Policy & Socio-Economics
Hydrogen for a Net Zero GB An Integrated Energy Market Perspective
Jul 2020
Publication
Our new independent report finds that hydrogen can play an important role in UK’s ambitious decarbonisation plan and boost its global industrial competitiveness.
Key insights from this new analysis include:
Key insights from this new analysis include:
- New independent report from Aurora Energy Research shows that hydrogen can meet up to half of Great Britain’s (GB) final energy demand by 2050 providing an important pathway to reaching UK’s ambitious Net Zero targets.
- The report concludes that both blue hydrogen (produced from natural gas after reforming to remove carbon content) and green hydrogen (produced by using power to electrolyse water) are expected to play an important role providing up to 480TWh of hydrogen or c.45% of GB’s final energy demand by 2050.
- All Net Zero scenarios require substantial growth in low-carbon generation such as renewables and nuclear. Large-scale hydrogen adoption could help to integrate renewables into the power system by reducing the power sector requirement for flexibility during peak winter months and boosting revenues for clean power generators by c. £3bn per year by 2050.
- The rollout of hydrogen could accelerate green growth and enable the development of globally competitive low-carbon industrial clusters while utilising UK’s competitive advantage on carbon capture.
- In facilitating the identification of a cost-effective hydrogen pathway there are some low-regret options for Government to explore including the stimulation of hydrogen demand in key sectors the deployment of CCS in strategic locations and the standardisation of networks. These initiatives could form an important part of the UK Government’s post-COVID stimulus plan.
Clean or Renewable – Hydrogen and Power-to-gas in EU Energy Law
Aug 2020
Publication
Interest in hydrogen as a carbon-neutral energy carrier is on the rise around the globe including in Europe. In particular power-to-gas as a technology to transform electricity to hydrogen is receiving ample attention. This article scrutinises current updates in the energy law framework of the EU to explain the legal pre-conditions for the various possible applications of power-to-gas technology. It highlights the influence of both electricity and gas legislation on conversion storage and transmission of hydrogen and demonstrates why ‘green’ hydrogen might come with certain legal privileges under the Renewable Energy Directive attached to it as opposed to the European Commission’s so-called ‘clean’ hydrogen. The article concludes by advocating for legal system integration in EU energy law namely merging the currently distinct EU electricity and gas law frameworks into one unified EU Energy Act.
How Hydrogen Can Help Decarbonise the Maritime Sector
Jun 2021
Publication
Hydrogen Europe is the organisation representing the interests of the European hydrogen industry. It fully adheres to the European Union’s target of climate neutrality by 2050 and supports the European Commission’s objectives to develop and integrate more renewable energy sources into the European energy mix.<br/><br/>In December 2015 in Paris a global climate agreement was reached at the UN Climate Change Conference (COP 21). The Paris Agreement is seen as a historic and landmark instrument in climate action. However the agreement is lacking emphasis on international maritime transport and the role that this sector will need to play in contributing to the decarbonisation of the global economy and in striving for a clean planet for all.<br/><br/>Hydrogen hydrogen-based fuels (such as ammonia) and hydrogen technologies offer tremendous potential for the maritime sector<br/>and if properly harnessed can significantly contribute to the decarbonisation and also mitigate the air pollution of the worldwide fleet. Hydrogen Europe will be the catalyst in this process the decarbonisation and also mitigate the air pollution of the worldwide fleet. Hydrogen Europe will be the catalyst in this process.<br/><br/>The pathway towards hydrogen and hydrogenbased fuels for the maritime sector does not come without technological and commercial challenges let alone regulatory barriers.
