Policy & Socio-Economics

Hydrogen and carbon capture and storage are pivotal to decarbonize the European energy system in a broad range of pathway scenarios. Yet their timely uptake in different sectors and distribution across countries are affected by supply options of renewable and fossil energy sources. Here we analyze the decarbonization of the European energy system towards 2060 covering the power heat and industry sectors and the change in use of hydrogen and carbon capture and storage in these sectors upon Europe’s decoupling from Russian gas. The results indicate that the use of gas is significantly reduced in the power sector instead being replaced by coal with carbon capture and storage and with a further expansion of renewable generators. Coal coupled with carbon capture and storage is also used in the steel sector as an intermediary step when Russian gas is neglected before being fully decarbonized with hydrogen. Hydrogen production mostly relies on natural gas with carbon capture and storage until natural gas is scarce and costly at which time green hydrogen production increases sharply. The disruption of Russian gas imports has significant consequences on the decarbonization pathways for Europe with local energy sources and carbon capture and storage becoming even more important. Given the highlighted importance of carbon capture and storage in reaching the climate targets it is essential that policymakers ameliorate regulatory challenges related to these value chains.

This paper presents an assessment of the levelized cost of clean hydrogen produced in Sicily a region in Southern Italy particularly rich in renewable energy and where nearly 50% of Italy’s refineries are located making a comparison between on-site production that is near the end users who will use the hydrogen and centralized production comparing the costs obtained by employing the two types of electrolyzers already commercially available. In the study for centralized production the scale factor method was applied on the costs of electrolyzers and the optimal transport modes were considered based on the distance and amount of hydrogen to be transported. The results obtained indicate higher prices for hydrogen produced locally (from about 7 €/kg to 10 €/kg) and lower prices (from 2.66 €/kg to 5.80 €/kg) for hydrogen produced in centralized plants due to economies of scale and higher conversion efficiencies. How-ever meeting the demand for clean hydrogen at minimal cost requires hydrogen distribution pipelines to transport it from centralized production sites to users which currently do not exist in Sicily as well as a significant amount of renewable energy ranging from 1.4 to 1.7 TWh per year to cover only 16% of refineries’ hydrogen needs.

Hydrogen produced from renewable energy is being promoted to decarbonise global energy systems. To support this energy transition standards certification and labelling schemes (SCLs) aim to differentiate hydrogen products based on their system-wide carbon emissions and method of production characteristics. However being certified as low-carbon clean or green hydrogen does not guarantee broader sustainability across economic environmental social or governance dimensions. Through an international survey of energy-sector and sustainability professionals (n = 179) we investigated the desirable sustainability features for renewable hydrogen SCLs and the perceived advantages and disadvantages of sustainability certification. Our mixed-method study revealed general accordance on the feasible inclusion of diverse sustainability criteria in SCLs albeit with varying degrees of perceived essentiality. Within the confines of the data some differences in viewpoints emerged based on respondents’ geographical and supply chain locations which were associated with the sharing of costs and benefits. Qualitatively respondents found the idea of SCL harmonisation attractive but weighed this against the risks of duplication complicated administrative procedures and contradictory regulation. The implications of this research centre on the need for further studies to inform policy recommendations for an overarching SCL sustainability framework that embodies the principles of harmonisation in the context of multistakeholder governance.

