Policy & Socio-Economics
Living Carbon Free – Exploring What a Net-zero Target Means for Households
Jun 2019
Publication
The Energy Systems Catapult (ESC) explored the role of households in a net-zero emissions society to accompany the CCC’s Net Zero report looking at opportunities and challenges for households to reduce emissions from today’s levels and to support the stretch from an 80% emissions reduction to a net-zero greenhouse gas target. As well as describing a net-zero emissions world for households of different types the ESC looked at average household emissions under different decarbonisation scenarios and the options households can take to contribute to the decarbonisation effort.
This supported the Net Zero Technical report.
This supported the Net Zero Technical report.
The Pathway to Net Zero Heating in the UK: A UKERC Policy Brief
Oct 2020
Publication
There is uncertainty over how heating might practically be decarbonised in the future. This briefing provides some clarity about the possible pathways forward focusing on the next 5-10 years.<br/>Meeting the UK government’s net zero emissions goal for 2050 will only be possible by complete decarbonisation of the building stock (both existing and new). There is uncertainty over the extent to which heating might practically be decarbonised in the future and what the optimal technologies may be. This paper provides some clarity about the pathways forward focusing on the next 5-10 years.
Energy Innovation Needs Assessment: Road Transport
Nov 2019
Publication
The Energy Innovation Needs Assessment (EINA) aims to identify the key innovation needs across the UK’s energy system to inform the prioritisation of public sector investment in low-carbon innovation. Using an analytical methodology developed by the Department for Business Energy & Industrial Strategy (BEIS) the EINA takes a system level approach and values innovations in a technology in terms of the system-level benefits a technology innovation provides. This whole system modelling in line with BEIS’s EINA methodology was delivered by the Energy Systems Catapult (ESC) using the Energy System Modelling Environment (ESMETM) as the primary modelling tool.
To support the overall prioritisation of innovation activity the EINA process analyses key technologies in more detail. These technologies are grouped together into sub-themes according to the primary role they fulfil in the energy system. For key technologies within a sub-theme innovations and business opportunities are identified. The main findings at the technology level are summarised in sub-theme reports. An overview report will combine the findings from each sub-theme to provide a broad system-level perspective and prioritisation.
This EINA analysis is based on a combination of desk research by a consortium of economic and engineering consultants and stakeholder engagement. The prioritisation of innovation and business opportunities presented is informed by a workshop organised for each sub-theme assembling key stakeholders from the academic community industry and government.
This report was commissioned prior to advice being received from the CCC on meeting a net zero target and reflects priorities to meet the previous 80% target in 2050. The newly legislated net zero target is not expected to change the set of innovation priorities rather it will make them all more valuable overall. Further work is required to assess detailed implications.
To support the overall prioritisation of innovation activity the EINA process analyses key technologies in more detail. These technologies are grouped together into sub-themes according to the primary role they fulfil in the energy system. For key technologies within a sub-theme innovations and business opportunities are identified. The main findings at the technology level are summarised in sub-theme reports. An overview report will combine the findings from each sub-theme to provide a broad system-level perspective and prioritisation.
This EINA analysis is based on a combination of desk research by a consortium of economic and engineering consultants and stakeholder engagement. The prioritisation of innovation and business opportunities presented is informed by a workshop organised for each sub-theme assembling key stakeholders from the academic community industry and government.
This report was commissioned prior to advice being received from the CCC on meeting a net zero target and reflects priorities to meet the previous 80% target in 2050. The newly legislated net zero target is not expected to change the set of innovation priorities rather it will make them all more valuable overall. Further work is required to assess detailed implications.