Towards Global Cleaner Energy and Hydrogen Production: A Review and Application ORC Integrality with Multigeneration Systems
Apr 2022
Publication
The current evidential effect of carbon emissions has become a societal challenge and the need to transition to cleaner energy sources/technologies has attracted wide research attention. Technologies that utilize low-grade heat like the organic Rankine cycle (ORC) and Kalina cycle have been proposed as viable approaches for fossil reduction/carbon mitigation. The development of renewable energy-based multigeneration systems is another alternative solution to this global challenge. Hence it is important to monitor the development of multigeneration energy systems based on low-grade heat. In this study a review of the ORC’s application in multigeneration systems is presented to highlight the recent development in ORC integrality/application. Beyond this a new ORC-CPVT (concentrated photovoltaic/thermal) integrated multigeneration system is also modeled and analyzed using the thermodynamics approach. Since most CPVT systems integrate hot water production in the thermal stem the proposed multigeneration system is designed to utilize part of the thermal energy to generate electricity and hydrogen. Although the CPVT system can achieve high energetic and exergetic efficiencies while producing thermal energy and electricity these efficiencies are 47.9% and 37.88% respectively for the CPVT-ORC multigeneration configuration. However it is noteworthy that the electricity generation from the CPVT-ORC configuration in this study is increased by 16%. In addition the hot water cooling effect and hydrogen generated from the multigeneration system are 0.4363 L/s 161 kW and 1.515 L/s respectively. The environmental analysis of the system also shows that the carbon emissions reduction potential is enormous.
Evaluation of Decarbonization Technologies for ASEAN Countries via an Integrated Assessment Tool
May 2022
Publication
A new assessment tool for evaluating decarbonization technologies that considers each technology’s sustainability security affordability readiness and impact for a specific country is proposed. This tool is applied to a set of decarbonization technologies for the power transport and industry sectors for the ten Southeast Asian countries that constitute ASEAN. This results in a list of the most promising decarbonization technologies as well as the remaining issues that need more research and development. This study reveals several common themes for ASEAN’s decarbonization. First carbon capture and storage (CCS) is a key technology for large-scale CO2 emission. Second for countries that rely heavily on coal for power generation switching to gas can halve their CO2 emission in the power sector and should be given high priority. Third hydropower and bioenergy both have high potential for the majority of ASEAN countries if their sustainability issues can be resolved satisfactorily. Fourth replacing conventional vehicles by electric vehicles is the overarching theme in the road transport sector but will result in increased demand for electricity. In the medium to long term the use of hydrogen for marine fuel and biofuels for aviation fuel are preferred solutions for the marine and aviation transport sectors. Fifth for the industry sector installing CCS in industrial plants should be given priority but replacing fossil fuels by blue hydrogen for high-temperature heating is the preferred long-term solution.
Biogas: Pathways to 2030
Mar 2021
Publication
Humans directly or indirectly generate over 105 billion tonnes of organic wastes globally each year all of which release harmful methane and other greenhouse gas emissions directly into the atmosphere as they decompose. These organic wastes include food waste sewage and garden wastes food and drink processing wastes and farm and agricultural wastes. Today only 2% of these are treated and recycled.
By simply managing these important bioresources more effectively we can cut global Greenhouse Gas (GHG) emissions by 10% by 2030. This report maps out how the global biogas industry can enable countries to deliver a 10% reduction in global GHG emissions by 2030. The pathways put humanity back on track to deliver by 2030 on the ambitions of both the Paris Agreement and UN Sustainable Development Goals (SDGs).
The report and the executive summary can be downloaded at this link
By simply managing these important bioresources more effectively we can cut global Greenhouse Gas (GHG) emissions by 10% by 2030. This report maps out how the global biogas industry can enable countries to deliver a 10% reduction in global GHG emissions by 2030. The pathways put humanity back on track to deliver by 2030 on the ambitions of both the Paris Agreement and UN Sustainable Development Goals (SDGs).
The report and the executive summary can be downloaded at this link
Australian and Global Hydrogen Demand Growth Scenario Analysis
Nov 2019
Publication
Deloitte was commissioned by the National Hydrogen Taskforce established by the COAG Energy Council to undertake an Australian and Global Growth Scenario Analysis. Deloitte analysed the current global hydrogen industry its development and growth potential and how Australia can position itself to best capitalise on the newly forming industry.
To conceptualise the possibilities for Australia Deloitte created scenarios to model the realm of possibilities for Australia out to 2050 focusing on identifying the scope and distribution of economic and environmental costs and benefits from Australian hydrogen industry development. This work will aid in analysing the opportunities and challenges to hydrogen industry development in Australia and the actions needed to overcome barriers to industry growth manage risks and best drive industry development.
