Policy & Socio-Economics

As nations around the world seek to reduce carbon dioxide emissions in order to mitigate climate change risks there has been a resurgence of interest in the use of hydrogen as a zero-emissions energy carrier. Hydrogen can be produced from diverse feedstocks via a range of low-emissions pathways and has broad potential in the process of decarbonization across the energy transport and industrial sectors.<br/>With an abundance of both renewable and fossil fuel energy resources a comparatively low national energy demand and excellent existing regional resource trading links Australia is well positioned to pursue industrial-scale hydrogen production for both domestic and export purposes. In this paper we present an overview of the progress at the government industry and research levels currently undertaken to enable a large-scale hydrogen industry for Australia.

The transition to net-zero emission energy systems creates synergistic opportunities across sectors. For example fuel hydrogen production from water electrolysis generates by-product oxygen that could be used to reduce the cost of carbon capture and storage (CCS) essential in the decarbonization of clinker production in cement making. To assess this opportunity a techno-economic assessment was carried out for the production of clinker using oxy-combustion in a natural gas-fueled plant coupled to CCS. Material and energy flows were assessed in a reference case for clinker production (oxygen from air no CCS) and compared to oxy-combustion clinker production from either an air separation unit (ASU 95% O2) or water electrolysis (100% O2) both coupled to CCS. Compared to the reference air-combusted clinker plant oxy-combustion increases thermal energy demand by 7% and electricity demand by 137% for ASU and 67% for electrolytic oxygen. The levelized cost of oxygen supply ranges from $49/tO2 for an on-site ASU to pipelined electrolytic O2 at $35/tO2 (200 km) or $13/t O2 (20 km). The cost of clinker for the reference plant without CCS increases linearly from $84/t clinker to $193/t clinker at a carbon price of $0/tCO2 to $150/tCO2 respectively. With oxy-combustion and CCS the clinker production cost ranges from $119 to $122/t clinker reflecting a breakeven carbon price of $39 to $53/tCO2 compared to the reference case. The lower cost for the electrolytic supply of by-product oxygen compared to ASU oxygen must be balanced against the reliability of supply the pipeline transport distance and the charges that may be added by the hydrogen producer.

Hydrogen is crucial to Europe’s transformation into a climate-neutral continent by mid-century. This study concludes that the European Union (EU) and UK could see a hydrogen demand of 2300 TWh (2150-2750 TWh) by 2050. This corresponds to 20-25% of EU and UK final energy consumption by 2050. Achieving this future role of hydrogen depends on many factors including market frameworks legislation technology readiness and consumer choice.

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In its new report Making the Hydrogen Economy Possible: Accelerating clean hydrogen in an electrified economy the ETC outlines the role of clean hydrogen in achieving a highly electrified net-zero economy. The report sets out how a combination of private-sector collaboration and policy support can drive the initial ramp up of clean hydrogen production and use to reach 50 million tonnes by 2030.<br/>Clean hydrogen will play a complementary role to decarbonise sectors where direct electrification is likely to be technologically very challenging or prohibitively expensive such as in steel production and long-distance shipping. The report highlights how critical rapid ramp-up of production and use in the 2020s is to unlock cost reductions and to make mid-century growth targets achievable.<br/>This report is part of the ETC’s wider Making Mission Possible Series – a series of reports outlining how to scale up clean energy provision within the next 30 years to meet the needs of a net-zero greenhouse gas emissions (GHG) economy by mid-century. The reports in the series analyse and set out specific actions required in the next decade to put this net-zero by 2050 target within reach.

Offshore oil and gas field development consumes quantities of electricity which is usually provided by gas turbines. In order to alleviate the emission reduction pressure and the increasing pressure of energy saving governments of the world have been promoting the reform of oil and gas fields for years. Nowadays environmentally friendly alternatives to provide electricity are hotspots such as the integration of traditional energy and renewable energy. However the determination of system with great environmental and economic benefits is still controversial. This paper proposed a wind– hydrogen–natural gas nexus (WHNGN) system for sustainable offshore oil and gas fields development. Combining the optimization model with the techno-economic evaluation model a comprehensive evaluation framework is established for techno-economic feasibility analysis. In addition to WHNGN system another two systems are designed for comparison including the traditional energy supply (TES) system and wind–natural gas nexus (WNGN) system. An offshore production platforms in Bohai Bay in China is taken as a case and the results indicate that: (i) WNGN and WHNGN systems have significant economic benefits total investment is decreased by 5190 and 5020 million $ respectively and the WHNGN system increases 4174 million $ profit; (ii) WNGN and WHNGN systems have significant environmental benefits annual carbon emission is decreased by 15 and 40.2 million kg respectively; (iii) the system can be ranked by economic benefits as follows: WHNGN >WNGN > TES; and (iV) the WHNGN system is more advantageous in areas with high hydrogen and natural gas sales prices such as China Kazakhstan Turkey India Malaysia and Indonesia.

