Policy & Socio-Economics

The Philippines is exploring different alternative sources of energy to make the country less dependent on imported fossil fuels and to reduce significantly the country's CO2 emissions. Given the abundance of renewable energy potential in the country green hydrogen from renewables is a promising fuel because it can be utilized as an energy carrier and can provide a source of clean and sustainable energy with no emissions. This paper aims to review the prospects and challenges for the potential use of green hydrogen in several production and utilization pathways in the Philippines. The study identified green hydrogen production routes from available renewable energy sources in the country including geothermal hydropower wind solar biomass and ocean. Opportunities for several utilization pathways include transportation industry utility and energy storage. From the analysis this study proposes a roadmap for a green hydrogen economy in the country by 2050 divided into three phases: green hydrogen as industrial feedstock green hydrogen as fuel cell technology and commercialization of green hydrogen. On the other hand the analysis identified several challenges including technical economic and social aspects as well as the corresponding policy implications for the realization of a green hydrogen economy that can be applied in the Philippines and other developing countries.

The combination of offshore wind and green hydrogen provides major opportunities for job creation economic growth and regional regeneration as well as attracting inward investment alongside delivering the emission reductions needed to achieve climate neutrality. In order to get to Net Zero emissions in 2050 the UK is likely to need a minimum of 75GW of offshore wind (OSW) and modelling of the energy system indicates that hydrogen will play a major role in integrating the high levels of OSW on the electricity grid.<br/><br/>Some of the key findings from report are listed below:<br/><br/>The UK has vast resources of offshore wind with the potential for over 600GW in UK waters and potentially up to 1000GW. This is well above the he figure of 75-100GW likely to be needed for UK electricity generation by 2050.<br/>The universities in the UK provide the underpinning science and engineering for electrolysers fuel cells and hydrogen and are home to world-leading capability in these areas.<br/>In order to achieve cost reduction and growing a significant manufacturing and export industry it will be crucial to develop green hydrogen in the next 5 years<br/>By 2050 green hydrogen can be cheaper than blue hydrogen. With accelerated deployment green hydrogen costs can be competitive with blue hydrogen by the eary 2030s.<br/>The combination of additional OSW deployment and electrolyser manufacture alone could generate over 120000 new jobs. These are are expected to be based mainly in manufacturing OSW-related activity shipping and mobility<br/>By 2050 it is estimated that the cumulative gross value added (GVA) from supply of electrolysers and additional OSW farm could be up to £320bn where the majority will come from exports of electrolysers to overseas markets.<br/>The report also calls for immediate government intervention and a new national strategy to support the creation of supply and demand in the new industry.<br/><br/>This study was jointly supported by the Offshore Wind Industry Council (OWIC) and ORE Catapult.

Heating and cooling accounts for almost half of global energy consumption. With most of this relying fossil fuels however it contributes heavily to greenhouse gas emissions and air pollution. In parts of the world lacking modern energy access meanwhile inefficient biomass use for cooking also harms people’s health damages the environment and reduces social well-being.



The transition to renewable-based energy-efficient heating and cooling could follow several possible pathways depending on energy demand resource availability and the needs and priorities of each country or region. Broad options include electrification with renewable power renewable-based gases (including “green” hydrogen) sustainable bioenergy use and the direct use of solar and geothermal heat.



This report developed jointly by the International Renewable Energy Agency (IRENA) the International Energy Agency (IEA) and the Renewable Energy Policy Network for the 21st Century (REN21) outlines the infrastructure and policies needed with each transition pathway. This edition focused on renewable-based heating and cooling follows a broader initial study Renewable Energy Policies in a Time of Transition (IRENA IEA and REN21 2018).



The shift to renewables for heating and cooling requires enabling infrastructure (e.g. gas grids district heating and cooling networks) as well as various combinations of deployment integrating and enabling policies. The policy framework can demonstrate a country’s commitment to the energy transition level the playing field with fossil fuels and create the necessary enabling conditions to attract investments.



Along with highlighting country experiences and best practices the study identifies barriers and highlights policy options for renewable heating and cooling.



