Policy & Socio-Economics
Hydrogen: Enabling A Zero-Emission Society
Nov 2021
Publication
Discover the colours of hydrogen debunk the myths around hydrogen and learn the facts and key moments in history for hydrogen as well as innovative technologies ground-breaking projects state-of-the-art research development and cooperation by members of Hydrogen Europe
Public Acceptance for the Implementation of Hydrogen Self-refueling Stations
Sep 2021
Publication
The utilization of hydrogen energy is important for achieving a low-carbon society. Japan has set ambitious goals for hydrogen stations and fuel cell vehicles focusing on the introduction and dissemination of self-refuelling systems. This paper evaluates public trust in the fuel equipment and self-handling technology related to self-refuelling hydrogen stations and compares it with that for widespread gasoline stations. To this end the results of an online survey of 300 people with Japanese driver licenses are reported and analyzed. The results show that trust in the equipment and self-handling is more important for the user than trust in the fuel. In addition to introduce and disseminate new technology such as hydrogen stations users must be made aware of the risk of using the technology until it becomes as familiar as existing gasoline station technology.
Energy Modeling Approach to the Global Energy-mineral Nexus: Exploring Metal Requirements and the Well-below 2 °C Target with 100 Percent Renewable Energy
Jun 2018
Publication
Detailed analysis of pathways to future sustainable energy systems is important in order to identify and overcome potential constraints and negative impacts and to increase the utility and speed of this transition. A key aspect of a shift to renewable energy technologies is their relatively higher metal intensities. In this study a bottom-up cost-minimizing energy model is used to calculate aggregate metal requirements in different energy technology including hydrogen and climate policy scenarios and under a range of assumptions reflecting uncertainty in future metal intensities recycling rate and life time of energy technologies. Metal requirements are then compared to current production rates and resource estimates to identify potentially “critical” metals. Three technology pathways are investigated: 100 percent renewables coal & nuclear and gas & renewables each under the two different climate policies: net zero emissions satisfying the well-below 2 °C target and business as usual without carbon constraints resulting together in six scenarios. The results suggest that the three different technology pathways lead to an almost identical degree of warming without any climate policy while emissions peaks within a few decades with a 2 °C policy. The amount of metals required varies significantly in the different scenarios and under the various uncertainty assumptions. However some can be deemed “critical” in all outcomes including Vanadium. The originality of this study lies in the specific findings and in the employment of an energy model for the energy-mineral nexus study to provide better understanding for decision making and policy development.
Economic Value of Flexible Hydrogen-based Polygeneration Energy Systems
Jan 2016
Publication
Polygeneration energy systems (PES) have the potential to provide a flexible high-efficiency and low-emissions alternative for power generation and chemical synthesis from fossil fuels. This study aims to assess the economic value of fossil-fuel PES which rely on hydrogen as an intermediate product. Our analysis focuses on a representative PES configuration that uses coal as the primary energy input and produces electricity and fertilizer as end-products. We derive a series of propositions that assess the cost competitiveness of the modeled PES under both static and flexible operation modes. The result is a set of metrics that quantify the levelized cost of hydrogen the unit profit-margin of PES and the real option values of ‘diversification’ and ‘flexibility’ embedded in PES. These metrics are subsequently applied to assess the economics of Hydrogen Energy California (HECA) a PES currently under development in California. Under our technical and economic assumptions HECA’s levelized cost of hydrogen is estimated at 1.373 $/kgh. The profitability of HECA as a static PES increases in the share of hydrogen converted to fertilizer rather than electricity. However when configured as a flexible PES HECA almost breaks even on a pre-tax basis. Diversification and flexibility are valuable for HECA when polygeneration is compared to static monogeneration of electricity but these two real options have no value when comparing polygeneration to static monogeneration of fertilizers.
Timmermans’ Dream: An Electricity and Hydrogen Partnership Between Europe and North Africa
Oct 2021
Publication
Because of differences in irradiation levels it could be more efficient to produce solar electricity and hydrogen in North Africa and import these energy carriers to Europe rather than generating them at higher costs domestically in Europe. From a global climate change mitigation point of view exploiting such efficiencies can be profitable since they reduce overall renewable electricity capacity requirements. Yet the construction of this capacity in North Africa would imply costs associated with the infrastructure needed to transport electricity and hydrogen. The ensuing geopolitical dependencies may also raise energy security concerns. With the integrated assessment model TIAM-ECN we quantify the trade-off between costs and benefits emanating from establishing import-export links between Europe and North Africa for electricity and hydrogen. We show that for Europe a net price may have to be paid for exploiting such interlinkages even while they reduce the domestic investments for renewable electricity capacity needed to implement the EU’s Green Deal. For North African countries the potential net benefits thanks to trade revenues may build up to 50 billion €/yr in 2050. Despite fears over costs and security Europe should seriously consider an energy partnership with North Africa because trade revenues are likely to lead to positive employment income and stability effects in North Africa. Europe can indirectly benefit from such impacts.
Greenhouse Gas Emissions of Conventional and Alternative Vehicles: Predictions Based on Energy Policy Analysis in South Korea
Mar 2020
Publication
This paper compares the well-to-wheel (WTW) greenhouse gas (GHG) emissions of representative vehicle types–internal combustion engine vehicle (ICEV) hybrid electric vehicle (HEV) plug-in hybrid electric vehicle (PHEV) battery electric vehicle (BEV) and fuel cell electric vehicle (FCEV)–in the future (2030) based on a WTW analysis for the present (2017) and an analysis of various energy policies that could affect future emissions. South Korea was selected as the target region because it has detailed energy policies related to alternative vehicles. The WTW analysis for the present was performed based on three sets of subordinate analyses: (1) life cycle analyses of eight base fuels; (2) life cycle analyses of electricity and hydrogen; and (3) analyses of the fuel economies of seven vehicle types. From the WTW analysis for the present the national average WTW GHG emissions of ICEV-gasoline ICEV-diesel ICEV-liquefied petroleum gas HEV PHEV BEV and FCEV were calculated as 225 233 201 159 133 109 and 55 g-CO2-eq./km respectively. For calculating the WTW GHG emissions in the future two policies regarding electricity production and three policies regarding hydrogen production were analysed. Three cases with varying the degrees of improvements in fuel economies were considered. Six future scenarios were constructed and each scenario represented the case in which each energy policy is enacted. In the reference scenario for compact car the WTW GHG emissions of ICEVs-gasoline HEV PHEV BEV-200 mile FCEV were analysed as 161 110 97 86 and 91 g-CO2-eq./km respectively. The differences between ICEV/HEV and BEV were predicted to decrease in the future mainly due to larger improvements of ICEV/HEV in fuel economies compared to that of BEV. The future life cycle GHG emissions of electricity and hydrogen were calculated according to energy policy. Both two policies regarding power generation were confirmed to increase the benefits of utilizing BEVs but current energy policy regarding hydrogen production were confirmed to decrease the benefits of utilizing FCEVs. Based on the comprehensive results of this study a framework was proposed to evaluate the impacts of an energy policy regarding electricity and hydrogen production on the benefits of using BEVs and FCEVs compared to using HEVs and ICEVs. This framework can also be utilized in other countries when they assess and establish their energy policies.
Life Cycle Environmental and Cost Comparison of Current and Future Passenger Cars under Different Energy Scenarios
Apr 2020
Publication
In this analysis life cycle environmental burdens and total costs of ownership (TCO) of current (2017) and future (2040) passenger cars with different powertrain configurations are compared. For all vehicle configurations probability distributions are defined for all performance parameters. Using these a Monte Carlo based global sensitivity analysis is performed to determine the input parameters that contribute most to overall variability of results. To capture the systematic effects of the energy transition future electricity scenarios are deeply integrated into the ecoinvent life cycle assessment background database. With this integration not only the way how future electric vehicles are charged is captured but also how future vehicles and batteries are produced. If electricity has a life cycle carbon content similar to or better than a modern natural gas combined cycle powerplant full powertrain electrification makes sense from a climate point of view and in many cases also provides reductions in TCO. In general vehicles with smaller batteries and longer lifetime distances have the best cost and climate performance. If a very large driving range is required or clean electricity is not available hybrid powertrain and compressed natural gas vehicles are good options in terms of both costs and climate change impacts. Alternative powertrains containing large batteries or fuel cells are the most sensitive to changes in the future electricity system as their life cycles are more electricity intensive. The benefits of these alternative drivetrains are strongly linked to the success of the energy transition: the more the electricity sector is decarbonized the greater the benefit of electrifying passenger vehicles.
Environmental and Socio-Economic Analysis of Naphtha Reforming Hydrogen Energy Using Input-Output Tables: A Case Study from Japan
Aug 2017
Publication
Comprehensive risk assessment across multiple fields is required to assess the potential utility of hydrogen energy technology. In this research we analyzed environmental and socio-economic effects during the entire life cycle of a hydrogen energy system using input-output tables. The target system included hydrogen production by naphtha reforming transportation to hydrogen stations and FCV (Fuel Cell Vehicle) refilling. The results indicated that 31% 44% and 9% of the production employment and greenhouse gas (GHG) emission effects respectively during the manufacturing and construction stages were temporary. During the continuous operation and maintenance stages these values were found to be 69% 56% and 91% respectively. The effect of naphtha reforming was dominant in GHG emissions and the effect of electrical power input on the entire system was significant. Production and employment had notable effects in both the direct and indirect sectors including manufacturing (pumps compressors and chemical machinery) and services (equipment maintenance and trade). This study used data to introduce a life cycle perspective to environmental and socio-economic analysis of hydrogen energy systems and the results will contribute to their comprehensive risk assessment in the future.
Prospects and Obstacles for Green Hydrogen Production in Russia
Jan 2021
Publication
Renewable energy is considered the one of the most promising solutions to meet sustainable development goals in terms of climate change mitigation. Today we face the problem of further scaling up renewable energy infrastructure which requires the creation of reliable energy storages environmentally friendly carriers like hydrogen and competitive international markets. These issues provoke the involvement of resource-based countries in the energy transition which is questionable in terms of economic efficiency compared to conventional hydrocarbon resources. To shed a light on the possible efficiency of green hydrogen production in such countries this study is aimed at: (1) comparing key Russian trends of green hydrogen development with global trends (2) presenting strategic scenarios for the Russian energy sector development (3) presenting a case study of Russian hydrogen energy project «Dyakov Ust-Srednekanskaya HPP» in Magadan region. We argue that without significant changes in strategic planning and without focus on sustainable solutions support the further development of Russian power industry will be halted in a conservative scenario with the limited presence of innovative solutions in renewable energy industries. Our case study showed that despite the closeness to Japan hydrogen market economic efficiency is on the edge of zero with payback period around 17 years. The decrease in project capacity below 543.6 MW will immediately lead to a negative NPV. The key reason for that is the low average market price of hydrogen ($14/kg) which is only a bit higher than its production cost ($12.5/kg) while transportation requires about $0.96/kg more. Despite the discouraging results it should be taken into account that such strategic projects are at the edge of energy development. We see them as an opportunity to lead transnational energy trade of green hydrogen which could be competitive in the medium term especially with state support.
Risk-adjusted Preferences of Utility Companies and Institutional Investors for Battery Storage and Green Hydrogen Investment
Feb 2022
Publication
Achieving climate-neutrality requires considerable investment in energy storage systems (ESS) to integrate variable renewable energy sources into the grid. However investments into ESS are often unprofitable in particular for grid-scale battery storage and green hydrogen technologies prompting many actors to call for policy intervention. This study investigates investor-specific risk-return preferences for ESS investment and derives policy recommendations. Insights are drawn from 1605 experimental investment-related decisions obtained from 42 high-level institutional investors and utility representatives. Results reveal that both investor groups view revenue stacking as key to making ESS investment viable. While the expected return on investment is the most important project characteristic risk-return preferences for other features diverge between groups. Institutional investors appear more open to exploring new technological ventures (20% of utility respondents would not consider making investments into solar photovoltaic-hydrogen) whereas utilities seem to prefer greenfield projects (23% of surveyed institutional investors rejected such projects). Interestingly both groups show strong aversion towards energy market price risk. Institutional investors require a premium of 6.87 percentage points and utilities 5.54 percentage points for moving from a position of fully hedged against market price risk to a scenario where only 20% of revenue is fixed underlining the need for policy support.
Life Cycle Assessment of Hydrogen from Proton Exchange Membrane Water Electrolysis in Future Energy Systems
Jan 2019
Publication
This study discusses the potential of H2 production by proton exchange membrane water electrolysis as an effective option to reduce greenhouse gas emissions in the hydrogen sector. To address this topic a life cycle assessment is conducted to compare proton exchange membrane water electrolysis versus the reference process - steam methane reforming. As a relevant result we show that hydrogen production via proton exchange membrane water electrolysis is a promising technology to reduce CO2 emissions of the hydrogen sector by up to 75% if the electrolysis system runs exclusively on electricity generated from renewable energy sources. In a future (2050) base-load operation mode emissions are comparable to the reference system.
The results for the global warming potential show a strong reduction of greenhouse gas emissions by 2050. The thoroughly and in-depth modelled components of the electrolyser have negligible influence on impact categories; thus emissions are mainly determined by the electricity mix. With 2017 electricity mix of Germany the global warming potential corresponds to 29.5 kg CO2 eq. for each kg of produced hydrogen. Referring to the electricity mix we received from an energy model emissions can be reduced to 11.5 kg CO2 eq. in base-load operation by the year 2050. Using only the 3000 h of excess power from renewables in a year will allow for the reduction of the global warming potential to 3.3 kg CO2 eq. From this result we see that an environmentally friendly electricity mix is crucial for reducing the global warming impact of electrolytic hydrogen.
The results for the global warming potential show a strong reduction of greenhouse gas emissions by 2050. The thoroughly and in-depth modelled components of the electrolyser have negligible influence on impact categories; thus emissions are mainly determined by the electricity mix. With 2017 electricity mix of Germany the global warming potential corresponds to 29.5 kg CO2 eq. for each kg of produced hydrogen. Referring to the electricity mix we received from an energy model emissions can be reduced to 11.5 kg CO2 eq. in base-load operation by the year 2050. Using only the 3000 h of excess power from renewables in a year will allow for the reduction of the global warming potential to 3.3 kg CO2 eq. From this result we see that an environmentally friendly electricity mix is crucial for reducing the global warming impact of electrolytic hydrogen.
Narratives for Natural Gas in a Decarbonising European Energy Market
Feb 2019
Publication
The advocacy narrative of the European Union gas community which focused on coal to gas switching and backing up renewables has failed to convince governments NGOs and media commentators that it can achieve post-2030 decarbonisation targets. The gas community therefore needs to develop decarbonisation narratives showing how it will develop commercial scale projects for biogas biomethane and hydrogen from power to gas (electrolysis) and reformed methane. COP21 carbon targets require an accelerating decline in EU methane demand starting around 2030. In 2050 the maximum projected availability of renewable gas is equivalent to 25 per cent of current EU gas demand. Maintaining current demand levels will therefore require very substantial volumes of hydrogen from reformed methane with carbon capture and storage (CCS). Pipeline gas and LNG suppliers will need to progressively decarbonise their product if it is to remain saleable in Europe. However networks face an existential threat unless they can maintain existing throughput while simultaneously adapting to a decarbonised product. Significant threats and challenges to these narratives include: short term geopolitical concerns stemming from dependence on Russian gas ‘hydrocarbon rejectionism’ and an inability of companies to invest for a post-2030 decarbonised future. Governments will need to shift current policy and regulatory frameworks from competition to decarbonisation which will require a ‘regulatory revolution’. In addition to government funding and regulatory support there will need to be very substantial corporate investment in projects for which there is currently no business case. Failure of the gas community to create and deliver credible decarbonisation narratives is likely to result in the adoption of electrification rather than gas decarbonisation options.
