The UKs new, long-awaited hydrogen technique provides more detail on how the government will support the development of a domestic low-carbon hydrogen sector, which today is practically non-existent.
Company choices around the degree of hydrogen usage in domestic heating and how to ensure it is produced in a low-carbon method have actually been postponed or put out to assessment for the time being.
In this post, Carbon Brief highlights essential points from the 121-page method and analyzes a few of the primary talking points around the UKs hydrogen plans.
Specialists have alerted that, with hydrogen in short supply in the coming years, the UK must prioritise it in “hard-to-electrify” sectors such as heavy market as capacity expands.
Hydrogen will be “critical” for attaining the UKs net-zero target and might fulfill up to a third of the countrys energy needs by 2050, according to the government.
Why does the UK need a hydrogen technique?
A recent All Party Parliamentary Group report on the function of hydrogen in powering market consisted of a list of needs, mentioning that the government should “broaden beyond its existing commitments of 5GW production in the forthcoming hydrogen method”. This call has actually been echoed by some market groups.
The document consists of an expedition of how the UK will broaden production and develop a market for hydrogen based on domestic supply chains. This contrasts with Germany, which has been looking to import hydrogen from abroad.
In its brand-new method, the UK government makes it clear that it sees low-carbon hydrogen as a key part of its net-zero strategy, and says it desires the country to be a “global leader on hydrogen” by 2030.
There were likewise over 100 recommendations to hydrogen throughout the governments energy white paper, reflecting its possible use in lots of sectors. It likewise includes in the industrial and transportation decarbonisation techniques launched earlier this year.
Hydrogen is commonly viewed as an important element in plans to attain net-zero emissions and has actually been the topic of significant hype, with numerous countries prioritising it in their post-Covid green healing plans.
Prior to the brand-new strategy, the prime ministers 10-point strategy in November 2020 consisted of plans to produce five gigawatts (GW) of annual low-carbon hydrogen production capacity in the UK by 2030. Presently, this capability stands at virtually no.
However, the Climate Change Committee (CCC) has noted that, in order to strike the UKs carbon spending plans and accomplish net-zero emissions, choices in locations such as decarbonising heating and lorries require to be made in the 2020s to allow time for infrastructure and automobile stock changes.
The method does not increase this target, although it keeps in mind that the government is “familiar with a possible pipeline of over 15GW of jobs”.
Hydrogen growth for the next years is anticipated to begin gradually, with a government goal to “see 1GW production capability by 2025” laid out in the technique.
As the chart below shows, if the governments strategies come to fulfillment it might then expand considerably– making up between 20-35% of the countrys total energy supply by 2050. This will require a significant growth of facilities and skills in the UK.
Its flexibility indicates it can be used to deal with emissions in “hard-to-abate” sectors, such as heavy industry, however it currently struggles with high prices and low efficiency..
Business such as Equinor are pressing on with hydrogen developments in the UK, however industry figures have actually warned that the UK risks being left behind. Other European nations have actually vowed billions to support low-carbon hydrogen growth.
In some applications, hydrogen will contend with electrification and carbon capture and storage (CCS) as the very best means of decarbonisation.
Critics also characterise hydrogen– many of which is currently made from gas– as a method for fossil fuel companies to preserve the status quo. (For all the advantages and downsides of hydrogen, see Carbon Briefs thorough explainer.).
Hydrogen need (pink location) and percentage of last energy intake in 2050 (%). The central range is based upon illustrative net-zero constant scenarios in the sixth carbon budget effect evaluation and the full variety is based on the entire range from hydrogen strategy analytical annex. Source: UK hydrogen method.
Today we have released the UKs first Hydrogen Strategy! This is our plan to: kick-start a whole market unleash the marketplace to cut costs increase domestic production unlock ₤ 4bn of private capital support 9k tasks #BuildBackGreenerhttps:// t.co/ aHZTr5yYeR– Kwasi Kwarteng (@KwasiKwarteng) August 17, 2021.
The level of hydrogen usage in 2050 imagined by the strategy is rather higher than set out by the CCC in its most current suggestions, but covers a similar variety to other studies.
However, similar to many of the federal governments net-zero technique files so far, the hydrogen plan has actually been postponed by months, leading to uncertainty around the future of this fledgling market.
