REG - Harland & Wolff - Islandmagee Update – Concept Study Findings

Harland & Wolff groupAnnouncement

17/04/2023 07:00

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RNS Number : 3447W  Harland & Wolff Group Holdings PLC  17 April 2023

This announcement contains inside information

 

17 April 2023

Harland & Wolff Group Holdings plc

("Harland & Wolff" or the "Company")

Islandmagee Energy -  Concept Study Findings

Harland & Wolff Group Holdings plc (AIM: HARL), the UK quoted company
focused on strategic infrastructure projects and physical asset lifecycle
management, is pleased to share the findings of the Large-Scale Hydrogen
Concept Study by Atkins, in connection with the Company's Islandmagee Gas
Storage Facility (the "Report") that was initiated last year and has now been
completed with a formal report issued to the Company.

The Report documents the work carried out in order to provide further design
definition on the selected concept of integrating hydrogen processing and
storage at the Company's Islandmagee Gas Storage Facility. This phase of the
work has further developed the Company's strategy, to utilise at least one of
seven currently permitted  salt caverns by a capacity offtake partner to
store hydrogen combined with a suitably sized hydrogen compression and
dehydration train in order to meet the gas quality parameters specified by a
grid operator.

The findings of the Report state that, subject to regulatory approval,
hydrogen can be stored in the salt caverns and withdrawn to a hydrogen grid
when required. The Large-Scale Hydrogen Concept design,  developed by Atkins
as part of the Ballylumford Power-to-X consortium, takes into account the
existing natural gas design at the Company's facility and the potential to
utilise the site for the Ballylumford Power-to-X project. It also takes
account of the existing subsurface design carried out during the natural gas
design phase in 2018.

The key outcomes of the pre-FEED stage of this project are as follows:

·     Integrating hydrogen onto the Islandmagee Gas Storage Facility is
technically feasible based on existing technologies and can be located on the
current Islandmagee site utilising many of the shared benefits of the
location.

·    The Report concluded that additional capital expenditure required to
integrate hydrogen compression, dehydration, and cooling into the Company's
Islandmagee Gas Storage Facility would be approximately £168 million, with no
incremental costs for drilling, leaching and creation of a salt cavern.

·     The Report determined that development of the salt caverns for
hydrogen would follow a similar methodology to that proposed with the existing
design for the gas storage facility. Whilst specific wellheads and associated
equipment could be utilised to enable hydrogen storage, additional costs would
need to be incurred and further operating protocols put in place for hydrogen
venting around existing leaching and de-brining equipment. However, in
general, there is minimal difference from a cavern perspective as to what gas
medium is stored.

·    The Report found that re-use of planned natural gas plant facilities
wherever possible to develop the hydrogen facilities would be economically and
operationally prudent so that systems are not re-designed for hydrogen unless
required. Shared systems would include, inter alia:

 

o  Controls and operations of the facility from a common system and location.

 

o  Electrical systems such as switch rooms and transformers.

 

o  Utilities such as nitrogen, instrument air, drainage and chemicals.

 

o  Cavern creation equipment including seawater lift pumps, leaching
equipment, and debrining tanks as well as other associated equipment.

The Company believes that this study and the Report's findings takes it one
step further in future proofing the project and preparing it for the
transition from a natural gas to a hydrogen led economy. The findings of this
study will be shared with the Company's current and future counterparties
which will stimulate further detailed conversations on mechanisms to monetise
the project. The Company will make further announcements in due course in
relation to this project.

 

 

 Harland & Wolff Group Holdings plc                                        +44 (0)20 3900 2122

 John Wood, Chief Executive Officer                                        investor@harland-wolff.com (mailto:investor@harland-wolff.com)

 Seena Shah, Head of Marketing & Communications                            media@harland-wolff.com (mailto:media@harland-wolff.com)

 Cenkos Securities plc (Nominated Adviser & Broker)                        +44 (0)20 7397 8900

 Stephen Keys / Callum Davidson / Dan Hodkinson (Corporate Finance)

 Michael Johnson (Sales)

 Liberum Capital Limited (Joint Broker)                                    +44 (0)20 3100 2000

 Nicholas How / Edward Mansfield / Lucas Bamber / Antonia Brown

About Harland & Wolff

 

Harland & Wolff is a multisite fabrication company, operating in the
maritime and offshore industry through five markets: commercial, cruise and
ferry, defence, energy and renewables and six services: technical services,
fabrication and construction, decommissioning, repair and maintenance,
in-service support and conversion.

 

Its Belfast yard is one of Europe's largest heavy engineering facilities,
with deep water access, two of Europe's largest drydocks, ample quayside and
vast fabrication halls. As a result of the acquisition of Harland & Wolff
(Appledore) in August 2020, the company has been able to capitalise on
opportunities at both ends of the ship-repair and shipbuilding markets where
there will be significant demand.

 

In February 2021, the company acquired the assets of two Scottish-based yards
along the east and west coasts. Now known as Harland & Wolff (Methil) and
Harland & Wolff (Arnish), these facilities will focus on fabrication work
within the renewables, energy and defence sectors.

 

In addition to Harland & Wolff, it owns the Islandmagee gas storage
project, which is expected to provide 25% of the UK's natural gas storage
capacity and to benefit the Northern Irish economy when completed.

 

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