The full report is available on the Deloitte website at this link
To conceptualise the possibilities for Australia Deloitte created scenarios to model the realm of possibilities for Australia out to 2050 focusing on identifying the scope and distribution of economic and environmental costs and benefits from Australian hydrogen industry development. This work will aid in analysing the opportunities and challenges to hydrogen industry development in Australia and the actions needed to overcome barriers to industry growth manage risks and best drive industry development.
The full report is available on the Deloitte website at this link
Heat Pump Manufacturing Supply Chain Research Project Report
Dec 2020
Publication
The Department for Business Energy and Industrial Strategy (BEIS) commissioned a study to research the capacity of the manufacturing supply chain to meet expected future demand for heat pumps. This report contains analysis of the existing supply chain including component parts and also assesses the risks to and opportunities for growth in domestic heat pump manufacture and export.<br/><br/>Alongside a literature review the findings in this report were supported by interviews with organisations involved in the manufacture of heat pumps and an online workshop held with a range of businesses throughout the supply chain.
Integration of Hydrogen into Multi-Energy Systems Optimisation
Apr 2020
Publication
Hydrogen presents an attractive option to decarbonise the present energy system. Hydrogen can extend the usage of the existing gas infrastructure with low-cost energy storability and flexibility. Excess electricity generated by renewables can be converted into hydrogen. In this paper a novel multi-energy systems optimisation model was proposed to maximise investment and operating synergy in the electricity heating and transport sectors considering the integration of a hydrogen system to minimise the overall costs. The model considers two hydrogen production processes: (i) gas-to-gas (G2G) with carbon capture and storage (CCS) and (ii) power-to-gas (P2G). The proposed model was applied in a future Great Britain (GB) system. Through a comparison with the system without hydrogen the results showed that the G2G process could reduce £3.9 bn/year and that the P2G process could bring £2.1 bn/year in cost-savings under a 30 Mt carbon target. The results also demonstrate the system implications of the two hydrogen production processes on the investment and operation of other energy sectors. The G2G process can reduce the total power generation capacity from 71 GW to 53 GW and the P2G process can promote the integration of wind power from 83 GW to 130 GW under a 30 Mt carbon target. The results also demonstrate the changes in the heating strategies driven by the different hydrogen production processes.
Decarbonisation of Heat in Great Britain
Oct 2021
Publication
This study was conducted for a group of 15 clients in the public and private sectors interested in potential pathways for decarbonising residential heating and the impact of these pathways on the energy system. The ambition for all new heating installations to be low carbon from 2035 is essential to meeting the net zero target in 2050 and our study found that electricity demand for home heating is set to quadruple by 2050 as part of the shift away from gas-fired boilers.
The key findings from the study include:
The key findings from the study include:
- Phasing out natural gas boiler installations by 2035 is crucial for eliminating CO2 from home heating; delaying to 2040 could leave us with ¼ of today’s home heat emissions in 2050
- Achieving deployment of 600k heat pumps per year by 2028 will require policy intervention both to lower costs and to inform and protect consumers Almost £40bn could be saved in cumulative system costs by 2050 through adoption of more efficient and flexible electric heating technologies like networked heat pumps and storage
- Electricity demand from heating could quadruple by 2050 to over 100TWh per year almost a third of Great Britain’s current total annual electricity demand Using hydrogen for a share of heating could lower peak power demand although producing most of this hydrogen from electrolysis would raise overall power demand.
Towards a Large-Scale Hydrogen Industry for Australia
Oct 2020
Publication
As nations around the world seek to reduce carbon dioxide emissions in order to mitigate climate change risks there has been a resurgence of interest in the use of hydrogen as a zero-emissions energy carrier. Hydrogen can be produced from diverse feedstocks via a range of low-emissions pathways and has broad potential in the process of decarbonization across the energy transport and industrial sectors.<br/>With an abundance of both renewable and fossil fuel energy resources a comparatively low national energy demand and excellent existing regional resource trading links Australia is well positioned to pursue industrial-scale hydrogen production for both domestic and export purposes. In this paper we present an overview of the progress at the government industry and research levels currently undertaken to enable a large-scale hydrogen industry for Australia.