One of the options to reduce the dependence on fossil fuels is to produce gas with the quality of natural gas but based on renewable energy sources. It can encompass among other biogas generation from various types of biomass and its subsequent upgrading. The main aim of this study is to analyze under a combined technical economic and environmental perspective three of the most representative technologies for the production of biomethane (bio-based natural gas): (i) manure fermentation and its subsequent upgrading by CO₂ removal (ii) manure fermentation and biogas methanation using renewable hydrogen from electrolysis and (iii) biomass gasification in the atmosphere of oxygen and methanation of the resulted gas. Thermodynamic economic and environmental analyses are conducted to thoroughly compare the three cases. For these purposes detailed models in Aspen Plus software were built while environmental analysis was performed using the Life Cycle Assessment methodology. The results show that the highest efficiency (66.80%) and the lowest break-even price of biomethane (19.2 €/GJ) are reached for the technology involving fermentation and CO₂ capture. Concerning environmental assessment the system with the best environmental performance varies depending on the impact category analyzed being the system with biomass gasification and methanation a suitable trade-off solution for biomethane production.

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.

UK homes are primarily heated by fossil fuels and contribute 13% of UK’s carbon footprint (equivalent to all the UK’s 38.4m cars). The report says this is incompatible with UK climate legislation targeting net-zero economy by 2050. New polling finds that consumers are open to cleaner greener ways to heat their homes into the future but that they are “still in the dark about smarter greener heating solutions and lack access to independent advice to help them make better decisions for their homes pockets and the planet”.<br/><br/>The report – Uncomfortable Home Truths: why Britain urgently needs a low carbon heat strategy – says a bold new national roadmap is needed by 2020 which puts consumers and households at the heart of a revolution in green heat innovation. It recommends the creation of an Olympic-style delivery body to catalyse and coordinate regional innovation and local leadership tailored to different parts of the UK and the nation’s diverse housing stock.<br/><br/>This report is the third in the Future Gas Series which has explored the opportunities and challenges associated with using low carbon gas in the energy system and is backed by cross-party parliamentary co-Chairs

The unbridled use of fossil fuels is a serious problem that has become increasingly evident over the years. As such fuels contribute considerably to environmental pollution there is a need to find new sustainable sources of energy with low emissions of greenhouse gases. Climate change poses a substantial challenge for the scientific community. Thus the use of renewable energy through technologies that offer maximum efficiency with minimal pollution and carbon emissions has become a major goal. Technology related to the use of hydrogen as a fuel is one of the most promising solutions for future systems of clean energy. The aim of the present review was to provide an overview of elements related to the potential use of hydrogen as an alternative energy source considering its specific chemical and physical characteristics as well as prospects for an increase in the participation of hydrogen fuel in the world energy matrix.