Challenges to the Future of LNG: Decarbonisation, Affordability, and Profitability
Oct 2019
Publication
Decarbonisation should be very much on the radar of new LNG projects currently taking FID commissioning around 2024-25 and planning to operate up to 2050. The LNG community needs to replace an `advocacy’ message – based on the generality of emissions from combustion of natural gas being lower than from other fossil fuels – with certified data on carbon and methane emissions from specific elements of the value chain for individual projects. As carbon reduction targets tighten over the coming decade LNG cargoes which do not have value chain emissions certified by accredited authorities or which fail to meet defined emission levels run the risk of progressively being deemed to have a lower commercial value and eventually being excluded from jurisdictions with the strictest standards. There will be no place in this process for confidentiality; nothing less than complete transparency of data and methodologies will be acceptable.<br/>In relation to affordability prospects for new projects look much better than they did three years ago. Cost estimates for most new projects suggest that they will be able to deliver profitably to most established and anticipated import markets at or below the wholesale prices prevailing in those markets over the past decade although affordability in south Asian countries may be challenging. But new projects need to factor in costs related to future decarbonisation requirements in both exporting and importing countries. To the extent that LNG suppliers can meet standards through relatively low-cost offsets – forest projects low-cost biogas and biomethane – this may not greatly impact their commercial viability. However any requirement to transform methane into hydrogen with CCS in either the exporting or importing country would substantially impact project economics and the affordability of LNG relative to other energy choices.
Analysis of the Existing Barriers for the Market Development of Power to Hydrogen (P2H) in Italy
Sep 2020
Publication
New technological solutions are required to control the impact of the increasing presence of renewable energy sources connected to the electric grid that are characterized by unpredictable production (i.e. wind and solar energy). Energy storage is becoming essential to stabilize the grid when a mismatch between production and demand occurs. Among the available solutions Power to Hydrogen (P2H) is one of the most attractive options. However despite the potential many barriers currently hinder P2H market development. The literature reports general barriers and strategies to overcome them but a specific analysis is fundamental to identifying how these barriers concretely arise in national and regional frameworks since tailored solutions are needed to foster the development of P2H local market. The paper aims to identify and to analyze the existing barriers for P2H market uptake in Italy. The paper shows how several technical regulatory and economic issues are still unsolved resulting in a source of uncertainty for P2H investment. The paper also suggests possible approaches and solutions to address the Italian barriers and to support politics and decision-makers in the definition and implementation of the national hydrogen strategy.
Powering a climate-neutral economy: An EU Strategy for Energy System Integration
Jul 2020
Publication
To become climate-neutral by 2050 Europe needs to transform its energy system which accounts for 75% of the EU's greenhouse gas emissions. The EU strategies for energy system integration and hydrogen adopted today will pave the way towards a more efficient and interconnected energy sector driven by the twin goals of a cleaner planet and a stronger economy.<br/><br/>The two strategies present a new clean energy investment agenda in line with the Commission's Next Generation EU recovery package and the European Green Deal. The planned investments have the potential to stimulate the economic recovery from the coronavirus crisis. They create European jobs and boost our leadership and competitiveness in strategic industries which are crucial to Europe's resilience.
Rising To the Challenge of a Hydrogen Economy: The Outlook for Emerging Hydrogen Value Chains, From Production to Consumption
Jul 2021
Publication
For many a large-scale hydrogen economy is essential to a a clean energy future with three quarters of the more than 1100 senior energy professionals we surveyed saying Paris Agreement targets will not be possible without it.
DNV’s research Rising to the challenge of a hydrogen economy explores the outlook for emerging hydrogen value chains from production to consumption. It combines the wider view from the energy industry with commentary from business leaders and experts. Our research finds that the challenge is not in the ambition but in changing the timeline: from hydrogen on the horizon to hydrogen in our homes businesses and transport systems.
We see that the energy industry is rising to this challenge. By 2025 almost half (44%) of energy companies globally involved in hydrogen expect it to account for more than a tenth of their revenue rising to 73% of companies by 2030 – up significantly from just 8% of companies today. The research identifies infrastructure and cost as two of the biggest hurdles while the right regulations are deemed the most powerful enabler followed by carbon pricing. Proving the safety case will also be key to scaling the hydrogen economy.
Download your complimentary copy of DNV’s latest hydrogen research at their website link
DNV’s research Rising to the challenge of a hydrogen economy explores the outlook for emerging hydrogen value chains from production to consumption. It combines the wider view from the energy industry with commentary from business leaders and experts. Our research finds that the challenge is not in the ambition but in changing the timeline: from hydrogen on the horizon to hydrogen in our homes businesses and transport systems.
We see that the energy industry is rising to this challenge. By 2025 almost half (44%) of energy companies globally involved in hydrogen expect it to account for more than a tenth of their revenue rising to 73% of companies by 2030 – up significantly from just 8% of companies today. The research identifies infrastructure and cost as two of the biggest hurdles while the right regulations are deemed the most powerful enabler followed by carbon pricing. Proving the safety case will also be key to scaling the hydrogen economy.
Download your complimentary copy of DNV’s latest hydrogen research at their website link
Delivering Net-zero Carbon Heat: Technoeconomic and Whole-system Comparisons of Domestic Electricity- and Hydrogen-driven Technologies in the UK
Apr 2022
Publication
Proposed sustainable transition pathways for moving away from natural gas in domestic heating focus on two main energy vectors: electricity and hydrogen. Electrification would be implemented by using vapourcompression heat pumps which are currently experiencing market growth in many countries. On the other hand hydrogen could substitute natural gas in boilers or be used in thermally–driven absorption heat pumps. In this paper a consistent thermodynamic and economic methodology is developed to assess the competitiveness of these options. The three technologies along with the option of district heating are for the first time compared for different weather/ambient conditions and fuel-price scenarios first from a homeowner’s and then from a wholeenergy system perspective. For the former two-dimensional decision maps are generated to identify the most cost-effective technologies for different combinations of fuel prices. It is shown that in the UK hydrogen technologies are economically favourable if hydrogen is supplied to domestic end-users at a price below half of the electricity price. Otherwise electrification and the use of conventional electric heat pumps will be preferred. From a whole-energy system perspective the total system cost per household (which accounts for upstream generation and storage as well as technology investment installation and maintenance) associated with electric heat pumps varies between 790 and 880 £/year for different scenarios making it the least-cost decarbonisation pathway. If hydrogen is produced by electrolysis the total system cost associated with hydrogen technologies is notably higher varying between 1410 and 1880 £/year. However this total system cost drops to 1150 £/year with hydrogen produced cost-effectively by methane reforming and carbon capture and storage thus reducing the gap between electricity- and hydrogen-driven technologies.
The Path to Net Zero and Progress on Reducing Emissions in Wales
Dec 2020
Publication
These two joint reports required under the Environment (Wales) Act 2016 provide ministers with advice on Wales’ climate targets between now and 2050 and assess progress on reducing emissions to date. Our advice to the Welsh Government is set out in two parts:
Advice Report: The path to a Net Zero Wales provides recommendations on the actions that are needed in Wales including the legislation of a Net Zero target and package of policies to deliver it.
Progress Report: Reducing emissions in Wales looks back at the progress made in Wales since the 2016 Environment (Wales) Act was passed and assesses whether Wales is on track to meet its currently legislated emissions reductions targets.
This work is based on an extensive programme of analysis consultation and consideration by the Committee and its staff building on the evidence published last year for our Net Zero report. It is compatible with our advice on the UK’s Sixth Carbon Budget. In support of the advice in this report we have also published:
Advice Report: The path to a Net Zero Wales provides recommendations on the actions that are needed in Wales including the legislation of a Net Zero target and package of policies to deliver it.
Progress Report: Reducing emissions in Wales looks back at the progress made in Wales since the 2016 Environment (Wales) Act was passed and assesses whether Wales is on track to meet its currently legislated emissions reductions targets.
This work is based on an extensive programme of analysis consultation and consideration by the Committee and its staff building on the evidence published last year for our Net Zero report. It is compatible with our advice on the UK’s Sixth Carbon Budget. In support of the advice in this report we have also published:
- All the charts and data behind the report as well as a separate dataset for the scenarios which sets out more details and data on the pathways than can be included in this report.
- A public Call for Evidence several new research projects three expert advisory groups and deep dives into the roles of local authorities and businesses.
Greenhouse Gas Abatement in EUROPE—A Scenario-Based, Bottom-Up Analysis Showing the Effect of Deep Emission Mitigation on the European Energy System
Feb 2022
Publication
Greenhouse gas emissions need to be drastically reduced to mitigate the environmental impacts caused by climate change and to lead to a transformation of the European energy system. A model landscape consisting of four final energy consumption sector models with high spatial (NUTS-3) and temporal (hourly) resolution and the multi-energy system model ISAaR is extended and applied to investigate the transformation pathway of the European energy sector in the deep emission mitigation scenario solidEU. The solidEU scenario describes not only the techno-economic but also the socio-political contexts and it includes the EU27 + UK Norway and Switzerland. The scenario analysis shows that volatile renewable energy sources (vRES) dominate the energy system in 2050. In addition the share of flexible sector coupling technologies increases to balance electricity generation from vRES. Seasonal differences are balanced by hydrogen storage with a seasonal storage profile. The deployment rates of vRES in solidEU show that a fast profound energy transition is necessary to achieve European climate protection goals.
EU Hydrogen Strategy: A Case for Urgent Action Towards Implementation
Jul 2020
Publication
Interest in hydrogen as one route to the decarbonisation of energy systems has risen rapidly over the past few years with the publication of a number of hydrogen strategies from countries across the global energy economy. The momentum in Europe has increased sharply this month with the publication of an EU strategy to incorporate hydrogen into its plans for a net zero emission future. This Comment reviews the key elements of this strategy and provides an initial commentary on the main goals. We highlight the challenges that will be faced in meeting hydrogen production targets in particular via the “green hydrogen” route and analyse the plans for expanding the consumption of hydrogen in Europe. We also assess the infrastructure questions that will need to be answered if and when hydrogen takes on a greater role in the region and note the extensive state support that will be needed in the early years of the implementation of the strategy. Despite this though we applaud the ambition laid out by the EU and look forward to the provision of more detailed plans over the coming months and years.
Link to document on OIES website
Link to document on OIES website
A Review of Technical Advances, Barriers, and Solutions in the Power to Hydrogen Roadmap
Oct 2020
Publication
Power to hydrogen (P2H) provides a promising solution to the geographic mismatch between sources of renewable energy and the market due to its technological maturity flexibility and the availability of technical and economic data from a range of active demonstration projects. In this review we aim to provide an overview of the status of P2H analyze its technical barriers and solutions and propose potential opportunities for future research and industrial demonstrations. We specifically focus on the transport of hydrogen via natural gas pipeline networks and end-user purification. Strong evidence shows that an addition of about 10% hydrogen into natural gas pipelines has negligible effects on the pipelines and utilization appliances and may therefore extend the asset value of the pipelines after natural gas is depleted. To obtain pure hydrogen from hydrogen-enriched natural gas (HENG) mixtures end-user separation is inevitable and can be achieved through membranes adsorption and other promising separation technologies. However novel materials with high selectivity and capacity will be the key to the development of industrial processes and an integrated membrane-adsorption process may be considered in order to produce high-purity hydrogen from HENG. It is also worth investigating the feasibility of electrochemical separation (hydrogen pumping) at a large scale and its energy analysis. Cryogenics may only be feasible when liquefied natural gas (LNG) is one of the major products. A range of other technological and operational barriers and opportunities such as water availability byproduct (oxygen) utilization and environmental impacts are also discussed. This review will advance readers’ understanding of P2H and foster the development of the hydrogen economy.
H2ero Net Zero: Hydrogen Europe Position Paper on the Fit for 55 Package
Jun 2021
Publication
Hydrogen has seen unprecedented development in the year 2020. From innovative niche technology it is fast becoming a systemic element in the European Union’s (EU) efforts to transition to a climate-neutral society in 2050. It will become a crucial energy vector and the other leg of the energy transition – alongside renewable electricity – by replacing coal oil and gas across different segments of the economy. The rapid development of hydrogen is important for meeting the EU’s climate objectives and preserving and enhancing the EU’s industrial and economic competitiveness securing jobs and value creation in this high-tech sector.
Europe is currently leading in hydrogen technology and European companies and knowledge institutions can be instrumental in advancing technological developments and industrial scale-up. It is imperative that Europe maintains this leadership position and seizes the current momentum for hydrogen technologies. The EU is well placed to become the birthplace of a global hydrogen economy denominated in Euro currency.
It is time that hydrogen moves from an afterthought to a central pillar of the energy system. The “Fit for 55 Package” presents a unique opportunity to begin putting into place a concrete and fit for purpose framework for the development of a clean hydrogen economy. In this paper you will find Hydrogen Europe’s recommendations on how hydrogen can:
Europe is currently leading in hydrogen technology and European companies and knowledge institutions can be instrumental in advancing technological developments and industrial scale-up. It is imperative that Europe maintains this leadership position and seizes the current momentum for hydrogen technologies. The EU is well placed to become the birthplace of a global hydrogen economy denominated in Euro currency.
It is time that hydrogen moves from an afterthought to a central pillar of the energy system. The “Fit for 55 Package” presents a unique opportunity to begin putting into place a concrete and fit for purpose framework for the development of a clean hydrogen economy. In this paper you will find Hydrogen Europe’s recommendations on how hydrogen can:
- Unleash the potential of renewables.
- Bring “efficiency” to the energy “system” of the future.
- Enable a carbon-neutral transport system.
The Future of Gas Networks – Key Issues for Debate
Sep 2019
Publication
The Oxford Institute for Energy Studies held a Workshop on “The Future of Gas Networks” to examine decarbonisation plans and the impact of the potential growth in the use of renewable and decarbonised gases in Europe. Participants included representatives from nine European gas network companies (both transmission and distribution) technical experts in decarbonisation regulators government officials and academics. This document summarises the seven key issues for debate arising from the Workshop discussions:
- The major gas networks recognise the need to prepare for and facilitate decarbonisation.
- The route to decarbonisation can take many forms though hydrogen is likely to feature in most networks. In larger countries solutions are likely to be regional rather than national.
- There are a number of pilot projects and targets/aspirations for 2050 – there is less clarity on how the targets will be achieved or on who will lead.
- Regulation is a key issue. In most countries existing regulatory objectives may need changing in order to align with government decarbonisation aspirations and the achievement of targets.
- There is a lack of consensus on whether and how market models might need to adapt.
- Detailed stakeholder analysis – and in particular customer attitudes – will be required.
- There are a range of important technical issues including standardisation data quality and transparency verification and certification to be considered.
Hydrogen in Grid Balancing: The European Market Potential for Pressurized Alkaline Electrolyzers
Jan 2022
Publication
To limit the global temperature change to no more than 2 ◦C by reducing global emissions the European Union (EU) set up a goal of a 20% improvement on energy efficiency a 20% cut of greenhouse gas emissions and a 20% share of energy from renewable sources by 2020 (10% share of renewable energy (RE) specifically in the transport sector). By 2030 the goal is a 27% improvement in energy efficiency a 40% cut of greenhouse gas emissions and a 27% share of RE. However the integration of RE in energy system faces multiple challenges. The geographical distribution of energy supply changes significantly the availability of the primary energy source (wind solar water) and is the determining factor rather than where the consumers are. This leads to an increasing demand to match supply and demand for power. Especially intermittent RE like wind and solar power face the issue of energy production unrelated to demand (issue of excess energy production beyond demand and/or grid capacity) and forecast errors leading to an increasing demand for grid services like balancing power. Megawatt electrolyzer units (beyond 3 MW) can provide a technical solution to convert large amounts of excess electricity into hydrogen for industrial applications substitute for natural gas or the decarbonization of the mobility sector. The demonstration of successful MW electrolyzer operation providing grid services under dynamic conditions as request by the grid can broaden the opportunities of new business models that demonstrate the profitability of an electrolyzer in these market conditions. The aim of this work is the demonstration of a technical solution utilizing Pressurized Alkaline Electrolyzer (PAE) technology for providing grid balancing services and harvesting Renewable Energy Sources (RES) under realistic circumstances. In order to identify any differences between local market and grid requirements the work focused on a demonstration site located in Austria deemed as a viable business case for the operation of a largescale electrolyzer. The site is adapted to specific local conditions commonly found throughout Europe. To achieve this this study uses a market-based solution that aims at providing value-adding services and cash inflows stemming from the grid balancing services it provides. Moreover the work assesses the viability of various business cases by analyzing (qualitatively and quantitatively) additional business models (in terms of business opportunities/energy source potential grid service provision and hydrogen demand) and analyzing the value and size of the markets developing recommendations for relevant stakeholder to decrease market barriers.
