Policy & Socio-Economics

This week on the show the team take a pause to review the current state of hydrogen and fuel cell affairs globally whilst taking time to go over all the excellent questions that our listeners have kindly shared with us over the last few months. We cover carbon capture the green new deal synthetic fuels hydrogenspiders green hydrogen in Australia and many more themes this week so don’t miss this episode!

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Fully decarbonizing global industry is essential to achieving climate stabilization and reaching net zero greenhouse gas emissions by 2050–2070 is necessary to limit global warming to 2 °C. This paper assembles and evaluates technical and policy interventions both on the supply side and on the demand side. It identifies measures that employed together can achieve net zero industrial emissions in the required timeframe. Key supply-side technologies include energy efficiency (especially at the system level) carbon capture electrification and zero-carbon hydrogen as a heat source and chemical feedstock. There are also promising technologies specific to each of the three top-emitting industries: cement iron & steel and chemicals & plastics. These include cement admixtures and alternative chemistries several technological routes for zero-carbon steelmaking and novel chemical catalysts and separation technologies. Crucial demand-side approaches include material-efficient design reductions in material waste substituting low-carbon for high-carbon materials and circular economy interventions (such as improving product longevity reusability ease of refurbishment and recyclability). Strategic well-designed policy can accelerate innovation and provide incentives for technology deployment. High-value policies include carbon pricing with border adjustments or other price signals; robust government support for research development and deployment; and energy efficiency or emissions standards. These core policies should be supported by labeling and government procurement of low-carbon products data collection and disclosure requirements and recycling incentives. In implementing these policies care must be taken to ensure a just transition for displaced workers and affected communities. Similarly decarbonization must complement the human and economic development of low- and middle-income countries.

This week on the show the team catch up with Alena Fargere Principal at SWEN Capital Partners and a former special advisor to the World Energy Council on Hydrogen projects. As one of the few current project finance funds in Europe with a green gas mandate and a dedicated allocation for investing in hydrogen project finance SWEN Capital Partners provide an invaluable perspective on the challenges and opportunities for hydrogen project investment in Europe and the synergies that exist from Green Gas funds that support biogas and hydrogen opportunities. On the show our hosts discuss the rationale for this fund the profile of projects SWEN are considering and Alena’s broader perspective on the hydrogen market. All this and many more themes this week so don’t miss this episode!

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This article attempts to model interdependencies between socio-economic energy and environmental factors with selected data characterizing the development of the hydrogen economy. The study applies Spearman’s correlation and a linear regression model to estimate the influence of gross domestic product population final energy consumption renewable energy and CO2 emission on chosen hydrogen indicators—production patents energy technology research development and demonstration budgets. The study was conducted in nine countries selected for their actions towards a hydrogen economy based on analyses of national strategies policies research and development programs and roadmaps. The results confirm the statistically significant impact of the chosen indicators which are the drivers for the development of the hydrogen economy from 2008 to 2018. Moreover the empirical results show that different characteristics in each country contribute to the development of the hydrogen economy vision

The heat and buildings strategy sets out the government’s plan to significantly cut carbon emissions from the UK’s 30 million homes and workplaces in a simple low-cost and green way whilst ensuring this remains affordable and fair for households across the country. Like the transition to electric vehicles this will be a gradual transition which will start by incentivizing consumers and driving down costs.<br/>There are about 30 million buildings in the UK. Heating these buildings contributes to almost a quarter of all UK emissions. Addressing the carbon emissions produced in heating and powering our homes workplaces and public buildings can not only save money on energy bills and improve lives but can support up to 240000 skilled green jobs by 2035 boosting the economic recovery levelling up across the country and ensuring we build back better.<br/>The heat and buildings strategy builds on the commitments made in Clean growth: transforming heating our Energy white paper and the Prime Minister’s 10 point plan. This strategy aims to provide a clear direction of travel for the 2020s set out the strategic decisions that need to be taken this decade and demonstrate how we plan to meet our carbon targets and remain on track for net zero by 2050.

On the season premier episode the EAH hosts are joined by the Governor of New Mexico Michelle Lujan Grisham. The State of New Mexico has the opportunity to lead the United States into the hydrogen era and the Governor and her team are poised to take the opportunity to make New Mexico the strategic center of the US hydrogen economy. The Governor is joined by New Mexico Environment Department Secretary James Kenney on the show to announce the forthcoming New Mexico Hydrogen Hub Act which her administration expects to drive investment in the state job growth in the energy sector and catapult New Mexico to top of the list of states driving the hydrogen revolution.

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On this weeks episode the team are talking all things hydrogen with Lorna Millington Future Networks Manager in the Safety and Network Strategy team at Cadent. On the show we discuss the role that Cadent and other gas distribution network operators (GDNOs) are playing in supporting the transition towards a low (and eventually zero) carbon gas grid through the use of hydrogen. The potential for hydrogen to support decarbonisation of heat through the gas network is one of the most exciting emerging themes for countries that have large existing gas networks and who are looking to repurpose those assets towards national net zero objectives. As a leader on hydrogen into the gas grid projects Cadent offer a wealth of knowledge around the potential opportunities and considerations for displacing natural gas with hydrogen over time. And given the chance to reduce up to 6 million tonnes of CO2 a year through using more hydrogen in the gas grid this is a show you won’t want to miss! All this and more on the show!

