Policy & Socio-Economics

The Flexibility in Great Britain project analysed the system-level value of deploying flexibility across the heat transport industry and power sectors in Great Britain to provide a robust evidence-base on the role and value of flexibility in a net zero system.

Overview

Findings from this groundbreaking analysis of the future net zero energy system in Great Britain are expected to have profound implications for policymakers households and the wider energy sector across Great Britain.

Key findings include:

• Embedding greater flexibility across the entire energy system will reduce the cost of achieving net zero for all consumers while assuring energy security.
• Investing in flexibility is a no-regrets decision as it has the potential to deliver material net savings of up to £16.7bn per annum across all scenarios analysed in 2050.
• A more flexible system will accelerate the benefits of decarbonisation supported by decentralisation and digitalisation.
• To maximise the benefits of flexibility households and businesses should play an active role in the development and operation of the country’s future energy system as energy use for transport heat and appliances becomes more integrated.
• Policymakers should preserve existing flexibility options and act now to maximise future flexibility such as by building it into ‘smart’ appliances or building standards.

Read the Full Report here on the Carbon Trust Website

View the interactive analysis here at the Carbon Trust Website

Watch an accompanying video here at the Carbon Trust Youtube channel

A Westminster Hall debate on the UK hydrogen economy has been scheduled for Thursday 17 December 2020 at 3.00pm. The debate will be led by Alexander Stafford MP. This House of Commons Library debate pack provides background information and press and parliamentary coverage of the issues.<br/><br/>The Government has legally binding targets under the Climate Change Act 2008 to reach ‘net zero’ carbon emissions by 2050. Background information is available from the Library webpage on Climate Change: an overview.<br/><br/>In order to meet the net zero target the use of fossil fuels (without abatement such as carbon capture usage and storage) across the economy will need to be almost entirely phased out by 2050. Hydrogen gas is regarded as an energy option to help decarbonisation especially in relation to applications that may be more challenging to decarbonise. These applications include heating transport (including heavy goods shipping and aviation) and some industrial processes.<br/><br/>The Government has legally binding targets under the Climate Change Act 2008 to reach ‘net zero’ carbon emissions by 2050. Background information is available from the Library webpage on Climate Change: an overview.<br/><br/>In order to meet the net zero target the use of fossil fuels (without abatement such as carbon capture usage and storage) across the economy will need to be almost entirely phased out by 2050. Hydrogen gas is regarded as an energy option to help decarbonisation especially in relation to applications that may be more challenging to decarbonise. These applications include heating transport (including heavy goods shipping and aviation) and some industrial processes.

Achieving the goals of the Paris Agreement requires increased global climate action especially towards the production and use of synthetic e-fuels. This paper focuses on aviation and maritime transport and the role of green hydrogen for indirect electrification of industry sectors. Based on a sound analysis of existing multilateral cooperation the paper proposes four potential initiatives to increase climate ambition of the G20 countries in the respective policy field: a Sustainable e-Kerosene Alliance a Sustainable e-fuel Alliance for Maritime Shipping a Hard-to-Abate Sector Partnership and a Global Supply-demand-partnership.

The full report can be found here on the Umweltbundesamt website

This European Green Deal Regulatory White Paper provides the views of Europe’s energy regulators represented by ACER and CEER on when and how to regulate the hydrogen networks in the future.



With the EU goal of becoming a carbon neutral continent by 2050 hydrogen is set to play a key role in decarbonising Europe's economy.

To realise the European Green Deal's ambitions for hydrogen the right regulatory framework must be created to facilitate a hydrogen economy in a cost-effective way.

European energy regulators (ACER and CEER) have published a set of recommendations on when and how to regulate pure hydrogen networks. The need and scope of hydrogen network regulation will depend on its structure and evolution.

This paper is the first in our new series of ACER-CEER European Green Deal Regulatory White Papers. This hydrogen paper examines:

• The circumstances under which regulating hydrogen networks is needed;
• How to treat existing hydrogen network infrastructure;
• How to address regulatory challenges related to the repurposing of gas infrastructure for dedicated hydrogen transport.

The aim is to deepen understanding on the regulatory aspects of Green Deal issues and to assist the European Commission in assessing various options as part of the preparations for legislation on hydrogen and energy system integration. With the EU goal of becoming a carbon neutral continent by 2050 hydrogen is set to play a key role in decarbonising Europe's economy.





The Full report can be found on the ACER website

The House of Lords Science and Technology Committee will hear from leading researchers about anticipated developments in batteries and fuel cells over the next ten years that could contribute to meeting the net-zero target.