Modeling and Economic Operation of Energy Hub Considering Energy Market Price and Demand
Feb 2022
Publication
This paper discusses the economic operation strategy of the energy hub which is being established in South Korea. The energy hub has five energy conversion devices: a turbo expander generator a normal fuel cell a fuel cell with a hydrogen outlet a small-scale combined heat and power device and a photovoltaic device. We are developing the most economically beneficial operation strategy for the operators who own the hub without making any systematic improvements to the energy market. First sixteen conversion efficiency matrices can be achieved by turning each device (except the PV) on or off. Next even the same energy must be divided into different energy flows according to price. The energy flow is controlled to obtain the maximum profit considering the internal load of the energy hub and the price fluctuations of the energy market. Using our operating strategy the return on investment period is approximately 9.9 years which is three years shorter than that without the operating strategy.
Willingness to Pay and Public Acceptance for Hydrogen Buses: A Case Study of Perugia
Sep 2015
Publication
Sustainability transportation is characterized by a positive externality on the environment health social security land use and social inclusion. The increasing interest in global warming has caused attention to be paid to the introduction of the hydrogen bus (H2B). When introducing new environmental technologies such as H2B it is often necessary to assess the environmental benefits related to this new technology. However such benefits are typically non-priced due to their public good nature. Therefore we have to address this problem using the contingent valuation (CV) method. This method has been developed within environmental economics as a means to economically assess environmental changes which are typically not traded in the market. So far several big cities have been analyzed to evaluate the perceived benefit related to H2B introduction but to the best of our knowledge no one has performed a CV analysis of a historical city where smog also damages historical buildings. This paper presents the results obtained using a multi-wave survey. We have investigated user preferences to elicit their willingness to pay for H2B introduction in Perugia taking into account all types of negative externalities due to the traffic pollution. The results confirm that residents in Perugia are willing to pay extra to support the introduction of H2B.
Planning and Operational Aspects of Individual and Clustered Multi-Energy Microgrid Options
Feb 2022
Publication
With the restructuring of the power system household-level end users are becoming more prominent participants by integrating renewable energy sources and smart devices and becoming flexible prosumers. The use of microgrids is a way of aggregating local end users into a single entity and catering for the consumption needs of shareholders. Various microgrid architectures are the result of the local energy community following different decarbonisation strategies and are frequently not optimised in terms of size technology or other influential factors for energy systems. This paper discusses the operational and planning aspects of three different microgrid setups looking at them as individual market participants within a local electricity market. This kind of implementation enables mutual trade between microgrids without additional charges where they can provide flexibility and balance for one another. The developed models take into account multiple uncertainties arising from photovoltaic production day-ahead electricity prices and electricity load. A total number of nine case studies and sensitivity analyses are presented from daily operation to the annual planning perspective. The systematic study of different microgrid setups operational principles/goals and cooperation mechanisms provides a clear understanding of operational and planning benefits: the electrification strategy of decarbonising microgrids outperforms gas and hydrogen technologies by a significant margin. The value of coupling different types of multi-energy microgrids with the goal of joint market participation was not proven to be better on a yearly level compared to the operation of same technology-type microgrids. Additional analyses focus on introducing distribution and transmission fees to an MG cooperation model and allow us to come to the conclusion of there being a minor impact on the overall operation.
Can the Current EU Regulatory Framework Deliver Decarbonisation of Gas?
Jun 2020
Publication
This Energy Insight examines the current regulatory framework and challenges facing the natural gas industry (producers transporters suppliers and consumers) during the transition to a zero-carbon economy. The EU has declared its intention to be climate neutral by 2050 which means that the current level of natural gas usage will no longer be possible. However natural gas is a crucial component of energy supply representing 24 per cent of primary energy supply for the EU27+UK and 36 per cent of residential energy consumption. In some countries the use of natural gas is much higher – around 40 per cent of primary energy supply in Netherlands UK and Italy. The current framework impacting gas addresses two different market failures – natural monopolies for gas transportation and the externalities of Greenhouse Gas Emissions. The framework will not deliver decarbonisation of gas as it does not stimulate either supply or demand for alternatives such as hydrogen nor create the conditions to enable gas networks to transition to a decarbonised future. Policy makers need to prioritise their objectives to take account of the trade-offs involved in designing a new framework. Exclusion of certain low carbon technologies risks driving away investors and reduces the chances of targets being met whilst “picking winners” involves risks because of the many uncertainties involved such as future costs and time required to build new value chains.
Link to Document on Oxford Institute for Energy Studies website
Link to Document on Oxford Institute for Energy Studies website
Hydrogen Act Towards the creation of the European Hydrogen Economy
Apr 2021
Publication
It is time that hydrogen moves from an afterthought to a central pillar of the energy system and its key role in delivering climate neutrality means it merits a dedicated framework. It becomes paramount to allow hydrogen to express its full potential as the other leg of the energy mobility and industry transitions. The proposed “Hydrogen Act” is not a single piece of legislation it is intended to be a vision for an umbrella framework aimed at harmonising and integrating all separate hydrogen-related actions and legislations. It focuses on infrastructure and market aspects describing three phases of development: the kick-start phase the ramp-up phase and the market-growth phase.
Mapping Australia's Hydrogen Future and release of the Hydrogen Economic Fairways Tool
Apr 2021
Publication
Hydrogen can be used for a variety of domestic and industrial purposes such as heating and cooking (as a replacement for natural gas) transportation (replacing petrol and diesel) and energy storage (by converting intermittent renewable energy into hydrogen). The key benefit of using hydrogen is that it is a clean fuel that emits only water vapour and heat when combusted.
To support implementation of the National Hydrogen Strategy Geoscience Australia in collaboration with Monash University are releasing the Hydrogen Economic Fairways Tool (HEFT). HEFT is a free online tool designed to support decision making by policymakers and investors on the location of new infrastructure and development of hydrogen hubs in Australia. It considers both hydrogen produced from renewable energy and from fossil fuels with carbon capture and storage.
This seminar demonstrates HEFT’s capabilities its potential to attract worldwide investment into Australia’s hydrogen industry and what’s up next for hydrogen at Geoscience Australia.
You can use the Hydrogen Economic Fairways Tool (HEFT) on the Website of the Australian government at the link here
To support implementation of the National Hydrogen Strategy Geoscience Australia in collaboration with Monash University are releasing the Hydrogen Economic Fairways Tool (HEFT). HEFT is a free online tool designed to support decision making by policymakers and investors on the location of new infrastructure and development of hydrogen hubs in Australia. It considers both hydrogen produced from renewable energy and from fossil fuels with carbon capture and storage.
This seminar demonstrates HEFT’s capabilities its potential to attract worldwide investment into Australia’s hydrogen industry and what’s up next for hydrogen at Geoscience Australia.
You can use the Hydrogen Economic Fairways Tool (HEFT) on the Website of the Australian government at the link here
Contrasting European Hydrogen Pathways: An Analysis of Differing Approaches in Key Markets
Mar 2021
Publication
European countries approach the market ramp-up of hydrogen very differently. In some cases the economic and political starting points differ significantly. While the probability is high that some countries such as Germany or Italy will import hydrogen in the long term other countries such as United Kingdom France or Spain could become hydrogen exporters. The reasons for this are the higher potential for renewable energies but also a technology-neutral approach on the supply side.
Life Cycle Assessment of Hydrogen Production and Consumption in an Isolated Territory
Apr 2018
Publication
Hydrogen produced from renewables works as an energy carrier and as energy storage medium and thus hydrogen can help to overcome the intermittency of typical renewable energy sources. However there is no comprehensive environmental performance study of hydrogen production and consumption. In this study detailed cradle to grave life cycle analyses are performed in an isolated territory. The hydrogen is produced on-site by Polymer Electrolyte Membrane (PEM) water electrolysis based on electricity from wind turbines that would otherwise have been curtailed and subsequently transported with gas cylinder by road and ferry. The hydrogen is used to provide electricity and heat through fuel cell stacks as well as hydrogen fuel for fuel cell vehicles. In order to evaluate the environmental impacts related to the hydrogen production and utilisation this work conducts an investigation of the entire life cycle of the described hydrogen production transportation and utilisation. All the processes related to the equipment manufacture operation maintenance and disposal are considered in this study.
Lessons Learned from Australian Infrastructure Upgrades
Feb 2020
Publication
This report fulfils Deliverable Five for Research Project 2.1-01 of the Future Fuels CRC. The aims of this project Crystallising lessons learned from major infrastructure upgrades are to provide a report on lessons learned from earlier infrastructure upgrades and fuel transitions and identify tools that can be used to develop consistent messaging around the proposed transition to hydrogen and/or other low-carbon fuels. In both the report and the toolkit there are recommendations on how to apply lessons learned and shape messaging throughout the value chain based on prior infrastructure upgrades.
This report presents three Australian case studies that that are relevant to the development of future fuels: the transition from town gas to natural gas the use of ethanol and LPG as motor fuels and the development of coal seam gas resources. Drawing on published information each case study provides an account of the issues that arose during the upgrade or transition and of the approaches through which industry and government stakeholders managed these issues. From these accounts lessons are identified that can guide stakeholder engagement in future infrastructure upgrades and fuel transitions. The findings from the case studies and academic literature have been used to develop an accompanying draft toolkit for use by FFCRC stakeholders.
The report also distils applicable lessons and frameworks from academic literature about stakeholder analysis megaprojects and the social acceptance of industries and technologies. This report is meant to be used in conjunction with a companion toolkit that provides a framework for making coordinated decisions across the fuel value chain.
You can read the full report on the Future Fuels CRC website here
This report presents three Australian case studies that that are relevant to the development of future fuels: the transition from town gas to natural gas the use of ethanol and LPG as motor fuels and the development of coal seam gas resources. Drawing on published information each case study provides an account of the issues that arose during the upgrade or transition and of the approaches through which industry and government stakeholders managed these issues. From these accounts lessons are identified that can guide stakeholder engagement in future infrastructure upgrades and fuel transitions. The findings from the case studies and academic literature have been used to develop an accompanying draft toolkit for use by FFCRC stakeholders.
The report also distils applicable lessons and frameworks from academic literature about stakeholder analysis megaprojects and the social acceptance of industries and technologies. This report is meant to be used in conjunction with a companion toolkit that provides a framework for making coordinated decisions across the fuel value chain.
You can read the full report on the Future Fuels CRC website here
Unpacking Leadership-driven Global Scenarios Towards the Paris Agreement: Report Prepared for the UK Committee on Climate Change
Dec 2020
Publication
Outline
This independent report by Vivid Economics and University College London was commissioned to support the Climate Change Committee’s (CCC) 2020 report The Sixth Carbon Budget -The path to Net Zero. This research provided supporting information for Chapter 7 of the CCC’s report which considered the UK’s contribution to the global goals of the Paris Agreement.
Key recommendations
The report models ‘leadership-driven’ global scenarios that could reduce global emissions rapidly to Net Zero and analyses the levers available to developed countries such as the UK to help accelerate various key aspects of the required global transition.
It highlights a set of opportunities for the UK alongside other developed countries to help assist global decarbonisation efforts alongside achieving it’s domestic emissions reduction targets
This independent report by Vivid Economics and University College London was commissioned to support the Climate Change Committee’s (CCC) 2020 report The Sixth Carbon Budget -The path to Net Zero. This research provided supporting information for Chapter 7 of the CCC’s report which considered the UK’s contribution to the global goals of the Paris Agreement.
Key recommendations
The report models ‘leadership-driven’ global scenarios that could reduce global emissions rapidly to Net Zero and analyses the levers available to developed countries such as the UK to help accelerate various key aspects of the required global transition.
It highlights a set of opportunities for the UK alongside other developed countries to help assist global decarbonisation efforts alongside achieving it’s domestic emissions reduction targets
Developing Community Trust in Hydrogen
Oct 2019
Publication
The report documents current knowledge of the social issues surrounding hydrogen projects. It reviews leading practice stakeholder engagement and communication strategies and findings from focus groups and research activities across Australia.
The full report can be found at this link.
The full report can be found at this link.
Analysis of Strategic Directions in Sustainable Hydrogen Investment Decisions
Jun 2020
Publication
This study seeks to find the appropriate strategies necessary to make sustainable and effective hydrogen energy investments. Within this scope nine different criteria are defined regarding social managerial and financial factors. A hesitant interval-valued intuitionistic fuzzy (IVIF) decision-making trial and evaluation laboratory (DEMATEL) methodology is considered to calculate the degree of importance of the criteria. Additionally impact relation maps are also generated to visualize the causality relationship between the factors. The findings indicate that the technical dimension has the greatest importance in comparison to managerial and financial factors. Furthermore it is also concluded that storage and logistics research and development and technological infrastructure are the most significant factors to be considered when defining hydrogen energy investment strategies. Hence before investing in hydrogen energy necessary actions should be taken to minimize the storage and logistic costs. Among them building the production site close to the usage area will contribute significantly to this purpose. In this way possible losses during the transportation of hydrogen can be minimized. Moreover it is essential to identify the lowest-cost hydrogen storage method by carrying out the necessary research and development activities thereby increasing the sustainability and effectiveness of hydrogen energy investment projects.
HydroGenerally - Episode 2: Where Should Hydrogen Be Used?
Apr 2022
Publication
The Innovate UK KTN Hydrogen Innovation Network is bringing you this second episode with Steffan Eldred and Simon Buckley from Innovate UK KTN who continue their ‘back to basics' approach and delve deeper to understand where hydrogen should be used with their special guest Joanna Richart Head of Hydrogen Business at Ricardo. As with any technology or fuel discussions can get carried away implying they are the solution to all things but at Innovate UK KTN we strongly believe that we should ensure hydrogen is used where it can be most effective for decarbonising energy industrial and chemical industries.
The podcast can be found on their website
The podcast can be found on their website
Power-to-Gas Hydrogen: Techno-economic Assessment of Processes Towards a Multi-purpose Energy Carrier
Dec 2016
Publication
The present work investigates Power-to-Gas (PtG) options for variable Renewable Electricity storage into hydrogen through low temperature (alkaline and PEM) and high-temperature (SOEC) water electrolysis technologies. The study provides the assessment of the cost of the final product when hydrogen is employed for mobility (on-site refueling stations) electricity generation (by fuel cells in Power-to-Power systems) and grid injection in the natural gas network. Costs estimations are performed for 2013-2030 scenarios. A case study on the impact of variable Renewable Electricity storage by hydrogen generation on the Italian electricity and mobility sectors is presented.
Cost of Long-Distance Energy Transmission by Different Carriers
Nov 2021
Publication
This paper compares the relative cost of long-distance large-scale energy transmission by electricity and by gaseous and liquid carriers (e-fuels). The results indicate that the cost of electrical transmission per delivered MWh can be up to eight times higher than for hydrogen pipelines about eleven times higher than for natural gas pipelines and twenty to fifty times higher than for liquid fuels pipelines. These differences generally hold for shorter distances as well. The higher cost of electrical transmission is primarily due to lower carrying capacity (MW per line) of electrical transmission lines compared to the energy carrying capacity of the pipelines for gaseous and liquid fuels. The differences in the cost of transmission are important but often unrecognized and should be considered as a significant cost component in the analysis of various renewable energy production distribution and utilization scenarios.