Key recommendations include:

• Setting specific targets and developing an integrated long-term plan for the decarbonisation of heating and cooling in all end-uses including buildings industry and cooking and productive uses in areas with limited energy access.
• Creating a level playing field by phasing out fossil-fuel subsidies and introducing other fiscal policies to internalise environmental and socio-economic costs.
• Combining the electrification of heating and cooling with increasingly cost-competitive renewable power generation scaling up solar and wind use and boosting system flexibility via energy storage heat pumps and efficient electric appliances.
• Harnessing existing gas networks to accommodate renewable gases such as biogas and green hydrogen.
• Introducing standards certification and testing policies to promote the sustainable use of biomass combining efficient systems and bioenergy solutions such as pellets briquettes bioethanol or anaerobic digestion.
• Reducing investment risks for geothermal exploration and scaling up direct use of geothermal heat.
• Improving district heating and cooling networks through energy efficiency measures and the integration of low-temperature solar thermal geothermal and other renewable-based heat sources.
• Supporting clean cooking and introducing renewable-based food drying in areas lacking energy access with a combination of financing mechanisms capacity building and quality standards aimed at improving livelihoods and maximising socio-economic benefits.

A major transformation and redesign of the global energy system is required towards decarbonisation and to achieve the Paris Agreement targets. This Grand Transition is a complex pressing issue where global joint efforts and system solutions are essential; with hydrogen being one of them.<br/>Hydrogen has the potential to be a powerful effective accelerator towards a low-carbon energy system capable of addressing multiple energy challenges: from facilitating the massive integration of renewables and decarbonisation of energy production to energy transportation in a zero-carbon energy economy to electrification of end uses.

Based on data collection carried out between October and December 2020 and the testing of emerging findings with the Council’s regional communities during a series of digital workshops held during February 2021 the report has shown

• Energy leaders’ perceptions of areas of risk opportunity and priorities for action have radically changed over the last 12 months. While economic turbulence stemming from the ongoing reverberations of COVID-19 is the biggest area of uncertainty with uncertainty around economic trends increasing by a third over the previous year there is also a growing focus on the social agenda associated with a faster paced energy transition.

 

• There is an increased awareness of the societal and human impact of both recovery and the wider energy transition. The issue of energy affordability has rapidly risen up the industry’s priority list with its impact and uncertainty perceived 20% larger than a year ago. Energy affordability affects society across all geographies ranging from city dwellers in developed countries to the rural poor in developing ones.

 

• The emergence of a new generation of digital energy services and energy entrepreneurs. Increasingly agile disruptive technologies have taken advantage of the social upheaval to gain market share at the expense of supply-centric energy solutions. There is a growing focus on customer-centric demand-driven solutions and fast changing patterns of global and local demand.

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.

The hydrogen economy is a proposition for the distribution of energy by using hydrogen in order to potentially eliminate carbon emissions and end our reliance on fossil fuels. Some futuristic forecasters view the hydrogen economy as the ultimate carbon free economy. Hydrogen operated vehicles are on trial in many countries. The use of hydrogen as an energy source for buildings is in its infancy but research and development is evolving. Hydrogen is generally fed into devices called fuel cells to produce energy. A fuel cell is an electrochemical device that produces electricity and heat from a fuel (often hydrogen) and oxygen. Fuel cells have a number of advantages over other technologies for power generation. When fed with clean hydrogen they have the potential to use less fuel than competing technologies and to emit no pollution (the only bi-product being water). However hydrogen has to be produced and stored in the first instance. It is possible to generate hydrogen from renewable sources but the technology is still immature and the transformation is wasteful. The creation of a clean hydrogen production and distribution economy at a global level is very costly. Proponents of a world-scale hydrogen economy argue that hydrogen can be an environmentally cleaner source of energy to end-users particularly in transportation applications without release of pollutants (such as particulate matter) or greenhouse gases at the point of end use. Critics of a hydrogen economy argue that for many planned applications of hydrogen direct use of electricity or production of liquid synthetic fuels from locally-produced hydrogen and CO2 (e.g. methanol economy) might accomplish many of the same net goals of a hydrogen economy while requiring only a small fraction of the investment in new infrastructure. This paper reviews the hydrogen economy how it is produced and distributed. It then investigates the different types of fuel cells and identifies which types are relevant to the built environment both in residential and nonresidential sections. It concludes by examining what are the future plans in terms of implementing fuel cells in the built environment and discussing some of the needs of built environment sector.



