Hydrogen UK - Splitting the Difference: Reducing the Cost of Electrolytic Hydrogen to Accelerate Deployment

The UK is set to build on its world leading position of renewables deployment, targeting as much as 50GW of offshore wind, 27GW of onshore wind and 47GW of solar by 2030 as part of the Clean Power 2030 mission. As we move towards a net zero power system driven by renewables and away from unabated gas, the UK will need greater capability to manage periods of low and excess renewable generation. Electrolytic hydrogen is a critical solution to this challenge, as the Clean Power Plan and the advice from NESO make clear. Firstly, because hydrogen can be stored for long periods of time and in large volumes, and because curtailed power can be very low cost. Therefore, electrolytic hydrogen can provide cost-effective long duration energy storage, which can then be used as a low carbon alternative to natural gas for dispatchable power generation and for a wide variety of uses essential to the full decarbonisation of other sectors, including industry and heavy transport. Secondly, electrolytic hydrogen can be produced using the renewable power in places such as Scotland that would otherwise go to waste due to the lack of network capacity or demand. Building electrolytic hydrogen production capacity in areas with high renewables and behind grid constraints has a wide range of benefits. Providing electricity demand for the increasing levels of onshore and offshore wind that is in the pipeline in Scotland is going to be critical for renewable deployment, while reducing constraint costs paid by consumers. Thus, by providing a source of firm power and demand for excess renewable generation, electrolytic hydrogen is fundamental to ensuring security of supply in a low carbon power system.
This paper can be found on their website.