustainable energy source for Bridgend County Borough Council and Wales, and I am glad that the council is collaborating with a top expert in renewable energy on this initiative.”

The United Kingdom has made significant progress in developing hydrogen vehicle technology since the firm Tevva presented the first hydrogen fuel cell-supported heavy goods vehicle (HGV) that will be manufactured, engineered, and produced in mass quantities in the United Kingdom.

In addition to its current battery-electric HGV design, the company, which has funded £140 million to date, has incorporated a hydrogen fuel cell system.