Policy & Socio-Economics

Global efforts towards de-carbonization give rise to remarkable energy challenges which include renewable energy penetration increase and intermediate energy carriers for a sustainable transition. In order to reduce the dependence on fossil fuels alternative sources are considered by commodities to satisfy their increasing electricity demand as a consequence of a rise in population and the quantity of residential appliances in forthcoming years. The near-term trends appear to be in fuel and emission reduction techniques through the integration of carbon capture and storage and more efficient energy carriers exploiting alternative energy sources such as natural gas and hydrogen. Formulating both the fuel consumption and emission released the obtained experimental results showed that the total production cost can be reduced by making use of natural gas for the transition towards 2035’s targets. Maximum profits will be achieved with hydrogen as the only fuel in modern power plants by 2050. In this way the lowest electricity production can be achieved as well as the elimination of carbon dioxide emissions. Since the integration of renewable energy resources in the sectors of electricity heating/cooling and transportation will continuously be increased alternative feedstocks can serve as primary inputs and contribute to production cost profits improved utilization factors and further environmental achievements.

The Republic of Djibouti has untapped potential in terms of renewable energy resources such as geothermal wind and solar energy. This study examines the economic feasibility of green hydrogen production by water electrolysis using wind and geothermal energy resources in the Asal–Ghoubbet Rift (AG Rift) Republic of Djibouti. It is the first study in Africa that compares the cost per kg of green hydrogen produced by wind and geothermal energy from a single site. The unit cost of electricity produced by the wind turbine (0.042 $/kWh) is more competitive than that of a dry steam geothermal plant (0.086 $/kWh). The cost of producing hydrogen with a suitable electrolyzer powered by wind energy ranges from $0.672/kg H2 to $1.063/kg H2 while that produced by the high-temperature electrolyzer (HTE) powered by geothermal energy ranges from $3.31/kg H2 to $4.78/kg H2 . Thus the AG Rift area can produce electricity and green hydrogen at low-cost using wind energy compared to geothermal energy. The amount of carbon dioxide (CO2 ) emissions reduced by using a “Yinhe GX113-2.5MW” wind turbine and a single flash geothermal power plant instead of fuel-oil generators is 2061.6 tons CO2/MW/year and 2184.8 tons CO2/MW/year respectively.

A multi-objective optimisation model based on mixed integer linear programming is presented that can simultaneously determine the design and operation of any integrated multi-vector energy networks. It can answer variants of the following questions: What is the most effective way in terms of cost value/profit and/or emissions of designing and operating the integrated multi-vector energy networks that utilise a variety of primary energy sources to deliver different energy services such as heat electricity and mobility given the availability of primary resources and the levels of demands and their distribution across space and time? When to invest in technologies where to locate them; what resources should be used where when and how to convert them to the energy services required; how to transport the resources and manage inventory? Scenarios for Great Britain were examined involving different primary energy sources such as natural gas biomass and wind power in order to satisfy demands for heat electricity and mobility via various energy vectors such as electricity natural gas hydrogen and syngas. Different objectives were considered such as minimising cost maximising profit minimising emissions and maximising renewable energy production subject to the availability of suitable land for biomass and wind turbines as well as the maximum local production and import rates for natural gas. Results suggest that if significant mobility demands are met by hydrogen-powered fuel cell vehicles then hydrogen is the preferred energy vector over natural gas for satisfying heat demands. If natural gas is not used and energy can only be generated from wind power and biomass electricity and syngas are the preferred energy carriers for satisfying electricity and heat demands.

Before the Covid-19 pandemic UK passed net-zero emission law legislation to become the first major economy in the world to end its contribution to global warming by 2050. Following the UK’s legislation to reach net-zero emissions a long-term strategy for transition to a net-zero target was published in 2021. The strategy is a technology-led and with a top-down approach. The intention is to reach the target over the next three decades. The document targets seven sectors to reduce emissions and include a wide range of policies and innovations for decarbonization. This paper aims to accomplish a much needed review of the strategy in heat and buildings part and cover the key related areas in future buildings standard heat pumps and use of hydrogen as elaborated in the strategy. For that purpose this research reviews key themes in the policy challenges recent advancement and future possibilities. It provides an insight on the overall development toward sustainability and decarbonization of built environment in the UK by 2050. A foresight model Future Wheels is also used to visualize the findings from the review and provide a clear picture of the potential impact of the policy.