The Committee continues its inquiry into the Role of batteries and fuel cells in achieving Net Zero. It will ask a panel of experts about batteries hearing about the current state-of-the-art in technologies that are currently in deployment primarily lithium-ion batteries. It will also explore the potential of next generation technologies currently in development and the challenges in scaling them up to manufacture.

The Committee will then question a second panel about fuel cells hearing about the different types available and their applications. It will explore challenges that need to be overcome in the development of the technology and will consider the UK’s international standing in the sector.

Meeting details

At 10.00am: Oral evidence

Professor Serena Corr Chair in Functional Nanomaterials and Director of Research Department of Chemical and Biological Engineering at University of Sheffield

Professor Paul Shearing Professor in Chemical Engineering at University College London

Dr Jerry Barker Founder and Chief Technology Officer at Faradion Limited

Dr Melanie Loveridge Associate Professor Warwick Manufacturing Group at University of Warwick

At 11.00am: Oral evidence

Professor Andrea Russell Professor of Physical Electrochemistry at University of Southampton

Professor Anthony Kucernak Professor of Physical Chemistry Faculty of Natural Sciences at Imperial College London

Professor John Irvine Professor School of Chemistry at University of St Andrews

Possible questions

• What contribution are battery and fuel cell technologies currently making towards decarbonization in the UK?
• What advances do we expect to see in battery and fuel cell technologies and over what timeframes?
• How quickly can UK battery and fuel cell manufacture be scaled up to meet electrification demands?
• What are the challenges facing technological innovation and deployment in heavy transport?
• Are there any sectors where battery and fuel cell technologies are not currently used but could contribute to decarbonisation?
• What are the life cycle environmental impacts of batteries and fuel cells?

Parliament TV video of the meeting

This is part two of a three part enquiry.

Part one can be found here and part three can be found here.

This study investigates the global allocation of hydrogen and synfuels in order to achieve the well below 2 ◦C preferably 1.5 ◦C target set in the Paris Agreement. For this purpose TIMES Integrated Assessment Model (TIAM) a global energy system model is used. In order to investigate global hydrogen and synfuel flows cost potential curves are aggregated and implemented into TIAM as well as demand technologies for the end use sectors. Furthermore hydrogen and synfuel trades are established using liquid hydrogen transport (LH2 ) and both new and existing technologies for synfuels are implemented. To represent a wide range of possible future events four different scenarios are considered with different characteristics of climate and security of supply policies. The results show that in the case of climate policy the renewable energies need tremendous expansion. The final energy consumption is shifting towards the direct use of electricity while certain demand technologies (e.g. aviation and international shipping) require hydrogen and synfuels for full decarbonization. Due to different security of supply policies the global allocation of hydrogen and synfuel production and exports is shifting while the 1.5 ◦C target remains feasible in the different climate policy scenarios. Considering climate policy Middle East Asia is the preferred region for hydrogen export. For synfuel production several regions are competitive including Middle East Asia Mexico Africa South America and Australia. In the case of security of supply policies Middle East Asia is sharing the export volume with Africa while only minor changes can be seen in the synfuel supply.

This paper analyses which sources of low-carbon hydrogen for the Northwest European market are most competitive taking into account costs of local production conversion and transport. Production costs of electrolysis are strongly affected by local renewable electricity costs and capacity factors. Transport costs are the lowest by pipelines for distances under 10000 km with costs linearly increasing with distance. For larger distances transport as ammonia is more efficient with less relation to distance despite higher conversion costs. The most competitive low-carbon hydrogen supply to the Northwest European market appears to be local Steam Methane Reforming with Carbon Capture and Storage when international gas prices return back to historical levels. When gas prices however remain high then import from Morocco with electrolysis directly connected to offshore wind generation is found to be the most competitive source of low-carbon hydrogen. These conclusions are robust for various assumptions on costs and capacity factors.

Hydrogen is indispensable to decarbonise European industry and reach the EU’s 2030 climate targets and 2050 climate neutrality. It is one of the key technologies of Europe’s Net Zero Industry Act. By scaling up its production we will reduce the use of fossil fuels in European industries and serve the needs of hard-to-electrify sectors.