Energy System Modelling of Carbon-Neutral Hydrogen as an Enabler of Sectoral Integration within a Decarbonization Pathway
Jul 2019
Publication
This paper explores the alternative roles hydrogen can play in the future European Union (EU) energy system within the transition towards a carbon-neutral EU economy by 2050 following the latest policy developments after the COP21 agreement in Paris in 2015. Hydrogen could serve as an end-use fuel a feedstock to produce carbon-neutral hydrocarbons and a carrier of chemical storage of electricity. We apply a model-based energy system analysis to assess the advantages and drawbacks of these three roles of hydrogen in a decarbonized energy system. To this end the paper quantifies projections of the energy system using an enhanced version of the PRIMES energy system model up to 2050 to explore the best elements of each role under various assumptions about deployment and maturity of hydrogen-related technologies. Hydrogen is an enabler of sectoral integration of supply and demand of energy and hence an important pillar in the carbon-neutral energy system. The results show that the energy system has benefits both in terms of CO2 emission reductions and total system costs if hydrogen technology reaches high technology readiness levels and economies of scale. Reaching maturity requires a significant investment which depends on the positive anticipation of market development. The choice of policy options facilitating visibility by investors is the focus of the modelling in this paper.
Decarbonization of Cement Production in a Hydrogen Economy
Apr 2022
Publication
The transition to net-zero emission energy systems creates synergistic opportunities across sectors. For example fuel hydrogen production from water electrolysis generates by-product oxygen that could be used to reduce the cost of carbon capture and storage (CCS) essential in the decarbonization of clinker production in cement making. To assess this opportunity a techno-economic assessment was carried out for the production of clinker using oxy-combustion in a natural gas-fueled plant coupled to CCS. Material and energy flows were assessed in a reference case for clinker production (oxygen from air no CCS) and compared to oxy-combustion clinker production from either an air separation unit (ASU 95% O2) or water electrolysis (100% O2) both coupled to CCS. Compared to the reference air-combusted clinker plant oxy-combustion increases thermal energy demand by 7% and electricity demand by 137% for ASU and 67% for electrolytic oxygen. The levelized cost of oxygen supply ranges from $49/tO2 for an on-site ASU to pipelined electrolytic O2 at $35/tO2 (200 km) or $13/t O2 (20 km). The cost of clinker for the reference plant without CCS increases linearly from $84/t clinker to $193/t clinker at a carbon price of $0/tCO2 to $150/tCO2 respectively. With oxy-combustion and CCS the clinker production cost ranges from $119 to $122/t clinker reflecting a breakeven carbon price of $39 to $53/tCO2 compared to the reference case. The lower cost for the electrolytic supply of by-product oxygen compared to ASU oxygen must be balanced against the reliability of supply the pipeline transport distance and the charges that may be added by the hydrogen producer.
Integrating System and Operator Perspectives for the Evaluation of Power-to-Gas Plants in the Future German Energy System
Feb 2022
Publication
In which way and in which sectors will renewable energy be integrated in the German Energy System by 2030 2040 and 2050? How can the resulting energy system be characterised following a −95% greenhouse gas emission reduction scenario? Which role will hydrogen play? To address these research questions techno-economic energy system modelling was performed. Evaluation of the resulting operation of energy technologies was carried out from a system and a business point of view. Special consideration of gas technologies such as hydrogen production transport and storage was taken as a large-scale and long-term energy storage option and key enabler for the decarbonisation of the non-electric sectors. The broad set of results gives insight into the entangled interactions of the future energy technology portfolio and its operation within a coupled energy system. Amongst other energy demands CO2 emissions hydrogen production and future power plant capacities are presented. One main conclusion is that integrating the first elements of a large-scale hydrogen infrastructure into the German energy system already by 2030 is necessary for ensuring the supply of upscaling demands across all sectors. Within the regulatory regime of 2020 it seems that this decision may come too late which jeopardises the achievement of transition targets within the horizon 2050.