In order to limit the effects of climate change the carbon dioxide emissions associated with the energy sector need to be reduced. Significant reductions can be achieved by using appropriate technologies and policies. In the context of recent discussions about climate change and energy transition this article critically reviews some technologies policies and frequently discussed solutions. The options for carbon emission reductions are grouped into (1) generation of secondary energy carriers (2) end-use energy sectors and (3) sector interdependencies. The challenges on the way to a decarbonized energy sector are identified with respect to environmental sustainability security of energy supply economic stability and social aspects. A global carbon tax is the most promising instrument to accelerate the process of decarbonization. Nevertheless this process will be very challenging for humanity due to high capital requirements the competition among energy sectors for decarbonization options inconsistent environmental policies and public acceptance of changes in energy use.

The Global Hydrogen Review is a new annual publication by the International Energy Agency to track progress in hydrogen production and demand as well as in other critical areas such as policy regulation investments innovation and infrastructure development.

The report is an output of the Clean Energy Ministerial Hydrogen Initiative (CEM H2I) and is intended to inform energy sector stakeholders on the status and future prospects of hydrogen while serving as an input to the discussions at the Hydrogen Energy Ministerial Meeting (HEM) organised by Japan. It examines what international progress on hydrogen is needed to help address climate change – and compares real-world developments with the stated ambitions of government and industry and with key actions under the Global Action Agenda launched at the HEM in 2019.

Focusing on hydrogen’s usefulness for meeting climate goals this Review aims to help decision makers fine-tune strategies to attract investment and facilitate deployment of hydrogen technologies while also creating demand for hydrogen and hydrogen-based fuels.

Link to International Energy Agency website

Fuel cell electric vehicles arise as an alternative to conventional vehicles in the road transport sector. They could contribute to decarbonising the transport system because they have no direct CO₂ emissions during the use phase. In fact the life-cycle environmental performance of hydrogen as a transportation fuel focuses on its production. In this sense through the case study of Spain this article prospectively assesses the techno-economic and environmental performance of a national hydrogen production mix by following a methodological framework based on energy systems modelling enriched with endogenous carbon footprint indicators. Taking into account the need for a hydrogen economy based on clean options alternative scenarios characterised by carbon footprint restrictions with respect to a fossil-based scenario dominated by steam methane reforming are evaluated. In these scenarios the steam reforming of natural gas still arises as the key hydrogen production technology in the short term whereas water electrolysis is the main technology in the medium and long term. Furthermore in scenarios with very restrictive carbon footprint limits biomass gasification also appears as a key hydrogen production technology in the long term. In the alternative scenarios assessed the functional substitution of hydrogen for conventional fossil fuels in the road transport sector could lead to high greenhouse gas emission savings ranging from 36 to 58 Mt CO₂ eq in 2050. Overall these findings and the model structure and characterisation developed for the assessment of hydrogen energy scenarios are expected to be relevant not only to the specific case study of Spain but also to analysts and decision-makers in a large number of countries facing similar concerns.

There is growing interest in using hydrogen (H2) as a long-duration energy storage resource in a future electric grid dominated by variable renewable energy (VRE) generation. Modeling H2 use exclusively for grid-scale energy storage often referred to as ‘‘power-to-gas-to-power (P2G2P)’’ overlooks the cost-sharing and CO2 emission benefits from using the deployed H2 assets to decarbonize other end-use sectors where direct electrification is challenging. Here we develop a generalized framework for co-optimizing infrastructure investments across the electricity and H2 supply chains accounting for the spatio-temporal variations in energy demand and supply. We apply this sector-coupling framework to the U.S. Northeast under a range of technology cost and carbon price scenarios and find greater value of power-to-H2 (P2G) vs. P2G2P routes. Specifically P2G provides grid flexibility to support VRE integration without the round-trip efficiency penalty and additional cost incurred by P2G2P routes. This form of sector coupling leads to: (a) VRE generation increase by 13–56% and (b) total system cost (and levelized costs of energy) reduction by 7–16% under deep decarbonization scenarios. Both effects increase as H2 demand for other end-uses increases more than doubling for a 97% decarbonization scenario as H2 demand quadruples. We also find that the grid flexibility enabled by sector coupling makes deployment of carbon capture and storage (CCS) for power generation less cost-effective than its use for low-carbon H2 production. These findings highlight the importance of using an integrated energy system framework with multiple energy vectors in planning cost-effective energy system decarbonization