Although energy-intensive industries are often seen as ‘hard-to-decarbonise’ net-zero megaprojects for industrial clusters promise to improve the technical and economic feasibility of hydrogen fuel switching and carbon capture and storage (CCS). Mobilising insights from the megaproject literature this paper analyses the dynamics of an ambitious first-of-kind net-zero megaproject in the Humber industrial cluster in the United Kingdom which includes CCS and hydrogen infrastructure systems industrial fuel switching CO2 capture green and blue hydrogen production and hydrogen storage. To analyse the dynamics of this emerging megaproject the article uses a socio-technical system lens to focus on developments in technology actors and institutions. Synthesising multiple megaproject literature insights the paper develops a comprehensive framework that addresses both aggregate (‘outside-in’) developments and the endogenous (‘inside-out’) experiences and activities regarding three specific challenges: technical system integration actor coordination and institutional alignment. Drawing on an original dataset involving expert interviews (N = 46) site visits (N = 7) and document analysis the ‘outside-in’ analysis finds that the Humber megaproject has progressed rapidly from outline visions to specific technical designs enacted by new coalitions and driven by strengthening policy targets and financial support schemes. The complementary ‘inside-out’ analysis however also finds 12 alignment challenges that can delay or derail materialisation of the plans. While policies are essential aggregate drivers institutional misalignments presently also prevent project-actors from finalising design and investment decisions. Our analysis also finds important tensions between the project's high-pace delivery focus (to meet government targets) and allowing sufficient time for pilot projects learning-by-doing and design iterations.

In this Podcast David Ledesma discusses with Stephen Craen Visiting Research Fellow OIES the challenges facing the financing of future hydrogen projects as it is expected that a substantial amount of capital will need to be invested in green hydrogen production to meet the 2050 net zero targets. Based around an ‘Archetype’ world scale hydrogen export project where 1 GW solar power is used to make green hydrogen which is converted to 250000 tpa green ammonia for export with a capital cost in the region of USD 2 billion the podcast discusses how ‘efficient financing’ can make an important contribution to minimising cost and making projects cost competitive. Stephen Craen argues that lenders and investors will look to precedents when assessing the nascent green hydrogen sector and the foremost will be LNG and offshore wind which both represent large-scale technically complex projects. Commercial structures of the green hydrogen business are expected to borrow concepts from offshore wind projects particularly in relation to price but also from LNG where this is relevant such as take-or-pay contracts. In this podcast we discuss the key issues that will need to be addressed to make a green hydrogen export project bankable concluding that commercial debt from either commercial banks or project bonds can help create competition.

The podcast can be found on their website.

The transition to clean electricity generation is a crucial focus for achieving the current objectives of economy decarbonization. The Balearic Archipelago faces significant environmental economic and social challenges in shifting from a predominantly fossil fuel-based economy to one based on renewable sources. This study proposes implementing a renewable energy mix and decarbonizing the economy of the Balearic Islands by 2040. The proposed system involves an entirely renewable generation system with interconnections between the four Balearic islands and the Spanish mainland grid via a 650 MW submarine cable. This flexible electrical exchange can cover approximately 35% of the peak demand of 1900 MW. The scenario comprises a 6 GWp solar photovoltaic system a wind system of under 1.2 GWp and a 600 MW biomass system as generation sub-systems. A vanadium redox flow battery sub-system with a storage capacity of approximately 21 GWh and 2.5 GWp power is available to ensure system manageability. This system’s levelized electricity cost (LCOE) is around 13.75 cEUR/kWh. The design also incorporates hydrogen as an alternative for difficult-to-electrify uses achieving effective decarbonization of all final energy uses. A production of slightly over 5 × 104 tH2 per year is required with 1.7 GW of electrolyzer power using excess electricity and water resources. The system enables a significant level of economy decarbonization although it requires substantial investments in both generation sources and storage.