Analysing Future Demand, Supply, and Transport of Hydrogen
Jun 2021
Publication
Hydrogen is crucial to Europe’s transformation into a climate-neutral continent by mid-century. This study concludes that the European Union (EU) and UK could see a hydrogen demand of 2300 TWh (2150-2750 TWh) by 2050. This corresponds to 20-25% of EU and UK final energy consumption by 2050. Achieving this future role of hydrogen depends on many factors including market frameworks legislation technology readiness and consumer choice.
The document can be download on their website
The document can be download on their website
Between Hope And Hype: A Hydrogen Vision For The UK
Mar 2021
Publication
There is a growing conversation around the role that hydrogen can play in the future of the UK and how to best harness its potential to secure jobs show climate leadership promote industrial competitiveness and drive innovation. The Government’s ‘Ten Point Plan for a Green Industrial Revolution’ included hydrogen as one of its ten actions targeting 5GW of ‘low carbon’ hydrogen production by 2030. Britain is thus joining the EU US Japan Germany and a host of other countries seeking to be part of the hydrogen economy of the future.<br/><br/>A focus on clean green hydrogen within targeted sectors and hubs can support multiple Government goals – including demonstrating climate leadership reducing regional inequalities through the ‘levelling up’ agenda and ensuring a green and cost-effective recovery from the coronavirus pandemic which prioritises jobs and skills. A strategic hydrogen vision must be honest and recognise where green hydrogen does not present the optimal pathway for decarbonisation – for instance where alternative solutions are already readily available for roll-out are more efficient and cost-effective. A clear example is hydrogen use for heating where it is estimated to require around 30 times more offshore wind farm capacity than currently available to produce enough green hydrogen to replace all gas boilers as well as adding costs for consumers.<br/><br/>This paper considers the offer of hydrogen for key Government priorities – including an inclusive and resilient economic recovery from the pandemic demonstrating climate leadership and delivering for all of society across the UK. It assesses existing evidence and considers the risks and opportunities and how they might inform a strategic vision for the UK. Ahead of the forthcoming Hydrogen Strategy it sets expectations for Government and outlines key recommendations.
Making the Hydrogen Economy Possible: Accelerating Clean Hydrogen in an Electrified Economy
Apr 2021
Publication
In its new report Making the Hydrogen Economy Possible: Accelerating clean hydrogen in an electrified economy the ETC outlines the role of clean hydrogen in achieving a highly electrified net-zero economy. The report sets out how a combination of private-sector collaboration and policy support can drive the initial ramp up of clean hydrogen production and use to reach 50 million tonnes by 2030.<br/>Clean hydrogen will play a complementary role to decarbonise sectors where direct electrification is likely to be technologically very challenging or prohibitively expensive such as in steel production and long-distance shipping. The report highlights how critical rapid ramp-up of production and use in the 2020s is to unlock cost reductions and to make mid-century growth targets achievable.<br/>This report is part of the ETC’s wider Making Mission Possible Series – a series of reports outlining how to scale up clean energy provision within the next 30 years to meet the needs of a net-zero greenhouse gas emissions (GHG) economy by mid-century. The reports in the series analyse and set out specific actions required in the next decade to put this net-zero by 2050 target within reach.