Producing Low Carbon Gas- Future Gas Series part 2
Jul 2018
Publication
Of all the sectors in the UK decarbonising heat remains one of the most challenging. Heat used for industrial domestic and commercial purposes generates around a third of all UK carbon emissions 70% of which is due to burning natural gas. In order to meet our legally binding national climate change targets unabated natural gas use for heat must be phased out. Low carbon gas - including hydrogen and biogases - is one option to replace it. The Future Gas Series examines the opportunities and challenges associated with using low carbon gas to help decarbonise the UK economy.<br/><br/>This is the second report in the three-part Future Gas Series. Part 1: Next Steps for the Gas Grid explored the potential to decarbonise the existing gas grid. The report Part 2: the Production of Low Carbon Gas focuses on the issues related to the production of low carbon gas. It considers the different production technologies the potential scale of deployment of each method and the potential feedstocks. It also discusses issues related to bulk transport and storage of gas. Put together from expert evidence from across industry and academia it provides a balanced guide for policy makers in this area. It was a co-chaired by James Heappey MP (Conservative) Alan Whitehead MP (Labour) and Alistair Carmichael MP (SNP).<br/><br/>Carbon Connect suggests that biogases- such as biomethane and bioSNG- provide low regrets opportunities in the near term to provide low carbon heat and could also potentially make use of waste that would otherwise go to landfill. However they require further support to allow them to continue contributing to decarbonising the UK economy. Hydrogen could provide huge decarbonisation opportunities and has applications across the energy system from putting hydrogen in the gas grid to be burnt for heat in homes to hydrogen buses and trains. However to realise this potential a market for hydrogen must be built up. This should incentivise business to invest in hydrogen technologies reward those who use hydrogen and build up hydrogen infrastructure.<br/><br/>
Renewable Energy, Carbon Capture & Sequestration and Hydrogen Solutions as Enabling Technologies for Reduced CO2 Energy Transition at a National Level: An Application to the 2030 Italian National Energy Scenarios
Dec 2022
Publication
Globally climate change fossil fuel depletion and greenhouse emissions are fundamental problems requiring massive effort from the international scientific community to be addressed and solved. Following the Clean Energy for all Europeans Package (CEP) guidelines the Italian Government has established challenging and tight objectives both on energy and climate matter to be targeted by 2030. Accordingly research activities on different topics are carried out in Italy looking at the installation of intermittent renewable energy systems (IRES) implementation of carbon capture and sequestration (CCS) on existing power plants and hydrogen technology and infrastructure penetration for accomplishing the end-users demands. The optimal integration of the above-mentioned technologies is one of the most effective weapons to address these objectives. The paper investigates different energy scenarios for meeting the Italian National Energy and Climate Plan (NECP) 2030 targets showing how the combined implementation of around +12 GW of IRES and +6 GW of electrolyzers compared to the national estimates simultaneously with the CCS of around 10 Mt of CO2 per year can reduce the CO2 emissions up to about 247 Mt/year. Thanks to the adoption of the well-established software platform EnergyPlan the integration of IRES plants CCS and hydrogen-based technologies have been explored and the most successful results for concurrently reducing the impact of industrial transport residential and energy sectors and mitigating the greenhouse emissions substantially relies on the diversifications. Results show both the technical and economic convenience of a 2030 energy scenario which implements properly hydrogen IRES and CCS penetration in the energy system meeting the NECP 2030 targets and maintaining both the over-generation of the power plants below 5 TWh and the initial capital expenditure to be sustained for this scenario to occur below +80% compared to the 2019 energy scenario.
EU Carbon Diplomacy: Assessing Hydrogen Security and Policy Impact in Australia and Germany
Dec 2021
Publication
Hydrogen is fast becoming a new international “super fuel” to accelerate global climate change ambitions. This paper has two inter-weaving themes. Contextually it focuses on the potential impact of the EU’s new Carbon Border Adjustment Mechanism (CBAM) on fossil fuel-generated as opposed to green hydrogen imports. The CBAM as a transnational carbon adjustment mechanism has the potential to impact international trade in energy. It seeks both a level playing field between imports and EU internal markets (subject to ambitious EU climate change policies) and to encourage emissions reduction laggards through its “carbon diplomacy”. Countries without a price on carbon will be charged for embodied carbon in their supply chains when they export to the EU. Empirically we focus on two hydrogen export/import case studies: Australia as a non-EU state with ambitions to export hydrogen and Germany as an EU Member State reliant on energy imports. Energy security is central to energy trade debates but needs to be conceptualized beyond supply and demand economics to include geopolitics just transitions and the impacts of border carbon taxes and EU carbon diplomacy. Accordingly we apply and further develop a seven-dimension energy security-justice framework to the examples of brown blue and green hydrogen export/import hydrogen operations with varying carbon-intensity supply chains in Australia and Germany. Applying the framework we identify potential impact—risks and opportunities—associated with identified brown blue and green hydrogen export/import projects in the two countries. This research contributes to the emerging fields of international hydrogen trade supply chains and international carbon diplomacy and develops a potentially useful seven-dimension energy security-justice framework for energy researchers and policy analysts.
Policy and Pricing Barriers to Steel Industry Decarbonisation: A UK Case Study
Aug 2022
Publication
Global climate targets have highlighted the need for a whole-systems approach to decarbonisation one that includes targeted national policy and industry specific change. Situated within this context this research examines policy and pricing barriers to decarbonisation of the UK steel industry. Here the techno-economic modelling of UK green steelmaking provides a technical contribution to analysis of pricing barriers and policy solutions to these barriers in the UK specifically but also to the broader industrial decarbonisation literature. Estimated costs and associated emissions projections reveal relevant opportunities for UK steel in contributing to national climate and emissions targets. Modelling demonstrates that green steelmaking options have been put at price disadvantages compared to emissions-intensive incumbents and that fossil-free hydrogen-based steel-making has lower emissions and lower levelised costs than carbon capture and storage options including top gas recycling blast furnace (TGR-BF) with CCS and HIsarna smelter with CCS. Two primary policy recommendations are made: the removal of carbon pricing discrepancies and reductions in industrial electricity prices that would level the playing field for green steel producers in the UK. The research also provides relevant policy considerations for the international community in other industrial decarbonisation efforts and the policies that must accompany these decarbonisation choices.
A Historical Analysis of Hydrogen Economy Research, Development, and Expectations, 1972 to 2020
Jan 2023
Publication
Global climate change concerns have pushed international governmental actions to reduce greenhouse gas emissions by adopting cleaner technologies hoping to transition to a more sustainable society. The hydrogen economy is one potential long-term option for enabling deep decarbonization for the future energy landscape. Progress towards an operating hydrogen economy is discouragingly slow despite global efforts to accelerate it. There are major mismatches between the present situation surrounding the hydrogen economy and previous proposed milestones that are far from being reached. The overall aim of this study is to understand whether there has been significant real progress in the achievement of a hydrogen economy or whether the current interest is overly exaggerated (hype). This study uses bibliometric analysis and content analysis to historically map the hydrogen economy’s development from 1972 to 2020 by quantifying and analyzing three sets of interconnected data. Findings indicate that interest in the hydrogen economy has significantly progressed over the past five decades based on the growing numbers of academic publications media coverage and projects. However various endogenous and exogenous factors have influenced the development of the hydrogen economy and created hype at different points in time. The consolidated results explore the changing trends and how specific events or actors have influenced the development of the hydrogen economy with their agendas the emergence of hype cycles and the expectations of a future hydrogen economy.
The Upfront Cost of Decarbonising Your Home
Nov 2021
Publication
The objective of this report is to analyse the upfront capital costs facing consumers when considering the installation of new low carbon heating technology solutions for their homes today including the cost of any associated home upgrades that will likely be required. The UK Government have recently published its Heat and Buildings Strategy which sets out plans to significantly cut carbon emissions from the existing housing stock and new homes. Whilst the Strategy points to a future role for a variety of technologies such as heat pumps hydrogen and heat networks the success of this Strategy will largely be determined by the ability to achieve installed cost reductions for heat pumps of at least 25-50% by 2025 with the view to achieving cost parity with a gas boiler by 2030. The purpose of this report is to launch a series which tracks the upfront costs of these respective technologies over time to establish whether the cost reduction targets mooted by government and heat pump stakeholders are being delivered and the implications this has on our ability to decarbonise the UK housing stock.
Scenario Modeling of Sustainable Development of Energy Supply in the Arctic
Dec 2021
Publication
The 21st century is characterized not only by large-scale transformations but also by the speed with which they occur. Transformations—political economic social technological environmental and legal-in synergy have always been a catalyst for reactions in society. The field of energy supply like many others is extremely susceptible to the external influence of such factors. To a large extent this applies to remote (especially from the position of energy supply) regions. The authors outline an approach to justifying the development of the Arctic energy infrastructure through an analysis of the demand for the amount of energy consumed and energy sources taking into account global trends. The methodology is based on scenario modeling of technological demand. It is based on a study of the specific needs of consumers available technologies and identified risks. The paper proposes development scenarios and presents a model that takes them into account. Modeling results show that in all scenarios up to 50% of the energy balance in 2035 will take gas but the role of carbon-free energy sources will increase. The mathematical model allowed forecasting the demand for energy types by certain types of consumers which makes it possible to determine the vector of development and stimulation of certain types of resources for energy production in the Arctic. The model enables considering not only the growth but also the decline in demand for certain types of consumers under different scenarios. In addition authors’ forecasts through further modernization of the energy sector in the Arctic region can contribute to the creation of prerequisites that will be stimulating and profitable for the growth of investment in sustainable energy sources to supply consumers. The scientific significance of the work lies in the application of a consistent hybrid modeling approach to forecasting demand for energy resources in the Arctic region. The results of the study are useful in drafting a scenario of regional development taking into account the Sustainable Development Goals as well as identifying areas of technology and energy infrastructure stimulation.
Decarbonization Roadmaps for ASEAN and their Implications
Apr 2022
Publication
The objective of this paper is to derive for the first time decarbonization roadmaps for the ten nations of ASEAN. This study first presents a regional view of ASEAN’s fossil and renewable energy usage and energy-related CO2 emission. Results show that renewable energies have been losing ground to fossil energies in the last two decades and fossil fuels will likely continue to be an important part of ASEAN’s energy mix for the next few decades. Therefore decarbonizing efforts should focus not only on increasing the share of renewable energies in electricity generation but also on technologies to reduce CO2 emission from fossil power and industrial plants. This study next performs a technology mapping exercise for all ten ASEAN countries to determine decarbonization technologies that have high impact and high readiness for individual countries. Besides installing more sustainable renewable energies common themes coming from these roadmaps include switching from coal to gas for power generation using carbon capture and storage (CCS) technologies to decarbonize fossil and industrial plants replacing internal combustion vehicles by electric vehicles and for countries that have coal and natural gas resources upgrading them to blue hydrogen by chemical processes and using CCS to mitigate the emitted CO2. Blue hydrogen can be used to decarbonize hard-to-decarbonize industries. Policy implications of these roadmaps include imposing a credible carbon tax establishing a national hydrogen strategy intergovernmental coordination to establish regional CCS corridors funding research and development to improve carbon capture efficiency on a plant level and resolving sustainability issues of hydropower and bioenergy in ASEAN.
Shipping Australian Sunshine: Liquid Renewable Green Fuel Export
Dec 2022
Publication
Renewable green fuels (RGF) such as hydrogen are the global energy future. Air pollution is compounded with climate change as the emissions driving both development problems come largely from the same source of fossil fuel burning. As an energy exporter Australian energy export dominates the total energy production and the RGF has become central to the current proposal of Australian government to reach net zero emission. The hydrogen production from solar panels only on 3% of Australia's land area could compensate 10 times of Germany's non-electricity energy consumption. In the unique geographic position Australia's RGF export attracts significant costs for long distance onboard storage and shipping. While the cost reduction of RGF production relies on technological advancement which needs a long time the storage and shipping costs must be minimised for Australia to remain competitive in the global energy market. The present review concentrates on Australian export pathways of lifecycles of liquid renewable green fuels including renewable liquified hydrogen (LH2) liquified methane (LCH4) ammonia (NH3) and methanol (CH3OH) as liquid RGF have the advantages of adopting the existing infrastructure. This review compares the advantages and disadvantages of discussed renewable energy carriers. It is found that the cost of LH2 pathway can be acceptable for shipping distance of up to 7000 km (Asian countries such as Japan) but ammonia (NH3) or methanol (CH3OH) pathways may be more cost effective for shipping distance above 7000 km for European counties such as Germany. These observations suggest the proper fuel forms to fulfill the requirements to different customers and hence will highlight Australia's position as one of major exporters of renewable energy in the future. Detailed techno-economic analysis is worth to be done for supplying more quantitative results.
Regional Insights into Low-carbon Hydrogen Scale Up: World Energy Insights Working Paper
May 2022
Publication
Following the release of the “Hydrogen on the Horizon” series in July and September 2021 the World Energy Council in collaboration with EPRI and PwC led a series of regional deep dives to understand regional differences within low-carbon hydrogen development. These regional deep dives aimed to uncover regional perspectives and differing dynamics for low-carbon hydrogen uptake.<br/>Although each region presents its own distinctive challenges and opportunities the deep dives revealed that the “regional paths” provide new insights into the global scaling up of low-carbon hydrogen in the coming years. In addition each region holds its own unique potential in achieving the Sustainable Development Goals.<br/>Key Takeaways:<br/>1. Our new regional insights indicate that low-carbon hydrogen can play a significant role by 2040 across the world by supporting countries’ efforts towards achieving Paris Agreement goals whilst contributing to the diversity and security of their energy portfolios. This would require significant global trade flows of hydrogen and hydrogen-based fuels.<br/>2. The momentum for hydrogen-based fuels is continuing to grow worldwide but differences are seen between regions – based on differing market activities and opportunities.<br/>3. Today moving from “whether” to “how” to develop low-carbon hydrogen highlights significant uncertainties which need to be addressed if hydrogen is to reach its full potential.<br/>Can the challenges in various supply chain options be overcome?<br/>Can hydrogen play a role in tackling climate change in the short term?<br/>Can bankable projects emerge and the gap between engineers and financers be bridged? Can the stability of supply of the main low-carbon hydrogen production sources be guaranteed?<br/>4. Enabling low-carbon hydrogen at scale would notably require greater coordination and cooperation amongst stakeholders worldwide to better mobilise public and private finance and to shift the focus to end-users and people through the following actions:<br/>Moving from production cost to end-use price<br/>Developing Guarantees of Origin schemes with sustainability requirements<br/>Developing a global monitoring and reporting tool on low-carbon hydrogen projects<br/>Better consideration of social impacts alongside economic opportunities
Global Gas Report 2022
May 2022
Publication
This edition of the Global Gas Report covers two very turbulent years in the global gas industry and the wider global energy markets. The Covid-19 pandemic lockdowns with a brief period of excess supply and low prices gave way to tight energy markets extreme price volatility and a compounding geopolitical challenge to energy security. At the time of writing the ongoing Russia-Ukraine conflict has been affecting the flows of gas and has put Europe on a quest to diversify its energy and gas supply that is now opening a new paradigm in the energy industry. This report comes at a time when the situation for global commodity and gas markets is in a state of rapid change and the strategic path forwards for the gas industry and energy policy-makers is continually developing. One thing is clear this is a critical and decisive moment for the gas industry. How it navigates the way through this crisis and charts a path forward will shape its long-term success and the role that it will play in the energy transition and beyond. This is the moment for the gas industry to demonstrate that gas can deliver a sustainable and secure energy future for all and that natural gas and a portfolio of decarbonized low- and zero-carbon gases are key to an achievable energy transition. This year’s report assesses key gas market trends from 2020 and 2021 including Covid-19 outcomes tightness of supply price volatility investments and the upward reversal in the global emissions trend. It then turns to the main topic on the global energy agenda – security – and considers key variables impacting it from industry and policy perspectives as well as considering possible paths to reinforce it. Finally the report looks at the main decarbonization pathways for gas supply as they progressively develop to make gas itself a low or zero-carbon fuel for the future. This report seeks to deliver insights about the global gas sector and to inform its stakeholders partners and importantly global decision-makers about the state of play today and possibilities for the future. It concludes with key insights on how sustainability security and competitiveness can help to deliver a sustainable future in line with the goals of the Paris Agreement and the UN Sustainable Development Agenda.
How Green Are the National Hydrogen Strategies?
Feb 2022
Publication
Since Japan promulgated the world’s first national hydrogen strategy in 2017 28 national (or regional in the case of the EU) hydrogen strategies have been issued by major world economies. As carbon emissions vary with different types of hydrogen and only green hydrogen produced from renewable energy can be zero-emissions fuel this paper interrogates the commitment of the national hydrogen strategies to achieve decarbonization objectives focusing on the question “how green are the national hydrogen strategies?” We create a typology of regulatory stringency for green hydrogen in national hydrogen strategies analyzing the text of these strategies and their supporting policies and evaluating their regulatory stringency toward decarbonization. Our typology includes four parameters fossil fuel penalties hydrogen certifications innovation enablement and the temporal dimension of coal phasing out. Following the typology we categorize the national hydrogen strategies into three groups: zero regulatory stringency scale first and clean later and green hydrogen now. We find that most national strategies are of the type “scale first and clean later” with one or more regulatory measures in place. This article identifies further challenges to enhancing regulatory stringency for green hydrogen at both national and international levels.
