In-depth Q&A: How will the UK’s hydrogen strategy help achieve net-zero?

Meanwhile, firm decisions around the degree of hydrogen usage in domestic heating and how to guarantee it is produced in a low-carbon method have been delayed or put out to assessment for the time being.

The UKs new, long-awaited hydrogen method provides more detail on how the government will support the advancement of a domestic low-carbon hydrogen sector, which today is practically non-existent.

In this post, Carbon Brief highlights key points from the 121-page method and takes a look at a few of the main talking points around the UKs hydrogen plans.

Hydrogen will be “critical” for attaining the UKs net-zero target and could meet up to a third of the nations energy requirements by 2050, according to the federal government.

Professionals have 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 market as capacity expands.

Why does the UK need a hydrogen strategy?

Today we have actually released the UKs first Hydrogen Strategy! This is our strategy to: kick-start a whole market unleash the market to cut costs increase domestic production unlock ₤ 4bn of personal capital support 9k tasks #BuildBackGreenerhttps:// t.co/ aHZTr5yYeR– Kwasi Kwarteng (@KwasiKwarteng) August 17, 2021.

The file includes an expedition of how the UK will expand production and create a market for hydrogen based upon domestic supply chains. This contrasts with Germany, which has been looking to import hydrogen from abroad.

Critics also characterise hydrogen– most of which is presently made from gas– as a way for fossil fuel business to keep the status quo. (For all the benefits and disadvantages of hydrogen, see Carbon Briefs in-depth explainer.).

The strategy does not increase this target, although it notes that the government is “mindful of a potential pipeline of over 15GW of tasks”.

As the chart below programs, if the federal governments strategies come to fruition it might then expand considerably– making up between 20-35% of the countrys total energy supply by 2050. This will require a major expansion of facilities and abilities in the UK.

Nevertheless, the Climate Change Committee (CCC) has actually noted that, in order to strike the UKs carbon spending plans and accomplish net-zero emissions, decisions in locations such as decarbonising heating and lorries need to be made in the 2020s to permit time for facilities and lorry stock modifications.

Its versatility implies it can be used to take on emissions in “hard-to-abate” sectors, such as heavy market, however it presently experiences high costs and low effectiveness..

In some applications, hydrogen will contend with electrification and carbon capture and storage (CCS) as the very best methods of decarbonisation.

In its brand-new strategy, the UK government makes it clear that it sees low-carbon hydrogen as an essential part of its net-zero strategy, and says it desires the country to be a “international leader on hydrogen” by 2030.

Prior to the brand-new strategy, the prime ministers 10-point strategy in November 2020 consisted of plans to produce 5 gigawatts (GW) of yearly low-carbon hydrogen production capacity in the UK by 2030. Currently, this capacity stands at essentially no.

The level of hydrogen use in 2050 envisaged by the strategy is rather greater than set out by the CCC in its most recent advice, however covers a comparable variety to other research studies.

A recent All Party Parliamentary Group report on the function of hydrogen in powering industry consisted of a list of demands, mentioning that the federal government should “expand beyond its existing commitments of 5GW production in the forthcoming hydrogen technique”. This call has been echoed by some industry groups.

Hydrogen is commonly seen as a crucial element in plans to achieve net-zero emissions and has actually been the topic of substantial buzz, with lots of countries prioritising it in their post-Covid green healing plans.

Companies such as Equinor are pressing on with hydrogen developments in the UK, however market figures have actually alerted that the UK threats being left behind. Other European nations have actually promised billions to support low-carbon hydrogen growth.

As with many of the governments net-zero strategy documents so far, the hydrogen plan has actually been postponed by months, resulting in unpredictability around the future of this recently established industry.

The plan also called for a ₤ 240m net-zero hydrogen fund, the production of a hydrogen neighbourhood warmed with the gas by 2023, and increasing hydrogen blending into gas networks to 20% to reduce dependence on gas.

Hydrogen development for the next decade is anticipated to begin gradually, with a government aspiration to “see 1GW production capability by 2025” laid out in the technique.

There were likewise over 100 references to hydrogen throughout the governments energy white paper, showing its prospective usage in numerous sectors. It likewise features in the commercial and transport decarbonisation techniques released previously this year.

