Policy & Socio-Economics

Hydrogen energy is considered one of the main measures of zero carbonization in energy systems but high equipment and hydrogen costs hinder the development of hydrogen energy technology. The objectives of this study are to quantify the environmental advantages of hydrogen energy through a carbon tax and study the application potential of hydrogen energy technology in a regional distributed energy system (RDES). In this study various building types in the smart community covered by Japan’s first hydrogen energy pipeline are used as an example. First ten buildings of five types are selected as the research objectives. Subsequently two comparative system models of a regional distributed hydrogen energy system (RDHES) and an RDES were established. Then by studying the optimal RDHES and RDES configuration and combining the prediction of future downward trends of fuel cell (FC) costs and energy carbon emissions the application effect of FC and hydrogen storage (HS) technologies on the demand side was analyzed. Finally the adaptability of the demand-side hydrogen energy system was studied by analyzing the load characteristics of different types of buildings. The results show that when the FC price is reduced to 1.5 times that of the internal combustion engine (ICE) the existing carbon tax system can sufficiently support the RDHES in gaining economic advantages in some regions. Notably when the carbon emissions of the urban energy system are reduced the RDHES demonstrates stronger anti-risk ability and has greater suitability for promotion in museums and shopping malls. The conclusions obtained in this study provide quantitative support for hydrogen energy promotion policies on the regional demand side and serve as a theoretical reference for the design and adaptability research of RDHESs.

Current technological improvements are yet to put the world on track to net-zero which will require the uptake of transformative low-carbon innovations to supplement mitigation efforts. However the role of such innovations is not yet fully understood; some of these ‘miracles’ are considered indispensable to Paris Agreement-compliant mitigation but their limitations availability and potential remain a source of debate. We evaluate such potentially game-changing innovations from the experts’ perspective aiming to support the design of realistic decarbonisation scenarios and better-informed net-zero policy strategies. In a worldwide survey 260 climate and energy experts assessed transformative innovations against their mitigation potential at-scale availability and/or widescale adoption and risk of delayed diffusion. Hierarchical clustering and multi-criteria decision-making revealed differences in perceptions of core technological innovations with next generation energy storage alternative building materials iron-ore electrolysis and hydrogen in steelmaking emerging as top priorities. Instead technologies highly represented in well-below-2◦C scenarios seemingly feature considerable and impactful delays hinting at the need to re-evaluate their role in future pathways. Experts’ assessments appear to converge more on the potential role of other disruptive innovations including lifestyle shifts and alternative economic models indicating the importance of scenarios including non-technological and demand-side innovations. To provide insights for expert elicitation processes we finally note caveats related to the level of representativeness among the 260 engaged experts the level of their expertise that may have varied across the examined innovations and the potential for subjective interpretation to which the employed linguistic scales may be prone to.

The rising demand for energy and the aim of moving away from fossil fuels and to low-carbon power have led many countries to move to alternative sources including solar energy wind geothermal energy biomass and hydrogen. Hydrogen is often considered a “missing link” in guaranteeing the energy transition providing storage and covering the volatility and intermittency of renewable energy generation. However due to potential injustice with regard to the distribution of risks benefits and costs (i.e. in regard to competing for land use) the large-scale deployment of hydrogen is a contested policy issue. This paper draws from a historical analysis of past energy projects to contribute to a more informed policy-making process toward a more just transition to the hydrogen economy. We perform a systematic literature review to identify relevant conflict factors that can influence the outcome of hydrogen energy transition projects in selected Economic Community of West African States countries namely Nigeria and Mali. To better address potential challenges policymakers must not only facilitate technology development access and market structures for hydrogen energy policies but also focus on energy access to affected communities. Further research should monitor hydrogen implementation with a special focus on societal impacts in producing countries.

Green hydrogen has become the key to social low-carbon transformation and is fully linked to zero carbon emissions. The carbon emissions trading market is a policy tool used to control carbon emissions using a market-oriented mechanism. Building a modular carbon trading center for the hydrogen energy industry would greatly promote the meeting of climate targets. Based on this a “green hydrogen market—national carbon trading market–electricity market” coupling mechanism is designed. Then the “green hydrogen market—national carbon trading market–electricity market” mechanism is modeled and simulated using system dynamics. The results are as follows: First coupling between the green hydrogen market carbon trading market and electricity market can be realized through green hydrogen certification and carbon quota trading. It is found that the coupling model is feasible through simulation. Second simulation of the basic scenario finds that multiple-market coupling can stimulate an increase in carbon price the control of thermal power generation and an increase in green hydrogen production. Finally the proportion of the green hydrogen certification the elimination mechanism of outdated units and the quota auction mechanism will help to form a carbon pricing mechanism. This study enriches the green hydrogen trading model and establishes a multiple-market linkage mechanism.

Slovak Republic is a member of the European Union and is a part of the European energy market. Although Slovakia contributes only marginally to global emissions there is an effort to meet obligations from the Paris climate agreement to reduce greenhouse gases. As in many countries power industry emissions dominate Slovakia’s emissions output but are partly affected and lowered by the share of nuclear energy. The transition from fossil fuels to renewables is supported by the government and practical steps have been taken to promote the wide use of renewable resources such as biomass or solar energy. Another step in this transition process is the support of new technologies that use hydrogen as the primary energy source. The European Union widely supports this effort and is looking for possible sources for hydrogen generation. One of the main renewable resources is hydropower which is already used in the Slovak Republic. This article presents the current situation of the energy market in Slovakia and possible developments for future hydrogen generation.

