Policy & Socio-Economics

Because of hydrogen's low energy density hydrogen storage is a critical component of the hydrogen economy particularly when large-scale and flexible hydrogen utilization is required. There is a sense of urgency to develop hydrogen geological storage projects to support large-scale yet flexible hydrogen utilization. This study aims to answer questions not yet resolved in the research literature discussing the valuation of hydrogen geological storage options for commercial development. This study establishes a net present value (NPV) evaluation framework for geological hydrogen storage that integrates the updated techno-economic analysis and market-based operations. The capital asset pricing model (CAPM) and the related finance theories are applied to determine the risk-adjusted discount rate in building the NPV evaluation framework. The NPV framework has been applied to two geological hydrogen storage projects a single-turn storage serving downstream transportation seasonal demand versus a multiturn storage as part of an integrated renewables-based hydrogen energy system providing peak electric load. From the NPV framework both projects have positive NPVs $46 560 632 and $12 457 546 respectively and International Rate of Return (IRR) values which are higher than the costs of capital. The NPV framework is also applied to the sensitivity analysis and shows that the hydrogen price spread between withdrawal and injection prices site development and well costs are the top three factors that impact both NPV and IRR the most for both projects. The established NPV framework can be used for project risk management by discovering the key cost drivers for the storage assets.

This paper aims to provide a holistic analysis of the role of hydrogen for achieving greenhouse gas neutrality in Germany. For that purpose we apply an integrated energy system model which includes all demand sectors of the German energy system and optimizes the transformation pathway from today's energy system to a future cost-optimal energy system. We show that 412 TWh of hydrogen are needed in the year 2045 mostly in the industry and transport sector. Particularly the use of about 267 TWh of hydrogen in industry is essential as there are no cost-effective alternatives for the required emission reduction in the chemical industry or in steel production. Furthermore we illustrate that the German hydrogen supply in the year 2045 requires both an expansion of domestic electrolyzer capacity to 71 GWH2 and hydrogen imports from other European countries and Northern Africa of about 196 TWh. Moreover flexible operation of electrolyzers is cost-optimal and crucial for balancing the intermittent nature of volatile renewable energy sources. Additionally a conducted sensitivity analysis shows that full domestic hydrogen supply in Germany is possible but requires an electrolyzer capacity of 111 GWH2.

Hydrogen is gaining prominence as a sustainable energy source in the UK aligning with the country’s commitment to advancing sustainable development across diverse sectors. However a rigorous examination of the interplay between the hydrogen economy and the Sustainable Development Goals (SDGs) is imperative. This study addresses this imperative by comprehensively assessing the risks associated with hydrogen production storage transportation and utilization. The overarching aim is to establish a robust framework that ensures the secure deployment and operation of hydrogen-based technologies within the UK’s sustainable development trajectory. Considering the unique characteristics of the UK’s energy landscape infrastructure and policy framework this paper presents practical and viable recommendations to facilitate the safe and effective integration of hydrogen energy into the UK’s SDGs. To facilitate sophisticated decision making it proposes using an advanced Decision-Making Trial and Evaluation Laboratory (DEMATEL) tool incorporating regret theory and a 2-tuple spherical linguistic environment. This tool enables a nuanced decision-making process yielding actionable insights. The analysis reveals that Incident Reporting and Learning Robust Regulatory Framework Safety Standards and Codes are pivotal safety factors. At the same time Clean Energy Access Climate Action and Industry Innovation and Infrastructure are identified as the most influential SDGs. This information provides valuable guidance for policymakers industry stakeholders and regulators. It empowers them to make well-informed strategic decisions and prioritize actions that bolster safety and sustainable development as the UK transitions towards a hydrogen-based energy system. Moreover the findings underscore the varying degrees of prominence among different SDGs. Notably SDG 13 (Climate Action) exhibits relatively lower overall distinction at 0.0066 and a Relation value of 0.0512 albeit with a substantial impact. In contrast SDG 7 (Clean Energy Access) and SDG 9 (Industry Innovation and Infrastructure) demonstrate moderate prominence levels (0.0559 and 0.0498 respectively) each with its unique influence emphasizing their critical roles in the UK’s pursuit of a sustainable hydrogen-based energy future.

