Potential Economic Impacts of the HyNet North West Project

The objective of the analysis is to provide a robust assessment of the economic impact of HyNet NW over the period to 2050 across both the North West of England and the UK as a whole. Impact is assessed through modelling of direct, indirect and induced effect frameworks:

• Direct effects – activities that directly accrue due to the construction and operation of the facilities;
• Indirect effects – the purchase of goods and services to facilitate construction/operation; and
• Induced effects – spending of wages and salaries generated directly and indirectly through construction and operation.

The approach taken is to define the capital and operating expenditure (CAPEX and OPEX) profiles of the Project investment as the basis of analysis, distinguishing where feasible between design, construction and equipment costs, and establishing the likely sourcing of these activities from within the North West, UK and overseas.
Consideration is also given to the potential impacts of inward investment attracted to the North West/UK in the wake of the Project.