Spanish company Exolum began a pilot project in Britain on Wednesday, aiming to be the first to utilize existing oil infrastructure, including pipelines for transporting and storing green hydrogen on a commercial scale.

The project leverages liquid organic hydrogen carriers (LOHC), organic compounds that absorb and release hydrogen through chemical reactions, allowing for safe and efficient transport of hydrogen in liquid form. 

This innovative approach addresses a key challenge in the burgeoning hydrogen economy: cost-effective and secure transportation to end users.

Exolum, partially owned by investment firms CVC, Macquarie, OMERS, and Credit Agricole, will utilize its facilities at the Port of Immingham, the U.K.'s largest freight port. 

The pilot, supported by a £505,000 ($647,000) grant from the British government, will involve transporting 400 cubic meters of LOHC containing 20 metric tons of hydrogen through a 1.5-kilometer pipeline.

Exolum expects to publish a report in early 2025 outlining the potential costs and benefits of this novel hydrogen transport system, which holds significant potential for accelerating the development of a green hydrogen economy by repurposing existing fossil fuel infrastructure.