Policy & Socio-Economics

This study develops a framework for designing hydrogen supply chains (HSC) in island territories using Mixed Integer Linear Programming (MILP) with a multi-period approach. The framework minimizes system costs greenhouse gas emissions and a risk-based index. Corsica is used as a case study with a Geographic Information System (GIS) identifying hydrogen demand regions and potential sites for production storage and distribution. The results provide an optimal HSC configuration for 2050 specifying the size location and technology while accounting for techno-economic factors. This work integrates the unique geographical characteristics of islands using a GIS-based approach incorporates technology readiness levels and utilizes renewable electricity from neighboring regions. The model proposes decentralized configurations that avoid hydrogen transport between grids achieving a levelized cost of hydrogen (LCOH) of €8.54/kg. This approach offers insight into future options and incentive mechanisms to support the development of hydrogen economies in isolated territories.

The strategic importance of hydrogen has gained significant recognition as nations across the world have committed to achieving net zero. Here in the UK there’s a widespread consensus that hydrogen is critical to achieving our net zero target. This commitment culminated in the launch of the UK’s first Hydrogen Strategy and has been reaffirmed by Chris Skidmore’s Independent Review of Net Zero. Both these documents highlight hydrogen’s importance not only to net zero but growing the UK industrial base1 . Analysis by Hydrogen UK estimates up to 20000 jobs could be created by 2030 contributing £26bn in cumulative GVA2. These economic benefits flow from all areas of the value chain ranging from production storage network development and off-taker markets. However with large scale projects still to take final investment decisions current volumes of low-carbon hydrogen produced and consumed fall well below the government’s 2030 ambitions. Encouragingly the UK has a positive track record of deploying low carbon technologies. The combination of the UK’s world leading policies and incentive schemes alongside our vibrant RD&I and engineering environment has enabled rapid deployment of technologies like offshore wind and electric vehicles. Yet despite being world leaders in deployment early opportunities for regional supply chain growth and job creation were not fully realised and taken advantage of from inception. The hydrogen sector is therefore at a tipping point. To capitalise on the economic opportunity hydrogen offers the UK must learn from prior technology deployments and build a strong domestic hydrogen supply chain in parallel to championing deployment. This report delivers on a recommendation from the Hydrogen Champion Report which encouraged industry to create an industry led supply chain strategy3 . With Hydrogen UK steering the work on behalf of the UK hydrogen industry this study focusses on identifying the actions needed to mature a local supply chain that can support the initial deployment of hydrogen technologies across the value chain. The report is segmented into two sections. The first section outlines a voluntary ambition for local content from industry alongside the potential intervention mechanisms needed to achieve the ambition. The second section exploresthe challenges companies across the hydrogen value chain face in maximising UK supply chain opportunities.

This report can be found on Hydrogen UK's website.

Many countries especially those with a high energy demand but insufficient renewable resources are currently investigating the role that imported low carbon hydrogen may play in meeting future energy requirements and emission reduction targets. A future hydrogen economy is uncertain and predicated on reduced price of hydrogen delivered to customers. Current hydrogen production steam reforming of natural gas or coal gasification is co-located to its end-use as a chemical feedstock. Large-scale multi-source value chains of hydrogen needed to support its use for energy are still at concept phase. This research investigates the combination of technical and economic factors which will determine the viability and competitiveness of two competing large scale renewable hydrogen value chains via ammonia and liquid hydrogen. Using a techno-economic model an evaluation of whether green hydrogen exports to Germany from countries with low-cost renewable electricity production but high-costs of storage distribution and transport will be economically competitive with domestic renewable hydrogen production is conducted. The model developed in Python calculates costs and energy losses for each step in the value chain. This includes production from an optimised combination of solar and/or wind generation capacity optimised storage requirements conversion to ammonia or liquid hydrogen distribution shipping and reconversion. The model can easily be applied to any scenario by changing the inputs and was used to compare export from Chile Namibia and Morocco with production in Germany using a 1 GW electrolyser and 2030 cost scenario in each case.