This current article discusses the technoeconomics (TE) of hydrogen generation transportation compression and storage in the Australian context. The TE analysis is important and a prerequisite for investment decisions. This study selected the Australian context due to its huge potential in green hydrogen but the modelling is applicable to other parts of the world adjusting the price of electricity and other utilities. The hydrogen generation using the most mature alkaline electrolysis (AEL) technique was selected in the current study. The results show that increasing temperature from 50 to 90 ◦C and decreasing pressure from 13 to 5 bar help improve electrolyser performance though pressure has a minor effect. The selected range for performance parameters was based on the fundamental behaviour of water electrolysers supported with literature. The levelised cost of hydrogen (LCH2 ) was calculated for generation compression transportation and storage. However the majority of the LCH2 was for generation which was calculated based on CAPEX OPEX capital recovery factor hydrogen production rate and capacity factor. The LCH2 in 2023 was calculated to be 9.6 USD/kgH2 using a base-case solar electricity price of 65–38 USD/MWh. This LCH2 is expected to decrease to 6.5 and 3.4 USD/kgH2 by 2030 and 2040 respectively. The current LCH2 using wind energy was calculated to be 1.9 USD/kgH2 lower than that of solar-based electricity. The LCH2 using standalone wind electricity was calculated to be USD 5.3 and USD 2.9 in 2030 and 2040 respectively. The LCH2 predicted using a solar and wind mix (SWM) was estimated to be USD 3.2 compared to USD 9.6 and USD 7.7 using standalone solar and wind. The LCH2 under the best case was predicted to be USD 3.9 and USD 2.1 compared to USD 6.5 and USD 3.4 under base-case solar PV in 2030 and 2040 respectively. The best case SWM offers 33% lower LCH2 in 2023 which leads to 37% 39% and 42% lower LCH2 in 2030 2040 and 2050 respectively. The current results are overpredicted especially compared with CSIRO Australia due to the higher assumption of the renewable electricity price. Currently over two-thirds of the cost for the LCH2 is due to the price of electricity (i.e. wind and solar). Modelling suggests an overall reduction in the capital cost of AEL plants by about 50% in the 2030s. Due to the lower capacity factor (effective energy generation over maximum output) of renewable energy especially for solar plants a combined wind- and solar-based electrolysis plant was recommended which can increase the capacity factor by at least 33%. Results also suggest that besides generation at least an additional 1.5 USD/kgH2 for compression transportation and storage is required.

China is the world’s largest producer and consumer of hydrogen. The country has adopted a domestic strategy that targets significant growth in hydrogen consumption and production. Given the importance of hydrogen in the low-carbon energy transition it is critical to understand China’s hydrogen policies and their implementation as well as the extent to which these contribute to the country’s low-carbon goals.<br/>Existing research has focused on understanding policies and regulations in China and their implications for the country’s hydrogen prospects. This study aims to improve our understanding of central-government initiatives and look at how China’s hydrogen policies are implemented at the local level. The paper examines the three cities of Zhangjiakou (in China’s renewable-rich Hebei province) Datong (in the country’s coal-heartland of Shanxi province) and Chengdu which is rich in hydropower and natural gas. To be sure the three cities analysed in this paper do not cover all regional plans and initiatives but they offer a useful window into local hydrogen policy implementation. They also illustrate the major challenges facing green hydrogen as it moves beyond the narrow highly subsidized field of fuel cell vehicles (FCVs). Indeed costs as well as water land availability and technology continue to be constraints.<br/>The hydrogen policies and road maps reviewed in this paper offer numerous targets—often setting quantitative goals for FCVs hydrogen refuelling stations hydrogen supply chain revenue and new hydrogen technology companies—aligning with the view that hydrogen development is currently more of an industrial policy than a decarbonisation strategy. Indeed hydrogen’s potential to decarbonise sectors such as manufacturing and chemicals is of secondary importance if mentioned at all. But as the cities analysed here view hydrogen as part of their industrial programmes economic development and climate strategies support is likely to remain significant even as the specific incentive schemes will likely evolve.<br/>Given this local hydrogen development model rising demand for hydrogen in China could ultimately increase rather than decrease CO₂ emissions from fossil fuels in the short run. At the same time even though the central government’s hydrogen targets (as laid out in its 2022 policy documents) seem relatively conservative Chinese cities’ appetite for new sources of growth and the ability to fund various business models are worth watching.

The cross-regional renewable hydrogen supply is significant for China to resolve the uneven distribution of renewable energy and decarbonize the transportation sector. Yet the economic comparison of various hydrogen supply routes remains obscure. This paper conducts a techno-economic analysis on six hydrogen supply routes for hydrogen refueling stations including gas-hydrogen tube-trailer gas-hydrogen pipeline liquid-hydrogen truck natural gas pipeline MeOH truck and NH3 truck. Furthermore the impacts of three critical factors are examined including electrolyzer selection transportation distance and electricity price. The results indicate that with a transport distance of 2000 km the natural gas pipeline route offers the lowest cost while the gas-hydrogen tube-trailer route is not economically feasible. The gas-hydrogen pipeline route shows outstanding cost competitiveness between 200 and 2000 km while it is greatly influenced by the utilization rate. The liquid-hydrogen truck route demonstrates great potential with the electricity price decreasing. This study may provide guidance for the development of the cross-regional renewable hydrogen supply for hydrogen refueling stations in China.