Interaction of Hydrogen Infrastructures with other Sector Coupling Options Towards a Zero-emission Energy System in Germany
Aug 2021
Publication
The flexible coupling of sectors in the energy system for example via battery electric vehicles electric heating or electric fuel production can contribute significantly to the integration of variable renewable electricity generation. For the implementation of the energy system transformation however there are numerous options for the design of sector coupling each of which is accompanied by different infrastructure requirements. This paper presents the extension of the REMix energy system modelling framework to include the gas sector and its application for investigating the cost-optimal design of sector coupling in Germany's energy system. Considering an integrated optimisation of all relevant technologies in their capacities and hourly use a path to a climate-neutral system in 2050 is analysed. We show that the different options for flexible sector coupling are all needed and perform different functions. Even though flexible electrolytic production of hydrogen takes on a very dominant role in 2050 it does not displace other technologies. Hydrogen also plays a central role in the seasonal balancing of generation and demand. Thus large-scale underground storage is part of the optimal system in addition to a hydrogen transport network. These results provide valuable guidance for the implementation of the energy system transformation in Germany.
UK Low Carbon Hydrogen Standard: Guidance on the Greenhouse Gas Emissions and Sustainability Criteria
Apr 2022
Publication
The Low Carbon Hydrogen Standard sets a maximum threshold for the amount of greenhouse gas emissions allowed in the production process for hydrogen to be considered ‘low carbon hydrogen’. Compliance with the standard will help ensure new low carbon hydrogen production makes a direct contribution to our carbon reduction targets.
This guidance sets out the methodology for calculating the emissions associated with hydrogen production and the steps producers should take to prove that the hydrogen they produce is compliant with the standard.
It is for use by hydrogen producers seeking support from government schemes and policies that have adopted the standard.
The standard requires hydrogen producers to:
This guidance sets out the methodology for calculating the emissions associated with hydrogen production and the steps producers should take to prove that the hydrogen they produce is compliant with the standard.
It is for use by hydrogen producers seeking support from government schemes and policies that have adopted the standard.
The standard requires hydrogen producers to:
- meet a GHG emissions intensity of 20g CO2e/MJLHV of produced hydrogen or less for the hydrogen to be considered low carbon
- calculate their greenhouse gas (GHG) emissions up to the ‘point of production’
- set out a risk mitigation plan for fugitive hydrogen emissions
- meet additional requirements for the use of biogenic inputs where relevant and as appropriate for the feedstock source and classification
Political Economy of Green Hydrogen Rollout: A Global Perspective
Dec 2021
Publication
The present paper dwells on the role of green hydrogen in the transition towards climateneutral economies and reviews the central challenges for its emancipation as an economically viable source of energy. The study shows that countries with a substantial share of renewables in the energy mix advanced natural gas pipeline infrastructure and an advanced level of technological and economic development have a comparative advantage for the wider utilization of hydrogen in their national energy systems. The central conclusion this review paper is that a green hydrogen rollout in the developed and oil-exporting developing and emerging countries is not a risk for the rest of the world in terms of the increasing technological disparities and conservation of underdevelopment and concomitant socio-economic problems of the Global South. The targets anchored in Paris Agreement but even more in the EU Green Deal and the European Hydrogen Strategy will necessitate a substantial rollout of RESs in developing countries and especially in the countries of the African Union because of the prioritization of the African continent within the energy cooperation frameworks of the EU Green Deal and the EU Hydrogen Strategy. Hence the green hydrogen rollout will bridge the energy transition between Europe and Africa on the one hand and climate and development targets on the other.
From Renewable Energy to Sustainable Protein Sources: Advancement, Challenges, and Future Roadmaps
Jan 2022
Publication
The concerns over food security and protein scarcity driven by population increase and higher standards of living have pushed scientists toward finding new protein sources. A considerable proportion of resources and agricultural lands are currently dedicated to proteinaceous feed production to raise livestock and poultry for human consumption. The 1st generation of microbial protein (MP) came into the market as land-independent proteinaceous feed for livestock and aquaculture. However MP may be a less sustainable alternative to conventional feeds such as soybean meal and fishmeal because this technology currently requires natural gas and synthetic chemicals. These challenges have directed researchers toward the production of 2nd generation MP by integrating renewable energies anaerobic digestion nutrient recovery biogas cleaning and upgrading carbon-capture technologies and fermentation. The fermentation of methane-oxidizing bacteria (MOB) and hydrogen-oxidizing bacteria (HOB) i.e. two protein rich microorganisms has shown a great potential on the one hand to upcycle effluents from anaerobic digestion into protein rich biomass and on the other hand to be coupled to renewable energy systems under the concept of Power-to-X. This work compares various production routes for 2nd generation MP by reviewing the latest studies conducted in this context and introducing the state-of-the-art technologies hoping that the findings can accelerate and facilitate upscaling of MP production. The results show that 2nd generation MP depends on the expansion of renewable energies. In countries with high penetration of renewable electricity such as Nordic countries off-peak surplus electricity can be used within MP-industry by supplying electrolytic H2 which is the driving factor for both MOB and HOB-based MP production. However nutrient recovery technologies are the heart of the 2nd generation MP industry as they determine the process costs and quality of the final product. Although huge attempts have been made to date in this context some bottlenecks such as immature nutrient recovery technologies less efficient fermenters with insufficient gas-to-liquid transfer and costly electrolytic hydrogen production and storage have hindered the scale up of MP production. Furthermore further research into techno-economic feasibility and life cycle assessment (LCA) of coupled technologies is still needed to identify key points for improvement and thereby secure a sustainable production system.
Macroeconomic Factors Influencing Public Policy Strategies for Blue and Green Hydrogen
Nov 2021
Publication
The aim of this paper is to analyze the factors affecting hydrogen and Carbon Capture and Storage Technologies (“CCS”) policies taking into consideration Fossil Fuel Consumption Oil Reserves the Debt/GDP Ratio the Trilemma Index and other variables with respect to OECD countries. STATA 17 was used for the analysis. The results confirm the hypothesis that countries with high fossil fuel consumption and oil reserves are investing in blue hydrogen and CCS towards a “zero-carbon-emission” perspective. Moreover countries with a good Debt/GDP ratio act most favorably to green policies by raising their Public Debt because Foreign Direct Investments are negatively correlated with those kinds of policies. Future research should exploit Green Finance policy decision criteria on green and blue hydrogen.
Net Zero after Covid: Behavioural Principles for Building Back Better
Dec 2020
Publication
Alongside our Sixth Carbon Budget Advice the Climate Change Committee (CCC) are publishing a paper from Professor Nick Chater the Committee’s behavioural science specialist. This paper considers three behavioural principles that explain how people have adapted so rapidly and how we might “build back better” as we emerge from the pandemic with a particular focus on meeting the challenge of dramatically reducing greenhouse gas (GHG) emissions over the coming decades. The principles are:
- The power law of practice: People organizations and whole industries learn to adapt to new ways of working following a surprisingly predictable pattern. This can help predict where adaptation to new ways of living and working is likely to succeed or fail.
- The status quo effect: People and organizations tend to prefer the current status quo but can often adjust rapidly to prefer a new status quo. However we tend to systematically underestimate such effects and therefore can sometimes resist changes that in retrospect we may ultimately prefer.
- Unwritten rules: Our social behaviour is guided by implicit guidelines about what is “appropriate” which can be somewhat independent of our personal values. Changing these implicit rules alongside changes in regulation and the law is crucial to adapting to new circumstances—and the pandemic has shown that rapid change is possible though sometimes resisted (e.g. new norms about mask wearing and social distancing).
Delivering an Energy Export Transition: Impact of Conflicting and Competing Informational Contexts on Public Acceptance of Australia's Hydrogen Export Industry
Mar 2024
Publication
This study uses an online quasi-experiment with a national sample from Australia to evaluate public acceptance of hydrogen exports. It explores the complex communications environment that messaging about hydrogen exports is typically encountered in. We find that acceptance of green hydrogen exports is significantly higher than blue or brown hydrogen exports and acceptance of blue hydrogen exports higher than brown hydrogen exports. Additionally results show economic-framed benefit messages are associated with lesser public acceptance when encountered in communication contexts that outline differently-focused environmental downsides (competing contexts) but not same-focused economic downsides (conflicting contexts). In contrast environment-framed benefit messages are associated with lesser public acceptance when presented in communication contexts that outline same-focused environmental downsides (conflicting contexts) but not differentlyfocused economic downsides (competing contexts). Overall the study indicates message framing can impact acceptance of hydrogen exports and that organisations should consider the informational context within which their communications will be received.
A Policy Review of Green Hydrogen Economy in Southern Africa
Nov 2021
Publication
Renewable energy and clean energy have been on the global agenda for energy transition for quite a long time but recently gained strong momentum especially with the anticipated depletion of fossil fuels alongside increasing environmental degradation from their exploitation and the changing climate caused by their excessive carbon emissions. Despite this Africa’s pursuit to transition to a green economy using renewable energy resources still faces constraints that hamper further development and commercialization. These may include socio-economic technical political financial and institutional policy framework barriers. Although hydrogen demand is still low in Southern Africa the region can meet the global demands for green hydrogen as a major supplier because of its enormous renewable energy resource-base. This article reviews existing renewable energy resources and hydrogen energy policies in the Southern African Development Community (SADC). The significance of this review is that it explores how clean energy technologies that utilize renewable energy resources address the United Nations sustainable development goals (UN SDGs) and identifies the hydrogen energy policy gaps. This review further presents policy options and recommends approaches to enhance hydrogen energy production and ramp the energy transition from a fossil fuel-based economy to a hydrogen energy-based economy in Southern Africa. Concisely the transition can be achieved if the existing hydrogen energy policy framework gap is narrowed by formulating policies that are specific to hydrogen development in each country with the associated economic benefits of hydrogen energy clearly outlined.
2x40GW Green Hydrogen Initiative
Mar 2020
Publication
Hydrogen will play a pivotal role in achieving an affordable clean and prosperous economy. Hydrogen allows for cost-efficient bulk transport and storage of renewable energy and can decarbonise energy use in all sectors.
The European Union together with North Africa Ukraine and other neighbouring countries have a unique opportunity to realise a green hydrogen system. Europe including Ukraine has good renewable energy resources while North Africa has outstanding and abundant resources. Europe can re-use its gas infrastructure with interconnections to North-Africa and other countries to transport and store hydrogen. And Europe has a globally leading industry for clean hydrogen production especially in electrolyser manufacturing.
If the European Union in close cooperation with its neighbouring countries wants to build on these unique assets and create a world leading industry for renewable hydrogen production the time to act is now. Dedicated and integrated multi GW green hydrogen production plants will thereby unlock the vast renewable energy potential.
We the European hydrogen industry are committed to maintaining a strong and world-leading electrolyser industry and market and to producing renewable hydrogen at equal and eventually lower cost than low-carbon (blue) hydrogen. A prerequisite is that a 2x40 GW electrolyser market in the European Union and its neighbouring countries (e.g. North Africa and Ukraine) will develop as soon as possible.
A roadmap for 40 GW electrolyser capacity in the EU by 2030 shows a 6 GW captive market (hydrogen production at the demand location) and 34 GW hydrogen market (hydrogen production near the resource). A roadmap for 40 GW electrolyser capacity in North Africa and Ukraine by 2030 includes 7.5 GW hydrogen production for the domestic market and a 32.5 GW hydrogen production capacity for export.
If a 2x40 GW electrolyser market in 2030 is realised alongside the required additional renewable energy capacity renewable hydrogen will become cost competitive with fossil (grey) hydrogen. GW-scale electrolysers at wind and solar hydrogen production sites will produce renewable hydrogen cost competitively with low-carbon hydrogen production (1.5-2.0 €/kg) in 2025 and with grey hydrogen (1.0-1.5 €/kg) in 2030.
By realizing 2x40 GW electrolyser capacity producing green hydrogen about 82 million ton CO2 emissions per year could be avoided in the EU. The total investments in electrolyser capacity will be 25-30 billion Euro creating 140000- 170000 jobs in manufacturing and maintenance of 2x40 GW electrolysers.
The industry needs the European Union and its member states to design create and facilitate a hydrogen market infrastructure and economy. Crucial is the design and realisation of new unique and long-lasting mutual co-operation mechanisms on political societal and economic levels between the EU and North Africa Ukraine and other neighbouring countries.
The unique opportunity for the EU and its neighbouring countries to develop a green hydrogen economy will contribute to economic growth the creation of jobs and a sustainable affordable and fair energy system. Building on this position Europe and its neighbours can become world market leaders for green hydrogen production technologies.
The European Union together with North Africa Ukraine and other neighbouring countries have a unique opportunity to realise a green hydrogen system. Europe including Ukraine has good renewable energy resources while North Africa has outstanding and abundant resources. Europe can re-use its gas infrastructure with interconnections to North-Africa and other countries to transport and store hydrogen. And Europe has a globally leading industry for clean hydrogen production especially in electrolyser manufacturing.
If the European Union in close cooperation with its neighbouring countries wants to build on these unique assets and create a world leading industry for renewable hydrogen production the time to act is now. Dedicated and integrated multi GW green hydrogen production plants will thereby unlock the vast renewable energy potential.
We the European hydrogen industry are committed to maintaining a strong and world-leading electrolyser industry and market and to producing renewable hydrogen at equal and eventually lower cost than low-carbon (blue) hydrogen. A prerequisite is that a 2x40 GW electrolyser market in the European Union and its neighbouring countries (e.g. North Africa and Ukraine) will develop as soon as possible.
A roadmap for 40 GW electrolyser capacity in the EU by 2030 shows a 6 GW captive market (hydrogen production at the demand location) and 34 GW hydrogen market (hydrogen production near the resource). A roadmap for 40 GW electrolyser capacity in North Africa and Ukraine by 2030 includes 7.5 GW hydrogen production for the domestic market and a 32.5 GW hydrogen production capacity for export.
If a 2x40 GW electrolyser market in 2030 is realised alongside the required additional renewable energy capacity renewable hydrogen will become cost competitive with fossil (grey) hydrogen. GW-scale electrolysers at wind and solar hydrogen production sites will produce renewable hydrogen cost competitively with low-carbon hydrogen production (1.5-2.0 €/kg) in 2025 and with grey hydrogen (1.0-1.5 €/kg) in 2030.
By realizing 2x40 GW electrolyser capacity producing green hydrogen about 82 million ton CO2 emissions per year could be avoided in the EU. The total investments in electrolyser capacity will be 25-30 billion Euro creating 140000- 170000 jobs in manufacturing and maintenance of 2x40 GW electrolysers.
The industry needs the European Union and its member states to design create and facilitate a hydrogen market infrastructure and economy. Crucial is the design and realisation of new unique and long-lasting mutual co-operation mechanisms on political societal and economic levels between the EU and North Africa Ukraine and other neighbouring countries.
The unique opportunity for the EU and its neighbouring countries to develop a green hydrogen economy will contribute to economic growth the creation of jobs and a sustainable affordable and fair energy system. Building on this position Europe and its neighbours can become world market leaders for green hydrogen production technologies.
Hydrogen Transport - Fuelling The Future
Dec 2020
Publication
Through the combustion of fossil fuels the transport sector is responsible for 20-30% of global CO2 emissions. We can support the net-zero one ambition by decarbonising transport modes using green hydrogen fuelled options – hydrogen generated from renewable energy sources such as offshore wind.<br/><br/>We have been working with clients across the hydrogen industry for several years specifically around the generation dispatch and use of hydrogen within energy systems. However interest is swiftly moving to wider hydrogen based solutions including within the fleet rail aviation and maritime sectors.<br/><br/>Our latest ‘Future of Energy’ series explores the opportunity for green fuelled hydrogen transport. We look at each industry in detail the barriers to uptake market conditions and look at how the transport industry could adapt and develop to embrace a net-zero future.
Hydrogen - Decarbonising Heat
Feb 2020
Publication
<br/>Our industry is beginning its journey on the transition to providing the world with sufficient sustainable affordable and low emission energy.<br/><br/>Decarbonisation is now a key priority. Steps range from reducing emissions from traditional oil and gas operations to investing in renewable energy and supplementing natural gas supplies with greener gasses such as hydrogen.<br/><br/>This paper looks at the role hydrogen could play in decarbonisation.
Performing While Transforming: The Role of Transmission Companies in the Energy Transition
Jun 2020
Publication
As the world prepares to exit from the COVID-19 crisis the pace of the global power revolution is expected to accelerate. A new publication from the World Energy Council in collaboration with PwC underscores the imperative for electricity grid owners and operators to fundamentally transform themselves to secure a role in a more integrated flexible and smarter electricity system in the energy transition to a low carbon future.
“Performing While Transforming: The Role of Transmission Companies in the Energy Transition” is based on in-depth interviews with CEOs and senior leaders from 37 transmission companies representing 35 countries and over 4 million kilometres – near global coverage - of the transmission network. While their roles will evolve transmission companies will remain at the heart of the electricity grid and need to balance the challenges of keeping the lights on while transforming themselves for the future.