Expanding decarbonization efforts beyond the power sector are contingent on cost-effective production of energy carriers like H2 with near-zero life-cycle carbon emissions. Here we assess the levelized cost of continuous H2 supply (95% availability) at industrial-scale quantities (100 tonnes/day) in 2030 from integrating commodity technologies for solar photovoltaics electrolysis and energy storage. Our approach relies on modeling the least-cost plant design and operation that optimize component sizes while adhering to hourly solar availability production requirements and component inter-temporal operating constraints. We apply the model to study H2 production costs spanning the continental United States and through extensive sensitivity analysis explore system configurations that can achieve $2.5/kg levelized costs or less for a range of plausible 2030 technology projections at high-irradiance locations. Notably we identify potential sites and system configurations where PV-electrolytic H2 could substitute natural gas-derived H2 at avoided CO2 costs (%$120/ton) similar to the cost of deploying carbon capture and sequestration.

The liquid hydrogen demand particularly driven by clean energy applications will rise in the near future. As industrial large scale liquefiers will play a major role within the hydrogen supply chain production capacity will have to increase by a multiple of today’s typical sizes. The main goal is to reduce the total cost of ownership for these plants by increasing energy efficiency with innovative and simple process designs optimized in capital expenditure. New concepts must ensure a manageable plant complexity and flexible operability. In the phase of process development and selection a dimensioning of key equipment for large scale liquefiers such as turbines and compressors as well as heat exchangers must be performed iteratively to ensure technological feasibility and maturity. Further critical aspects related to hydrogen liquefaction e.g. fluid properties ortho-para hydrogen conversion and coldbox configuration must be analysed in detail. This paper provides an overview on the approach challenges and preliminary results in the development of efficient as well as economically viable concepts for large-scale hydrogen liquefaction.

The combination of offshore wind and green hydrogen provides major opportunities for job creation economic growth and regional regeneration as well as attracting inward investment alongside delivering the emission reductions needed to achieve climate neutrality. In order to get to Net Zero emissions in 2050 the UK is likely to need a minimum of 75GW of offshore wind (OSW) and modelling of the energy system indicates that hydrogen will play a major role in integrating the high levels of OSW on the electricity grid.<br/><br/>Some of the key findings from report are listed below:<br/><br/>The UK has vast resources of offshore wind with the potential for over 600GW in UK waters and potentially up to 1000GW. This is well above the he figure of 75-100GW likely to be needed for UK electricity generation by 2050.<br/>The universities in the UK provide the underpinning science and engineering for electrolysers fuel cells and hydrogen and are home to world-leading capability in these areas.<br/>In order to achieve cost reduction and growing a significant manufacturing and export industry it will be crucial to develop green hydrogen in the next 5 years<br/>By 2050 green hydrogen can be cheaper than blue hydrogen. With accelerated deployment green hydrogen costs can be competitive with blue hydrogen by the eary 2030s.<br/>The combination of additional OSW deployment and electrolyser manufacture alone could generate over 120000 new jobs. These are are expected to be based mainly in manufacturing OSW-related activity shipping and mobility<br/>By 2050 it is estimated that the cumulative gross value added (GVA) from supply of electrolysers and additional OSW farm could be up to £320bn where the majority will come from exports of electrolysers to overseas markets.<br/>The report also calls for immediate government intervention and a new national strategy to support the creation of supply and demand in the new industry.<br/><br/>This study was jointly supported by the Offshore Wind Industry Council (OWIC) and ORE Catapult.

ISSUES MONITOR 2020: DECODING NEW SIGNALS OF CHANGE

The annual World Energy Issues Monitor provides unique insight into what energy policymakers CEOs and leading experts identify as Critical Uncertainties and Action Priorities. New this year the Issues Monitor also provides readers with the views of the individual customer detailing their perceptions of their role in the overall energy system. The Issues Monitor report includes a global issues map 58 country maps and six regional maps as well as perspectives from Future Energy Leaders (FEL) and energy innovators.

GLOBAL PERSPECTIVES

The 2020 global map incorporates all survey responses representing the views of over 3000 energy leaders from 104 countries. In this era of transition defined by decentralisation digitalisation and decarbonisation energy leaders must pay attention to many different signals of change and distinguish key issues from the noise. The Issues Monitor identifies shifting patterns of connected issues shaping energy transitions.

A NEW PULSE

The focus for the 2010s was about trying to automate and upgrade the energy system and set targets to move the energy transition forward. Digitalisation accelerated the transition of all sectors towards a more customer-centric environment. New policies and regulations were introduced to facilitate this transition and empower consumers. As a result the 2020s may very well be about realising those targets through a transition from activism to action.

TREND TRACKING: CCS

In comparing response from the Oil & Gas sector in 2015 with 2019 we found that almost half of respondents identified Carbon Capture & Storage (CCS) as a high impact issue in 2019 up from about a third in 2015. CCS is increasingly being viewed as an essential option for continued hydrocarbon use although governmental support is needed to enable scalability and cost effectiveness.

A DIFFERENCE IN OPINION: NUCLEAR

Opinions remain polarised but in many European countries nuclear power is increasingly recognised as a carbon-free energy source and potentially an integral part of the future energy mix. In December 2019 the European Commission set a target of net-zero carbon emissions by 2050. There is qualified support among energy leaders to include nuclear energy to help create a carbon neutral continent and enable a just energy transition.

Study setting out a vision and plan for a multi-modal hydrogen transport hub within the UK. The study considers the:

• size of operational trials
• quantity of green hydrogen required
• research and development facilities which will support a living lab
• green hydrogen infrastructure required including:
• production
• storage
• distribution
• The study uses Tees Valley as an example region although the blueprint may be applied to other areas.

This report was independently produced on behalf of the Department for Transport by Mott Macdonald.