Link to Document

As countries around the world rally behind net zero targets hydrogen is increasingly seen as a missing piece of the energy transformation puzzle to decarbonise harder-to-abate sectors. The possible pathway on which hydrogen might evolve still involves many uncertainties. With the growing momentum to establish a global hydrogen market comes the need for a deeper understanding of its broader effects including geopolitical aspects. IRENA has carried out an in-depth analysis of the geopolitics of hydrogen as part of the work of the Collaborative Framework on the Geopolitics of Energy Transformation (CF-GET). The report builds on IRENA’s substantial body of work in hydrogen and benefits from a wide range of expert input in the fields of energy and geopolitics.

This report considers whether and how hydrogen may disrupt future energy systems reflecting on many of the key themes discussed in the Global Commission’s report A New World – The Geopolitics of the Energy Transformation. The analysis offers insights into how countries and stakeholders can navigate the uncertainties and shape the development of hydrogen markets and outlines policy considerations to help mitigate the geopolitical risks and capitalise on opportunities. Some of the key findings of the report include:

• Hydrogen is part of a much bigger energy transition picture and its development and deployment strategies should not be considered in isolation.
• Setting the right priorities for hydrogen use will be essential for its rapid scale-up and long-term contribution to decarbonisation efforts.
• The 2020s could become the era of a big race for technology leadership as costs are likely to fall sharply with learning and scaling-up of needed infrastructure. Equipment manufacturing offers an opportunity to capture value in the coming years and decades.
• Hydrogen trade and investment flows will spawn new patterns of interdependence and bring shifts in bilateral relations.
• Countries with an abundance of low-cost renewable power could become producers of green hydrogen with commensurate geoeconomic and geopolitical consequences.
• Hydrogen could be an attractive avenue for fossil fuel exporters to help diversify their economies and develop new export industries.
• Supporting the advancement of renewable energy and green hydrogen in developing countries is critical for decarbonising the energy system and can contribute to global equity and stability.
• International co-operation will be necessary to devise a transparent hydrogen market with coherent standards and norms that contribute to climate change efforts meaningfully.

The falling cost of making hydrogen from wind and solar power offers a promising route to cutting emissions in some of the most fossil fuel dependent sectors of the economy such as steel heavy-duty vehicles shipping and cement.



Hydrogen Economy Outlook a new and independent global study from research firm BloombergNEF (BNEF) finds that clean hydrogen could be deployed in the decades to come to cut up to 34% of global greenhouse gas emissions from fossil fuels and industry – at a manageable cost. However this will only be possible if policies are put in place to help scale up technology and drive down costs.



The report’s findings suggest that renewable hydrogen could be produced for $0.8 to $1.6/kg in most parts of the world before 2050. This is equivalent to gas priced at $6-12/MMBtu making it competitive with current natural gas prices in Brazil China India Germany and Scandinavia on an energy-equivalent basis. When including the cost of storage and pipeline infrastructure the delivered cost of renewable hydrogen in China India and Western Europe could fall to around $2/kg ($15/MMBtu) in 2030 and $1/kg ($7.4/MMBtu) in 2050.



Kobad Bhavnagri head of industrial decarbonization for BNEF and lead author of the report said: “Hydrogen has potential to become the fuel that powers a clean economy. In the years ahead it will be possible to produce it at low cost using wind and solar power to store it underground for months and then to pipe it on-demand to power everything from ships to steel mills.”



Hydrogen is a clean-burning molecule that can be used as a substitute for coal oil and gas in a large variety of applications. But for its use to have net environmental benefits it must be produced from clean sources rather than from unabated fossil fuel processes – the usual method at present.