Hydrogen demand (pink location) and percentage of final energy intake in 2050 (%). The main variety is based upon illustrative net-zero consistent situations in the sixth carbon budget plan impact evaluation and the full variety is based on the entire variety from hydrogen strategy analytical annex. Source: UK hydrogen technique.

What variety of low-carbon hydrogen will be prioritised?

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CO2 equivalent: Greenhouse gases can be expressed in terms of co2 equivalent, or CO2eq. For an offered amount, various greenhouse gases trap different quantities of heat in the environment, an amount referred to as … Read More.

Quick (hopefully) reflecting on this blue hydrogen thing. Essentially, the papers calculations potentially represent a case where blue H ₂ is done really badly & & without any reasonable regulations. And then cherry-picked an environment metric to make it look as bad as possible. https://t.co/Jx0FdDfdx5— David Joffe (@david_joffe) August 13, 2021.

Glossary.

The CCC has actually warned that policies should establish both green and blue alternatives, “rather than just whichever is least-cost”.

Prof Robert Gross, director of the UK Energy Research Centre, informs Carbon Brief that, in his view, it is “probably a bit unhelpful to get too preoccupied with the blue vs green hydrogen dispute”. He says:.

The strategy states that the proportion of hydrogen provided by specific innovations “depends upon a range of presumptions, which can only be tested through the markets response to the policies set out in this strategy and real, at-scale deployment of hydrogen”..

Environmental groups and lots of scientists are sceptical about blue hydrogen given its associated emissions.

The CCC has actually formerly defined “appropriate emissions decreases” for blue hydrogen compared to fossil gas as “at least 95% CO2 capture, 85% lifecycle greenhouse gas cost savings”.

In May, S&P Global Platts reported that Rita Wadey– hydrogen economy deputy director at the Department for Business, Energy & & Industrial Strategy (BEIS)– said that, instead of “blue” or “green”, the UK would “think about carbon intensity as the primary element in market advancement”.

The file does refrain from doing that and rather states it will supply “more detail on our production method and twin track technique by early 2022”.

Green hydrogen is made utilizing electrolysers powered by eco-friendly electrical energy, while blue hydrogen is made using gas, with the resulting emissions recorded and saved..

At the heart of numerous conversations about low-carbon hydrogen production is whether the hydrogen is “green” or “blue”.

In the example chosen for the consultation, gas routes where CO2 capture rates are below around 85% were omitted..

For its part, the CCC has recommended a “blue hydrogen bridge” as a beneficial tool for attaining net-zero. It says allowing some blue hydrogen will lower emissions quicker in the short-term by changing more nonrenewable fuel sources with hydrogen when there is insufficient green hydrogen offered..

The new technique largely prevents using this colour-coding system, however it states the federal government has actually devoted to a “twin track” approach that will consist of the production of both varieties.

It has also launched an accompanying report, prepared by consultancies E4Tech and Ludwig-Bölkow-Systemtechnik (LBST), which takes a look at optimum appropriate levels of emissions for low-carbon hydrogen production and the methodology for determining these emissions.

As it stands, blue hydrogen used steam methane reformation (SMR) is the most affordable low-carbon hydrogen offered, according to government analysis included in the method. (For more on the relative costs of various hydrogen ranges, see this Carbon Brief explainer.).

This opposition came to a head when a recent study caused headings specifying that blue hydrogen is “even worse for the environment than coal”.

There was significant pushback on this conclusion, with other scientists– consisting of CCC head of carbon budgets, David Joffe– pointing out that it relied on very high methane leak and a short-term procedure of worldwide warming capacity that emphasised the impact of methane emissions over CO2.

CO2 equivalent: Greenhouse gases can be revealed in regards to co2 equivalent, or CO2eq. For an offered quantity, different greenhouse gases trap different amounts of heat in the environment, an amount referred to as the global warming capacity. Carbon dioxide equivalent is a way of comparing emissions from all greenhouse gases, not simply carbon dioxide.

The federal government has actually released a consultation on low-carbon hydrogen requirements to accompany the method, with a pledge to “settle style elements” of such requirements by early 2022.