Clean Hydrogen Monitor
Oct 2020
Publication
It’s the first of its kind overview showing the state of play with regards to hydrogen technologies in Europe. On an annual basis there will be an update serving as a basis for your investment or political decisions.<br/><br/>OUR MISSION IS – NO EMISSION!<br/>From day 1 Hydrogen Europe promoted clean hydrogen and clean hydrogen technologies as enablers of a decarbonised energy system. We strongly support the adoption of very ambitious climate targets for 2030 and the objective of carbon neutrality in the EU by 2050. Clean hydrogen can help to realise this transition of our energy system in multiple sectors from energy production storage and distribution to end-uses in transport industry heating and others.<br/><br/>CLEAN HYDROGEN TECHNOLOGIES CAN AND WILL REPLACE<br/>not just fossil-based hydrogen in current (industrial) uses but also other fossil-based energies such as petrol diesel and hydrocarbon fuels in the transport sector coal /coke in the steel sector natural gas in the heating sector and other polluting and emitting fuels and feedstocks. <br/><br/>WE ARE TALKING ABOUT A SYSTEMIC CHANGE.<br/>The use of clean hydrogen needs adaptations in production schemes in the infrastructure and in the deployment of hydrogen by the end users. This cannot – of course –be done in a day. Yet we should not wait for the implementation of the different hydrogen strategies on private municipal regional national or European level until other geographies worldwide race ahead.<br/><br/>
The Ten Point Plan for a Green Industrial Revolution: Building Back Better, Supporting Green Jobs, and Accelerating Our Path to Net Zero
Nov 2020
Publication
As the world looks to recover from the impact of coronavirus on our lives livelihoods and economies we have the chance to build back better: to invest in making the UK a global leader in green technologies.
The plan focuses on increasing ambition in the following areas:
The plan focuses on increasing ambition in the following areas:
- advancing offshore wind
- driving the growth of low carbon hydrogen
- delivering new and advanced nuclear power
- accelerating the shift to zero emission vehicles
- green public transport cycling and walking
- ‘jet zero’ and green ships
- greener buildings
- investing in carbon capture usage and storage
- protecting our natural environment
- green finance and innovation
World Energy Issues Monitor 2021: Humanising Energy
Mar 2021
Publication
Based on data collection carried out between October and December 2020 and the testing of emerging findings with the Council’s regional communities during a series of digital workshops held during February 2021 the report has shown
- Energy leaders’ perceptions of areas of risk opportunity and priorities for action have radically changed over the last 12 months. While economic turbulence stemming from the ongoing reverberations of COVID-19 is the biggest area of uncertainty with uncertainty around economic trends increasing by a third over the previous year there is also a growing focus on the social agenda associated with a faster paced energy transition.
- There is an increased awareness of the societal and human impact of both recovery and the wider energy transition. The issue of energy affordability has rapidly risen up the industry’s priority list with its impact and uncertainty perceived 20% larger than a year ago. Energy affordability affects society across all geographies ranging from city dwellers in developed countries to the rural poor in developing ones.
- The emergence of a new generation of digital energy services and energy entrepreneurs. Increasingly agile disruptive technologies have taken advantage of the social upheaval to gain market share at the expense of supply-centric energy solutions. There is a growing focus on customer-centric demand-driven solutions and fast changing patterns of global and local demand.
Modeling and Economic Operation of Energy Hub Considering Energy Market Price and Demand
Feb 2022
Publication
This paper discusses the economic operation strategy of the energy hub which is being established in South Korea. The energy hub has five energy conversion devices: a turbo expander generator a normal fuel cell a fuel cell with a hydrogen outlet a small-scale combined heat and power device and a photovoltaic device. We are developing the most economically beneficial operation strategy for the operators who own the hub without making any systematic improvements to the energy market. First sixteen conversion efficiency matrices can be achieved by turning each device (except the PV) on or off. Next even the same energy must be divided into different energy flows according to price. The energy flow is controlled to obtain the maximum profit considering the internal load of the energy hub and the price fluctuations of the energy market. Using our operating strategy the return on investment period is approximately 9.9 years which is three years shorter than that without the operating strategy.
People’s Attitude to Energy from Hydrogen—From the Point of View of Modern Energy Technologies and Social Responsibility
Dec 2020
Publication
Energy from hydrogen is an appropriate technological choice in the context of sustainable development. The opportunities offered by the use of energy from hydrogen also represent a significant challenge for mobile technologies and daily life. Nevertheless despite a significant amount of research and information regarding the benefits of hydrogen energy it creates considerable controversy in many countries. Globally there is a lack of understanding about the production process of hydrogen energy and the benefits it provides which leads to concerns regarding the consistency of its use. In this study an original questionnaire was used as a research tool to determine the opinions of inhabitants of countries in which hydrogen energy is underutilized and where the infrastructure for hydrogen energy is underdeveloped. Respondents presented their attitude to ecology and indicated their knowledge regarding the operation of hydrogen energy and the use of hydrogen fuel. The results indicate that society is not convinced that the safety levels for energy derived from hydrogen are adequate. It can be concluded that knowledge about hydrogen as an energy source and the production safety and storage methods of hydrogen is very low. Negative attitudes to hydrogen energy can be an important barrier in the development of this energy in many countries.