Renewable hydrogen can be made by splitting water into hydrogen and oxygen using electricity generated by cheap wind or solar power. The cost of the electrolyzer technology to do this has fallen by 40% in the last five years and can continue to slide if deployment increases. Clean hydrogen can also be made using fossil fuels if the carbon is captured and stored but this is likely to be more expensive the report finds.



Read the full report on the BloombergNEF website here

Urgent action is needed to accelerate the pace of the global energy transition and the decarbonisation of the global economy. International shipping is a key sector of the economy as much as 90% of worldwide trade is transacted via ocean going vessels. The sector is also one of the most challenging to decarbonise.

In this context A Pathway to Decarbonise the Shipping Sector by 2050 by the International Renewable Energy Agency (IRENA) analyses the technology readiness of the renewable fuels suitable for international shipping. This report also explores the options and actions needed to progress towards a decarbonised maritime shipping sector by 2050 and seeks to identify a realistic mitigation pathway to reach the climate goal of limiting global temperature rise to 1.5°C and bringing CO2 emissions closer to net zero by mid-century.

Key messages:

• The sector’s decarbonisation strategy must involve a combination of energy efficiency and renewable fuels. Starting now the active adoption of energy efficiency measures will be critical to reduce energy demand and thus CO2 emissions in the immediate term.
• In the short term advanced biofuels will play a key role in the reduction of CO2 emissions. In the medium and long-term green hydrogen-based fuels are set to be the backbone for the sector’s decarbonisation.
• Renewable e-ammonia will play a pivotal role; where 183 million tonnes of renewable ammonia for international shipping alone will be needed by 2050 - a comparable amount to today’s ammonia global production.
• While renewable fuels production costs are currently high in the next decades renewable fuels will become cost competitive and can shield the shipping sector from the volatility that characterises the fossil fuels market.
• Taking early action is vital. Sector decarbonisation can be accelerated and ambition raised beyond the climate goals by fostering investment in the production of renewable fuels. Stakeholders need to develop broader business models and establish strategic partnerships involving energy-intensive industries as well as power suppliers and the petrochemical sector.

IRENA’s report shows that with the right plans and sufficient support the decarbonisation of the international shipping sector is viable.

The European Union (EU) has adopted ambitious decarbonization targets for 2050.

Renewable electricity and electrification are the key drivers but are not sufficient on their own to meet the targets. A number of countries expect decarbonized gas (e.g. renewable hydrogen and biomethane) to be part of a future decarbonized energy system.

Within that context this paper examines proposals recently issued by Spain’s energy regulator (CNMC) to define the methodology for remunerating gas distribution and transmission networks and LNG regasification terminals. Their proposals would reduce significantly the remuneration of these activities. Bearing in mind the objective of decarbonization this paper analyzes key features of the proposals and concludes with recommendations. We suggest:

• Adoption of a common methodology for remunerating new investment in gas and electricity infrastructure assets. The Regulatory Asset Base (RAB) approach is a suitable methodology especially for high-risk investment to integrate hydrogen.
• CNMC reconsideration of its proposals for existing assets. The aim should be to ensure that even if remuneration is reduced to some extent investors will still be compensated adequately and that the companies will continue to support the investments needed to digitalize processes deliver natural gas and eventually deliver renewable gas where it is economic to do so. This is an important signal for current and future investors whose investments will be regulated by the CNMC.
• Clarification of the methodology for remunerating renewable gas facilities. If renewable gas (especially hydrogen) requires access to regulated gas networks the CNMC methodology must provide suitable incentives to invest in network expansion and upgrading as required as well as to maintain natural gas operations. Even if no decision is made in the short-term regarding hydrogen it would be prudent to leave the door open by making the regulation compatible with future decisions involving hydrogen development.
• Consideration of potentially stranded assets. The CNMC and the Government should coordinate over the remuneration of infrastructure assets when national policy decisions may lead to the stranding of these assets.
• Decarbonization of the energy system as a whole. The CNMC and the Government should consider how best to promote the decarbonization of the energy system as a whole rather than its individual parts and what role is to be played by regulated networks and by unregulated initiatives in competitive markets especially for the development of hydrogen systems.