Written by Arup in collaboration with the GIIA this report is centred on the opinions of investors from around the world gathered through a survey of GIIA members and in-depth interviews. It therefore presents the sentiments of the world’s leading fund managers insurance investors pension funds and a sovereign wealth fund. Their opinions matter because these are the decision makers that hold the purse strings when it comes to private sector investment in hydrogen infrastructure. Many of the facts about hydrogen are well-known to many readers and these are presented in this report drawing on Arup’s research and experience as a global infrastructure advisory firm. However the novelty of this report is that it looks at hydrogen through the uncompromising eyes of investors with analysis of feedback which identifies barriers to investment in the infrastructure required to enable the hydrogen economy. Perhaps most importantly it also proposes interventions that policymakers and regulators could take to overcome the barriers currently faced.<br/>Introduction The sentiments of investors are at the heart of this study with results from the survey presented at the beginning of each section to serve as a launch pad for Arup’s analysis. But we want it to be more than an interesting read; it is a call to action for policy makers to create the right environment to catalyse private sector investment and kickstart the hydrogen economy.

To increase the share of renewable zero-emission energy sources such as wind and solar power in our energy supply the problem of their intermittency needs to be addressed. One way to do so is by buffering excess renewable energy via the production of hydrogen which can be stored for later use after re-electrification. Such a clean renewable energy cycle based on hydrogen is commonly referred to as the hydrogen economy. This review deals with cluster model systems of the three main components of the hydrogen economy i.e. hydrogen generation hydrogen storage and hydrogen re-electrification and their basic physical principles. We then present examples of contemporary research on few atom clusters both in the gas phase and deposited to show that by studying these clusters as simplified models a mechanistic understanding of the underlying physical and chemical processes can be obtained. Such an understanding will inspire and enable the design of novel materials needed for advancing the hydrogen economy.

This research qualitatively reviews literature regarding energy system modeling in Japan specific to the future hydrogen economy leveraging quantitative model outcomes to establish the potential future deployment of hydrogen in Japan. The analysis focuses on the four key sectors of storage supplementing the gas grid power generation and transportation detailing the potential range of hydrogen technologies which are expected to penetrate Japanese energy markets up to 2050 and beyond. Alongside key model outcomes the appropriate policy settings governance and market mechanisms are described which underpin the potential hydrogen economy future for Japan. We find that transportation gas grid supplementation and storage end-uses may emerge in significant quantities due to policies which encourage ambitious implementation targets investment in technologies and research and development and the emergence of a future carbon pricing regime. On the other hand for Japan which will initially be dependent on imported hydrogen the cost of imports appears critical to the emergence of broad hydrogen usage particularly in the power generation sector. Further the consideration of demographics in Japan recognizing the aging shrinking population and peoples’ energy use preferences will likely be instrumental in realizing a smooth transition toward a hydrogen economy.

This study seeks to answer a simple question: will we have enough renewable electricity to meet all of the EU's decarbonisation objectives and if not what should be the priorities and how to address the remaining needs for energy towards carbon neutrality? Indeed if not the policy push for green hydrogen would not be covered by enough green electricity to match the “energy efficiency and electrification first” approach outlined in the system integration communication and a prioritization of green electricity uses complemented by other solutions (import of green electricity or sustainable fuels CCS...) would be advisable [1]. On one hand we show that the principle “Energy efficiency and electrification first” results in an electricity demand which will be very difficult to satisfy domestically with renewable energy. On the other hand green hydrogen and other sustainable fuels will be needed for a carbon neutral industry for the replacement of the fuel for aviation and navigation and as strategic green energy reserves. The detailed modelling of these interactions is challenging given the large uncertainties on technology and infrastructure development. Therefore we offer a “15 minutes” decarbonization scenario based on general and transparent technical considerations and very straightforward “back-of-envelope” calculations. This working paper contains the calculations and assumptions in support of the accompanying policy brief with the same title which focuses instead on the main take-aways.