The strategy notes that, in some cases, hydrogen made using electrolysers “might end up being cost-competitive with CCUS [carbon storage, utilisation and capture] -enabled methane reformation as early as 2025″..

” If we want to show, trial, begin to commercialise and then present the use of hydrogen in industry/air travel/freight or anywhere, then we need enough hydrogen. We cant wait until the supply side considerations are complete.”.

Comparison of rate quotes throughout various technology types at main fuel prices commissioning from 2020 to 2050, ₤/ MWh hydrogen. Source: Hydrogen Production Costs.
2021.

The CCC has previously stated that the government ought to “set out [a] vision for contributions of hydrogen production from various paths to 2035” in its hydrogen technique.

The figure listed below from the consultation, based upon this analysis, shows the effect of setting a limit of 15-20gCO2e per megajoule (MJ) of hydrogen (red bar). In this example, those production methods above the red line, consisting of some for producing blue hydrogen, would be omitted.

The previous is essentially zero-carbon, but 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 record 100% of emissions..

Supporting a variety of jobs will provide the UK a “competitive benefit”, according to the government. Germany, by contrast, has said it will focus solely on green hydrogen.

Jess Ralston, an analyst at thinktank the Energy and Climate Intelligence Unit (ECIU), stated in a declaration that the federal government should “live to the threat of gas market lobbying causing it to dedicate too greatly to blue hydrogen and so keeping the country locked into fossil fuel-based technology”.

The chart below, from a file describing hydrogen costs launched together with the main strategy, reveals the anticipated declining cost of electrolytic hydrogen gradually (green lines). (This includes hydrogen made utilizing grid electricity, which is not technically green unless the grid is 100% eco-friendly.).

How will hydrogen be used in different sectors of the economy?

” Stronger signals of intent might steer personal and public investments into those areas which add most worth. The federal government has not clearly set out how to choose which sectors will gain from the initial scheduled 5GW of production and has rather mainly left this to be figured out through pilots and trials.”.

