The creation of a north west hydrogen cluster could boost the regional economy by £1.6bn and create more than 2,300 jobs.

According to a new report by Peel, the delivery of a hydrogen network between Greater Manchester and Liverpool could usher in a new era of hydrogen-fueled vehicles and cut CO2 emissions by 10 million tonnes per year by 2050.

The move would also reduce carbon dioxide emissions and improve the region's air quality.

As one of the north’s leading land and property companies, Peel is collaborating with other firms on the project which could see a central hub based at Ellesmere Port.

Release of the report follows details of a conceptual study by Cadent, the gas distribution network operator in the region, to deliver a major infrastructure project called the ‘Liverpool-Manchester Hydrogen Cluster’.

Commenting on its findings Dr. Tony Smith, of Peel Environmental, said: “The creation of a hydrogen economy would be game-changer for the north west in so many ways.

"From de-carbonising our energy and contributing to climate change targets, to making substantial improvements to the region’s air quality, delivering a fully-functioning hydrogen industry would be transformational.

“This report shows there is real opportunity to attract inward investment, create thousands of jobs and put the north west at the forefront of the UK’s hydrogen industry.

“Making it a reality will take collaboration. We’re working alongside some of the biggest names in the energy-intensive industries to promote an exemplar and deliverable hydrogen project, which responds directly to the Government’s recently-published Clean Growth Strategy.”

Peel’s report, authored by independent experts Aqua Consultants, sets out how use of hydrogen could contribute to the targets identified in the 2008 Climate Change Act.

It also outlines how a north west hydrogen production hub, including carbon capture storage and utilisation facilities in the east Irish Sea, could feed large industrial users in the region.

It could support a network of hydrogen vehicle re-fueling stations across Liverpool, Manchester, Cheshire and Warrington.

Supporting the concept, professor Joe Howe of the University of Chester’s Thornton Energy Research Institute said: "Low carbon energy technology is very much at the forefront of the work undertaken by both academics and businesses at the University of Chester’s Thornton Science Park, especially through our newly established Energy Centre.

“This report represents another positive step in the region’s growing reputation for both research and commercialisation of these innovative technologies.

"It provides a strong, economically robust case, based on real evidence, for the use of hydrogen and its associated supply chain as a credible route to a low carbon gas economy."

Chris Barron, director at Aqua Consultants, authors of the report, said: "De-carbonising heat and transport are recognised as the biggest challenges in achieving the UK’s 2050 emissions reduction targets.

"Re-purposing all or parts of the existing gas networks to hydrogen would meet the peaks in demand required for heat, whilst providing an option for the energy infrastructure required to displace petrol and diesel in road transport.”

Here we answer some of the key questions:

What is hydrogen?

Hydrogen is a de-carbonised energy source which can be used to create electricity and heat.

When used as a replacement for fossil fuels in road vehicles, its only emission is water.

There is also the potential to blend hydrogen into the existing gas distribution network to reduce carbon emissions at the point of consumption.

Can you explain to me what is a hydrogen cluster?

A hydrogen cluster would be a collection of businesses and applications working in or associated with the hydrogen industry.

While it is still early days for delivery of hydrogen at a commercial stage, this would likely include companies producing hydrogen; distributing it across the region; any associated supply chain companies; and industrial businesses using it as energy (e.g. for heat).

The cluster also requires a carbon capture and storage facility.

How would we implement it in the region - is it about modifying vehicles?

There are several ways hydrogen could be used in the region to help decarbonise energy.

These would likely be staggered between 2025 and 2050:

Producing hydrogen for distribution in a dedicated hydrogen pipeline for decarbonised energy supply to industry as outlined by Cadent in their report

Used as an alternative fuel in hydrogen-powered vehicles.

This would require a longer-term network of hydrogen-fuelling stations across the north west and a transition to hydrogen powered fuel cell electric vehicles.

Potentially blending it into the existing gas transmission system, to decarbonise household gas.

This would be down to transmission system operators, who are looking into how hydrogen could be blended with methane in existing transmission system to help decarbonise our gas use.

Do hydrogen vehicles already exist - how much do they cost?

Yes, these cars use hydrogen fuel cells to produce electricity, with the only emission being water.

Toyota is the first to bring a model to market in the UK, with the Mirai. They’re only available in small numbers and retail around £66,000. That said, this is a trail-blazer entry to the market and other car makers are following suit which will ultimately drive down the price.