The strategy likewise called for a ₤ 240m net-zero hydrogen fund, the creation of a hydrogen neighbourhood heated with the gas by 2023, and increasing hydrogen mixing into gas networks to 20% to lower dependence on gas.
What variety of low-carbon hydrogen will be prioritised?
In May, S&P Global Platts reported that Rita Wadey– hydrogen economy deputy director at the Department for Business, Energy & & Industrial Strategy (BEIS)– stated that, instead of “blue” or “green”, the UK would “consider carbon intensity as the main aspect in market advancement”.
This opposition came to a head when a current study resulted in headings mentioning that blue hydrogen is “worse for the climate than coal”.
The CCC has actually formerly mentioned that the government ought to “set out [a] vision for contributions of hydrogen production from different paths to 2035” in its hydrogen technique.
It has also launched an accompanying report, prepared by consultancies E4Tech and Ludwig-Bölkow-Systemtechnik (LBST), which takes a look at maximum appropriate levels of emissions for low-carbon hydrogen production and the methodology for computing these emissions.
The CCC has cautioned that policies must develop both green and blue choices, “rather than just whichever is least-cost”.
The document does refrain from doing that and instead says it will offer “more detail on our production strategy and twin track approach by early 2022”.
At the heart of lots of discussions about low-carbon hydrogen production is whether the hydrogen is “green” or “blue”.
The figure listed below from the consultation, based on this analysis, reveals the impact of setting a limit of 15-20gCO2e per megajoule (MJ) of hydrogen (red bar). In this example, those production techniques above the red line, consisting of some for producing blue hydrogen, would be left out.
Prof Robert Gross, director of the UK Energy Research Centre, informs Carbon Brief that, in his view, it is “most likely a bit unhelpful to get too preoccupied with the green vs blue hydrogen debate”. He says:.
Brief (hopefully) reviewing this blue hydrogen thing. Generally, the papers calculations possibly represent a case where blue H ₂ is done actually badly & & with no reasonable policies. And after that cherry-picked an environment metric to make it look as bad as possible. https://t.co/Jx0FdDfdx5— David Joffe (@david_joffe) August 13, 2021.
” If we wish to show, trial, begin to commercialise and then present making use of hydrogen in industry/air travel/freight or wherever, then we need enough hydrogen. We cant wait till the supply side deliberations are total.”.
As it stands, blue hydrogen used steam methane reformation (SMR) is the most inexpensive low-carbon hydrogen offered, according to federal government analysis consisted of in the strategy. (For more on the relative expenses of different hydrogen varieties, see this Carbon Brief explainer.).
Supporting a variety of projects will provide the UK a “competitive advantage”, according to the federal government. Germany, by contrast, has said it will focus specifically on green hydrogen.
Green hydrogen is used electrolysers powered by sustainable electrical power, while blue hydrogen is made utilizing natural gas, with the resulting emissions caught and stored..
The CCC has actually previously defined “suitable emissions decreases” for blue hydrogen compared to fossil gas as “a minimum of 95% CO2 capture, 85% lifecycle greenhouse gas cost savings”.
Close.
CO2 equivalent: Greenhouse gases can be expressed in terms of carbon dioxide equivalent, or CO2eq. For an offered quantity, different greenhouse gases trap various quantities of heat in the atmosphere, an amount called … Read More.
The method mentions that the percentage of hydrogen supplied by particular technologies “depends upon a variety of assumptions, which can only be tested through the markets response to the policies set out in this technique and genuine, at-scale release of hydrogen”..
Nevertheless, there was considerable pushback on this conclusion, with other researchers– including CCC head of carbon spending plans, David Joffe– explaining that it relied on extremely high methane leakage and a short-term procedure of international warming potential that stressed the impact of methane emissions over CO2.
The new method mainly avoids utilizing this colour-coding system, however it states the federal government has dedicated to a “twin track” technique that will consist of the production of both ranges.
Many researchers and environmental groups are sceptical about blue hydrogen offered its associated emissions.
The chart below, from a file outlining hydrogen expenses launched together with the primary method, shows the anticipated decreasing expense of electrolytic hydrogen in time (green lines). (This includes hydrogen used grid electricity, which is not technically green unless the grid is 100% sustainable.).