Europe’s electricity transmission expansion suffers many delays despite its significance for integrating renewable electricity. A hydrogen network reusing the existing gas network could not only help to supply the demand for low-emission fuels but could also balance variations in wind and solar energies across the continent and thus avoid power grid expansion. Our investigation varies the allowed expansion of electricity and hydrogen grids in net-zero CO2 scenarios for a sector-coupled European energy system capturing transmission bottlenecks renewable supply and demand variability and pipeline retrofitting and geological storage potentials. We find that a hydrogen network connecting regions with low-cost and abundant renewable potentials to demand centers electrofuel production and cavern storage sites reduces system costs by up to 26 bnV/a (3.4%). Although expanding both networks together can achieve the largest cost reductions by 9.9% the expansion of neither is essential for a net-zero system as long as higher costs can be accepted and flexibility options allow managing transmission bottlenecks.

In recent years sustainable development has become a challenge for many societies due to natural or other disruptive events which have disrupted economic environmental and energy infrastructure growth. Developing hydrogen energy infrastructure is crucial for sustainable development because of its numerous benefits over conventional energy sources. However the complexity of hydrogen energy infrastructure including production utilization and storage stages requires accounting for potential vulnerabilities. Therefore resilience needs to be considered along with sustainable development. This paper proposes a decision-making framework to evaluate the resilience of hydrogen energy infrastructure by integrating resilience indicators and sustainability contributing factors. A holistic taxonomy of resilience performance is first developed followed by a qualitative resilience assessment framework using a novel Intuitionistic fuzzy Weighted Influence Nonlinear Gauge System (IFWINGS). The results highlighted that Regulation and legislation Government preparation and Crisis response budget are the most critical resilience indicators in the understudy hydrogen energy infrastructure. A comparative case study demonstrates the practicality capability and effectiveness of the proposed approach. The results suggest that the proposed model can be used for resilience assessment in other areas.

With its ability to store and transport energy without releasing greenhouse gases hydrogen is considered an important driver for the decarbonisation of energy systems. As future hydrogen import prices from global markets are subject to large uncertainties it is unclear what impact different hydrogen and derivative import prices will have on the future German energy system. To answer that research question this paper explores the impact of three different import price scenarios for hydrogen and its derivatives on the German energy system in a climate-neutral setting for Europe in 2045 using three different energy system models. The analysis shows that the quantities of electricity generated as well as the installed capacities for electricity generation and electrolysis increase as the hydrogen import price rises. However the resulting differences between the import price scenarios vary across the models. The results further indicate that domestic German (and European) hydrogen production is often cost-efficient.

The report “Policy Toolbox for Low Carbon and Renewable Hydrogen” is based on an assessment of the performance of hydrogen policies in different stages of market maturity and segments of the value chain. 48 policies were shortlisted based on their economic efficiency and effectiveness and mapped to barriers across the value chain and over time. These policies were subsequently clustered into policy packages for three country archetypes: a self-sufficient hydrogen producer an importer and an exporter of hydrogen.

The paper can be found on their website.

David Ledesma discusses with Alex Barnes the European Commission’s decision to make hydrogen a key part of its decarbonisation strategy. The 2022 REPowerEU Strategy set a target of 20MT consumption of renewable hydrogen by 2030. The Commission is keen to promote a single European market in hydrogen similar to the current one for natural gas. To this end it has published proposals on the regulation of future European hydrogen infrastructure (pipelines storage facilities and import terminals). The EU Council (representing Member States) and the EU Parliament are finalising their amendments to the Commission proposals prior to ‘trilogue’ negotiations and final agreement later this year. The OIES’s paper ‘The EU Hydrogen and Gas Decarbonisation Package: help or hindrance for the development of a European hydrogen market?’ published in March 2023 examines the EU Commission proposals and their suitability for a developing hydrogen market.

The podcast can be found on their website.

The Green Deal Industrial Plan aims to boost the competitiveness of Europe’s net-zero industry and to accelerate the transition to climate neutrality. The Plan is based on four pillars: (1) a predictable and simplified regulatory environment; (2) faster access to funding; (3) developing skills for net-zero industry; and (4) open trade for resilient supply chains.