Renewable Energy Market Analysis: Africa and its Regions
Jan 2022
Publication
An energy system centred on renewable energy can help resolve many of Africa’s social economic health and environmental challenges. A profound energy transition is not only feasible it is essential for a climate-safe future in which sustainable development prerogatives are met. Renewables are key to overcoming energy poverty providing needed energy services without damaging human health or ecosystems and enabling a transformation of economies in support of development and industrialisation.
Africa is extraordinarily diverse and no single approach will advance its energy future. But efforts must be made to build modern resilient and sustainable energy systems across the continent to avoid trapping economies and societies in increasingly obsolete energy systems that burden them with stranded assets and limited economic prospects.
This report from the International Renewable Energy Agency (IRENA) sets out the opportunities at hand while also acknowledging the challenges Africa faces. It lays out a pathway to a renewables-based energy system and shows that the transition promises substantial gains in GDP employment and human welfare in each region of the continent.
Among the findings:
A large part of Africa has so far been left out of the energy transition:
Africa is extraordinarily diverse and no single approach will advance its energy future. But efforts must be made to build modern resilient and sustainable energy systems across the continent to avoid trapping economies and societies in increasingly obsolete energy systems that burden them with stranded assets and limited economic prospects.
This report from the International Renewable Energy Agency (IRENA) sets out the opportunities at hand while also acknowledging the challenges Africa faces. It lays out a pathway to a renewables-based energy system and shows that the transition promises substantial gains in GDP employment and human welfare in each region of the continent.
Among the findings:
A large part of Africa has so far been left out of the energy transition:
- Only 2% of global investments in renewable energy in the last two decades were made in Africa with significant regional disparities
- Less than 3% of global renewables jobs are in Africa
- In Sub-Saharan Africa electrification rate was static at 46% in 2019 with 906 million people still lacking access to clean cooking fuels and technologies
- Africa has vast resource potential in wind solar hydro and geothermal energy and falling costs are increasingly bringing renewables within reach
- Central and Southern Africa have abundant mineral resources essential to the production of electric batteries wind turbines and other low-carbon technologies
- Renewable energy deployment has grown in the last decade with more than 26 GW of renewables-based generation capacity added. The largest additions were in solar energy
- Average annual investments in renewable energy grew ten-fold from less than USD 0.5 billion in the 2000-2009 period to USD 5 billion in 2010-2020
- Distributed renewable energy solutions including stand-alone systems and mini-grids are playing a steadily growing role in expanding electricity access in off-grid areas and strengthening supply in already connected areas
- The energy transition under IRENA’s 1.5°C Scenario pathway predicts 6.4% higher GDP 3.5% higher economy-wide jobs and a 25.4% higher welfare index than that realised under current plans on average up to 2050
- Jobs created in the renewable energy transition will outweigh those lost by moving away from traditional energy. Every million U.S. dollars invested in renewables between 2020 – 2050 would create at least 26 job-years; for every million invested in energy efficiency at least 22 job-years would be created annually; for energy flexibility the figure is 18
- A comprehensive policy package that combines the pursuit of climate and environmental goals; economic development and jobs creation; and social equity and welfare for society as a whole
- Strong institutions international co-operation (including South- South co-operation) and considerable co-ordination at the regional level
FCH Programme Review Report 2014
Apr 2015
Publication
The 2014 Review is the fourth review of the FCH JU project portfolio. The reviews began in 2011 following a recommendation arising from the interim evaluation of the FCH JU which identified the need to ensure that the FCH JU project portfolio as a whole fulfilled the objectives of the Multi-Annual Implementation or Work Plan.<br/><br/>An international team of leading experts in the FCH field undertakes each review based on (1) The achievements of the portfolio against the strategic objectives and content of the FCH JU’s MAIP/MAWP and the AIP/AWPs as set out for the transportation and energy innovation pillars and the cross-cutting category; (2) The extent to which the portfolio meets the FCH JU’s remit for promoting the horizontal activities of RCS PNR safety life-cycle and socio-economic analysis education and training and public awareness; (3) The portfolio’s effectiveness in promoting linkages and co-operation between projects and between FCH JU-supported projects and those supported by other European instruments the Member States and internationally. Review panels The 2014 review comprised six panels covering a total of 114 projects. Each panel covered between 10 and 24 projects as shown in Table 1 below. The objective was to assess projects within each panel as a sub-portfolio (within the FCH JU portfolio) and not as individual projects although examples of individual projects representing good practice were highlighted.
