In-depth Q&A: How will the UK’s hydrogen strategy help achieve net-zero?
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11% OffThe UKs brand-new, long-awaited hydrogen strategy supplies more detail on how the federal government will support the advancement of a domestic low-carbon hydrogen sector, which today is practically non-existent.
Professionals have actually cautioned that, with hydrogen in brief supply in the coming years, the UK needs to prioritise it in “hard-to-electrify” sectors such as heavy industry as capability expands.
On the other hand, company choices around the degree of hydrogen usage in domestic heating and how to ensure it is produced in a low-carbon way have actually been delayed or put out to consultation for the time being.
Hydrogen will be “vital” for accomplishing the UKs net-zero target and might meet up to a third of the countrys energy needs by 2050, according to the government.
In this article, Carbon Brief highlights bottom lines from the 121-page technique and analyzes a few of the primary talking points around the UKs hydrogen plans.
Why does the UK require a hydrogen method?
Critics also characterise hydrogen– the majority of which is currently made from natural gas– as a way for fossil fuel business to preserve the status quo. (For all the benefits and drawbacks of hydrogen, see Carbon Briefs extensive explainer.).
Hydrogen need (pink location) and percentage of final energy consumption in 2050 (%). The central variety is based upon illustrative net-zero constant situations in the sixth carbon spending plan effect assessment and the full range is based on the entire variety from hydrogen strategy analytical annex. Source: UK hydrogen method.
The plan likewise required a ₤ 240m net-zero hydrogen fund, the development of a hydrogen area heated with the gas by 2023, and increasing hydrogen mixing into gas networks to 20% to minimize reliance on natural gas.
The Climate Change Committee (CCC) has noted that, in order to hit the UKs carbon budgets and accomplish net-zero emissions, decisions in locations such as decarbonising heating and cars require to be made in the 2020s to allow time for facilities and car stock modifications.
Today we have published the UKs first Hydrogen Strategy! This is our plan to: kick-start an entire industry release the market to cut costs ramp up domestic production unlock ₤ 4bn of private capital assistance 9k tasks #BuildBackGreenerhttps:// t.co/ aHZTr5yYeR– Kwasi Kwarteng (@KwasiKwarteng) August 17, 2021.
The level of hydrogen usage in 2050 imagined by the method is rather greater than set out by the CCC in its most current advice, but covers a similar range to other research studies.
A recent All Party Parliamentary Group report on the function of hydrogen in powering industry included a list of needs, specifying that the federal government must “expand beyond its existing dedications of 5GW production in the forthcoming hydrogen technique”. This call has actually been echoed by some market groups.
Prior to the brand-new method, the prime ministers 10-point strategy in November 2020 included plans to produce 5 gigawatts (GW) of yearly low-carbon hydrogen production capacity in the UK by 2030. Presently, this capability stands at virtually absolutely no.
There were likewise over 100 references to hydrogen throughout the governments energy white paper, reflecting its potential usage in many sectors. It also includes in the industrial and transport decarbonisation strategies released previously this year.
The file includes an expedition of how the UK will broaden production and create a market for hydrogen based on domestic supply chains. This contrasts with Germany, which has actually been seeking to import hydrogen from abroad.
However, as the chart listed below shows, if the governments strategies come to fruition it might then broaden significantly– comprising between 20-35% of the nations total energy supply by 2050. This will need a major growth of infrastructure and abilities in the UK.
In some applications, hydrogen will complete with electrification and carbon capture and storage (CCS) as the very best methods of decarbonisation.
Companies such as Equinor are continuing with hydrogen developments in the UK, however market figures have warned that the UK threats being left. Other European countries have promised billions to support low-carbon hydrogen expansion.
The technique does not increase this target, although it keeps in mind that the government is “knowledgeable about a prospective pipeline of over 15GW of tasks”.
Hydrogen development for the next decade is expected to start gradually, with a federal government goal to “see 1GW production capability by 2025” set out in the strategy.
In its new technique, the UK federal government makes it clear that it sees low-carbon hydrogen as an essential part of its net-zero strategy, and states it wants the country to be a “global leader on hydrogen” by 2030.