From an evaluation of the GB housing stock it is clear that a mosaic of low carbon heating technologies will be needed to reach net zero. While heat pumps are an important component of this mix our analysis shows that it is likely to be impractical to heat many GB homes with heat pumps only. A combination of lack of exterior space and/or the thermal properties of the building fabric mean that a heat pump is not capable of meeting the space heating requirement of 8 to 12m homes (or 37% to 54% of the 22.7m homes assessed in this report) or can do so only through the installation of highly disruptive and intrusive measures such as solid wall insulation. Hybrid heat pumps that are designed to optimise efficiency of the system do not have the same requirements of a heat pump and may be a suitable solution for some of these homes. This is likely to mean that decarbonised gas networks are therefore critical to delivery of net zero. 3 to 4m homes1 (or 14% to 18% of homes assessed in our analysis) could be made suitable for heat pump retrofit through energy efficiency measures such as cavity wall insulation. For 7 to 10m homes there are no limiting factors and they require minimal/no upgrade requirements to be made heat pump-ready. Nevertheless given firstly the levels of disruption to the floors and interiors of homes caused by the installation of heat pumps and secondly the cost and disruption associated with the requirement to significantly upgrade the electricity distribution networks to cope with large numbers of heat pumps operating at peak demand times - combined with the availability of a decarbonised gas network which requires a simple like-for-like boiler replacement - is likely to mean that many of these ‘swing’ properties will be better served through a gas based technology such as hydrogen (particularly when consumer choice is factored in) or a hybrid system. A recent trial run in winter 2018-19 by the Energy System Catapult revealed that all participants were reluctant to make expensive investments to improve the energy efficiency of their homes just to enhance the performance of their heat pump. They were more interested in less costly upgrades and tangible benefits such as lower bills or greater comfort. This means that renewable gases including hydrogen as heating fuels are a crucial component of the journey to net zero and the UK’s hydrogen ambitions should be reflective of this. The analysis presented in this paper focuses on the external fabric of the buildings further analysis should be undertaken to consider the internal system changes that would be required for heat pumps and hydrogen boilers for example BEIS Domestic Heat Distribution Systems: Gathering Report from February 2021 which considers the suitability of radiators for the low carbon transition.

This statutory report provides a comprehensive overview of the UK Government’s progress to date in reducing emissions. It is accompanied by a new Monitoring Framework which details the CCC’s updated approach to tracking real-world progress through a host of new indicators.<br/>This is a pivotal point in the UK’s journey to Net Zero. The UK is one of the few countries with emissions targets in line with the long-term temperature goal of the Paris Agreement. Policy ambition has moved substantially with the publication of the UK’s Net Zero Strategy. Now is the time to deliver the promised action.

In this paper we report the effect of adding Zr + V or Zr + V + Mn to TiFe alloy on microstructure and hydrogen storage properties. The addition of only V was not enough to produce a minimum amount of secondary phase and therefore the first hydrogenation at room temperature under a hydrogen pressure of 20 bars was impossible. When 2 wt.% Zr + 2 wt.% V or 2 wt.% Zr + 2 wt.% V + 2 wt.% Mn is added to TiFe the alloy shows a finely distributed Ti₂Fe-like secondary phase. These alloys presented a fast first hydrogenation and a high capacity. The rate-limiting step was found to be 3D growth diffusion controlled with decreasing interface velocity. This is consistent with the hypothesis that the fast reaction is likely to be the presence of Ti₂Fe-like secondary phases that act as a gateway for hydrogen.

This study aimed to identify the impact of achieving the 1.5 ◦C target on the petroleum supply chain in Japan and discuss the feasibility and challenges of decarbonization. First a national material flow was established for the petroleum supply chain in Japan including processes for crude petroleum refining petroleum product manufacturing plastic resin and product manufacturing and by-product manufacturing. In particular by-product manufacturing processes such as hydrogen gaseous carbon dioxide and sulfur were selected because they are utilized in other industries. Next the outlook for the production of plastic resin hydrogen dry ice produced from carbon dioxide gas and sulfur until 2050 was estimated for reducing petroleum consumption required to achieve the 1.5 ◦C target. As a result national petroleum treatment is expected to reduce from 177048.00 thousand kl in 2019 to 126643.00 thousand kl in 2030 if the reduction in petroleum consumption is established. Along with this decrease plastic resin production is expected to decrease from 10500.00 thousand ton in 2019 to 7511.00 thousand ton by 2030. Conversely the plastic market is expected to grow steadily and the estimated plastic resin production in 2030 is expected to be 20079.00 thousand ton. This result indicates that there is a large output gap between plastic supply and demand. To mitigate this gap strongly promoting the recycling of waste plastics and making the price competitiveness of biomass plastics equal to that of petroleum-derived plastics are necessary

This paper aims to review existing energy-sector and hydrogen-energy-related legal policy and strategy documents in the ECOWAS region. To achieve this aim current renewable-energyrelated laws acts of parliament executive orders presidential decrees administrative orders and memoranda were analyzed. The study shows that ECOWAS countries have strived to design consistent legal instruments regarding renewable energy in developing comprehensive legislation and bylaws to consolidate it and to encourage investments in renewable energy. Despite all these countries having a legislative basis for regulating renewable energy there are still weaknesses that revolve around the law and policy regarding its possible application in green hydrogen production and use. The central conclusion of this review paper is that ECOWAS member states presently have no official hydrogen policies nor bylaws in place. The hydrogen rise presents a challenge and opportunity for members to play an important role in the fast-growing global hydrogen market. Therefore these countries need to reform their regulatory frameworks and align their policies by introducing green hydrogen production in order to accomplish their green economy transition for the future and to boost the continent’s sustainable development.