This study analyzes the factors leading to the deployment of Power-to-Hydrogen (PtH₂) within the optimal design of district-scale Multi-Energy Systems (MES). To this end we utilize an optimization framework based on a mixed integer linear program that selects sizes and operates technologies in the MES to satisfy electric and thermal demands while minimizing annual costs and CO₂ emissions. We conduct a comprehensive uncertainty analysis that encompasses the entire set of technology (e.g. cost efficiency lifetime) and context (e.g. economic policy grid carbon footprint) input parameters as well as various climate-referenced districts (e.g. environmental data and energy demands) at a European-scope.

Minimum-emissions MES with large amounts of renewable energy generation and high ratios of seasonal thermal-to-electrical demand optimally achieve zero operational CO₂ emissions by utilizing PtH₂ seasonally to offset the long-term mismatch between renewable generation and energy demand. PtH₂ is only used to abate the last 5–10% emissions and it is installed along with a large battery capacity to maximize renewable self-consumption and completely electrify thermal demand with heat pumps and fuel cells. However this incurs additional cost. Additionally we show that ‘traditional’ MES comprised of renewables and short-term energy storage are able to decrease emissions by 90% with manageable cost increases.

The impact of uncertainty on the optimal system design reveals that the most influential parameter for PtH2 implementation is (1) heat pump efficiency as it is the main competitor in providing renewable-powered heat in winter. Further battery (2) capital cost and (3) lifetime prove to be significant as the competing electrical energy storage technology. In the face of policy uncertainties a CO₂ tax shows large potential to reduce emissions in district MES without cost implications. The results illustrate the importance of capturing the dynamics and uncertainties of short- and long-term energy storage technologies for assessing cost and CO₂ emissions in optimal MES designs over districts with different geographical scopes.

Limiting cumulative carbon emissions to keep global temperature increase to well below 2°C (and as low as 1.5°C) is an extremely challenging task requiring rapid reduction in the carbon intensity of all sectors of the economy and with limited leeway for residual emissions. Addressing residual emissions in ‘challenging-to-decarbonise’ sectors such as the industrial and aviation sectors relies on the development and commercialization of innovative advanced technologies currently still in their infancy. The aim of this study was to (a) explore the role of advanced technologies in achieving deep decarbonisation of the energy system and (b) provide technology- specific details of how rapid and deep carbon intensity reductions can be achieved in the energy demand sectors. This was done using TIAM-Grantham – a linear cost optimization model of the global energy system with a detailed representation of demand-side technologies. We find that the inclusion of advanced technologies in the demand sectors together with energy demand reduction through behavioural changes enables the model to achieve the rapid and deep decarbonisation of the energy system associated with limiting global warming to below 2°C whilst at the same time reduces reliance on negative emissions technologies by up to ∼18% compared to the same scenario with a standard set of technologies. Realising such advanced technologies at commercial scales as well as achieving such significant reductions in energy demand represents a major challenge for policy makers businesses and civil society. There is an urgent need for continued R&D efforts in the demand sectors to ensure that advanced technologies become commercially available when we need them and to avoid the gamble of overreliance on negative emissions technologies to offset residual emissions.

The aim of this study is to identify the technical solution space for future fully renewable energy systems that stays within a sustainable biomass demand. In the transition towards non-fossil energy and material systems biomass is an attractive source of carbon for those demands that also in the non-fossil systems depend on high density carbon containing fuels and feedstocks. However extensive land use is already a sustainability challenge and an increase in future demands threat to exceed global sustainable biomass potentials which according to an international expert consensus is around 10 – 30 GJ/person/year in 2050. Our analytical review of 16 scenarios from 8 independent studies of fully renewable energy system designs and synthesis of 9 generic system designs reveals the significance of the role of electrification and hydrogen integration for building a fully renewable energy system which respects the global biomass limitations. The biomass demand of different fully renewable energy system designs was found to lie in the range of 0 GJ/person/year for highly integrated electrified pure electro-fuel scenarios with up to 25 GJ/person/year of hydrogen to above 200 GJ/person/year for poorly integrated full bioenergy scenarios with no electrification or hydrogen integration. It was found that a high degree of system electrification and hydrogen integration of at least 15 GJ/person/year is required to stay within sustainable biomass limits.