The publication explores the various challenges affecting how transmission companies prepare and re-think their operations and business models and leverages the insights from interviewees to highlight four recommendations for transmission companies to consider in their journey:
“Performing While Transforming: The Role of Transmission Companies in the Energy Transition” is based on in-depth interviews with CEOs and senior leaders from 37 transmission companies representing 35 countries and over 4 million kilometres – near global coverage - of the transmission network. While their roles will evolve transmission companies will remain at the heart of the electricity grid and need to balance the challenges of keeping the lights on while transforming themselves for the future.
The publication explores the various challenges affecting how transmission companies prepare and re-think their operations and business models and leverages the insights from interviewees to highlight four recommendations for transmission companies to consider in their journey:
- Focus on the future through enhanced forecasting and scenario planning
- Shape the ecosystem by collaborating with new actors and enhancing interconnectivity
- Embrace automation and technology to optimise processes and ensure digital delivery
- Transform organisation to attract new talent and maintain social licence with consumers
A Hydrogen Strategy for a Climate-neutral Europe
Jul 2020
Publication
In an integrated energy system hydrogen can support the decarbonisation of industry transport power generation and buildings across Europe. The EU Hydrogen Strategy addresses how to transform this potential into reality through investments regulation market creation and research and innovation.
Hydrogen can power sectors that are not suitable for electrification and provide storage to balance variable renewable energy flows but this can only be achieved with coordinated action between the public and private sector at EU level. The priority is to develop renewable hydrogen produced using mainly wind and solar energy. However in the short and medium term other forms of low-carbon hydrogen are needed to rapidly reduce emissions and support the development of a viable market.
This gradual transition will require a phased approach:
Hydrogen can power sectors that are not suitable for electrification and provide storage to balance variable renewable energy flows but this can only be achieved with coordinated action between the public and private sector at EU level. The priority is to develop renewable hydrogen produced using mainly wind and solar energy. However in the short and medium term other forms of low-carbon hydrogen are needed to rapidly reduce emissions and support the development of a viable market.
This gradual transition will require a phased approach:
- From 2020 to 2024 we will support the installation of at least 6 gigawatts of renewable hydrogen electrolysers in the EU and the production of up to one million tonnes of renewable hydrogen.
- From 2025 to 2030 hydrogen needs to become an intrinsic part of our integrated energy system with at least 40 gigawatts of renewable hydrogen electrolysers and the production of up to ten million tonnes of renewable hydrogen in the EU.
- From 2030 to 2050 renewable hydrogen technologies should reach maturity and be deployed at large scale across all hard-to-decarbonise sectors.
- To help deliver on this Strategy the Commission is launched the European Clean Hydrogen Alliance with industry leaders civil society national and regional ministers and the European Investment Bank. The Alliance will build up an investment pipeline for scaled-up production and will support demand for clean hydrogen in the EU.
Lock-In Effects on the Energy Sector: Evidence from Hydrogen Patenting Activities
Apr 2022
Publication
The aim of the paper is to analyze how regulatory design and its framework’s topics other than macroeconomic factors might impact green innovation by taking into consideration a brand-new renewable source of energy that is becoming more and more important in recent years: hydrogen and fuel cell patenting activities. Such activities have been used as a proxy for green technological change in a panel data of 52 countries over a 6-year period. A series of sectorial energy regulation and macroeconomic variables were tested to assess their impact on that technological frontier of green energy transition policy. As might have been expected the empirical analysis carried out with the model that was prefigured confirms significant evidence of lock-in effects on fossil fuel policies. The model confirms however another evidence: countries already investing in renewables might be willing to invest in hydrogen projects. A sort of reinforcement to the further development of green sustainable strategies seems to derive from having already concretely undertaken this direction. Future research should exploit different approaches to the research question and address the econometric criticalities mentioned in the paper along with exploiting results of the paper with further investigations.
Meeting Net Zero with Decarbonised Gas
Aug 2019
Publication
Although the UK has done a great job of decarbonising electricity generation to get to net zero we need to tackle harder-to-decarbonise sectors like heat transport and industry. Decarbonised gas – biogases hydrogen and the deployment of carbon capture usage and storage (CCUS) – can make our manufacturing more sustainable minimise disruption to families and deliver negative emissions.
Energy Innovation Needs Assessment: Road Transport
Nov 2019
Publication
The Energy Innovation Needs Assessment (EINA) aims to identify the key innovation needs across the UK’s energy system to inform the prioritisation of public sector investment in low-carbon innovation. Using an analytical methodology developed by the Department for Business Energy & Industrial Strategy (BEIS) the EINA takes a system level approach and values innovations in a technology in terms of the system-level benefits a technology innovation provides. This whole system modelling in line with BEIS’s EINA methodology was delivered by the Energy Systems Catapult (ESC) using the Energy System Modelling Environment (ESMETM) as the primary modelling tool.
To support the overall prioritisation of innovation activity the EINA process analyses key technologies in more detail. These technologies are grouped together into sub-themes according to the primary role they fulfil in the energy system. For key technologies within a sub-theme innovations and business opportunities are identified. The main findings at the technology level are summarised in sub-theme reports. An overview report will combine the findings from each sub-theme to provide a broad system-level perspective and prioritisation.
This EINA analysis is based on a combination of desk research by a consortium of economic and engineering consultants and stakeholder engagement. The prioritisation of innovation and business opportunities presented is informed by a workshop organised for each sub-theme assembling key stakeholders from the academic community industry and government.
This report was commissioned prior to advice being received from the CCC on meeting a net zero target and reflects priorities to meet the previous 80% target in 2050. The newly legislated net zero target is not expected to change the set of innovation priorities rather it will make them all more valuable overall. Further work is required to assess detailed implications.
To support the overall prioritisation of innovation activity the EINA process analyses key technologies in more detail. These technologies are grouped together into sub-themes according to the primary role they fulfil in the energy system. For key technologies within a sub-theme innovations and business opportunities are identified. The main findings at the technology level are summarised in sub-theme reports. An overview report will combine the findings from each sub-theme to provide a broad system-level perspective and prioritisation.
This EINA analysis is based on a combination of desk research by a consortium of economic and engineering consultants and stakeholder engagement. The prioritisation of innovation and business opportunities presented is informed by a workshop organised for each sub-theme assembling key stakeholders from the academic community industry and government.
This report was commissioned prior to advice being received from the CCC on meeting a net zero target and reflects priorities to meet the previous 80% target in 2050. The newly legislated net zero target is not expected to change the set of innovation priorities rather it will make them all more valuable overall. Further work is required to assess detailed implications.
Accelerating Innovation Towards Net Zero Emissions
Apr 2019
Publication
This report Accelerating innovation towards net zero commissioned by the Aldersgate Group and co-authored with Vivid Economics identifies out how the government can achieve a net zero target cost-effectively in a way that enables the UK to capture competitive advantages.
The unique contribution of this report is to identify the lessons from successful and more rapid historical innovations and apply them to the challenge of meeting net zero emissions in the UK.
Achieving net zero emissions is likely to require accelerated innovation across research demonstration and early deployment of low carbon technologies. Researchers analysed five international case studies of relatively rapid innovations to draw key lessons for government on the conditions needed to move from a typical multi-decadal cycle to one that will deliver net zero emissions by mid-Century.
The case studies include:
Six key actions for government policy to accelerate low carbon innovation in the UK:
The unique contribution of this report is to identify the lessons from successful and more rapid historical innovations and apply them to the challenge of meeting net zero emissions in the UK.
Achieving net zero emissions is likely to require accelerated innovation across research demonstration and early deployment of low carbon technologies. Researchers analysed five international case studies of relatively rapid innovations to draw key lessons for government on the conditions needed to move from a typical multi-decadal cycle to one that will deliver net zero emissions by mid-Century.
The case studies include:
- The deployment of the ATM network and cash cards across the UK
- Roll out of a gas network and central heating in the UK
- The development of wind turbines in Denmark and then the UK
- Moving from late-stage adoption of steel technology in South Korea to being the world leading exporter; and
- The slower than expected development of commercial-scale CCUS to date across the world.
Six key actions for government policy to accelerate low carbon innovation in the UK:
- Increase ambition in demonstrating complex and high capital cost technologies and systems.
- Create new markets to catalyse early deployment and move towards widespread commercialisation.
- Use concurrent innovations such as digital technologies to improve system efficiency and make new products more accessible and attractive to customers.
- Use existing or new organisations (cross-industry associations or public-private collaborations) to accelerate innovation in critical areas and coordinate early stage deployment.
- Harness trusted voices to build consumer acceptance through information sharing and rapid responses to concerns.
- Align innovation policy in such a way that it strengthens the UK’s industrial advantages and increases knowledge spillovers between businesses and sectors.
Assessment of Power-to-power Renewable Energy Storage Based on the Smart Integration of Hydrogen and Micro Gas Turbine Technologies
Mar 2022
Publication
Power-to-Power is a process whereby the surplus of renewable power is stored as chemical energy in the form of hydrogen. Hydrogen can be used in situ or transported to the consumption node. When power is needed again hydrogen can be consumed for power generation. Each of these processes incurs energy losses leading to a certain round-trip efficiency (Energy Out/Energy In). Round-trip efficiency is calculated considering the following processes; water electrolysis for hydrogen production compressed liquefied or metal-hydride for hydrogen storage fuel-cell-electric-truck for hydrogen distribution and micro-gas turbine for hydrogen power generation. The maximum achievable round-trip efficiency is of 29% when considering solid oxide electrolysis along with metal hydride storage. This number goes sharply down when using either alkaline or proton exchange membrane electrolyzers 22.2% and 21.8% respectively. Round-trip efficiency is further reduced if considering other storage media such as compressed- or liquefied-H2. However the aim of the paper is to highlight there is still a large margin to increase Power-to-Power round-trip efficiency mainly from the hydrogen production and power generation blocks which could lead to round-trip efficiencies of around 40%e42% in the next decade for Power-to-Power energy storage systems with micro-gas turbines.
Future Swiss Energy Economy: The Challenge of Storing Renewable Energy
Feb 2022
Publication
Fossil fuels and materials on Earth are a finite resource and the disposal of waste into the air on land and into water has an impact on our environment on a global level. Using Switzerland as an example the energy demand and the technical challenges and the economic feasibility of a transition to an energy economy based entirely on renewable energy were analyzed. Three approaches for the complete substitution of fossil fuels with renewable energy from photovoltaics called energy systems (ES) were considered i.e. a purely electric system with battery storage (ELC) hydrogen (HYS) and synthetic hydrocarbons (HCR). ELC is the most energy efficient solution; however it requires seasonal electricity storage to meet year-round energy needs. Meeting this need through batteries has a significant capital cost and is not feasible at current rates of battery production and expanding pumped hydropower to the extent necessary will have a big impact on the environment. The HYS allows underground hydrogen storage to balance seasonal demand but requires building of a hydrogen infrastructure and applications working with hydrogen. Finally the HCR requires the largest photovoltaic (PV) field but the infrastructure and the applications already exist. The model for Switzerland can be applied to other countries adapting the solar irradiation the energy demand and the storage options.
“Bigger than Government”: Exploring the Social Construction and Contestation of Net-zero Industrial Megaprojects in England
Jan 2023
Publication
Industry is frequently framed as hard-to-decarbonize given its diversity of requirements technologies and supply chains many of which are unique to particular sectors. Net zero commitments since 2019 have begun to challenge the carbon intensity of these various industries but progress has been slow globally. Against this backdrop the United Kingdom has emerged as a leader in industrial decarbonization efforts. Their approach is based on industrial clusters which cut across engineering spatial and socio-political dimensions. Two of the largest of these clusters in England in terms of industrial emissions are the Humber and Merseyside. In this paper drawn from a rich mixed methods original dataset involving expert interviews (N = 46 respondents) site visits (N = 20) a review of project documents and the academic literature we explore ongoing efforts to decarbonize both the Humber and Merseyside through the lens of spatially expansive and technically complex megaprojects. Both have aggressive implementation plans in place for the deployment of net-zero infrastructure with Zero Carbon Humber seeking billions in investment to build the country’s first large-scale bioenergy with carbon capture and storage (BECCS) plant alongside a carbon transport network and hydrogen production infrastructure and HyNet seeking billions in investment to build green and blue hydrogen facilities along with a carbon storage network near Manchester and Liverpool. We draw from the social construction of technology (SCOT) literature to examine the relevant social groups interpretive flexibility and patterns of closure associated with Zero Carbon Humber and HyNet. We connect our findings to eight interpretive frames surrounding the collective projects and make connections to problems contestation and closure.
The Viability of Implementing Hydrogen in the Commonwealth of Massachusetts
Sep 2022
Publication
In recent years there has been an increased interest in hydrogen energy due to a desire to reduce greenhouse gas emissions by utilizing hydrogen for numerous applications. Some countries (e.g. Japan Iceland and parts of Europe) have made great strides in the advancement of hydrogen generation and utilization. However in the United States there remains significant reservation and public uncertainty on the use and integration of hydrogen into the energy ecosystem. Massachusetts similar to many other states and small countries faces technical infrastructure policy safety and acceptance challenges with regards to hydrogen production and utilization. A hydrogen economy has the potential to provide economic benefits a reduction in greenhouse gas emissions and sector coupling to provide a resilient energy grid. In this paper the issues associated with integrating hydrogen into Massachusetts and other similar states or regions are studied to determine which hydrogen applications have the most potential understand the technical and integration challenges and identify how a hydrogen energy economy may be beneficial. Additionally hydrogen’s safety concerns and possible contribution to greenhouse gas emissions are also reviewed. Ultimately a set of eight recommendations is made to guide the Commonwealth’s consideration of hydrogen as a key component of its policies on carbon emissions and energy.
Clean Technology Selection of Hydrogen Production on an Industrial Scale in Morocco
Nov 2022
Publication
Sustainable hydrogen production is a priority for Morocco and it’s part of the country’s national energy strategy which is currently being developed. Many processes can be used for its production. However it’s necessary to select the appropriate one for Morocco’s case. In this study a multi-criteria analysis was followed to select the best clean and renewable catalytic process for hydrogen production on an industrial scale. Ten routes were evaluated using the AHP method coupled with the Fuzzy Vikor method for criteria weighting and ranking of alternatives respectively. The results showed that alkaline water electrolysis coupled with renewable energy sources is the most suitable for industrial production in Morocco. The processes that are not well ranked and require further study and development before deployment on an industrial scale are biophotolysis photo fermentation photolysis and thermolysis. The parametric sensitivity analysis performed validated the result obtained. Then the potential for hydrogen production using solar energy is investigated. It was found that Morocco can produce 1057.26 million tons of green hydrogen showing how attractive the selected catalytic process is. This study enables investors and decision-makers to make an informed decision about whether to develop a green hydrogen production industrial installation in Morocco.
US-UK Scientific Forum on Sustainable Energy: Electrical Storage in Support of the Grid, Forum Report
Sep 2022
Publication
The effort to meet the ambitious targets of the Paris agreement is challenging many governments. The US and UK governments might have different approaches to achieving the targets but both will rely heavily on renewable energy sources such as wind and solar to power their economies. However these sources of power are unpredictable and ways will have to be developed to store renewable energy for hours days weeks seasons and maybe even years before it is used. As the disruptive and increasingly deadly impacts of climate change are being felt across the world the need to move to more sustainable sources of energy and to identify viable ways to store that energy has never been more important.<br/>This was the subject of the US–UK Science Forum on electrical storage in support of the grid which was held online from 17 – 18 March 2021. Co-organised by the Royal Society and the National Academy of Sciences it brought together a diverse group of 60 scientists policy makers industry leaders regulators and other key stakeholders for a wide-ranging discussion on all aspects of energy storage from the latest research in the field to the current status of deployment. It also considered the current national and international economic and policy contexts in which these developments are taking place. A number of key points emerged from the discussion. First it is clear that renewable energy will play an increasingly important role in the US and UK energy systems of the future and energy storage at a multi-terawatt hour scale has a vital role to play. Of course this will evolve differently to some extent in both countries and elsewhere according to the various geographical technological economic political social and regulatory environments. Second international collaboration is critical – no single nation will solve this problem alone. As two of the world’s leading scientific nations largest economies and per capita CO2 emitters with a long track record of collaboration the US and UK are well placed to play a vital role in addressing this critical challenge. As the discussion highlighted a wide range of energy storage technologies are now emerging and becoming increasingly available many of which have the potential to be critical components of a future net-zero energy system. A crucial next phase is in ensuring that these are technically developed as well as economically and political viable. This will require the support of a wide range of these potential solutions to ensure that their benefits remain widely available and to avoid costly ‘lock-in’. Scientists and science academies have a critical role to play in analysing technology options their combinations and their potential roles in future sustainable energy systems and in working with policymakers to incentivise investment and deployment.