As environmental awareness among the public gradually improves it is predicted that the trend of green consumption will make green products enter the mainstream market. Hydrogen-electric motorcycles with eco-friendly and energy-efficient characteristics have great advantages for development. However as a type of innovative product hydrogen-electric motorcycles require further examination with regard to consumer acceptance and external variables of the products. In this study consumer behavioral intention (BI) for the use of hydrogen-electric motorcycles and its influencing factors are discussed using innovation resistance as the basis and environmental concern as the adjusting variable. Consumers’ willingness-to-pay (WTP) for hydrogen-electric motorcycles is estimated using the contingent valuation method (CVM). The results found that (1) perception barriers viz. usage barrier value barrier risk barrier tradition barrier and price barrier are statistically significant whereas image barrier is not; (2) a high degree of environmental concern will reduce the consumers’ innovation resistance to the hydrogen-electric motorcycles; (3) up to 94.79% of the respondents of the designed questionnaire suggested that the promotion of hydrogen-electric motorcycles requires a subsidy of 21.9% of the total price from the government. The mean WTP of consumers for the purchase of hydrogen-electric motorcycles is 10–15% higher than that of traditional motorcycles.

In this study we investigated the cost-effectiveness of four alternatives: Liquified Natural Gas (LNG) methanol green hydrogen and green ammonia for the case of top 20 most frequently calling ships to Irish ports in 2019 through the Net Present Value (NPV) methodology incorporating the benefits incurred through saved external carbon tax and conventional fuel costs. LNG had the highest NPV (€6166 million) followed by methanol (€1705 million) and green hydrogen (€319 million). Green ammonia utilisation (as a hydrogen carrier) looks inviable due to higher operational costs resulting from its excessive consumption (i.e. losses) during the cracking and purifying processes and its lower net calorific value. Green hydrogen remains the best option to meet future decarbonisation targets although a further reduction in its current fuel price (by 60%) or a significant increment in the proposed carbon tax rate (by 275%) will be required to improve its cost-competitiveness over LNG and methanol.

Countries are under increasing pressure to reduce greenhouse gas emissions as an act upon the Paris Agreement. The essential emission reductions can be achieved by environmentally friendly solutions in particular the introduction of low carbon or carbon-free fuels. This study presents a comparative life cycle assessment of various energy carriers namely; liquefied natural gas methanol dimethyl ether liquid hydrogen and liquid ammonia that are produced from natural gas or renewables to investigate greenhouse gas emissions generated from the complete life cycle of energy carriers accounting for the leaks as well as boil-off gas occurring during storage and transportation. The entire fuel life cycle is considered consisting of production storage transportation via an ocean tanker to different distances and finally utilization in an internal combustion engine of a road vehicle. The results show that using natural gas as a feedstock total greenhouse gas emissions during production ocean transportation (over 20000 nmi) by a heavy fuel oil-fueled ocean tanker and utilization in an internal combustion engine are 73.96 95.73 93.76 50.83 and 100.54 g CO2 eq. MJ1 for liquified natural gas methanol dimethyl ether liquid hydrogen and liquid ammonia respectively. Liquid hydrogen produced from solar electrolysis is the cleanest energy carrier (42.50 g CO2 eq. MJ1 fuel). Moreover when liquid ammonia is produced via photovoltaic-based electrolysis (60.76 g CO2 eq. MJ1 fuel) it becomes cleaner than liquified natural gas. Although producing methanol and dimethyl ether from biomass results in a large reduction in total greenhouse gas emissions compared to conventional methanol and dimethyl ether production with a value of 73.96 g CO2 eq. per MJ liquified natural gas still represents a cleaner option than methanol and dimethyl ether considering the full life cycle.

A 10-minute tour of hydrogen industry technology and terminology for those who are new to the sector or who would simply like a quick review of the basics behind this burgeoning energy source.