In the example chosen for the consultation, gas routes where CO2 capture rates are below around 85% were left out..
Comparison of cost quotes throughout various technology types at main fuel rates commissioning from 2020 to 2050, ₤/ MWh hydrogen. Source: Hydrogen Production Costs.
2021.
The plan notes that, sometimes, hydrogen made utilizing electrolysers “could end up being cost-competitive with CCUS [carbon capture, storage and utilisation] -allowed methane reformation as early as 2025”..
Jess Ralston, an analyst at thinktank the Energy and Climate Intelligence Unit (ECIU), said in a statement that the federal government must “be alive to the threat of gas market lobbying causing it to commit too heavily to blue hydrogen therefore keeping the country locked into fossil fuel-based innovation”.
Glossary.
For its part, the CCC has actually advised a “blue hydrogen bridge” as an useful tool for attaining net-zero. It says enabling some blue hydrogen will decrease emissions faster in the short-term by changing more nonrenewable fuel sources with hydrogen when there is inadequate green hydrogen available..
The previous is basically zero-carbon, however the latter can still result in emissions due to methane leaks from gas infrastructure and the fact that carbon capture and storage (CCS) does not catch 100% of emissions..
The federal government has launched an assessment on low-carbon hydrogen standards to accompany the technique, with a promise to “settle design elements” of such requirements by early 2022.
CO2 equivalent: Greenhouse gases can be expressed in regards to co2 equivalent, or CO2eq. For a provided amount, various greenhouse gases trap different quantities of heat in the environment, an amount understood as the international warming capacity. Co2 equivalent is a method of comparing emissions from all greenhouse gases, not just co2.
How will hydrogen be used in various sectors of the economy?
It contains prepare for hydrogen heating trials and assessment on “hydrogen-ready” boilers by 2026.
” Stronger signals of intent could guide public and private financial investments into those areas which add most worth. The government has not plainly laid out how to choose which sectors will benefit from the preliminary scheduled 5GW of production and has rather mostly left this to be determined through trials and pilots.”.
The brand-new strategy is clear that market will be a “lead choice” for early hydrogen usage, beginning in the mid-2020s. It also says that it will “most likely” be important for decarbonising transport– especially heavy items automobiles, shipping and air travel– and stabilizing a more renewables-heavy grid.
Coverage of the report and federal government marketing materials emphasised that the federal governments strategy would offer sufficient hydrogen to replace natural gas in around 3m houses each year.
My lovelies, I just dropped Version 4 of the Clean Hydrogen Ladder! For anybody new to all this, the ladder is my attempt to put use cases for clean hydrogen into some sort of benefit order, since not all usage cases are similarly likely to be successful. 1/10 pic.twitter.com/I8HpqQjlKS— Michael Liebreich (@MLiebreich) August 15, 2021.
Illustrative hydrogen demand in 2030 (blue) and 2035 (purple). Source: UK hydrogen technique.
Although low-carbon hydrogen can be utilized to do everything from fuelling cars and trucks to heating homes, the truth is that it will likely be limited by the volume that can probably be produced.
Some applications, such as industrial heating, might be essentially difficult without a supply of hydrogen, and many experts have argued that these hold true where it need to be prioritised, at least in the short term.
Nevertheless, the technique also includes the choice of using hydrogen in sectors that might be better served by electrification, particularly domestic heating, where hydrogen needs to take on electric heatpump..
Reacting to the report, energy scientists indicated the “little” volumes of hydrogen expected to be produced in the near future and advised the federal government to select its top priorities thoroughly.
The CCC does not see comprehensive usage of hydrogen beyond these limited cases by 2035, as the chart listed below programs.
Juliet Phillips, senior policy consultant and UK hydrogen professional at thinktank E3G informs Carbon Brief the strategy had “exposed” the door for uses that “do not add the most worth for the climate or economy”. She adds:.
Federal government analysis, consisted of in the technique, suggests possible hydrogen demand of up to 38 terawatt-hours (TWh) by 2030, not including mixing it into the gas grid, and rising to 55-165TWh by 2035.
The government is more positive about using hydrogen in domestic heating. Its analysis suggests that approximately 45TWh of low-carbon hydrogen might be put to this usage by 2035, as the chart below shows.