Green Hydrogen in Europe: Do Strategies Meet Expectations?
Dec 2021
Publication
The possibility of producing hydrogen as an energy carrier or raw material through electrolysis of water so-called green hydrogen has been on the table as a technological option for a long time. However low conversion efficiency and a dubious climate balance have stood in the way of large-scale application ever since. Within the last three to four years however this view has changed significantly. In addition to technological improvements the increasing speed of the expansion of volatile renewable energies in Europe has also contributed to this since in principle a nearly climate-neutral utilisation of excess generation is possible through the use of hydrogen as an energy carrier in electrolysis. In addition hydrogen or products derived from it can be used in a variety of ways as a final energy carrier in all energy-intensive activities: industry heating and transport. For this reason green hydrogen production could play a key role in interconnecting all energy consuming sectors (sector coupling) a long-term goal necessary for achieving the decarbonisation of the European economy.
Prospective Roles for Green Hydrogen as Part of Ireland's Decarbonisation Strategy
Mar 2023
Publication
In recent decades governments and society have been making increasing efforts to address and mitigate climate change by reducing emissions and decarbonising energy generation. Ireland has invested greatly in renewable electricity installing 4 GW of wind capacity since 2002 and has set assertive energy targets such as the aim to reduce overall emissions by 51% by 2030. Nonetheless considerable acceleration is needed in the decarbonisation of the country’s energy sector. This paper investigates the potential role hydrogen can play in Ireland’s energy transition proposing hydrogen as an energy vector and storage medium that may help the country achieve its targets and reduce greenhouse gas emissions. Through literature review research and from industry insights the current state of the Irish energy sector is analysed and recommendations are made as to how where and when hydrogen can be integrated into the decarbonisation of Ireland’s electricity heating and transport. It is concluded that; with significant effort from the government policymakers industry and organisations; the effective deployment of hydrogen technologies in Ireland could avoid up to 6.1 MtCO2eq of emissions annually reflecting a trend observed in many other developed countries in which hydrogen plays an important part in the path to a low-carbon future. Prospective roles for hydrogen in Ireland include renewable energy storage and grid balancing through the deployment of Power-to-Gas systems a replacement for fossil natural gas in the gas grid for backup electricity production as well as industry and heating requirements and the use of hydrogen as a fuel for heavy transport.
Identifying and Analysing Important Model Assumptions: Combining Techno-economic and Political Feasibility of Deep Decarbonisation Pathways in Norway
Mar 2024
Publication
Understanding the political feasibility of transition pathways is a key issue in energy transitions. Policy changes are a significant source of uncertainty in energy system optimisation modelling. Energy system models are nevertheless continuously being updated to reflect policy signals as realistically as possible. Using the concept of transition pathways as a starting point this cross-disciplinary study combines energy system optimization modelling with political feasibility of different transition pathways. This combination generates insights into key political decision points in the ongoing energy transition. Resting on actor support structure and political feasibility of four main pathway categories (electrification hydrogen biomass and energy efficiency) we identify critical model assumptions that are politically significant and impact model outcome. Then by replacing the critical assumptions with technical limitations we model a scenario that is unrestrained by assumptions about policy we identify areas where political choices are key to model outcomes. The combination of actor preferences and modelled energy system consequences enables the identification of future key decision points. We find that there is considerable support for electrification as the main pathway to net-zero. The implications of widespread electrification in terms of energy production and grid capacity lead us to identify challenging policy decisions with implications for the energy transition.
An Eco-technoeconomic Analysis of Hydrogen Production using Solid Oxide Electrolysis Cells that Accounts for Long-term Degradation
Sep 2022
Publication
This paper presents an eco-technoeconomic analysis (eTEA) of hydrogen production via solid oxide electrolysis cells (SOECs) aimed at identifying the economically optimal size and operating trajectories for these cells. Notably degradation effects were accounted by employing a data-driven degradationbased model previously developed by our group for the analysis of SOECs. This model enabled the identification of the optimal trajectories under which SOECs can be economically operated over extended periods of time with reduced degradation rate. The findings indicated that the levelized cost of hydrogen (LCOH) produced by SOECs (ranging from 2.78 to 11.67 $/kg H2) is higher compared to gray hydrogen generated via steam methane reforming (SMR) (varying from 1.03 to 2.16 $ per kg H2) which is currently the dominant commercial process for large-scale hydrogen production. Additionally SOECs generally had lower life cycle CO2 emissions per kilogram of produced hydrogen (from 1.62 to 3.6 kg CO2 per kg H2) compared to SMR (10.72–15.86 kg CO2 per kg H2). However SOEC life cycle CO2 emissions are highly dependent on the CO2 emissions produced by its power source as SOECs powered by high-CO2-emission sources can produce as much as 32.22 kg CO2 per kg H2. Finally the findings of a sensitivity analysis indicated that the price of electricity has a greater influence on the LCOH than the capital cost.
Prospects and Challenges of Green Hydrogen Economy via Multi-Sector Global Symbiosis in Qatar
Jan 2021
Publication
Low carbon hydrogen can be an excellent source of clean energy which can combat global climate change and poor air quality. Hydrogen based economy can be a great opportunity for a country like Qatar to decarbonize its multiple sectors including transportation shipping global energy markets and industrial sectors. However there are still some barriers to the realization of a hydrogen-based economy which includes large scale hydrogen production cost infrastructure investments bulk storage transport & distribution safety consideration and matching supply-demand uncertainties. This paper highlights how the aforementioned challenges can be handled strategically through a multi-sector industrial-urban symbiosis for the hydrogen supply chain implementation. Such symbiosis can enhance the mutual relationship between diverse industries and urban planning by exploring varied scopes of multi-purpose hydrogen usage (i.e. clean energy source as a safer carrier industrial feedstock and intermittent products vehicle and shipping fuel and international energy trading etc.) both in local and international markets. It enables individual entities and businesses to participate in the physical exchange of materials by-products energy and water with strategic advantages for all participants. Besides waste/by-product exchanges several different kinds of synergies are also possible such as the sharing of resources and shared facilities. The diversified economic base regional proximity and the facilitation of rules strategies and policies may be the key drivers that support the creation of a multi-sector hydrogen supply chain in Qatar.
Hydrogen Champion Report: Recommendations to Government and Industry to Accelerate the Development of the UK Hydrogen Economy
Mar 2023
Publication
The UK Hydrogen Champion engaged with stakeholders across the hydrogen value chain between July and December 2022.<br/>This report summarises their findings and makes recommendations for government and industry to accelerate the growth of the hydrogen sector.
A Simulated Roadmap of Hydrogen Technology Contribution to Climate Change Mitigation Based on Representative Concentration Pathways Considerations
Apr 2018
Publication
Hydrogen as fuel has been a promising technology toward climate change mitigation efforts. To this end in this paper we analyze the contribution of hydrogen technology to our future environmental goals. It is assumed that hydrogen is being produced in higher efficiency across time and this is simulated on Global Change Assessment Model (GCAM). The environmental restrictions applied are the expected emissions representative concentration pathways (RCP) 2.6 4.5 and 6.0. Our results have shown increasing hydrogen production as the environmental constraints become stricter and hydrogen more efficient in being produced. This increase has been quantified and provided on open access as Supporting Information to this manuscript.
EU Decarbonization under Geopolitical Pressure: Changing Paradigms and Implications for Energy and Climate Policy
Mar 2023
Publication
This paper aims to assess the impact of EU energy and climate policy as a response to Russia’s war in Ukraine on the EU decarbonization enterprise. It showcases how the Russian invasion was a crunch point that forced the EU to abandon its liberal market dogma and embrace in practice an open strategic autonomy approach. This led to an updated energy and climate policy with significant changes underpinning its main pillars interdependence diversification and the focus of market regulation and build-up. The reversal of enforced interdependence with Russia and the legislative barrage to support and build-up a domestic clean energy market unlocks significant emission reduction potential with measures targeting energy efficiency solar wind and hydrogen development; an urban renewable revolution and electricity and carbon market reforms standing out. Such positive decarbonization effects however are weakened by source and fuel diversification moves that extend to coal and shale gas especially when leading to an infrastructure build-up and locking-in gas use in the mid-term. Despite these caveats the analysis overall vindicates the hypothesis that geopolitics constitutes a facilitator and accelerator of EU energy transition.
Determining the Production and Transport Cost for H2 on a Global Scale
May 2022
Publication
Hydrogen (H2) produced using renewable energy could be used to reduce greenhouse gas (GHG) emissions in industrial sectors such as steel chemicals transportation and energy storage. Knowing the delivered cost of renewable H2 is essential to decisionmakers looking to utilize it. The cheapest location to source it from as well as the transport method and medium are also crucial information. This study presents a Monte Carlo simulation to determine the delivered cost for renewable H2 for any usage location globally as well as the most cost-effective production location and transport route from nearly 6000 global locations. Several industrially dense locations are selected for case studies the primary two being Cologne Germany and Houston United States. The minimum delivered H2 cost to Cologne is 9.4 €/kg for small scale (no pipelines considered) shipped from northern Egypt as a liquid organic hydrogen carrier (LOHC) and 7.6 €/kg piped directly as H2 gas from southern France for large scale (pipelines considered). For smallscale H2 in Houston the minimum delivered cost is 8.6 €/kg trucked as H2 gas from the western Gulf of Mexico and 7.6 €/kg for large-scale demand piped as H2 gas from southern California. The south-west United States and Mexico northern Chile the Middle East and north Africa south-west Africa and north-west Australia are identified as the regions with the lowest renewable H2 cost potential with production costs ranging from 6.7—7.8 €/kg in these regions. Each is able to supply differing industrially dominant areas. Furthermore the effect of parameters such as year of construction electrolyser and H2 demand is analysed. For the case studies in Houston and Cologne the delivered H2 cost is expected to reduce to about 7.8 €/kg by 2050 in Cologne (no pipelines considered PEM electrolyser) and 6.8 €/kg in Houston.
Hydrogen Emissions from a Hydrogen Economy and their Potential Global Warming Impact
Aug 2022
Publication
Hydrogen (H2) is expected to be a key instrument to meet the European Union (EU) Green Deal main objective: i.e. climate neutrality by 2050. Renewable hydrogen deployment is expected to significantly reduce EU greenhouse gas (GHG) emissions by displacing carbon-intensive sources of energy. However concerns have been raised recently regarding the potential global warming impact caused by hydrogen emissions. Although hydrogen is neither intentionally emitted to the atmosphere when used nor a direct greenhouse gas hydrogen losses affect atmospheric chemistry indirectly contributing to global warming. To better understand the potential environmental impact of a hydrogen economy and to assess the need for action in this respect the Clean Hydrogen Joint Undertaking and the U.S. Department of Energy jointly organised with the support of the European Commission Hydrogen Europe Hydrogen Europe Research the Hydrogen Council and the International Partnership for Hydrogen and Fuel Cells in the Economy a 2-day expert workshop. Experts agreed that a low-carbon and in particular a renewable hydrogen economy would significantly reduce the global warming impact compared to a fossil fuel economy. However hydrogen losses to the atmosphere will impact the lifetime of other greenhouse gases namely methane ozone and water vapour indirectly contributing to the increase of the Earth’s temperature in the near-term. To minimise the climate impact of a hydrogen economy losses should therefore be minimised prevented and monitored. Unfortunately current loss rates along the hydrogen supply chain are not well constrained and are currently estimated to go from few percents for compressed hydrogen (1-4%) up to 10-20% for liquefied hydrogen. Both the global warming impact of hydrogen emissions and the leakage rates from a developed hydrogen economy are subject to a high level of uncertainty. It is therefore of paramount importance to invest in developing the ability to accurately quantify hydrogen emissions as well as engage in more research on hydrogen leakage prevention and monitoring systems. More data from the hydrogen industry and improved observational capacity are needed to improve the accuracy of the global hydrogen budget. Finally it is recommended to always report the amount and location of hydrogen emissions when environmental assessments are performed. There is a range of emission metrics and time scales that are designed to evaluate the climate impacts of short-lived GHG emissions compared to CO2 (i.e. CO2 equivalents). The metric choice must depend on the specific policy goal as they can provide very different perspectives on the relative importance of H2 emissions on the climate depending on the time horizon of concern. These differences need to be viewed in the context of the specific policy objectives.
Exploring Supply Chain Design and Expansion Planning of China's Green Ammonia Production with an Optimization-based Simulation Approach
Aug 2021
Publication
Green ammonia production as an important application for propelling the upcoming hydrogen economy has not been paid much attention by China the world's largest ammonia producer. As a result related studies are limited. This paper explores potential supply chain design and planning strategies of green ammonia production in the next decade of China with a case study in Inner Mongolia. A hybrid optimization-based simulation approach is applied considering traditional optimization approaches are insufficient to address uncertainties and dynamics in a long-term energy transition. Results show that the production cost of green ammonia will be at least twice that of the current level due to higher costs of hydrogen supply. Production accounts for the largest share of the total expense of green hydrogen (~80 %). The decline of electricity and electrolyser prices are key in driving down the overall costs. In addition by-product oxygen is also considered in the model to assess its economic benefits. We found that by-product oxygen sales could partly reduce the total expense of green hydrogen (~12 % at a price of USD 85/t) but it also should be noted that the volatile price of oxygen may pose uncertainties and risks to the effectiveness of the offset. Since the case study may represent the favourable conditions in China due to the abundant renewable energy resources and large-scale ammonia industry in this region we propose to take a moderate step towards green ammonia production and policies should be focused on reducing the electricity price and capital investments in green hydrogen production. We assume the findings and implications are informative to planning future green ammonia production in China.
Nuclear Cogeneration: Civil Nuclear Energy in a Low-carbon Future
Oct 2020
Publication
This policy briefing considers how the use of nuclear energy could be expanded to make the most of the energy produced and also to have the flexibility to complement an energy system with a growing input of intermittent renewable energy.<br/>What is nuclear cogeneration?<br/>Nuclear cogeneration is where the heat generated by a nuclear power station is used not only to generate electricity but to address some of the ‘difficult to decarbonise’ energy demands such as domestic heating and hydrogen production. It also enables a nuclear plant to be used more flexibly by switching between electricity generation and cogeneration applications.<br/>Applications for nuclear cogeneration<br/>Heat generated by civil nuclear reactors can be extracted at two different points for applications requiring either low-temperature or high-temperature heat. Each application differs in many aspects of operation and have different challenges.<br/>Low-temperature cogeneration<br/>Applications for the lower temperature ‘waste’ heat include:<br/>District heating<br/>Seawater desalination<br/>Low-temperature industrial process heating<br/>High-temperature cogeneration<br/>Higher temperature heat can be accessed earlier and used for:<br/>High-temperature industrial process heating<br/>Hydrogen production<br/>Sustainable synthetic fuel production<br/>Direct air capture<br/>Thermal energy storage<br/>Challenges of cogeneration systems<br/>Whilst some nuclear cogeneration applications have been employed in many countries the economic benefit of widescale nuclear cogeneration needs to be determined. However if the construction cost reductions for small modular reactors (SMRs) can be realised and the regulation and licencing processes streamlined then the additional revenue benefits of cogeneration could be material for SMRs and for the future of nuclear generation in the UK.<br/>Other outstanding issues include the ownership of reactors the future demand for hydrogen and other cogeneration products at a regional national and international level and the cost of carbon and dependable power.