Hydrogen Strategy for Canada: Seizing the Opportunities for Hydrogen - A Call to Action
Dec 2020
Publication
For more than a century our nation’s brightest minds have been working on the technology to turn the invisible promise of hydrogen into tangible solutions. Canadian ingenuity and innovation has once again brought us to a pivotal moment. As we rebuild our economy from the impacts of COVID-19 and fight the existential threat of climate change the development of low-carbon hydrogen is a strategic priority for Canada. The time to act is now.<br/>The Hydrogen Strategy for Canada lays out an ambitious framework for actions that will cement hydrogen as a tool to achieve our goal of net-zero emissions by 2050 and position Canada as a global industrial leader of clean renewable fuels. This strategy shows us that by 2050 clean hydrogen can help us achieve our net-zero goal—all while creating jobs growing our economy and protecting our environment. This will involve switching from conventional gasoline diesel and natural gas to zero-emissions fuel sources taking advantage of new regulatory environments and embracing new technologies to give Canadians more choice of zero emission alternatives.<br/>As one of the top 10 hydrogen producers in the world today we are rich in the feedstocks that produce hydrogen. We are blessed with a strong energy sector and the geographic assets that will propel Canada to be a major exporter of hydrogen and hydrogen technologies. Hydrogen might be nature’s smallest molecule but its potential is enormous. It provides new markets for our conventional energy resources and holds the potential to decarbonize many sectors of our economy including resource extraction freight transportation power generation manufacturing and the production of steel and cement. This Strategy is a call to action. It will spur investments and strategic partnerships across the country and beyond our borders. It will position Canada to seize economic and environmental opportunities that exist coast to coast. Expanding our exports. Creating as many as 350000 good green jobs over the next three decades. All while dramatically reducing our greenhouse gas emissions. And putting a net-zero future within our reach.<br/>The importance of Canada’s resource industries and our clean technology sectors has been magnified during the pandemic. We must harness our combined will expertise and financial resources to fully seize the opportunities that hydrogen presents. This strategy is the product of three years of study and analysis including extensive engagement sessions where we heard from more than 1500 of our country’s leading experts and stakeholders. But its release is not the end of a process. This is only the beginning. Together we will use this Strategy to guide our actions and investments. By working with provinces and territories Indigenous partners and the private-sector and by leveraging our many advantages we will create the prosperity we all want protect the planet we all cherish and we will ensure we leave no one behind.
Mind the Gap—A Socio-Economic Analysis on Price Developments of Green Hydrogen, Synthetic Fuels, and Conventional Energy Carriers in Germany
May 2022
Publication
In recent years the development of energy prices in Germany has been frequently accompanied by criticism and warnings of socio-economic disruptions. Especially with respect to the electricity sector the debate on increasing energy bills was strongly correlated with the energy system transition. However whereas fossil fuels have rapidly increased in price recently renewable substitutes such as green hydrogen and synthetic fuels also enter the markets at comparatively high prices. On the other hand the present fossil fuel supply is still considered too low-priced by experts because societal greenhouse gas-induced environmental impact costs are not yet compensated. In this study we investigate the development of the price gap between conventional energy carriers and their renewable substitutes until 2050 as well as a suitable benchmark price incorporating the societal costs of specific energy carriers. The calculated benchmark prices for natural gas (6.3 ct kWh−1 ) petrol (9.9 ct kWh−1 ) and grey hydrogen from steam methane reformation (12 ct kWh−1 ) are nearly 300% above the actual prices for industry customers in 2020 but below the price peaks of early 2022. In addition the price gap between conventional fuels and green hydrogen will be completely closed before 2050 for all investigated energy carriers. Furthermore prognosed future price developments can be considered rather moderate compared to historic and especially to the recent price dynamics in real terms. A gradual implementation of green hydrogen and synthetic fuels next to increasing CO2 prices however may temporarily lead to further increasing expenses for energy but can achieve lower price levels comparable to those of 2020 in the long term.