In an era characterised by political instability economic uncertainty and mounting environmental pressures hydrogen fuel is being positioned as a critical piece of the global energy security and clean energy agenda. The policy push is noteworthy in the United Kingdom where the government is targeting industrial decarbonisation via hydrogen while exploring a potential role for hydrogen-fuelled home appliances. Despite the imperative to secure social acceptance for accelerating the diffusion of low-carbon energy technologies public perceptions of hydrogen homes remain largely underexplored by the researcher community. In response this analysis draws on extensive focus group data to understand the multi-dimensional nature of social acceptance in the context of the domestic hydrogen transition. Through an integrated mixed-methods multigroup analysis the study demonstrates that socio-political and market acceptance are strongly interlinked owing to a trust deficit in the government and energy industry coupled to underlying dissatisfaction with energy markets. At the community level hydrogen homes are perceived as a potentially positive mechanism for industrial regeneration and local economic development. Households consider short-term disruptive impacts to be tolerable provided temporary disconnection from the gas grid does not exceed three days. However to strengthen social acceptance clearer communication is needed regarding the spatial dynamics and equity implications of the transition. The analysis concludes that existing trust deficits will need to be overcome which entails fulfilling not only a ‘price promise’ on the cost of hydrogen appliances but also enacting a ‘price pledge’ on energy bills. These deliverables are fundamental to securing social acceptance for hydrogen homes.

In the context of the German Energiewende the current government intends to install six million heat pumps by 2030. Replacing gas heating by power has significant implications on the infrastructure. One of the biggest advantages of using gas is the existing storage portfolio. It has not been clarified yet how power demand should be structured on an annual level—especially since power storage is already a problem and solar power is widely promoted to fuel heat pumps despite having an inverse profile. In this article three different solutions namely hydrogen batteries and carbon capture and storage are discussed with respect to resources energy and financial demand. It shows that relying solely on batteries or hydrogen is not solving the structuring problem. A combination of all existing technologies (including fossil fuels) is required to structure the newly generated electricity demand

Decarbonising energy is fundamental in the transition towards a sustainable future. Our Future Energy Scenarios aim to stimulate debate to inform the decisions that will help move us towards achieving carbon reduction targets and ultimately shape the energy system of the future.

Energy and environmental challenges are two key issues related to the sustainable development of the Earth. Fossil fuels (oil coal and natural gas) still supply more than 85% of world energy consumption. Several nations around the globe are striving to provide access to clean and sustainable energy by 2030 (Hostettler et al. 2015). When the Paris Agreement entered into force in 2016 many countries have recently announced serious commitments to significantly reduce their carbon dioxide emissions promising to achieve “net zero” by 2050. he main goal is to limit global warming to well below 2 degrees Celsius preferably to 1.5 degrees Celsius compared to pre-industrial levels (IEA 2021). his requires a total transformation of the energy systems that underpin our economies. In the case of renewable energy technology deployment hydrogen may provide a complementary solution due to its flexibility as an energy carrier and storage medium. The European Union (EU) a signatory to the Paris Agreement demonstrated interest in hydrogen as an invaluable raw material in considerably reducing CO2 emissions. Hydrogen inthe EU energy mix is estimated to increase from the current level (less than 2%) to 13–14% in 2050 (EC 2018).

This paper looks at the possible role of ‘green gas’ in the decarbonisation of heat in the United Kingdom.  The option is under active discussion at the moment because of the UK’s rigorous carbon reduction targets and the growing realisation that there are problems with the ‘default’ option of electrifying heat. Green gas appears to be technically and economically feasible.  However as the paper discusses there are major practical and policy obstacles which make it unlikely that the government will commit itself to developing ‘green gas’ in the foreseeable future.

The Hydrogen Economy concept is being proposed as a means of reducing and eventually decarbonising the world’s energy use. It looks to hydrogen as being a replacement for methane (natural gas) and generally as a way of removing all fossil fuels from the energy supply. The concept however has at least four flaws as follows: (1) hydrogen has significantly different properties to methane; (2) hydrogen has properties that create significant hazards; (3) hydrogen has a very small initiation (activation) energy; and (4) liquid hydrogen cannot readily replace liquefied natural gas (LNG). Hydrogen’s hazards will prevent it from being accepted in a societal sense. To the question ‘Can the Hydrogen Economy concept be the solution to the future energy crisis?’ the answer is ‘no’. Hydrogen has and will have a role in world energy but that role will be limited to industry. For the future we need an advanced electric economy.

The circular economy is a decisive strategy for reconciling economic development and the environment. In France the CE was introduced into the law in 2015 with the objective of closing the loop. The legislation also delegates energy policy towards the French regions by granting them the jurisdiction to directly plan the energy–climate issues on their territory and to develop local energy resources. Thereby the SUD PACA region has redefined its objectives and targeted carbon neutrality and the transition to a CE by 2050. To study this transition we developed a TIMESPACA optimization model. The results show that following a CE perspective to develop a local energy system could contribute to reducing CO2 emissions by 50% in final energy consumption and reaching almost free electricity production. To obtain greater reductions the development of the regional energy systems should follow a careful policy design favoring the transition to low energy-consuming behavior and the strategical allocation of resources across the different sectors. Biomethane should be allocated to the buildings and industrial sector while hydrogen should be deployed for buses and freight transport vehicles.