​Link to document on OIES website​​​

Since the COP 21 meeting in Paris in December 2015 there has been a growing realisation that with the long-term objective that the energy system should be approaching carbon-neutrality by 2050 continuing to burn significant quantities of fossil-derived natural gas will not be sustainable. If existing natural gas infrastructure is to avoid becoming stranded assets plans to decarbonise the gas system need to be developed as a matter of urgency in the next three to five years given the typical life expectancy of such assets of 20 years or more. One of the options to decarbonise gas is “power-to-gas”: production of hydrogen or renewable methane via electrolysis using surplus renewable electricity. This Energy Insight reviews the status of power-to-gas and makes an assessment of potential future development pathways and the role which it could play in decarbonising the energy system.



Link to document on the OIES website

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

Grid integrated water electrolysers have the potential of coupling electric power systems subjected to high shares of renewable energy sources with sectors of hydrogen demand thus contributing to European decarbonization goals in future. We therefore investigate the business potential of future electrolyser applications in cross-commodity arbitrage trading by applying a complex power market simulation method for future scenarios and different European countries. Based on this we evaluate the potential of additional provision of grid services towards grid operators in order to increase the electrolyser utilization ratio. For this we use a method that identifies measures of transmission grid operators in order to ensure secure grid operation. In this context uncertain hydrogen prices and different sectors of hydrogen demand are addressed through sensitivities of different hydrogen sales prices. The analysis shows a high dependency of business model efficiency on the hydrogen price. While cross-commodity arbitrage trading can achieve profitability for the transportation sector applications for the industry sector and natural gas system are less efficient. The results however indicate that for these less efficient applications grid service provision can be an option of increasing the electrolyser utilization ratio thus increasing its profitability.

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.

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.

Link to document on Oxford Institute for Energy Studies website

Following up on our report Uncomfortable Home Truths: why Britain urgently needs a low carbon heat strategy Pipeline to 2050 sets out recommendations for BEIS’ forthcoming Heat and Buildings Strategy. Based on the findings of five roundtables held between January and July 2020 with cross-party parliamentarians policy-makers and experts from industry academia and non-governmental organisations the publication calls for a joined-up approach that simultaneously addresses all aspects of heat decarbonisation.<br/>The report highlights that today there is a patchwork of heat policy initiatives. Although they might incentivise positive development in themselves are nevertheless too dispersed and not enough to drive the level of coordinated action that is needed given the complexity of heat decarbonisation. Setting out propositions to tackle challenges associated with the transition to low carbon heat in the areas of governance funding innovation and public engagement; the publication calls for a Heat and Buildings Strategy that shows a step change in terms of ambition for heat decarbonisation.<br/>The report recommends that the Heat and Buildings Strategy needs to put forward a systematic approach that joins up all policy aspects and principles needed for the transition to low carbon heat. Moreover given the cross-sectoral engagement needed between consumers industry research and various levels of the government it argues that the Strategy has to be constructed in a way that simultaneously catalyses action from all stakeholders that are needed to take part in the process for effective heat decarbonisation.

Only emissions-free vehicles which include battery electric (BEVs) and hydrogen fuel cell trucks (FCEVs) can provide for a credible long-term pathway towards the full decarbonisation of the road freight sector. This document lays out the methodology and assumptions which were used to calculate the total cost of ownership (TCO) of the two vehicle technologies for regional delivery and long-haul truck applications. It also discusses other criteria such as refuelling and recharging times as well as potential payload losses.

Link to Document Download on Transport & Environment website

In an era where the energy landscape is in constant transition energy leaders must pay attention to many different signals of change and distinguish key issues from the noise. The Issues Monitor identifies shifting patterns of connected issues which are shaping energy transitions.<br/>This report takes a focused look at the issues facing the energy transition in Europe using data collected by surveying over 40 leaders and shapers representing the European Transmission and Distributors Operators. This Issues Monitor outlines clear Action Priorities and Critical Uncertainties for different stakeholder groups mapping them out intuitively to promote a shared understanding of the issues. These maps also help identifiy regional variations understand differing areas of concern as well as follow the evolution of specific technology trends.<br/>Produced in partnership with ENTSO-E and E.DSO.