Nevertheless, just like many of the federal governments net-zero method files so far, the hydrogen plan has been postponed by months, resulting in unpredictability around the future of this new industry.
Its versatility means it can be used to deal with emissions in “hard-to-abate” sectors, such as heavy industry, but it presently experiences high prices and low performance..
Hydrogen is commonly seen as an important part in plans to attain net-zero emissions and has actually been the topic of significant hype, with numerous nations prioritising it in their post-Covid green recovery plans.
What variety of low-carbon hydrogen will be prioritised?
The file does refrain from doing that and rather states it will offer “more detail on our production strategy and twin track technique by early 2022”.
The technique specifies that the proportion of hydrogen supplied by particular innovations “depends on a series of assumptions, which can just be evaluated through the marketplaces reaction to the policies set out in this method and real, at-scale deployment of hydrogen”..
For its part, the CCC has actually suggested a “blue hydrogen bridge” as a helpful tool for accomplishing net-zero. It states allowing some blue hydrogen will minimize emissions quicker in the short-term by replacing more fossil fuels with hydrogen when there is insufficient green hydrogen available..
Supporting a variety of jobs will give the UK a “competitive advantage”, according to the federal government. Germany, by contrast, has stated it will focus solely on green hydrogen.
Many scientists and ecological groups are sceptical about blue hydrogen provided its associated emissions.
Short (ideally) assessing this blue hydrogen thing. Basically, the papers estimations possibly represent a case where blue H ₂ is done really terribly & & without any sensible regulations. And after that cherry-picked a climate metric to make it look as bad as possible. https://t.co/Jx0FdDfdx5— David Joffe (@david_joffe) August 13, 2021.
Green hydrogen is used electrolysers powered by eco-friendly electricity, while blue hydrogen is made utilizing natural gas, with the resulting emissions captured and stored..
At the heart of numerous discussions about low-carbon hydrogen production is whether the hydrogen is “green” or “blue”.
CO2 equivalent: Greenhouse gases can be revealed in terms of co2 equivalent, or CO2eq. For a given quantity, different greenhouse gases trap different amounts of heat in the atmosphere, an amount called the worldwide warming capacity. Co2 equivalent is a method of comparing emissions from all greenhouse gases, not just carbon dioxide.
In the example selected for the consultation, gas routes where CO2 capture rates are below around 85% were left out..
This opposition came to a head when a current research study led to headings specifying that blue hydrogen is “worse for the climate than coal”.
There was substantial pushback on this conclusion, with other scientists– consisting of CCC head of carbon spending plans, David Joffe– pointing out that it relied on very high methane leak and a short-term step of worldwide warming capacity that emphasised the impact of methane emissions over CO2.
It has likewise released an accompanying report, prepared by consultancies E4Tech and Ludwig-Bölkow-Systemtechnik (LBST), which examines optimum appropriate levels of emissions for low-carbon hydrogen production and the method for calculating these emissions.
The CCC has warned that policies should develop both blue and green alternatives, “rather than simply whichever is least-cost”.
The CCC has formerly defined “appropriate emissions decreases” for blue hydrogen compared to fossil gas as “at least 95% CO2 capture, 85% lifecycle greenhouse gas cost savings”.
The new method largely prevents utilizing this colour-coding system, but it states the government has actually devoted to a “twin track” method that will consist of the production of both varieties.
The figure below from the assessment, based upon this analysis, reveals the impact of setting a threshold 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 omitted.
The strategy notes that, sometimes, hydrogen made using electrolysers “might become cost-competitive with CCUS [carbon utilisation, capture and storage] -enabled methane reformation as early as 2025”..
The previous is essentially zero-carbon, however the latter can still result in emissions due to methane leakages from natural gas infrastructure and the truth that carbon capture and storage (CCS) does not record 100% of emissions..
Close.
CO2 equivalent: Greenhouse gases can be expressed in regards to co2 equivalent, or CO2eq. For an offered amount, various greenhouse gases trap different amounts of heat in the atmosphere, a quantity referred to as … Read More.