However, in the actual report, the government said that it anticipated “in general the demand for low carbon hydrogen for heating by 2030 to be relatively low (<< 1TWh)".. The technique also includes the option of using hydrogen in sectors that might be much better served by electrification, particularly domestic heating, where hydrogen has to contend with electrical heat pumps.. Although low-carbon hydrogen can be utilized to do everything from fuelling automobiles to heating homes, the truth is that it will likely be limited by the volume that can probably be produced. However, the starting point for the range-- 0TWh-- suggests there is substantial uncertainty compared to other sectors, and even the highest estimate is just around a 10th of the energy presently utilized to heat UK houses. Illustrative hydrogen demand in 2030 (blue) and 2035 (purple). Source: UK hydrogen strategy. Juliet Phillips, senior policy advisor and UK hydrogen expert at thinktank E3G tells Carbon Brief the technique had "exposed" the door for usages that "dont include the most worth for the environment or economy". She includes:. Michael Liebrich of Liebreich Associates has actually organised the usage of low-carbon hydrogen into a "ladder", with present applications-- such as the chemicals industry-- given top priority. One notable exemption is hydrogen for fuel-cell guest cars and trucks. This follows the governments concentrate on electric cars, which many scientists consider as more efficient and economical innovation. 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 usage cases for tidy hydrogen into some sort of benefit order, due to the fact that not all use cases are equally likely to be successful. 1/10 pic.twitter.com/I8HpqQjlKS— Michael Liebreich (@MLiebreich) August 15, 2021. The government is more optimistic about using hydrogen in domestic heating. Its analysis suggests that up to 45TWh of low-carbon hydrogen could be put to this usage by 2035, as the chart below suggests. The committee emphasises that hydrogen usage need to be restricted to "locations less suited to electrification, particularly shipping and parts of industry" and providing versatility to the power system. Require evidence on "hydrogen-ready" industrial equipment by the end of 2021. Require proof on phaseout of carbon-intensive hydrogen production in industry "within a year". Stage 2 of the ₤ 315m Industrial Energy Transformation Fund.A ₤ 55 million Industrial Fuel Switching 2 competition in 2021. The CCC does not see substantial usage of hydrogen beyond these minimal cases by 2035, as the chart listed below shows. The brand-new strategy is clear that market will be a "lead option" for early hydrogen use, beginning in the mid-2020s. It likewise says that it will "likely" be very important for decarbonising transport-- particularly heavy goods lorries, shipping and air travel-- and stabilizing a more renewables-heavy grid. Protection of the report and federal government promotional products emphasised that the federal governments strategy would offer sufficient hydrogen to change gas in around 3m homes each year. Some applications, such as industrial heating, may be virtually impossible without a supply of hydrogen, and lots of professionals have argued that these hold true where it ought to be prioritised, a minimum of in the short-term. Reacting to the report, energy scientists indicated the "little" volumes of hydrogen anticipated to be produced in the future and urged the government to pick its top priorities thoroughly. Government analysis, consisted of in the technique, recommends possible hydrogen need of up to 38 terawatt-hours (TWh) by 2030, not including blending it into the gas grid, and increasing to 55-165TWh by 2035. Dedications made in the brand-new technique include:. " As the technique confesses, there wont be considerable amounts of low-carbon hydrogen for some time. This is in line with the CCCs recommendation for its net-zero pathway, which sees low-carbon hydrogen scaling up to 90TWh by 2035-- around a third of the size of the present power sector. It consists of prepare for hydrogen heating trials and consultation on "hydrogen-ready" boilers by 2026. 4) On page 62 the hydrogen method specifies that the government anticipates << 1 TWh of energy for heating to come from hydrogen by 2030. Existing energy need in the UK for area and warm water heating is 435 TWh according to Ofgem. So 1 TWh is 0.2%. Thats about 67,000 houses.-- Jan Rosenow (@janrosenow) August 17, 2021. Much will depend upon the development of feasibility research studies in the coming years, and the governments upcoming heat and structures strategy may likewise offer some clarity. Gniewomir Flis, a job manager at Agora Energiewende, tells Carbon Brief that-- in his view-- mixing "has no future". He explains:. " I would recommend to go with these no-regret choices for hydrogen demand [in industry] that are currently offered ... those need to be the focus.". Finally, in order to create a market for hydrogen, the government says it will analyze blending up to 20% hydrogen into the gas network by late 2022 and objective to make a decision in late 2023. How does the government strategy to support the hydrogen industry? Anne-Marie Trevelyan-- minister for energy, clean growth and environment modification at BEIS-- told the Times that the cost to offer long-term security to the market would be "extremely small" for individual households. Hydrogen demand (pink location) and percentage of last energy consumption 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 industry "within a year"." As the method confesses, there will not be significant amounts of low-carbon hydrogen for some time. 4) On page 62 the hydrogen method mentions that the government expects << 1 TWh of energy for heating to come from hydrogen by 2030. The 10-point strategy consisted of a promise to develop a hydrogen business model to motivate private financial investment and an income mechanism to offer funding for the organization model. According to the federal governments press release, its favored model is "built on a similar property to the overseas wind agreements for difference (CfDs)", which considerably cut costs of brand-new overseas wind farms. These agreements are developed to get rid of the expense space in between the preferred technology and fossil fuels. Hydrogen producers would be provided a payment that bridges this space. The new hydrogen method verifies that this organization design will be settled in 2022, making it possible for the very first contracts to be assigned from the start of 2023. This is pending another consultation, which has actually been released alongside the primary technique. " This will give us a better understanding of the mix of production technologies, how we will fulfill a ramp-up in need, and the function that new innovations could play in attaining the levels of production needed to satisfy our future [6th carbon budget] and net-zero dedications.". Sharelines from this story. Now that its strategy has actually been published, the government says it will collect evidence from assessments on its low-carbon hydrogen standard, net-zero hydrogen fund and business model:. As it stands, low-carbon hydrogen remains pricey compared to nonrenewable fuel source options, there is uncertainty about the level of future demand and high threats for companies aiming to enter the sector. Much of the resulting press protection of the hydrogen method, from the Financial Times to the Daily Telegraph, focused on the strategy for a hydrogen market "subsidised by taxpayers", as the cash would originate from either higher bills or public funds.