Energy generator RWE is looking at ways to cut carbon emissions from its Pembroke gas plant in Wales and investigating the feasibility of a green hydrogen unit in the region after receiving government funding, it said on Wednesday.
The British government said earlier it will allocate funding to projects in Scotland, South Wales and the North West, Humber and Teesside in England to help decarbonise industry.
That will include projects to capture, store and use carbon emissions, and those to use cleaner fuels such as hydrogen.
The so-called South Wales Industrial Cluster - a consortium of which RWE is a member - received 20 million pounds ($28 million) for projects to create a net zero emissions industrial cluster zone in the region by 2040.
RWE said its feasibility studies will investigate how hydrogen and carbon capture can help reduce carbon emissions from its 2.2 gigawatt gas-fired Pembroke power station.
They will also look into the viability of establishing a new green hydrogen production facility - which typically produce the fuel using renewable energy - to support its partners in the industrial cluster.
"We believe that hydrogen is a real game changer in the transition to a low carbon economy," said Sopna Sury, chief operating officer at RWE Generation.
"Therefore, RWE will contribute its broad expertise in hydrogen, renewables and as the UK’s second largest generator of electricity, to support the success of these feasibility projects," Sury added.
(Reporting by Nina Chestney; Editing by Jan Harvey)