A Perspective on Hydrogen Investment, Deployment and Cost Competitiveness
Feb 2021
Publication
Deployment and investments in hydrogen have accelerated rapidly in response to government commitments to deep decarbonisation establishing hydrogen as a key component in the energy transition.
To help guide regulators decision-makers and investors the Hydrogen Council collaborated with McKinsey & Company to release the report ‘Hydrogen Insights 2021: A Perspective on Hydrogen Investment Deployment and Cost Competitiveness’. The report offers a comprehensive perspective on market deployment around the world investment momentum as well as implications on cost competitiveness of hydrogen solutions.
The document can be downloaded from their website
To help guide regulators decision-makers and investors the Hydrogen Council collaborated with McKinsey & Company to release the report ‘Hydrogen Insights 2021: A Perspective on Hydrogen Investment Deployment and Cost Competitiveness’. The report offers a comprehensive perspective on market deployment around the world investment momentum as well as implications on cost competitiveness of hydrogen solutions.
The document can be downloaded from their website
Decarbonization Roadmaps for ASEAN and their Implications
Apr 2022
Publication
The objective of this paper is to derive for the first time decarbonization roadmaps for the ten nations of ASEAN. This study first presents a regional view of ASEAN’s fossil and renewable energy usage and energy-related CO2 emission. Results show that renewable energies have been losing ground to fossil energies in the last two decades and fossil fuels will likely continue to be an important part of ASEAN’s energy mix for the next few decades. Therefore decarbonizing efforts should focus not only on increasing the share of renewable energies in electricity generation but also on technologies to reduce CO2 emission from fossil power and industrial plants. This study next performs a technology mapping exercise for all ten ASEAN countries to determine decarbonization technologies that have high impact and high readiness for individual countries. Besides installing more sustainable renewable energies common themes coming from these roadmaps include switching from coal to gas for power generation using carbon capture and storage (CCS) technologies to decarbonize fossil and industrial plants replacing internal combustion vehicles by electric vehicles and for countries that have coal and natural gas resources upgrading them to blue hydrogen by chemical processes and using CCS to mitigate the emitted CO2. Blue hydrogen can be used to decarbonize hard-to-decarbonize industries. Policy implications of these roadmaps include imposing a credible carbon tax establishing a national hydrogen strategy intergovernmental coordination to establish regional CCS corridors funding research and development to improve carbon capture efficiency on a plant level and resolving sustainability issues of hydropower and bioenergy in ASEAN.
The Future Potential Hydrogen Demand in Energy-intensive Industries - A Site-specific Approach Applied to Germany
Dec 2021
Publication
Hydrogen when based on renewable electricity can play a key role in the transition towards CO2-neutral industrial production since its use as an energy carrier as well as a feedstock in various industrial process routes is promising. At the same time a large-scale roll-out of hydrogen for industrial use would entail substantial impacts on the energy system which can only be assessed if the regional distribution of future hydrogen demand is considered. Here we assess the technical potential of hydrogen-based technologies for energy-intensive industries in Germany. The site-specific and process-specific bottom-up calculation considers 615 individual plants at 367 sites and results in a total potential hydrogen demand of 326 TWh/a. The results are available as an open dataset. Using hydrogen for non-energy-intensive sectors as well increases the potential hydrogen demand to between 482 and 534 TWh/a for Germany - based on today’s industrial structure and production output. This assumes that fossil fuels are almost completely replaced by hydrogen for process heating and feedstocks. The resulting hydrogen demand is very unevenly distributed: a few sites account for the majority of the overall potential and similarly the bulk of demand is concentrated in a few regions with steel and chemical clusters.
A Comparative Review of Alternative Fuels for the Maritime Sector: Economic, Technology, and Policy Challenges for Clean Energy Implementation
Oct 2021
Publication
Global maritime transportation is responsible for around 3% of total anthropogenic green‐ house gas emissions and significant proportions of SOx NOx and PM emissions. Considering the predicted growth in shipping volumes to 2050 greenhouse gas emissions from ships must be cut by 75–85% per ton‐mile to meet Paris Agreement goals. This study reviews the potential of a range of alternative fuels for decarbonisation in maritime. A systematic literature review and information synthesis method was applied to evaluate fuel characteristics production pathways utilization technologies energy efficiency lifecycle environmental performance economic viability and cur‐ rent applicable policies. Alternative fuels are essential to decarbonisation in international shipping. However findings suggest there is no single route to deliver the required greenhouse gas emissions reductions. Emissions reductions vary widely depending on the production pathways of the fuel. Alternative fuels utilising a carbon‐intensive production pathway will not provide decarbonisation instead shifting emissions elsewhere in the supply chain. Ultimately a system‐wide perspective to creating an effective policy framework is required in order to promote the adoption of alternative propulsion technologies.