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The clean hydrogen in the prioritized value chain platform could provide energy incentives and reduce environmental impacts. In the current study strengths weaknesses opportunities and threats (SWOT) analysis has been successfully applied to the clean hydrogen value chain in different sectors to determine Japan’s clean hydrogen value chain’s strengths weaknesses opportunities and threats as a case study. Japan was chosen as a case study since we believe that it is the only pioneer country in that chain with a national strategy investments and current projects which make it unique in this way. The analyses include evaluations of clean energy development power supply chains regional energy planning and renewable energy development including the internal and external elements that may influence the growth of the hydrogen economy in Japan. The ability of Japan to produce and use large quantities of clean hydrogen at a price that is competitive with fossil fuels is critical to the country’s future success. The implementation of an efficient carbon tax and carbon pricing is also necessary for cost parity. There will be an increasing demand for global policy coordination and inter-industry cooperation. The results obtained from this research will be a suitable model for other countries to be aware of the strengths weaknesses opportunities and threats in this field in order to make proper decisions according to their infrastructures potentials economies and socio-political states in that field.

In June 2021 the United States (US) Department of Energy (DOE) hosted the first-ever Hydrogen Shot Summit which lasted for two days. More than 3000 stockholders around the world were convened at the summit to discuss how low-cost clean hydrogen production would be a huge step towards solving climate change. Hydrogen is a dynamic fuel that can be used across all industrial sectors to lower the carbon intensity. By 2030 the summit hopes to have developed a means to reduce the current cost of clean hydrogen by 80%; i.e. to USD 1 per kilogram. Because of the importance of clean hydrogen towards carbon neutrality the overall DOE budget for Fiscal Year 2021 is USD 35.4 billion and the total budget for DOE hydrogen activities in Fiscal Year 2021 is USD 285 million representing 0.81% of the total DOE budget for 2021. The DOE hydrogen budget of 2021 is estimated to increase to USD 400 million in Fiscal Year 2022. The global hydrogen market is growing and the US is playing an active role in ensuring its growth. Depending on the electricity source used the electrolysis of hydrogen can have no greenhouse gas emissions. When assessing the advantages and economic viability of hydrogen production by electrolysis it is important to take into account the source of the necessary electricity as well as emissions resulting from electricity generation. In this study to evaluate the levelized cost of nuclear hydrogen production the International Atomic Energy Agency Hydrogen Economic Evaluation Program is used to model four types of LWRs: Exelon’s Nine Mile Point Nuclear Power Plant (NPP) in New York; Palo Verde NPP in Arizona; Davis-Besse NPP in Ohio; and Prairie Island NPP in Minnesota. Each of these LWRs has a different method of hydrogen production. The results show that the total cost of hydrogen production for Exelon’s Nine Mile Point NPP Palo Verde NPP Davis-Besse NPP and Prairie Island NPP was 4.85 ± 0.66 4.77 ± 1.36 3.09 ± 1.19 and 0.69 ± 0.03 USD/kg respectively. These findings show that among the nuclear reactors the cost of nuclear hydrogen production using Exelon’s Nine Mile Point NPP reactor is the highest whereas the cost of nuclear hydrogen production using the Prairie Island NPP reactor is the lowest.

The transition of residential communities to renewable energy sources is one of the first steps for the decarbonization of the energy sector the reduction of CO2 emissions and the mitigation of global climate change. This study provides information for the development of a microgrid supplied by wind and solar energy which meets the hourly energy demand of a community of 10000 houses in the North Texas region; hydrogen is used as the energy storage medium. The results are presented for two cases: (a) when the renewable energy sources supply only the electricity demand of the community and (b) when these sources provide the electricity as well as the heating needs (for space heating and hot water) of the community. The results show that such a community can be decarbonized with combinations of wind and solar installations. The energy storage requirements are between 2.7 m3 per household and 2.2 m3 per household. There is significant dissipation in the storage–regeneration processes—close to 30% of the current annual electricity demand. The entire decarbonization (electricity and heat) of this community will result in approximately 87500 tons of CO2 emissions avoidance.