The European gas industry has argued that gas can be a bridging fuel in the transition to decarbonised energy markets because of the advantages of switching from coal to gas and the role of gas in backing up intermittent renewable power generation. While this remains a logical approach for some countries in others it has proved either not relevant or generally unsuccessful in gaining acceptance with either policymakers or the environmental community. Policy decisions will be taken in the next 5-10 years which will irreversibly impact the future of gas in the period 2030-50. A paradigm shift in commercial time horizons and gas value chain cooperation will be necessary for the industry to embrace decarbonisation technologies (such as carbon capture and storage) which will eventually be necessary if gas is to prolong its future in European energy markets. To ensure a post-2030 future in European energy balances the gas community will be obliged to adopt a new message: `Gas can Decarbonise’ (and remain competitive with other low/zero carbon energy supplies). It will need to back up this message with a strategy which will lead to the decarbonisation of methane starting no later than 2030. Failure to do so will be to accept a future of decline albeit on a scale of decades and to risk that by the time the community engages with decarbonisation non-methane policy options will have been adopted which will make that decline irreversible.

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.

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.

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:

• 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

This study aimed to identify the impact of achieving the 1.5 ◦C target on the petroleum supply chain in Japan and discuss the feasibility and challenges of decarbonization. First a national material flow was established for the petroleum supply chain in Japan including processes for crude petroleum refining petroleum product manufacturing plastic resin and product manufacturing and by-product manufacturing. In particular by-product manufacturing processes such as hydrogen gaseous carbon dioxide and sulfur were selected because they are utilized in other industries. Next the outlook for the production of plastic resin hydrogen dry ice produced from carbon dioxide gas and sulfur until 2050 was estimated for reducing petroleum consumption required to achieve the 1.5 ◦C target. As a result national petroleum treatment is expected to reduce from 177048.00 thousand kl in 2019 to 126643.00 thousand kl in 2030 if the reduction in petroleum consumption is established. Along with this decrease plastic resin production is expected to decrease from 10500.00 thousand ton in 2019 to 7511.00 thousand ton by 2030. Conversely the plastic market is expected to grow steadily and the estimated plastic resin production in 2030 is expected to be 20079.00 thousand ton. This result indicates that there is a large output gap between plastic supply and demand. To mitigate this gap strongly promoting the recycling of waste plastics and making the price competitiveness of biomass plastics equal to that of petroleum-derived plastics are necessary

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.

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.

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.

Green hydrogen (H2) is emerging as a future clean energy carrier. While there exists significant analysis on global renewable (and non-renewable) hydrogen generation costs analysis of its transportation costs irrespective of production method is still limited. Complexities include the different forms in which hydrogen can be transported the limited experience to date in shipping some of these carrier forms the trade routes potentially involved and the possible use of different shipping fuels. Herein we present an open-source model developed to assist stakeholders in assessing the costs of shipping various forms of hydrogen over different routes. It includes hydrogen transport in the forms of liquid hydrogen (LH2) ammonia liquified natural gas (LNG) methanol and liquid organic hydrogen carriers (LOHCs). It considers both fixed and variable costs including port fees possible canal usage charges fuel costs ship capital and operating costs boil-off losses and possible environmental taxes among many others. The model is applied to the Rotterdam-Australia route as a case study revealing ammonia ($0.56/kgH2) and methanol ($0.68/kgH2) as the least expensive hydrogen derivatives to transport followed by liquified natural gas ($1.07/kgH2) liquid organic hydrogen carriers ($1.37/kgH2) and liquid hydrogen ($2.09/kgH2). While reducing the transportation distance led to lower shipping costs we note that the merit order of assumed underlying shipping costs remain unchanged. We also explore the impact of using hydrogen (or the hydrogen carrier) as a low/zero carbon emission fuel for the ships which led to lowering of costs for liquified natural gas ($0.88/kgH2) a similar cost for liquid hydrogen ($2.19/kgH2) and significant increases for the remainder. Given our model is open-sourced it can be adapted globally and updated to match the changing cost dynamics of the emerging green hydrogen market.

