🔎 What’s going on?
Last week, the UK Government announced the first-ever Hydrogen Strategy that will support over 9000 UK jobs and unlock £4 billion of private investment by 2030.
💧 Cool, tell me more...
Let’s start with why Hydrogen, the two major types, and what makes it a low-carbon solution. Hydrogen is a secondary source of energy, this means that it is not freely available in nature but it can be produced. Green hydrogen can be produced by passing electricity through water (via electrolysis). It’s the process of separating water (H₂O) into hydrogen (H) and oxygen (O).
When the electricity used comes from renewable sources, such as wind or solar, it’s considered as zero-carbon. Blue hydrogen is produced by combining fossil fuels (such as coal, oil, and gas) with steam and heating them to 800°C in a process called reforming. It then produces carbon dioxide and hydrogen, which are then separated. If the carbon can be captured and stored, then blue hydrogen can be considered low-carbon.
The UK strategy provides for a whole system approach where the government will support the entire hydrogen value chain from production, distribution, storage, usage and then creating the end market with a supportive regulatory framework. Here are some key highlights:
- For generation, the Department for Business, Energy, and Industrial Strategy (BEIS) proposes a twin-track strategy, which aims to develop both green and blue hydrogen (with carbon capture and storage).
- The UK aims to produce 5GW of low-carbon hydrogen by 2030 - equivalent to the amount of gas consumed by 3 million households each year. It should deliver carbon emissions savings of 41MtCO2₂e between 2023 and 2032 - this is the equivalent of carbon captured by approx 700 million trees over the same period.
- This new hydrogen economy in the UK will support the creation of over 9000 jobs by 2030 and be worth £900 million.
- A Net-Zero Hydrogen Fund (NZHF) will provide up to £240million government co-investment to support production.
- Up to 30% of the UK’s energy consumption could be hydrogen-based by 2050.
- Develop hydrogen networks across the country, including repurposing 25% of existing gas pipelines, and building pure hydrogen pipelines.
- The government is assessing the potential for blending up to 20 percent hydrogen in the national gas grid to create an early market for hydrogen.
- A consultation has been launched for the development of a low carbon hydrogen standard with the aim of establishing consistent sustainability and greenhouse gas emissions criteria. The standard will be published in 2022.
❓ Why should I care?
In order to reach the UK’s commitment to the Paris Agreement, we need to reduce at least 68% of emissions by 2030. This means the UK’s energy mix needs to evolve - from fossil fuels (coal, oil, and gas) to renewable energy (solar, wind, biomass). Hydrogen as a new energy source can hugely help alleviate the pressure on renewable energy because it’s abundant and does not produce carbon emissions.
However, not all hydrogen produces zero carbon emissions. Green hydrogen produces zero carbon as renewable energy sources are used, however, blue hydrogen produces some carbon emissions. The plan is to then capture these emissions and store them safely underground. But, earlier this month, academics from Cornell and Stanford universities published a study that suggests that not all emissions can be fully captured and some ‘fugitive emissions’ will inevitably escape. They estimate fugitive emissions from the production of blue hydrogen could be up to 20% worse for the climate than using gas.
🚦 Where do we need to be?
Based on the initial life cycle analysis of blue hydrogen, we know that green hydrogen is better than blue for the climate. Therefore, the UK government and governments around the world should ideally prioritise producing and scaling green hydrogen rather than focus on blue hydrogen. Further, blue hydrogen depends on the development of carbon capture and storage technologies being readily available and this industry is still very much in its infancy.
The transition from fossil fuels to low carbon fuels will carry huge costs. According to the International Renewable Energy Agency (IRENA)’s report last year, green hydrogen is about two to three times more expensive than blue hydrogen, at a cost of about $6/kilogram. Thus, governments and industries should ensure costs are not passed onto consumers while this new fuel is produced and scaled. And still, aim to choose the best option for the environment - current data points to green hydrogen.
👤 What can I do about it?
Since this is a new fuel economy that is being developed, there are two things individuals and companies can do:
- Educate yourself about this new energy source - learn everything you possibly can so you can contribute to the development of the hydrogen economy. The UK Hydrogen Strategy is a good place to start.
- Engage in the consultations launched during the hydrogen strategy announcement:
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