A Step towards the Hydrogen Economy—A Life Cycle Cost Analysis of A Hydrogen Refueling Station
May 2017
Publication
This study was aimed to define a methodology based on existing literature and evaluate the levelized cost of hydrogen (LCOH) for a decentralized hydrogen refueling station (HRS) in Halle Belgium. The results are based on a comprehensive data collection along with real cost information. The main results indicated that a LCOH of 10.3 €/kg at the HRS can be reached over a lifetime of 20 years if an average electricity cost of 0.04 €/kWh could be achieved and if the operating hours are maximized. Furthermore if the initial capital costs can be reduced by 80% in the case of direct subsidy the LCOH could even fall to 6.7 €/k
Sustainable Offshore Oil and Gas Fields Development: Techno-economic Feasibility Analysis of Wind–hydrogen–natural Gas Nexus
Jul 2021
Publication
Offshore oil and gas field development consumes quantities of electricity which is usually provided by gas turbines. In order to alleviate the emission reduction pressure and the increasing pressure of energy saving governments of the world have been promoting the reform of oil and gas fields for years. Nowadays environmentally friendly alternatives to provide electricity are hotspots such as the integration of traditional energy and renewable energy. However the determination of system with great environmental and economic benefits is still controversial. This paper proposed a wind– hydrogen–natural gas nexus (WHNGN) system for sustainable offshore oil and gas fields development. Combining the optimization model with the techno-economic evaluation model a comprehensive evaluation framework is established for techno-economic feasibility analysis. In addition to WHNGN system another two systems are designed for comparison including the traditional energy supply (TES) system and wind–natural gas nexus (WNGN) system. An offshore production platforms in Bohai Bay in China is taken as a case and the results indicate that: (i) WNGN and WHNGN systems have significant economic benefits total investment is decreased by 5190 and 5020 million $ respectively and the WHNGN system increases 4174 million $ profit; (ii) WNGN and WHNGN systems have significant environmental benefits annual carbon emission is decreased by 15 and 40.2 million kg respectively; (iii) the system can be ranked by economic benefits as follows: WHNGN >WNGN > TES; and (iV) the WHNGN system is more advantageous in areas with high hydrogen and natural gas sales prices such as China Kazakhstan Turkey India Malaysia and Indonesia.
Potential for Hydrogen and Power-to-Liquid in a Low-carbon EU Energy System Using Cost Optimization
Oct 2018
Publication
Hydrogen represents a versatile energy carrier with net zero end use emissions. Power-to-Liquid (PtL) includes the combination of hydrogen with CO2 to produce liquid fuels and satisfy mostly transport demand. This study assesses the role of these pathways across scenarios that achieve 80–95% CO2 reduction by 2050 (vs. 1990) using the JRC-EU-TIMES model. The gaps in the literature covered in this study include a broader spatial coverage (EU28+) and hydrogen use in all sectors (beyond transport). The large uncertainty in the possible evolution of the energy system has been tackled with an extensive sensitivity analysis. 15 parameters were varied to produce more than 50 scenarios. Results indicate that parameters with the largest influence are the CO2 target the availability of CO2 underground storage and the biomass potential.
Hydrogen demand increases from 7 mtpa today to 20–120 mtpa (2.4–14.4 EJ/yr) mainly used for PtL (up to 70 mtpa) transport (up to 40 mtpa) and industry (25 mtpa). Only when CO2 storage was not possible due to a political ban or social acceptance issues was electrolysis the main hydrogen production route (90% share) and CO2 use for PtL became attractive. Otherwise hydrogen was produced through gas reforming with CO2 capture and the preferred CO2 sink was underground. Hydrogen and PtL contribute to energy security and independence allowing to reduce energy related import cost from 420 bln€/yr today to 350 or 50 bln€/yr for 95% CO2 reduction with and without CO2 storage. Development of electrolyzers fuel cells and fuel synthesis should continue to ensure these technologies are ready when needed. Results from this study should be complemented with studies with higher spatial and temporal resolution. Scenarios with global trading of hydrogen and potential import to the EU were not included.
Hydrogen demand increases from 7 mtpa today to 20–120 mtpa (2.4–14.4 EJ/yr) mainly used for PtL (up to 70 mtpa) transport (up to 40 mtpa) and industry (25 mtpa). Only when CO2 storage was not possible due to a political ban or social acceptance issues was electrolysis the main hydrogen production route (90% share) and CO2 use for PtL became attractive. Otherwise hydrogen was produced through gas reforming with CO2 capture and the preferred CO2 sink was underground. Hydrogen and PtL contribute to energy security and independence allowing to reduce energy related import cost from 420 bln€/yr today to 350 or 50 bln€/yr for 95% CO2 reduction with and without CO2 storage. Development of electrolyzers fuel cells and fuel synthesis should continue to ensure these technologies are ready when needed. Results from this study should be complemented with studies with higher spatial and temporal resolution. Scenarios with global trading of hydrogen and potential import to the EU were not included.
No more items...