Widespread use of hydrogen and hydrogen-based fuels as energy carriers in society may enable the gradual replacement of fossil fuels by renewable energy sources. Although the development and deployment of the associated technologies and infrastructures represent a considerable bottleneck it is generally acknowledged that neither the technical feasibility nor the economic viability alone will determine the extent of the future use of hydrogen as an energy carrier. Public perception beliefs awareness and knowledge about hydrogen will play a significant role in the further development of the hydrogen economy. To this end the present study examines public perception and awareness of hydrogen in Norway. The approach adopted entailed an open-ended question examining spontaneous associations with the term ‘hydrogen’. The question was fielded to 2276 participants in Wave 25 of the Norwegian Citizen Panel (NCP) an on-line panel that derives random samples from the general population registry. The analysis focused on classifying the responses into negative associations (i.e. barriers towards widespread implementation of hydrogen in society) neutral associations (e.g. basic facts) and positive associations (i.e. drivers towards widespread implementation of hydrogen in society). Each of the 2194 responses were individually assessed by five researchers. The majority of the responses highlighted neutral associations using words such as ‘gas’ ‘water’ and ‘element’. When considering barriers vs. drivers the overall responses tend towards positive associations. Many respondents perceive hydrogen as a clean and environmentally friendly fuel and hydrogen technologies are often associated with the future. The negative sentiments were typically associated with words such as ‘explosive’ ‘hazardous’ and ‘expensive’. Despite an increase in the mentioning of safety-related properties relative to a previous study in the same region the frequency of such references was rather low (4%). The responses also reveal various misconceptions such as hydrogen as a prospective ‘source’ of clean energy.

Concerning the transition from a carbon-based energy economy to a renewable energy economy hydrogen is considered an essential energy carrier for efficient and broad energy systems in China in the near future. China aims to gradually replace fossil fuel-based power generation with renewable energy technologies to achieve carbon neutrality by 2060. This ambitious undertaking will involve building an industrial production chain spanning the production storage transportation and utilisation of hydrogen energy by 2030 (when China’s carbon peak will be reached). This review analyses the current status of technological R&D in China’s hydrogen energy industry. Based on published data in the open literature we compared the costs and carbon emissions for grey blue and green hydrogen production. The primary challenges concerning hydrogen transportation and storage are highlighted in this study. Given that primary carbon emissions in China are a result of power generation using fossil fuels we provide an overview of the advances in hydrogen-to-power industry technology R&D including hydrogen-related power generation technology hydrogen fuel cells hydrogen internal combustion engines hydrogen gas turbines and catalytic hydrogen combustion using liquid hydrogen carriers (e.g. ammonia methanol and ethanol).

This review article provides a comprehensive analysis of the hydrogen landscape outlining the imperative for enhanced hydrogen production implementation and utilisation. It places the question of how to accelerate hydrogen adoption within the broader context of sustainable energy transitions and international commitments to reduce carbon emissions. It discusses influencing factors and policies for best practices in hydrogen energy application. Through an in-depth exploration of key factors affecting hydrogen implementation this study provides insights into the complex interplay of both technical and logistical factors. It also discusses the challenges of planning constructing infrastructure and overcoming geographical constraints in the transition to hydrogen-based energy systems. The drive to achieve net-zero carbon emissions is contingent on accelerating clean hydrogen development with blue and green hydrogen poised to complement traditional fuels. Public–private partnerships are emerging as catalysts for the commercialisation of hydrogen and fuel-cell technologies fostering hydrogen demonstration projects worldwide. The anticipated integration of clean hydrogen into various sectors in the coming years signifies its importance as a complementary energy source although specific applications across industries remain undefined. The paper provides a good reference on the gradual integration of hydrogen into the energy landscape marking a significant step forward toward a cleaner greener future.

Supporters of hydrogen energy urge scaling up technology and reducing costs for competitiveness. This paper explores how hydrogen energy technologies (HET) are perceived by Australia’s general population and considers the way members of the public imagine their role in the implementation of hydrogen energy now and into the future. The study combines a nationally representative survey (n = 403) and semi-structured interviews (n = 30). Results show age and gender relationships with self-reported hydrogen knowledge. Half of the participants obtained hydrogen information from televised media. Strong support was observed for renewable hydrogen while coal (26%) and natural gas (41%) versions had less backing. Participants sought more safety-related information (41% expressed concern). Most felt uncertain about influencing hydrogen decisions and did not necessarily recognise they had agency beyond their front fence. Exploring the link between political identity and agency in energy decision-making is needed with energy democracy a potentially productive direction.