This study is aimed at a succinct review of practical impacts of grid integration of renewable energy systems on effectiveness of power networks as well as often employed state-of-the-art solution strategies. The renewable energy resources focused on include solar energy wind energy biomass energy and geothermal energy as well as renewable hydrogen/fuel cells which although not classified purely as renewable resources are a famous energy carrier vital for future energy sustainability. Although several world energy outlooks have suggested that the renewable resources available worldwide are sufficient to satisfy global energy needs in multiples of thousands the different challenges often associated with practical exploitation have made this assertion an illusion to date. Thus more research efforts are required to synthesize the nature of these challenges as well as viable solution strategies hence the need for this review study. First brief overviews are provided for each of the studied renewable energy sources. Next challenges and solution strategies associated with each of them at generation phase are discussed with reference to power grid integration. Thereafter challenges and common solution strategies at the grid/electrical interface are discussed for each of the renewable resources. Finally expert opinions are provided comprising a number of aphorisms deducible from the review study which reveal knowledge gaps in the field and potential roadmap for future research. In particular these opinions include the essential roles that renewable hydrogen will play in future energy systems; the need for multi-sectoral coupling specifically by promoting electric vehicle usage and integration with renewable-based power grids; the need for cheaper energy storage devices attainable possibly by using abandoned electric vehicle batteries for electrical storage and by further development of advanced thermal energy storage systems (overviews of state-of-the-art thermal and electrochemical energy storage are also provided); amongst others.

Existing studies of financing efficiency concentrate on capital structure and a single external environment or internal management characteristic. Few of the studies include the internal and external financing environments at the same time for hydrogen energy industry financing efficiency. This paper used the data envelopment analysis (DEA) model and the Malmquist index to measure the financing efficiency of 70 hydrogen energy listed enterprises in China from 2014 to 2020 from both static and dynamic perspectives. Then a tobit model was constructed to explore the influence of external environment and internal factors on the financing efficiency. The contributions of this paper are studying the internal and external financing environments and integrating financing cost efficiency and capital allocation efficiency into the financing efficiency of hydrogen energy enterprises. The results show that firstly the financing efficiency of China’s hydrogen energy listed enterprises showed an upward trend during the years 2014–2020. Secondly China’s hydrogen energy enterprises mainly gather in the eastern coastal areas and their financing efficiency is more than that in western areas. Thirdly the regional economic development level enterprise scale financing structure capital utilization efficiency and profitability have significant effects on the financing efficiency. These results can promote the achievement of “carbon neutrality” in China.

To accelerate clean energy transition China has explored the potential of hydrogen as an energy carrier since 2001. Until 2020 49 national hydrogen policies were enacted. This paper explores the relevance of these policies to the development of the hydrogen industry and energy transition in China. We examine the reasons impacts and challenges of Chinese national hydrogen policies through the conceptual framework of Thomas Dye’s policy analysis method and the European Training Foundation’s policy analysis guide. This research provides an ex‐post analysis for previous policies and an ex‐ante analysis for future options. We argue that the energy supply revolution and energy technology revolution highlight the importance of hydrogen development in China. Particularly the pressure of the automobile industry transition leads to experimentation concerning the application of hydrogen in the transportation sector. This paper also reveals that hydro‐ gen policy development coincides with an increase in resource input and has positive spill over effects. Furthermore we note that two challenges have impeded progress: a lack of regulations for the industry threshold and holistic planning. To address these challenges the Chinese government can design a national hydrogen roadmap and work closely with other countries through the Belt and Road Initiative.

In recent years the need to reduce environmental impacts and increase flexibility in the energy sector has led to increased penetration of renewable energy sources and the shift from concentrated to decentralized generation. A fuel cell is an instrument that produces electricity by chemical reaction. Fuel cells are a promising technology for ultimate energy conversion and energy generation. We see that this system is integrated where we find that the wind and photovoltaic energy system is complementary between them because not all days are sunny windy or night so we see that this system has higher reliability to provide continuous generation. At low load hours PV and electrolysis units produce extra power. After being compressed hydrogen is stored in tanks. The purpose of this study is to separate the Bahr AL-Najaf Area from the main power grid and make it an independent network by itself. The PEM fuel cells were analyzed and designed and it were found that one layer is equal to 570.96 Watt at 0.61 volts and 1.04 A/Cm2 . The number of layers in one stack is designed to be equal to 13 layers so that the total power of one stack is equal to 7422.48 Watt. That is the number of stacks required to generate the required energy from the fuel cells is equal to 203 stk. This study provided an analysis of the hybrid system to cover the electricity demand in the Bahr AL-Najaf region of 1.5 MW the attained hybrid power system TNPC cost was about 9573208 USD whereas the capital cost and energy cost (COE) were about 7750000 USD and 0.169 USD/kWh respectively for one year.