In the quest for achieving decarbonisation it is essential for different sectors of the economy to collaborate and invest significantly. This study presents an innovative approach that merges technological insights with philosophical considerations at a national scale with the intention of shaping the national policy and practice. The aim of this research is to assist in formulating decarbonisation strategies for intricate economies. Libya a major oil exporter that can diversify its energy revenue sources is used as the case study. However the principles can be applied to develop decarbonisation strategies across the globe. The decarbonisation framework evaluated in this study encompasses wind-based renewable electricity hydrogen and gas turbine combined cycles. A comprehensive set of both official and unofficial national data was assembled integrated and analysed to conduct this study. The developed analytical model considers a variety of factors including consumption in different sectors geographical data weather patterns wind potential and consumption trends amongst others. When gaps and inconsistencies were encountered reasonable assumptions and projections were used to bridge them. This model is seen as a valuable foundation for developing replacement scenarios that can realistically guide production and user engagement towards decarbonisation. The aim of this model is to maintain the advantages of the current energy consumption level assuming a 2% growth rate and to assess changes in energy consumption in a fully green economy. While some level of speculation is present in the results important qualitative and quantitative insights emerge with the key takeaway being the use of hydrogen and the anticipated considerable increase in electricity demand. Two scenarios were evaluated: achieving energy self-sufficiency and replacing current oil exports with hydrogen exports on an energy content basis. This study offers for the first time a quantitative perspective on the wind-based infrastructure needs resulting from the evaluation of the two scenarios. In the first scenario energy requirements were based on replacing fossil fuels with renewable sources. In contrast the second scenario included maintaining energy exports at levels like the past substituting oil with hydrogen. The findings clearly demonstrate that this transition will demand great changes and substantial investments. The primary requirements identified are 20529 or 34199 km2 of land for wind turbine installations (for self-sufficiency and exports) and 44 single-shaft 600 MW combined-cycle hydrogen-fired gas turbines. This foundational analysis represents the commencement of the research investment and political agenda regarding the journey to achieving decarbonisation for a country.

The shift from fossil fuels to clean energy carriers such as renewable H2 is imminent. Consequently a global H2 market is taking shape involving countries with limited or insufficient energy resources importing from renewable-rich countries. This study evaluates the techno-economics of renewable hydrogen (H2) export in a globally significant scenario in which Australia exports to Japan. To gain insight into the immediate realisable future the base year was selected as 2030 with a consequently small (in export terms) hydrogen production rate of 100 t/day landed capacity. Electricity was generated by photovoltaic arrays (PV) connected directly to proton exchange membrane (PEM) electrolyser plant allowing for flexible gaseous hydrogen (GH2) production. To enhance the fidelity of the technoeconomic model we incorporated rarely applied but impactful parameters including dynamic efficiency and the overload capacity of PEM electrolysers. The GH2 produced was assumed to be converted into condensed forms suitable for export by sea: liquid hydrogen (LH2) and the chemical carriers liquid ammonia (LNH3) methanol (MeOH) methylcyclohexane (MCH). These were assumed to be reconverted to GH2 at the destination. LNH3 and MCH emerged as promising carriers for export yielding the lowest landed levelised cost of hydrogen (LCOH). LH2 yielded the highest LCOH unless boiloff gas could be managed effectively and cheaply. A sensitivity analysis showed that a lower weighted average cost of capital (WACC) and scale-up can significantly reduce the landed LCOH. Increasing the production rate to 1000 t/day landed capacity very significantly lowered the landed LCOH providing a strong incentive to scale up and optimise the entire supply chain as fast as possible.

Growth in Australia’s demand for engineers is fast outpacing supply. A significant challenge for Australia to achieve high projected low emissions hydrogen export targets by 2030 will be finding engineers with suitable knowledge skills and attributes to deliver hydrogen engineering projects safely and sustainably. This systematic review investigates educational outcomes needed to develop a hydrogen engineering workforce. Sixteen relevant studies published between 2003 and 2023 were identified to explore “What key knowledge skills and attributes support the development of a hydrogen engineering workforce?”. While these studies advocated the need for training and prescribed areas of required knowledge for the low-emissions hydrogen sector there was limited empirical evidence that informed what knowledge skills and attributes are relevant for entry to practice. This finding represents a significant opportunity for researchers to engage with employers and engineering practitioners within emerging low-emissions hydrogen sector capture empirical evidence and inform the design of educational programs.