How Hydrogen Can Help Decarbonise the Maritime Sector
Jun 2021
Publication
Hydrogen Europe is the organisation representing the interests of the European hydrogen industry. It fully adheres to the European Union’s target of climate neutrality by 2050 and supports the European Commission’s objectives to develop and integrate more renewable energy sources into the European energy mix.<br/><br/>In December 2015 in Paris a global climate agreement was reached at the UN Climate Change Conference (COP 21). The Paris Agreement is seen as a historic and landmark instrument in climate action. However the agreement is lacking emphasis on international maritime transport and the role that this sector will need to play in contributing to the decarbonisation of the global economy and in striving for a clean planet for all.<br/><br/>Hydrogen hydrogen-based fuels (such as ammonia) and hydrogen technologies offer tremendous potential for the maritime sector<br/>and if properly harnessed can significantly contribute to the decarbonisation and also mitigate the air pollution of the worldwide fleet. Hydrogen Europe will be the catalyst in this process the decarbonisation and also mitigate the air pollution of the worldwide fleet. Hydrogen Europe will be the catalyst in this process.<br/><br/>The pathway towards hydrogen and hydrogenbased fuels for the maritime sector does not come without technological and commercial challenges let alone regulatory barriers.
Hydrogen Economy Outlook
Mar 2020
Publication
The falling cost of making hydrogen from wind and solar power offers a promising route to cutting emissions in some of the most fossil fuel dependent sectors of the economy such as steel heavy-duty vehicles shipping and cement.
Hydrogen Economy Outlook a new and independent global study from research firm BloombergNEF (BNEF) finds that clean hydrogen could be deployed in the decades to come to cut up to 34% of global greenhouse gas emissions from fossil fuels and industry – at a manageable cost. However this will only be possible if policies are put in place to help scale up technology and drive down costs.
The report’s findings suggest that renewable hydrogen could be produced for $0.8 to $1.6/kg in most parts of the world before 2050. This is equivalent to gas priced at $6-12/MMBtu making it competitive with current natural gas prices in Brazil China India Germany and Scandinavia on an energy-equivalent basis. When including the cost of storage and pipeline infrastructure the delivered cost of renewable hydrogen in China India and Western Europe could fall to around $2/kg ($15/MMBtu) in 2030 and $1/kg ($7.4/MMBtu) in 2050.
Kobad Bhavnagri head of industrial decarbonization for BNEF and lead author of the report said: “Hydrogen has potential to become the fuel that powers a clean economy. In the years ahead it will be possible to produce it at low cost using wind and solar power to store it underground for months and then to pipe it on-demand to power everything from ships to steel mills.”
Hydrogen is a clean-burning molecule that can be used as a substitute for coal oil and gas in a large variety of applications. But for its use to have net environmental benefits it must be produced from clean sources rather than from unabated fossil fuel processes – the usual method at present.
Renewable hydrogen can be made by splitting water into hydrogen and oxygen using electricity generated by cheap wind or solar power. The cost of the electrolyzer technology to do this has fallen by 40% in the last five years and can continue to slide if deployment increases. Clean hydrogen can also be made using fossil fuels if the carbon is captured and stored but this is likely to be more expensive the report finds.
Read the full report on the BloombergNEF website here
Hydrogen Economy Outlook a new and independent global study from research firm BloombergNEF (BNEF) finds that clean hydrogen could be deployed in the decades to come to cut up to 34% of global greenhouse gas emissions from fossil fuels and industry – at a manageable cost. However this will only be possible if policies are put in place to help scale up technology and drive down costs.
The report’s findings suggest that renewable hydrogen could be produced for $0.8 to $1.6/kg in most parts of the world before 2050. This is equivalent to gas priced at $6-12/MMBtu making it competitive with current natural gas prices in Brazil China India Germany and Scandinavia on an energy-equivalent basis. When including the cost of storage and pipeline infrastructure the delivered cost of renewable hydrogen in China India and Western Europe could fall to around $2/kg ($15/MMBtu) in 2030 and $1/kg ($7.4/MMBtu) in 2050.