Contrast of cost quotes throughout various innovation types at central fuel prices commissioning from 2020 to 2050, ₤/ MWh hydrogen. Source: Hydrogen Production Costs.
2021.
As it stands, blue hydrogen made using steam methane reformation (SMR) is the cheapest low-carbon hydrogen readily available, according to federal government analysis included in the technique. (For more on the relative costs of various hydrogen varieties, see this Carbon Brief explainer.).
Prof Robert Gross, director of the UK Energy Research Centre, tells Carbon Brief that, in his view, it is “most likely a bit unhelpful to get too preoccupied with the blue vs green hydrogen dispute”. He says:.
The chart below, from a file laying out hydrogen costs launched along with the primary method, shows the anticipated decreasing cost of electrolytic hydrogen with time (green lines). (This includes hydrogen made utilizing grid electrical energy, which is not technically green unless the grid is 100% eco-friendly.).
The CCC has formerly mentioned that the government should “set out [a] vision for contributions of hydrogen production from various paths to 2035” in its hydrogen strategy.
The federal government has launched an assessment on low-carbon hydrogen standards to accompany the technique, with a pledge to “finalise style components” of such requirements by early 2022.
” If we wish to demonstrate, trial, begin to commercialise and then present making use of hydrogen in industry/air travel/freight or wherever, then we require enough hydrogen. We cant wait up until the supply side deliberations are total.”.
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 “think about carbon intensity as the main consider market development”.
Glossary.
Jess Ralston, an expert at thinktank the Energy and Climate Intelligence Unit (ECIU), stated in a statement that the government must “live to the risk of gas industry lobbying triggering it to commit too greatly to blue hydrogen therefore keeping the country locked into fossil fuel-based innovation”.
How will hydrogen be used in various sectors of the economy?
” As the strategy confesses, there will not be significant amounts of low-carbon hydrogen for some time.
Michael Liebrich of Liebreich Associates has arranged making use of low-carbon hydrogen into a “ladder”, with present applications– such as the chemicals industry– given top concern.
Illustrative hydrogen need in 2030 (blue) and 2035 (purple). Source: UK hydrogen strategy.
” Stronger signals of intent might steer public and private investments into those areas which include most worth. The federal government has actually not clearly set out how to choose upon which sectors will gain from the preliminary planned 5GW of production and has rather mostly left this to be identified through pilots and trials.”.
In the actual report, the federal government stated that it anticipated “overall the demand for low carbon hydrogen for heating by 2030 to be reasonably low (<< 1TWh)".. One significant exclusion is hydrogen for fuel-cell automobile. This follows the federal governments focus on electric vehicles, which numerous researchers deem more cost-efficient and effective technology. The federal government is more optimistic about making use of hydrogen in domestic heating. Its analysis recommends that up to 45TWh of low-carbon hydrogen might be put to this usage by 2035, as the chart listed below shows. The CCC does not see comprehensive use of hydrogen beyond these limited cases by 2035, as the chart listed below programs. Some applications, such as industrial heating, might be practically difficult without a supply of hydrogen, and lots of professionals have argued that these hold true where it need to be prioritised, a minimum of in the short term. Call for evidence on "hydrogen-ready" commercial equipment by the end of 2021. Require evidence on phaseout of carbon-intensive hydrogen production in market "within a year". Phase 2 of the ₤ 315m Industrial Energy Transformation Fund.A ₤ 55 million Industrial Fuel Switching 2 competition in 2021. The method likewise consists of the choice of utilizing hydrogen in sectors that might be much better served by electrification, particularly domestic heating, where hydrogen has to compete with electric heat pumps.. Government analysis, included in the technique, suggests potential hydrogen need of approximately 38 terawatt-hours (TWh) by 2030, not including mixing it into the gas grid, and rising to 55-165TWh by 2035. Juliet Phillips, senior policy advisor and UK hydrogen expert at thinktank E3G informs Carbon Brief the method had "exposed" the door for uses that "do not add the most worth for the climate or economy". She includes:. The beginning point for the variety-- 0TWh-- recommends there is significant uncertainty compared to other sectors, and even the greatest quote is only around a 10th of the energy presently utilized to heat UK homes. Reacting to the report, energy researchers indicated the "miniscule" volumes