The starting point for the range– 0TWh– recommends there is considerable uncertainty compared to other sectors, and even the greatest price quote is just around a 10th of the energy presently used to heat UK houses.
Dedications made in the new technique consist of:.
One significant exclusion is hydrogen for fuel-cell automobile. This is constant with the governments focus on electric automobiles, which many scientists see as more cost-efficient and efficient technology.
Michael Liebrich of Liebreich Associates has actually organised using low-carbon hydrogen into a “ladder”, with current applications– such as the chemicals industry– provided top concern.
The committee emphasises that hydrogen use need to be restricted to “locations less suited to electrification, particularly shipping and parts of market” and providing versatility to the power system.
Nevertheless, in the real report, the government said that it expected “in general the need for low carbon hydrogen for heating by 2030 to be fairly low (<< 1TWh)"..
" As the method confesses, there will not be substantial amounts of low-carbon hydrogen for some time.
Require proof on "hydrogen-ready" industrial devices by the end of 2021. Call for proof on phaseout of carbon-intensive hydrogen production in market "within a year". Stage 2 of the ₤ 315m Industrial Energy Transformation Fund.A ₤ 55 million Industrial Fuel Switching 2 competitors in 2021.
This is in line with the CCCs recommendation for its net-zero path, which sees low-carbon hydrogen scaling approximately 90TWh by 2035-- around a third of the size of the current power sector.
4) On page 62 the hydrogen technique specifies that the government anticipates << 1 TWh of energy for heating to come from hydrogen by 2030. Current energy demand in the UK for area and warm water heating is 435 TWh according to Ofgem. 1 TWh is 0.2%. Thats about 67,000 homes.-- Jan Rosenow (@janrosenow) August 17, 2021.
Gniewomir Flis, a task supervisor at Agora Energiewende, informs Carbon Brief that-- in his view-- mixing "has no future". He explains:.
In order to produce a market for hydrogen, the government says it will analyze mixing up to 20% hydrogen into the gas network by late 2022 and aim to make a final choice in late 2023.
Much will depend upon the development of expediency studies in the coming years, and the governments approaching heat and buildings technique may also supply some clearness.
" I would suggest to go with these no-regret options for hydrogen demand [in industry] that are currently available ... those should be the focus.".
How does the federal government plan to support the hydrogen market?
Hydrogen need (pink location) and proportion of final energy usage in 2050 (%). My lovelies, I simply dropped Version 4 of the Clean Hydrogen Ladder! Call for evidence on phaseout of carbon-intensive hydrogen production in market "within a year"." As the strategy confesses, there wont be significant amounts of low-carbon hydrogen for some time. 4) On page 62 the hydrogen strategy states that the federal government anticipates << 1 TWh of energy for heating to come from hydrogen by 2030.
Now that its technique has been published, the federal government says it will collect proof from assessments on its low-carbon hydrogen standard, net-zero hydrogen fund and the service model:.
The 10-point strategy consisted of a pledge to establish a hydrogen company design to encourage personal investment and a revenue system to supply financing for business design.
As it stands, low-carbon hydrogen remains costly compared to fossil fuel alternatives, there is uncertainty about the level of future need and high dangers for companies intending to get in the sector.
According to the governments press release, its preferred design is "developed on a similar property to the offshore wind contracts for difference (CfDs)", which substantially cut costs of new overseas wind farms.
The new hydrogen method confirms that this business model will be finalised in 2022, making it possible for the first contracts to be designated from the start of 2023. This is pending another consultation, which has actually been introduced along with the primary method.
Anne-Marie Trevelyan-- minister for energy, clean growth and climate change at BEIS-- told the Times that the expense to supply long-term security to the industry would be "very small" for private households.
Sharelines from this story.
These agreements are designed to overcome the expense space between the favored innovation and fossil fuels. Hydrogen manufacturers would be provided a payment that bridges this space.
Much of the resulting press coverage of the hydrogen strategy, from the Financial Times to the Daily Telegraph, focused on the plan for a hydrogen industry "subsidised by taxpayers", as the money would come from either higher expenses or public funds.
" This will offer us a better understanding of the mix of production innovations, how we will meet a ramp-up in need, and the function that new technologies could play in attaining the levels of production needed to meet our future [6th carbon spending plan] and net-zero dedications.".