Kobad Bhavnagri head of industrial decarbonization for BNEF and lead author of the report said: “Hydrogen has potential to become the fuel that powers a clean economy. In the years ahead it will be possible to produce it at low cost using wind and solar power to store it underground for months and then to pipe it on-demand to power everything from ships to steel mills.”
Hydrogen is a clean-burning molecule that can be used as a substitute for coal oil and gas in a large variety of applications. But for its use to have net environmental benefits it must be produced from clean sources rather than from unabated fossil fuel processes – the usual method at present.
Renewable hydrogen can be made by splitting water into hydrogen and oxygen using electricity generated by cheap wind or solar power. The cost of the electrolyzer technology to do this has fallen by 40% in the last five years and can continue to slide if deployment increases. Clean hydrogen can also be made using fossil fuels if the carbon is captured and stored but this is likely to be more expensive the report finds.
Read the full report on the BloombergNEF website here
The Heralds of Hydrogen: The Economic Sectors that are Driving the Hydrogen Economy in Europe
Jan 2021
Publication
This paper looked at 39 hydrogen associations across Europe to understand which economic sectors support the hydrogen transition in Europe and why they do so. Several broad conclusions can be drawn from this paper. It is clear that the support for hydrogen is broad and from a very wide spectrum of economic actors that have clear interests in the success of the hydrogen transition. Motivations for support differ. Sales and market growth are important for companies pursuing professional scientific and technical activities as well as manufacturers of chemicals machinery electronic or electrical equipment and fabricated metals. The increasing cost of CO2 combines with regulatory and societal pressure to decarbonize and concerns from investors about the long-term profitability of sectors with high emissions. This makes hydrogen especially interesting for companies working in the energy transport steel and chemical industries. Another motivation is the ability to keep using existing fixed assets relevant for ports oil and gas companies and natural gas companies. More sector-specific concerns are a technological belief held by some motor vehicle manufacturers in the advantages of FCVs over BEVs for private mobility which is held more widely regarding heavy road transport. Security of supply and diversifying the current business portfolio come up specifically for natural gas companies. Broader concerns about having to shift into other energy technologies as a core business are reasons for interest from the oil and gas sector and ports.
Perhaps the most important lesson is that the hydrogen transition has already begun – but it needs continued policy support and political commitment. Carbon-intensive industries such as steel and chemicals are clearly interested and willing to invest billions but need policy support to avoid carbon leakage to high-carbon competitors before they commit. The gas grid is ready and many operators and utility companies are eager but they need clearance to experiment with blending in hydrogen. Hydrogen road vehicles still face many regulatory hurdles. There are several clusters that can serve as models and nuclei for the future European hydrogen economy in different parts of Europe. However these nuclei will need more public funding and regulatory support for them to grow.
Link to document on Oxford Institute for Energy Studies website
Perhaps the most important lesson is that the hydrogen transition has already begun – but it needs continued policy support and political commitment. Carbon-intensive industries such as steel and chemicals are clearly interested and willing to invest billions but need policy support to avoid carbon leakage to high-carbon competitors before they commit. The gas grid is ready and many operators and utility companies are eager but they need clearance to experiment with blending in hydrogen. Hydrogen road vehicles still face many regulatory hurdles. There are several clusters that can serve as models and nuclei for the future European hydrogen economy in different parts of Europe. However these nuclei will need more public funding and regulatory support for them to grow.
Link to document on Oxford Institute for Energy Studies website
Power to Gas Linking Electricity and Gas in a Decarbonising World
Oct 2018
Publication
Since the COP 21 meeting in Paris in December 2015 there has been a growing realisation that with the long-term objective that the energy system should be approaching carbon-neutrality by 2050 continuing to burn significant quantities of fossil-derived natural gas will not be sustainable. If existing natural gas infrastructure is to avoid becoming stranded assets plans to decarbonise the gas system need to be developed as a matter of urgency in the next three to five years given the typical life expectancy of such assets of 20 years or more. One of the options to decarbonise gas is “power-to-gas”: production of hydrogen or renewable methane via electrolysis using surplus renewable electricity. This Energy Insight reviews the status of power-to-gas and makes an assessment of potential future development pathways and the role which it could play in decarbonising the energy system.
Link to document on the OIES website
Link to document on the OIES website
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