Hydrogen is one of the key solutions to decarbonising the UK economy along with other carbon abatement solutions such as electrification CCUS biofuels and energy efficiency. It provides a low carbon alternative to fossil fuels that has many of the same desirable features such as burning with a high temperature flame without producing carbon emissions during combustion. Hydrogen will be particularly valuable in hard-to-decarbonise sectors that have few cost-effective alternatives including elements of industry heavy transport and dispatchable power generation. However it’s use could be much more widespread depending on how costs preferences and policy for different low carbon solutions develop. The Government’s Hydrogen Strategy estimates that based on analysis from the Climate Change Committee (CCC) in 2050 between 20% and 35% of the UK’s final energy demand could be met with low carbon hydrogen1 . While hydrogen provides a promising solution to reducing emissions current deployment of low carbon hydrogen is low with almost all hydrogen in the UK produced from unabated fossil fuels resulting in high emissions. In the UK hydrogen production must meet the Low Carbon Hydrogen Standard (LCHS) to access government support. This is currently set at 20g CO2 e/MJ(LHV) and will ensure that future deployment will deliver significant emissions reductions when switching from fossil fuels2. The period to 2030 will be a critical time for the UK to seize the economic opportunity presented by low carbon hydrogen sector. Internationally increasing attention has been placed on hydrogen as a solution to global emissions. In the USA the Inflation Reduction Act (IRA) has provided fixed rate tax credits of up to $3/kg (£2.4/kgII) for clean hydrogen production3. Closer to home the EU is targeting 10 million tonnes of domestic electrolytic production and an additional 10 million tonnes of electrolytic hydrogen imports by 20304. This will be achieved through a variety of policy levers including an auction for fixed price subsidy support for electrolytic production with a ceiling of €4.5/kg5 (£3.84/kgIII). In the UK Government have set an ambitious target of up to 10 GW of low carbon hydrogen production by 2030 with at least half of this from electrolytic sources6. This will be supported by the Hydrogen Production Business Model (HPBM) a two-way variable CfD which could potentially provide hydrogen for a price as low as the natural gas price7 . As global supply chains investment and skills are in international competition the UK must continue its ambitious hydrogen aspirations to ensure the decarbonisation and economic opportunity presented by low carbon hydrogen is captured. This study estimates the economic impact of the low carbon hydrogen sector in the UK by 2030. The impact is assessed by estimating the costs of hydrogen deployment and applying employment and GVA multipliers to these costs based on historic economic activity. These estimates are broken down by different forms of low carbon hydrogen production and end use as well as the enabling infrastructure required to connect production and demand namely hydrogen networks and storage. Both the employment and GVA are estimated for each of these value chain elements for every year between 2024 and 2030. Employment and economic growth from the hydrogen sector will be created across the UK with many benefits arising in regions that have faced historic underinvestment such as the industrial clusters and Scotland. Beyond the high-level economic benefits estimated in this study the hydrogen sector creates an opportunity for the hundreds of thousands oil and gas sector jobs in the UK to transition to a low carbon alternative.

This report can be found on Hydrogen UK's website.

Acting in accordance with the requirements of the 2015 Paris Agreement Poland as well as other European Union countries have committed to achieving climate neutrality by 2050. One of the solutions to reduce emissions of harmful substances into the environment is the implementation of large-scale hydrogen technologies. This article presents the cost of producing green hydrogen produced using an alkaline electrolyzer with electricity supplied from a photovoltaic farm. The analysis was performed using the Monte Carlo method and for baseline assumptions including an electricity price of 0.053 EUR/kWh the cost of producing green hydrogen was 5.321 EUR/kgH2 . In addition this article presents a sensitivity analysis showing the impact of the electricity price before and after the energy crisis and other variables on the cost of green hydrogen production. The large change occurring in electricity prices (from 0.035 EUR/kWh to 0.24 EUR/kWh) significantly affected the levelized cost of green hydrogen (LCOH) which could change by up to 14 EUR/kgH2 in recent years. The results of the analysis showed that the parameters that successively have the greatest impact on the cost of green hydrogen production are the operating time of the plant and the unit capital expenditure. The development of green hydrogen production facilities along with the scaling of technology in the future can reduce the cost of its production.

The circular economy and the clean-energy transition are inextricably linked and interdependent. One of the most important areas of the energy transition is the development of hydrogen energy. This study aims to review and systematize the data available in the literature on the environmental and economic parameters of hydrogen storage and transportation technologies (both mature and at high technological readiness levels). The study concluded that salt caverns and pipeline transportation are the most promising methods of hydrogen storage and transportation today in terms of a combination of all parameters. These methods are the most competitive in terms of price especially when transporting hydrogen over short distances. Thus the average price of storage will be 0.35 USD/kg and transportation at a distance of up to 100 km is 0.3 USD/kg. Hydrogen storage underground in a gaseous state and its transportation by pipelines have the least consequences for the environment: emissions and leaks are insignificant and there is no environmental pollution. The study identifies these methods as particularly viable given their lower environmental impact and potential for seamless integration into existing energy systems therefore supporting the transition to a more sustainable and circular economy.