Green-hydrogen Research: What Have We Achieved, and Where Are We Going? Bibliometrics Analysis
Jul 2022
Publication
In response to the global challenge of climate change 136 countries accounting for 90% of global GDP and 85% of the population have now set net-zero targets. A transition to net-zero will require the decarbonization of all sectors of the economy. Green-hydrogen produced from renewable energy sources poses little to no threat to the environment and increasing its production will support net-zero targets Our study examined the evolution of green-hydrogen research themes since the UN Sustainable Development Goals were adopted in 2015 by utilizing bibliographic couplings keyword co-occurrence and keyphrase analysis of 642 articles from 2016 to 2021 in the Scopus database. We studied bibliometrics indicators and temporal evolution of publications and citations patterns of open access the effect of author collaboration influential publications and top contributing countries. We also consider new indicators like publication views keyphrases topics with prominence and field weighted citation impact and Altmetrics to understand the research direction further. We find four major thematic distributions of green-hydrogen research based on keyword co-occurrence networks: hydrogen storage hydrogen production electrolysis and the hydrogen economy. We also find networks of four research clusters that provide new information on the journal’s contributions to green-hydrogen research. These are materials chemistry hydrogen energy and cleaner production applied energy and fuel cells. Most green-hydrogen research aligns with Affordable and Clean Energy (SDG 7) and Climate Action (SDG 13). The outcomes of policy decisions in the United States Europe India and China will profoundly impact green-hydrogen production and storage over the next five years. If these policies are implemented these countries will account for two-thirds of this growth. Asia will account for the most significant part and become the second-largest producer globally.
Quantifying the Impacts of Heat Decarbonisation Pathways on the Future Electricity and Gas Demand
May 2022
Publication
The decarbonisation of heat supply will play a critical role in meeting the emissions reduction target. There is however great uncertainty associated with the achievable levels of heat decarbonisation and the optimal heat technology mix which can have serious implications for the future electricity and gas demand. This work employs an integrated gas electricity and heat supply model to quantify the impacts of heat decarbonisation pathways on the future electricity and gas demand. A case study in the Great Britain is performed considering two heat decarbonisation scenarios in 2050: one is the predominantly electrified heat supply and the other is the predominantly hydrogen-based heat supply. The electricity demand becomes more volatile in the electrified heat scenario as the peak surges to 107.3 GW compared to 51.1 GW in the 2018 reference scenario while the peak in hydrogen-based heat scenario is 78.4 GW. The peak gas demand declines from 247.6 GW for 2018 to 81.7 GW for electrified heat scenario and to 85.1 GW for hydrogen-based heat scenario confirming that the seasonality associated with heat demand is shifting away from the gas network and towards electricity network. Moreover a sensitivity analysis shows that the future electricity demand is highly sensitive to parameters such as relative heat demand coefficient of performance of air source heat pumps and share of electricity in hydrogen production. Finally the application of a load shifting strategy demonstrates that demand-side flexibility has the potential to maintain the electricity system balance and minimise the generation and network infrastructure requirements arising from heat electrification. While the case study presented in this paper is based on the Great Britain the findings regarding the future electricity and gas demand are relevant for the global energy transition.
Opportunities and Limitations of Hydrogen Energy in Poland against the Background of the European Union Energy Policy
Jul 2022
Publication
One of the strategic goals of developed countries is to significantly increase the share of renewable energy sources in electricity generation. However the process may be hindered by e.g. the storage and transport of energy from renewable sources. The European Union countries see the development of the hydrogen economy as an opportunity to overcome this barrier. Therefore since 2020 the European Union has been implementing a hydrogen strategy that will increase the share of hydrogen in the European energy mix from the current 2 percent to up to 13–14 percent by 2050. In 2021 following the example of other European countries the Polish government adopted the Polish Hydrogen Strategy until 2030 with an outlook until 2040 (PHS). However the implementation of the strategy requires significant capital expenditure and infrastructure modernisation which gives rise to question as to whether Poland is likely to achieve the goals set out in the Polish Hydrogen Strategy and European Green Deal. The subject of the research is an analysis of the sources of financing for the PHS against the background of solutions implemented by the EU countries and a SWOT/TOWS analysis on the hydrogen economy in Poland. The overall result of the SWOT/TOWS analysis shows the advantage of strengths and related opportunities. This allows for a positive assessment of the prospects for the hydrogen economy in Poland. Poland should continue its efforts to take advantage of the external factors (O/S) such as EU support an increased price competitiveness of hydrogen and the emergence of a competitive cross-border hydrogen market in Europe. At the same time the Polish authorities should not forget about the weaknesses and threats that may inhibit the development of the domestic hydrogen market. It is necessary to modernise the infrastructure; increase the share of renewable energy sources in hydrogen production; increase R&D expenditure and in particular to complete the negotiations related to the adoption of the Fit for 55 package.
Everything About Hydrogen Podcast: Using the Law and Regulation to Facilitate Hydrogen Development
Jun 2022
Publication
Burges Salmon’s energy lawyers are known for ground-breaking work in the energy power and utilities sector. They understand the opportunities the technologies and the challenges which the sector presents. Their reputation has been built upon first-of-a-kind projects and deals and an intimate knowledge of energy regulation. Burges Salmon specialists provide expert advice throughout the project/plant life cycle. Over the years this has in turn led to investors and funders requesting their services in the knowledge that they understand the key issues technologies face. They have a team of over 80 lawyers who focus on helping developers investors and funders achieve their aims in the sector. The team has won or been shortlisted for all the key industry awards in energy over the last decade.
The podcast can be found on their website
The podcast can be found on their website
On the Feasibility of Direct Hydrogen Utilisation in a Fossil-free Europe
Oct 2022
Publication
Hydrogen is often suggested as a universal fuel that can replace fossil fuels. This paper analyses the feasibility of direct hydrogen utilisation in all energy sectors in a 100% renewable energy system for Europe in 2050 using hour-by-hour energy system analysis. Our results show that using hydrogen for heating purposes has high costs and low energy efficiency. Hydrogen for electricity production is beneficial only in limited quantities to restrict biomass consumption but increases the system costs due to losses. The transport sector results show that hydrogen is an expensive alternative to liquid e-fuels and electrified transport due to high infrastructure costs and respectively low energy efficiency. The industry sector may benefit from hydrogen to reduce biomass at a lower cost than in the other energy sectors but electrification and e-methane may be more feasible. Seen from a systems perspective hydrogen will play a key role in future renewable energy systems but primarily as e-fuel feedstock rather than direct end-fuel in the hard-to-abate sectors.
The Role of New Energy in Carbon Neutral
Mar 2021
Publication
Carbon dioxide is an important medium of the global carbon cycle and has the dual properties of realizing the conversion of organic matter in the ecosystem and causing the greenhouse effect. The fixed or available carbon dioxide in the atmosphere is defined as “gray carbon” while the carbon dioxide that cannot be fixed or used and remains in the atmosphere is called “black carbon”. Carbon neutral is the consensus of human development but its implementation still faces many challenges in politics resources technology market and energy structure etc. It is proposed that carbon replacement carbon emission reduction carbon sequestration and carbon cycle are the four main approaches to achieve carbon neutral among which carbon replacement is the backbone. New energy has become the leading role of the third energy conversion and will dominate carbon neutral in the future. Nowadays solar energy wind energy hydropower nuclear energy and hydrogen energy are the main forces of new energy helping the power sector to achieve low carbon emissions. “Green hydrogen” is the reserve force of new energy helping further reduce carbon emissions in industrial and transportation fields. Artificial carbon conversion technology is a bridge connecting new energy and fossil energy effectively reducing the carbon emissions of fossil energy. It is predicted that the peak value of China’s carbon dioxide emissions will reach 110108 t in 2030. The study predicts that China's carbon emissions will drop to 22108 t 33108 t and 44108 t respectively in 2060 according to three scenarios of high medium and low levels. To realize carbon neutral in China seven implementation suggestions have been put forward to build a new “three small and one large” energy structure in China and promote the realization of China's energy independence strategy.
Energy-Economic Assessment of Islanded Microgrid with Wind Turbine, Photovoltaic Field, Wood Gasifier, Battery, and Hydrogen Energy Storage
Sep 2022
Publication
Island energy systems are becoming an important part of energy transformation due to the growing needs for the penetration of renewable energy. Among the possible systems a combination of different energy generation technologies is a viable option for local users as long as energy storage is implemented. The presented paper describes an energy-economic assessment of an island system with a photovoltaic field small wind turbine wood chip gasifier battery and hydrogen circuit with electrolyzer and fuel cell. The system is designed to satisfy the electrical energy demand of a tourist facility in two European localizations. The operation of the system is developed and dynamically simulated in the Transient System Simulation (TRNSYS) environment taking into account realistic user demand. The results show that in Gdansk Poland it is possible to satisfy 99% of user demand with renewable energy sources with excess energy equal to 31% while in Agkistro Greece a similar result is possible with 43% of excess energy. Despite the high initial costs it is possible to obtain Simple Pay Back periods of 12.5 and 22.5 years for Gdansk and Agkistro respectively. This result points out that under a high share of renewables in the energy demand of the user the profitability of the system is highly affected by the local cost of energy vectors. The achieved results show that the system is robust in providing energy to the users and that future development may lead to an operation based fully on renewables.
Techno-Economic Feasibility of a Solar-Wind-Fuel Cell Energy System in Duqm, Oman
Jul 2022
Publication
Duqm is located in the Al Wasta Governorate in Oman and is currently fed by 10 diesel generators with a total capacity of around 76 MW and other rental power sources with a size of 18 MW. To make the electric power supply come completely from renewables one novel solution is to replace the diesel with hydrogen. The extra energy coming from the PV-wind system can be utilized to produce green hydrogen that will be utilized by the fuel cell. Measured data of solar insolation hourly wind speeds and hourly load consumption are used in the proposed system. Finding an ideal configuration that can match the load demand and be suitable from an economic and environmental point of view was the main objective of this research. The Hybrid Optimization Model for Multiple Energy Resources (HOMER Pro) microgrid software was used to evaluate the technical and financial performance. The findings demonstrated that the suggested hybrid system (PV-wind-fuel cell) will remove CO2 emissions at a cost of energy (COE) of USD 0.436/kWh and will reduce noise. With a total CO2 emission of 205676830 kg/year the levelized cost of energy for the current system is USD 0.196/kWh. The levelized cost for the diesel system will rise to USD 0.243/kWh when taking 100 US dollars per ton of CO2 into account. Due to system advantages the results showed that using solar wind and fuel cells is the most practical and cost-effective technique. The results of this research illustrated the feasibility and effectiveness of utilizing wind and solar resources for both hydrogen and energy production and also suggested that hydrogen is a more cost-effective long-term energy storage option than batteries.
Navigating the Implementation of Tax Credits for Natural-Gas-Based Low-Carbon-Intensity Hydrogen Projects
Mar 2024
Publication
This paper delves into the critical role of tax credits specifically Sections 45Q and 45V in the financing and economic feasibility of low-carbon-intensity hydrogen projects with a focus on natural-gas-based hydrogen production plants integrated with carbon capture and storage (CCS). This study covers the current clean energy landscape underscoring the importance of low-carbon hydrogen as a key component in the transition to a sustainable energy future and then explicates the mechanics of the 45Q and 45V tax credits illustrating their direct impact on enhancing the economic attractiveness of such projects through a detailed net present value (NPV) model analysis. Our analysis reveals that the application of 45Q and 45V tax credits significantly reduces the levelized cost of hydrogen production with scenarios indicating a reduction in cost ranging from USD 0.41/kg to USD 0.81/kg of hydrogen. Specifically the 45Q tax credit demonstrates a slightly more advantageous impact on reducing costs compared to the 45V tax credit underpinning the critical role of these fiscal measures in enhancing project returns and feasibility. Furthermore this paper addresses the inherent limitations of utilizing tax credits primarily the challenge posed by the mismatch between the scale of tax credits and the tax liability of the project developers. The concept and role of tax equity investments are discussed in response to this challenge. These findings contribute to the broader dialogue on the financing of sustainable energy projects providing valuable insights for policymakers investors and developers in the hydrogen energy sector. By quantifying the economic benefits of tax credits and elucidating the role of tax equity investments our research supports informed decision-making and strategic planning in the pursuit of a sustainable energy future.
Everything About Hydrogen Podcast: Hydrogen on a Global Scale
Aug 2022
Publication
On today’s episode of Everything About Hydrogen we are speaking with Dan Sadler Vice President for UK Low Carbon Solutions at Equinor. Equinor is of course a giant in the global energy sector and is taking a prominent role in the development of the international hydrogen economy with high-profile investments in a number of large-scale production projects in major markets such as the UK. Dan has spent the better part of a decade focused on how to leverage hydrogen’s potential as a fuel for the energy transition and we are excited to have him with us to discuss how Equinor is deploying hydrogen technologies and how he and Equinor expect hydrogen to play a role in a decarbonized energy future.
The podcast can be found on their website.
The podcast can be found on their website.
Breaking the Hard-to-abate Bottleneck in China’s Path to Carbon Neutrality with Clean Hydrogen
Sep 2022
Publication
Countries such as China are facing a bottleneck in their paths to carbon neutrality: abating emissions in heavy industries and heavy-duty transport. There are few in-depth studies of the prospective role for clean hydrogen in these ‘hard-to-abate’ (HTA) sectors. Here we carry out an integrated dynamic least-cost modelling analysis. Results show that first clean hydrogen can be both a major energy carrier and feedstock that can significantly reduce carbon emissions of heavy industry. It can also fuel up to 50% of China’s heavy-duty truck and bus fleets by 2060 and significant shares of shipping. Second a realistic clean hydrogen scenario that reaches 65.7 Mt of production in 2060 could avoid US$1.72 trillion of new investment compared with a no-hydrogen scenario. This study provides evidence of the value of clean hydrogen in HTA sectors for China and countries facing similar challenges in reducing emissions to achieve net-zero goals.
Exploring the Complexity of Hydrogen Perception and Acceptance Among Key Stakeholders in Norway
Nov 2022
Publication
This article explores the complexity of factors or mechanisms that can influence hydrogen stakeholder perception and acceptance in Norway. We systematically analyze 16 semi-structured in-depth interviews with industry stakeholders at local municipal regional and national levels of interest and authority in Norway. Four empirical dimensions are identified that highlight the need for whole system approaches in hydrogen technology research: (1) several challenges incentives and synergy effects influence the hydrogen transition; (2) transport preferences are influenced by combined needs and limitations; (3) levels of knowledge and societal trust determinant to perceptions of risk and acceptance; and (4) national and international hydrogen stakeholders are crucial to building incentives and securing commitment among key actors. Our findings imply that project management planners engineers and policymakers need to apply a whole system perspective and work across local regional and national levels before proceeding with large-scale development and implementation of the hydrogen supply chain.
Clean Hydrogen Is a Challenge for Enterprises in the Era of Low-Emission and Zero-Emission Economy
Jan 2023
Publication
Hydrogen can be considered an innovative fuel that will revolutionize the energy sector and enable even more complete use of the potential of renewable sources. The aim of the paper is to present the challenges faced by companies and economies that will produce and use hydrogen. Thanks to the use of hydrogen in the energy transport and construction sectors it will be possible to achieve climate neutrality by 2050. By 2050 global demand for hydrogen will increase to 614 million metric tons a year and thanks to the use of hydrogen in energy transport and construction it will be possible to achieve climate neutrality. Depending on the method of hydrogen production the processes used and the final effects several groups can be distinguished marked with different colors. It is in this area of obtaining friendly hydrogen that innovative possibilities for its production open up. The costs of hydrogen production are also affected by network fees national tax systems availability and prices of carbon capture utilization and storage installations energy consumption rates by electrolyzers and transport methods. It is planned that 1 kg of hydrogen will cost USD 1. The study used the desk research method which made it possible to analyze a huge amount of descriptive data and numerical data.
Multi-model Assessment of Heat Decarbonisation Options in the UK Using Electricity and Hydrogen
May 2022
Publication
Delivering low-carbon heat will require the substitution of natural gas with low-carbon alternatives such as electricity and hydrogen. The objective of this paper is to develop a method to soft-link two advanced investment-optimising energy system models RTN (Resource-Technology Network) and WeSIM (Whole-electricity System Investment Model) in order to assess cost-efficient heat decarbonisation pathways for the UK while utilising the respective strengths of the two models. The linking procedure included passing on hourly electricity prices from WeSIM as input to RTN and returning capacities and locations of hydrogen generation and shares of electricity and hydrogen in heat supply from RTN to WeSIM. The outputs demonstrate that soft-linking can improve the quality of the solution while providing useful insights into the cost-efficient pathways for zero-carbon heating. Quantitative results point to the cost-effectiveness of using a mix of electricity and hydrogen technologies for delivering zero-carbon heat also demonstrating a high level of interaction between electricity and hydrogen infrastructure in a zero-carbon system. Hydrogen from gas reforming with carbon capture and storage can play a significant role in the medium term while remaining a cost-efficient option for supplying peak heat demand in the longer term with the bulk of heat demand being supplied by electric heat pumps.
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