The worsening climate crisis has increased the urgency of transitioning energy systems from fossil fuels to renewable sources. However many industrialized countries are struggling to meet their growing demand for renewable energy (RE) through domestic production alone and therefore seek to import additional RE using carriers such as hydrogen ammonia or metals. The pressing question for RE importers is therefore how to select trading partners i.e. RE exporting countries. Recent research has identified a plethora of different selection criteria reflecting the complexity of energy systems and international cooperation. However there is little guidance on how to reduce this complexity to more manageable levels as well as a lack of tools for effective partner evaluation. This article aims to fill these gaps. It proposes a new multidimensional framework for evaluating and comparing potential RE trading partners based on four dimensions: economy and technology environment and development regulation and governance and innovation and cooperation. Focusing on Germany as an RE importer an exploratory factor analysis is used to identify a consolidated set of composite selection criteria across these dimensions. The results suggest that Germany’s neighboring developed countries and current net energy exporters such as Canada and Australia are among the most attractive RE trading partners for Germany. A dashboard tool has been developed to provide the framework and composite criteria including adjustable weights to reflect the varying preferences of decision-makers and stakeholders. The framework and the dashboard can provide helpful guidance and transparency for partner selection processes facilitating the creation of RE trade networks that are essential for a successful energy transition.

A significant effort is required to reduce China’s dependency on fossil fuels while also supporting worldwide efforts to reduce climate change and develop hydrogen energy systems. A hydrogen economy must include renewable energy sources (RESs) which can offer a clean and sustainable energy source for producing hydrogen. This study uses an integrated fuzzy AHP–fuzzy TOPSIS method to evaluate and rank renewable energy sources for developing a hydrogen economy in China. This is a novel approach because it can capture the uncertainty and vagueness in the decision-making process and provide a comprehensive and robust evaluation of the alternatives. Moreover it considers multiple criteria and sub-criteria that reflect the environmental economic technical social and political aspects of RESs from the perspective of a hydrogen economy. This study identified five major criteria fifteen sub-criteria and six RES alternatives for hydrogen production. This integrated approach uses fuzzy AHP to evaluate and rank the criteria and sub-criteria and fuzzy TOPSIS to identify the most suitable and feasible RES. The results show that environmental economic and technical criteria are the most important criteria. Solar wind and hydropower are the top three RES alternatives that are most suitable and feasible. Furthermore biomass geo-thermal and tidal energy were ranked lower which might be due to the limitations and challenges in their adoption and performance in the context of the criteria and sub-criteria used for the analysis. This study’s findings add to the literature on guidelines to strategize for renewable energy adoption for the hydrogen economy in China.

The world is undergoing a substantial energy transition with an increasing share of intermittent sources of energy on the grid which is increasing the challenges to operate the power grid reliably. An option that has been receiving much focus after the COVID pandemic is the development of a hydrogen economy. Challenges for a hydrogen economy are the high investment costs involved in compression storage and long-distance transportation. This paper analyses an innovative proposal for the creation of hydrogen ocean links. It intends to fill existing gaps in the creation of a hydrogen economy with the increase in flexibility and viability for hydrogen production consumption compression storage and transportation. The main concept behind the proposals presented in this paper consists of using the fact that the pressure in the deep sea is very high which allows a thin and cheap HDPE tank to store and transport large amounts of pressurized hydrogen in the deep sea. This is performed by replacing seawater with pressurized hydrogen and maintaining the pressure in the pipes similar to the outside pressure. Hydrogen Deep Ocean Link has the potential of increasing the interconnectivity of different regional energy grids into a global sustainable interconnected energy system.

Policy Connect Carbon Connect and sector and Parliamentary experts have collaborated to present options for the gas grid to play a useful role in the UK’s transition to a low carbon energy system through the widespread use of low carbon gas. The report calls on Government to support the transition to a more flexible gas grid that uses various forms of gas including low carbon gases such as hydrogen and biomethane.

Power to gas (PTG) refers to the technology of converting power into energy-storage gas which can absorb excess power when there is excess power and release energy-storage gas when needed. Based on the carbon dioxide (CO2 ) emission of Karamay City in Northwest China this study designed a process flow of the CO2 absorption process and the hydrogen and CO2 methanation process in PTG technology. The results show that the efficiency of the CO2 absorption process was 91.5% and the methanation efficiency was 77.5%. The heat recovery module was set during the process and the total heat recovered was 17.85 MW. The cost of producing synthetic natural gas (SNG) in the PTG factory was 1782 USD/ton. In terms of cost the cost of hydrogen production from electrolyzed water accounted for the largest proportion. In terms of product profit the sale of pure oxygen was the largest part of the profit. At present the carbon emission reduction index profit brought by SNG production accounted for a small proportion. In the future with technological progress industrial upgrading and the improvement in the carbon trading market PTG technology is expected to become one of the ways to achieve carbon-emission-reduction targets.