As transitioning away from fossil fuels to renewable energy sources comes on the agenda for a range of energy systems energy modelling tools can provide useful insights. If large parts of the energy system turns out to be based on variable renewables an accurate representation of their short-term variability in such models is crucial. In this paper we have developed a stochastic long-term energy model and applied it to an isolated Arctic settlement as a challenging and realistic test case. Our findings suggest that the stochastic modelling approach is critical in particular for studies of remote Arctic energy systems. Furthermore the results from a case study of the Norwegian settlement of Longyearbyen suggest that transitioning to a system based on renewable energy sources is feasible. We recommend that a solution based mainly on renewable power generation but also including energy storage import of hydrogen and adequate back-up capacity is taken into consideration when planning the future of remote Arctic settlements.

This work investigates the connection between electrification of the industry transport and heat sector and the integration of wind and solar power in the electricity system. The impact of combining electrification of the steel industry passenger vehicles and residential heat supply with flexibility provision is evaluated from a systems and sector perspective. Deploying a parallel computing approach to the capacity expansion problem the impact of flexibility provision throughout the north European electricity system transition is investigated. It is found that a strategic collaboration between the electricity system an electrified steel industry an electrified transport sector in the form of passenger electric vehicles (EVs) and residential heat supply can reduce total system cost by 8% in the north European electricity system compared to if no collaboration is achieved. The flexibility provision by new electricity consumers enables a faster transition from fossil fuels in the European electricity system and reduces thermal generation. From a sector perspective strategic consumption of electricity for hydrogen production and EV charging and discharging to the grid reduces the number of hours with very high electricity prices resulting in a reduction in annual electricity prices by up to 20%.

This discussion paper is for stakeholders who would like to shape the development of Victoria’s emerging green hydrogen sector identifying competitive advantages and priority focus areas for industry and the Victorian Government.<br/>The Victorian Government is using this paper to focus on the economic growth and sector development opportunities emerging for a Victorian hydrogen industry powered by renewable energy also known as ‘green’ hydrogen. In addition this paper seeks input from all stakeholders on how where and when the Victorian Government can act to establish a thriving green hydrogen economy.<br/>Although green hydrogen is the only type of hydrogen production within the scope of this discussion paper the development of the VHIP aligns with the policies projects and initiatives which support these other forms of hydrogen production. The VHIP is considering the broad policy landscape and actively coordinating with related hydrogen programs policies and strategies under development including the Council of Australian Governments (COAG) Energy Council’s National Hydrogen Strategy to ensure a complementary approach. In Victoria there are several programs and strategies in development and underway that have linkages with hydrogen and the VHIP.

In this study we model seven scenarios for the European power system in 2050 based on 100% renewable energy sources assuming different levels of future demand and technology availability and compare them with a scenario which includes low-carbon non-renewable technologies. We find that a 100% renewable European power system could operate with the same level of system adequacy as today when relying on European resources alone even in the most challenging weather year observed in the period from 1979 to 2015. However based on our scenario results realising such a system by 2050 would require: (i) a 90% increase in generation capacity to at least 1.9 TW (compared with 1 TW installed today) (ii) reliable cross-border transmission capacity at least 140GW higher than current levels (60 GW) (iii) the well-managed integration of heat pumps and electric vehicles into the power system to reduce demand peaks and biogas requirements (iv) the implementation of energy efficiency measures to avoid even larger increases in required biomass demand generation and transmission capacity (v) wind deployment levels of 7.5GWy−1 (currently 10.6GWy−1) to be maintained while solar photovoltaic deployment to increase to at least 15GWy−1 (currently 10.5GWy−1) (vi) large-scale mobilisation of Europe’s biomass resources with power sector biomass consumption reaching at least 8.5 EJ in the most challenging year (compared with 1.9 EJ today) and (vii) increasing solid biomass and biogas capacity deployment to at least 4GWy−1 and 6 GWy−1 respectively. We find that even when wind and solar photovoltaic capacity is installed in optimum locations the total cost of a 100% renewable power system (∼530 €bn y−1) would be approximately 30% higher than a power system which includes other low-carbon technologies such as nuclear or carbon capture and storage (∼410 €bn y−1). Furthermore a 100% renewable system may not deliver the level of emission reductions necessary to achieve Europe’s climate goals by 2050 as negative emissions from biomass with carbon capture and storage may still be required to offset an increase in indirect emissions or to realise more ambitious decarbonisation pathways.