of hydrogen expected to be produced in the near future and prompted the government to choose its priorities thoroughly. Commitments made in the brand-new method consist of:. The committee emphasises that hydrogen use must be limited to "areas less fit to electrification, particularly shipping and parts of industry" and providing flexibility to the power system. It consists of plans for hydrogen heating trials and consultation on "hydrogen-ready" boilers by 2026. The brand-new technique is clear that industry will be a "lead option" for early hydrogen usage, starting in the mid-2020s. It likewise says that it will "most likely" be very important for decarbonising transport-- particularly heavy items vehicles, shipping and aviation-- and balancing a more renewables-heavy grid. Although low-carbon hydrogen can be utilized to do whatever from sustaining cars to heating houses, the truth is that it will likely be limited by the volume that can feasibly be produced. This is in line with the CCCs recommendation for its net-zero pathway, which sees low-carbon hydrogen scaling approximately 90TWh by 2035-- around a third of the size of the present power sector. So, my lovelies, I simply dropped Version 4 of the Clean Hydrogen Ladder! For anyone new to all this, the ladder is my effort to put usage cases for tidy hydrogen into some sort of merit order, since not all use cases are equally likely to be successful. 1/10 pic.twitter.com/I8HpqQjlKS— Michael Liebreich (@MLiebreich) August 15, 2021. Protection of the report and federal government promotional materials emphasised that the governments plan would provide enough hydrogen to change natural gas in around 3m houses each year. 4) On page 62 the hydrogen technique states that the government expects << 1 TWh of energy for heating to come from hydrogen by 2030. 1 TWh is 0.2%. Much will depend upon the development of expediency research studies in the coming years, and the federal governments upcoming heat and structures method may likewise supply some clearness. Lastly, in order to develop a market for hydrogen, the government says it will analyze mixing up to 20% hydrogen into the gas network by late 2022 and goal to make a final choice in late 2023. " I would recommend to choose these no-regret choices for hydrogen need [in industry] that are currently readily available ... those need to be the focus.". Gniewomir Flis, a task supervisor at Agora Energiewende, informs Carbon Brief that-- in his view-- mixing "has no future". He explains:. How does the government strategy to support the hydrogen market? Hydrogen need (pink location) and proportion of final energy usage in 2050 (%). My lovelies, I just 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 admits, there wont be significant quantities of low-carbon hydrogen for some time. 4) On page 62 the hydrogen technique specifies that the government expects << 1 TWh of energy for heating to come from hydrogen by 2030. " This will give us a better understanding of the mix of production innovations, how we will satisfy a ramp-up in demand, and the role that new technologies might play in achieving the levels of production necessary to fulfill our future [6th carbon budget plan] and net-zero dedications.". The new hydrogen strategy verifies that this service model will be settled in 2022, enabling the first contracts to be designated from the start of 2023. This is pending another assessment, which has actually been launched along with the main technique. As it stands, low-carbon hydrogen stays expensive compared to fossil fuel options, there is uncertainty about the level of future need and high risks for business aiming to go into the sector. Now that its method has been published, the government says it will gather proof from assessments on its low-carbon hydrogen standard, net-zero hydrogen fund and the company model:. According to the federal governments news release, its favored design is "developed on a comparable property to the overseas wind contracts for distinction (CfDs)", which substantially cut costs of new offshore wind farms. Much of the resulting press coverage of the hydrogen method, from the Financial Times to the Daily Telegraph, focused on the prepare for a hydrogen industry "subsidised by taxpayers", as the cash would come from either greater expenses or public funds. These agreements are developed to get rid of the expense space in between the preferred technology and nonrenewable fuel sources. Hydrogen producers would be provided a payment that bridges this gap. Anne-Marie Trevelyan-- minister for energy, clean development and climate modification at BEIS-- told the Times that the expense to supply long-term security to the market would be "really small" for individual families. The 10-point strategy consisted of a promise to develop a hydrogen organization design to encourage private financial investment and an earnings system to provide funding for the organization model. Sharelines from this story.