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This independent cross-party report highlights the key role that political consensus can play in helping to reduce the costs of nuclear power in the UK as well as other low carbon technologies. This political consensus has never been more important than in this ‘defining decade’ for the power sector. The report highlights that an immediate challenge facing the UK’s new build programme is agreeing with the European Commission a regime for supporting new nuclear power. Changing the proposed support package would not be an impossible task if made necessary but maintaining broad political consensus and considering the implications of delay are also important. The State Aid process is an important opportunity for scrutiny with the report demonstrating that shareholders for Hinkley Point C could see bigger returns (19-21%) than those typically expected for PFI projects (12-15%). However it is too early to conclude on the value for money of the Hinkley Point C agreement. Both the negotiation process and the resulting investment contract are important but there has been little transparency over either so far and the negotiations were not competitive. The inquiry calls for more urgency and better coordination in seizing the opportunity to reuse the UK’s plutonium stockpile.



The UK’s stockpile of separated plutonium presents opportunities to tackle a number of national strategic priorities including implementing long term solutions for nuclear waste developing new technologies that could redefine the sector laying the ground for new nuclear power and pursuing nuclear non-proliferation.  Government has identified three ‘credible solutions’ for reuse and the report recommends that it now sets clearer criteria against which to assess options and identifies budgetary requirements to help expediate the process. The report also argues that Government should do more on new nuclear technologies that could redefine the sector – such as considering smaller reactors nuclear for industrial heat or hydrogen production and closed or thorium fuel cycles. The Government’s initial response to a review of nuclear R&D a year ago by the then Chief Scientific Advisor Sir John Beddington has been welcome and it needs to build on this. In particular the UK should capitalise upon its existing expertise and past experience to focus efforts where there is most strategic value. Nulcear waste. Having failed to date the Government must urgently revisit plans for finding a site to store nuclear waste underground for thousands of years. Implementing this is a crucial part of demonstrating that nuclear waste is a manageable challenge. Despite being rejected by Cumbria County Council the continuing strong support amongst communities in West Cumbria for hosting a site is a promising sign.



On affordability the report finds that it is not yet clear which electricity generation technologies will be cheapest in the 2020s and beyond. Coal and gas could get more expensive if fossil fuel and carbon prices rise whilst low carbon technologies could get cheaper as technology costs fall with more deployment. This is the main reason for adopting an ‘all of the above’ strategy including nuclear power until costs become clearer and there is broad consensus behind this general approach.  



On security of supply the inquiry says that deployment of nuclear power is likely to be influenced more by the economics of system balancing rather than technical system balancing challenges which can be met with greater deployment of existing balancing tools. The cost of maintaining system security is likely to mean that the UK maintains at least some baseload capacity such as nuclear power to limit system costs.



On sustainability the report finds that the environmental impacts of nuclear power are comparable to some generation technologies and favourable to others although the long lived nature of some radioactive nuclear waste and the dual use potential of nuclear technology for civil and military applications create unique sustainability challenges which the UK is a world leader in managing.



It is the final report of the Future Electricity Series an independent and cross party inquiry into the UK power sector sponsored by the Institution of Gas Engineers and Managers

Hydrogen which is expected to be a popular type of next-generation energy is drawing attention as a fuel option for the formation of a low-carbon society. Because hydrogen energy is different in nature from existing energy technologies it is necessary to promote sufficient social recognition and acceptability of the technology for its widespread use. In this study we focused on the effect of initiatives to improve awareness of hydrogen energy technology thereby investigating the acceptability of hydrogen energy to those participating in either several hydrogen energy technology introduction events or professional seminars. According to the survey results participants in the technology introduction events tended to have lower levels of hydrogen and hydrogen energy technology knowledge than did participants in the hydrogen-energy-related seminars but confidence in the technology and acceptability of the installation of hydrogen stations near their own residences tended to be higher. It was suggested that knowledge about hydrogen and technology could lead to improved acceptability through improved levels of trust in the technology. On the other hand social benefits such as those for the environment socioeconomics and energy security have little impact on individual levels of acceptance of new technology.

The report was formally launched on 2nd December in Parliament at a panel debate chaired by Lord Whitty and Oliver Colvile and featured representatives from Government and Industry. The report outlines the case for investment by businesses in the energy efficiency of their buildings and operations and highlights how this could help neutralise the threat to profitability posed by increasing energy bills energy price volatility and an increasing reliance on electricity in the commercial sector. The report highlights that business in the UK have the opportunity to not only reduce energy bills but increase their competitiveness and improve worker productivity through better designed buildings.