The technological lock-in of the transportation and industrial sector can be largely attributed to the limited availability of alternative fuel infrastructures. Herein a countrywide supply chain analysis of Germany spanning until 2050 is applied to investigate promising infrastructure development pathways and associated hydrogen distribution costs for each analyzed hydrogen market. Analyzed supply chain pathways include seasonal storage to balance fluctuating renewable power generation with necessary purification as well as trailer- and pipeline-based hydrogen delivery. The analysis encompasses green hydrogen feedstock in the chemical industry and fuel cell-based mobility applications such as local buses non-electrified regional trains material handling vehicles and trucks as well as passenger cars. Our results indicate that the utilization of low-cost long-term storage and improved refueling station utilization have the highest impact during the market introduction phase. We find that public transport and captive fleets offer a cost-efficient countrywide renewable hydrogen supply roll-out option. Furthermore we show that at comparable effective carbon tax resulting from the current energy tax rates in Germany hydrogen is cost-competitive in the transportation sector by the year 2025. Moreover we show that sector-specific CO2 taxes are required to provide a cost-competitive green hydrogen supply in both the transportation and industrial sectors.

The EU and a number of its member states have now published hydrogen strategies and Europe continues to lead the way in the decarbonisation of its gas sector. In this latest OIES Energy Podcast James Henderson talks with Martin Lambert and Simon Schulte about their latest paper entitled “Contrasting European Hydrogen Pathways” which examines the plans in six major EU countries. They discuss the outlook for various forms of hydrogen supply contrasting the potential for green hydrogen from renewable energy with the outlook for blue hydrogen using steam-reforming of methane as well as hydrogen generated from surplus nuclear energy. They also examine the potential sources of demand considering existing use of hydrogen in industrial processes as well as the potential for hydrogen to displace hydrocarbons in the steel and cement industries. Finally the podcast also looks at the potential for imports of hydrogen and its distribution within Europe while also considering some key milestones that can provide indicators of how the region’s hydrogen plans are playing out.

The podcast can be found on their website

The building sector is one of the key energy consumers worldwide. Fuel cell micro-Cogeneration Heat and Power systems for residential and small commercial applications are proposed as one of the most promising innovations contributing to the transition towards a sustainable energy infrastructure. For the application and the diffusion of these systems in addition to their environmental performance it is necessary however to evaluate their economic feasibility. In this paper a life cycle assessment of a fuel cell/photovoltaic hybrid micro-cogeneration heat and power system for a residential building is integrated with a detailed economic analysis. Financial indicators (net present cost and payback time are used for studying two different investments: reversible-Solid Oxide Fuel Cell and natural gas SOFC in comparison to a base scenario using a homeowner perspective approach. Moreover two alternative incentives scenarios are analysed and applied: net metering and self-consumers’ groups (or energy communities). Results show that both systems obtain annual savings but their high capital costs still would make the investments not profitable. However the natural gas Solide Oxide Fuel Cell with the net metering incentive is the best scenario among all. On the contrary the reversible-Solid Oxide Fuel Cell maximizes its economic performance only when the self-consumers’ groups incentive is applied. For a complete life cycle cost analysis environmental impacts are monetized using three different monetization methods with the aim to internalize (considering them into direct cost) the externalities (environmental costs). If externalities are considered as an effective cost the natural gas Solide Oxide Fuel Cell system increases its saving because its environmental impact is lower than in the base case one while the reversible-Solid Oxide Fuel Cell system reduces it.