As part of the United Nations’ (UN) Sustainable Development Goal 7 (SDG7) SDG target 7.1 recognizes universal electrification and the provision of clean cooking fuel as two fundamental challenges for global society. Faltering progress toward SDG target 7.1 calls for innovative technologies to stimulate advancements. Hydrogen has been proposed as a versatile energy carrier to be applied in both pillars of SDG target 7.1: electrification and clean cooking. This paper conducts a semi-systematic literature review to provide the status quo of research on the application of hydrogen in the rationale of SDG 7.1 covering the technical integration pathways as well as the key economic environmental and social aspects of its use. We identify decisive factors for the future development of hydrogen use in the rationale of SDG target 7.1 and by complementing our analysis with insights from the related literature propose future avenues of research. The literature on electrification proposes that hydrogen can serve as a backup power supply in rural off-grid communities. While common electrification efforts aim to supply appliances that use lower amounts of electricity a hydrogen-based power supply can satisfy appliances with higher power demands including electric cook stoves while simultaneously supporting clean cooking efforts. Alternatively with the exclusive aim of stimulating clean cooking hydrogen is proposed to be used as a clean cooking fuel via direct combustion in distribution and utilization infrastructures analogous to Liquid Petroleum Gas (LPG). While expected economic and technical developments are seen as likely to render hydrogen technologies economically competitive with conventional fossil fuels in the future the potential of renewably produced hydrogen usage to reduce climate-change impacts and point-of-use emissions is already evident today. Social benefits are likely when meeting essential safety standards as a hydrogen-based power supply offers service on a high tier that might overachieve SDG 7.1 ambitions while hydrogen cooking via combustion fits into the existing social habits of LPG users. However the literature lacks clear evidence on the social impact of hydrogen usage. Impact assessments of demonstration projects are required to fill this research gap.

The global momentum towards hydrogen has led to various initiatives aimed at harnessing hydrogen’s potential. In particular low-carbon hydrogen is recognized for its crucial role in reducing greenhouse gas emissions across hard-to-abate sectors such as steel cement and heavy-duty transport. This study focuses on the presentation of all hydrogen-related financing initiatives in Italy providing a comprehensive overview of the various activities and their geographical locations. The examined funding comes from the National Recovery and Resilience Plan (PNRR) from projects directly funded through the Important Projects of Common European Interest (IPCEI) and from several initiatives supported by private companies or other funding sources (hydrogen valleys). Specific calls for proposals within the PNRR initiative outline the allocation of funds focusing on hydrogen production in brownfield areas (52 expected hydrogen production plants by 2026) hydrogen use in hard-to-abate sectors and the establishment of hydrogen refuelling stations for both road (48 refuelling stations by 2026) and railway transport (10 hydrogen-based railway lines). A detailed description of the funded initiatives (150 in total) is presented encompassing their geographical location typology and size (when available) as well as the funding they have received. This overview sheds light on regions prioritising decarbonisation efforts in heavy-duty transport especially along cross-border commercial routes as evident in northern Italy. Conversely some regions concentrate more on local transport typically buses or on the industrial sector primarily steel and chemical industries. Additionally the study presents initiatives aimed at strengthening the national manufacturing capacity for hydrogenrelated technologies alongside new regulatory and incentive schemes for hydrogen. The ultimate goal of this analysis is to foster connections among existing and planned projects stimulate new initiatives along the entire hydrogen value chain raise an awareness of hydrogen among stakeholders and promote cooperation and international competitiveness.

This article examines the role of European port authorities in assembling the green hydrogen frontier through the production of speculative connections with prospective hydrogen export zones in the global South. Specifically it analyses the role of a particular discursive tool the pre-feasibility report in fixing the meaning of Namibian territory for the purposes of green hydrogen export disembedding hydrogen products from the social political and ecological bases of their production. We argue that the green hydrogen frontier is fundamentally a speculative project insofar as it both accentuates the productive indeterminacy of green hydrogen as an energy commodity and develops a series of discursive strategies designed to measure map and capture the anticipated value of this commodity. The article’s findings advance geographical debates on energy territory and speculation by demonstrating the role of the port authority - an under-researched actor in the literature on energy transitions - in the reimagination and transformation of littoral territories in the global South.

Continuing from previous episodes about encouraging global investment in green hydrogen Patrick Molloy and Alicia Eastman speak with Ignacio de Calonje Chief Investment Officer IFC Global Infrastructure. Ignacio breaks down the role of the IFC and its relationship with other Multilateral Development Banks (MDBs) to encourage decarbonization and bespoke solutions for the Global South.

The podcast can be found on their website.