Power-to-Methane (PtM) can provide flexibility to the electricity grid while aiding decarbonization of other sectors. This study focuses specifically on the methanation component of PtM in 2050. Scenarios with 80–95% CO₂ reduction by 2050 (vs. 1990) are analyzed and barriers and drivers for methanation are identified. PtM arises for scenarios with 95% CO₂ reduction no CO₂ underground storage and low CAPEX (75 €/kW only for methanation). Capacity deployed across EU is 40 GW (8% of gas demand) for these conditions which increases to 122 GW when liquefied methane gas (LMG) is used for marine transport. The simultaneous occurrence of all positive drivers for PtM which include limited biomass potential low Power-to-Liquid performance use of PtM waste heat among others can increase this capacity to 546 GW (75% of gas demand). Gas demand is reduced to between 3.8 and 14 EJ (compared to ∼20 EJ for 2015) with lower values corresponding to scenarios that are more restricted. Annual costs for PtM are between 2.5 and 10 bln€/year with EU28’s GDP being 15.3 trillion €/year (2017). Results indicate that direct subsidy of the technology is more effective and specific than taxing the fossil alternative (natural gas) if the objective is to promote the technology. Studies with higher spatial resolution should be done to identify specific local conditions that could make PtM more attractive compared to an EU scale.

Green hydrogen (H2) is emerging as a future clean energy carrier. While there exists significant analysis on global renewable (and non-renewable) hydrogen generation costs analysis of its transportation costs irrespective of production method is still limited. Complexities include the different forms in which hydrogen can be transported the limited experience to date in shipping some of these carrier forms the trade routes potentially involved and the possible use of different shipping fuels. Herein we present an open-source model developed to assist stakeholders in assessing the costs of shipping various forms of hydrogen over different routes. It includes hydrogen transport in the forms of liquid hydrogen (LH2) ammonia liquified natural gas (LNG) methanol and liquid organic hydrogen carriers (LOHCs). It considers both fixed and variable costs including port fees possible canal usage charges fuel costs ship capital and operating costs boil-off losses and possible environmental taxes among many others. The model is applied to the Rotterdam-Australia route as a case study revealing ammonia ($0.56/kgH2) and methanol ($0.68/kgH2) as the least expensive hydrogen derivatives to transport followed by liquified natural gas ($1.07/kgH2) liquid organic hydrogen carriers ($1.37/kgH2) and liquid hydrogen ($2.09/kgH2). While reducing the transportation distance led to lower shipping costs we note that the merit order of assumed underlying shipping costs remain unchanged. We also explore the impact of using hydrogen (or the hydrogen carrier) as a low/zero carbon emission fuel for the ships which led to lowering of costs for liquified natural gas ($0.88/kgH2) a similar cost for liquid hydrogen ($2.19/kgH2) and significant increases for the remainder. Given our model is open-sourced it can be adapted globally and updated to match the changing cost dynamics of the emerging green hydrogen market.

The Hydrogen Strategy Group chaired by Australia’s Chief Scientist Dr Alan Finkel has today released a briefing paper on the potential domestic and export opportunities of a hydrogen industry in Australia.

Like natural gas hydrogen can be used to heat buildings and power vehicles. Unlike natural gas or petrol when hydrogen is burned there are no CO₂ emissions. The only by-products are water vapour and heat.

Hydrogen is the most abundant element in the universe not freely available as a gas on Earth but bound into many common substances including water and fossil fuels.

Hydrogen was first formally presented as a credible alternative energy source in the early 1970s but never proved competitive at scale as an energy source – until now. We find that the worldwide demand for hydrogen is set to increase substantially over coming decades driven by Japan’s decision to put imported hydrogen at the heart of its economy. Production costs are falling technologies are progressing and the push for non-nuclear low-emissions fuels is building momentum. We conclude that Australia is remarkably well-positioned to benefit from the growth of hydrogen industries and markets.