On this weeks episode the team are talking all things hydrogen in the Orkneys with Adele Lidderdale (Hydrogen Officer for Orkney Island Council) and Jon Clipsham (Hydrogen Manager EMEC). While the islands are best known for their exceptional wildlife whisky and cruise ships the Orkney islands have also emerged as a hub for the green hydrogen economy. Working alongside local government community groups research agencies and private sector partners the islands have deployed hydrogen solutions to heat a school power ferries in port move local council workers from A to B and in the future perhaps make Gin?! All this and more on the show.

The podcast can be found on their website

On this week's episode of Everything About Hydrogen the team are celebrating the show's one year anniversary with Randy MacEwen the CEO of Ballard Power Systems. On the show the team ask Randy to explain the stunning rise of hydrogen over the last 12-24 months how the use cases for hydrogen are evolving and how the growing capitalisation of listed businesses like Ballard is driving a change in the investor base across the hydrogen & fuel cell sector. We also dive into the future for Ballard where the challenges and focuses for the business lie while the team reflect on what has been a very intense year for the show and the hydrogen industry. All this and more!

The podcast can be found on their website

This study analyzes the factors leading to the deployment of Power-to-Hydrogen (PtH₂) within the optimal design of district-scale Multi-Energy Systems (MES). To this end we utilize an optimization framework based on a mixed integer linear program that selects sizes and operates technologies in the MES to satisfy electric and thermal demands while minimizing annual costs and CO₂ emissions. We conduct a comprehensive uncertainty analysis that encompasses the entire set of technology (e.g. cost efficiency lifetime) and context (e.g. economic policy grid carbon footprint) input parameters as well as various climate-referenced districts (e.g. environmental data and energy demands) at a European-scope.

Minimum-emissions MES with large amounts of renewable energy generation and high ratios of seasonal thermal-to-electrical demand optimally achieve zero operational CO₂ emissions by utilizing PtH₂ seasonally to offset the long-term mismatch between renewable generation and energy demand. PtH₂ is only used to abate the last 5–10% emissions and it is installed along with a large battery capacity to maximize renewable self-consumption and completely electrify thermal demand with heat pumps and fuel cells. However this incurs additional cost. Additionally we show that ‘traditional’ MES comprised of renewables and short-term energy storage are able to decrease emissions by 90% with manageable cost increases.

The impact of uncertainty on the optimal system design reveals that the most influential parameter for PtH2 implementation is (1) heat pump efficiency as it is the main competitor in providing renewable-powered heat in winter. Further battery (2) capital cost and (3) lifetime prove to be significant as the competing electrical energy storage technology. In the face of policy uncertainties a CO₂ tax shows large potential to reduce emissions in district MES without cost implications. The results illustrate the importance of capturing the dynamics and uncertainties of short- and long-term energy storage technologies for assessing cost and CO₂ emissions in optimal MES designs over districts with different geographical scopes.

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.

This week on the show the team take a pause to review the current state of hydrogen and fuel cell affairs globally whilst taking time to go over all the excellent questions that our listeners have kindly shared with us over the last few months. We cover carbon capture the green new deal synthetic fuels hydrogenspiders green hydrogen in Australia and many more themes this week so don’t miss this episode!

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In response to the objective of fully attaining carbon neutrality by 2060 people from all walks of life are pursuing low-carbon transformation. Due to the high water cut in the middle and late phases of development the oilfield’s energy consumption will be quite high and the rise in energy consumption will lead to an increase in carbon emission at the same time. As a result the traditional energy model is incapable of meeting the energy consumption requirement of high water cut oilfields in their middle and later phases of development. The present wind hydrogen coupling energy system was researched and coupled with the classic dispersed oilfield energy system to produce energy for the oilfields in this study. This study compares four future energy system models to existing ones computes the energy cost and net present value of an oilfield in Northwest China and proposes a set of economic evaluation tools for oilfield energy systems. The study’s findings indicate that scenario four provides the most economic and environmental benefits. This scenario effectively addresses the issue of high energy consumption associated with aging oilfields at this point significantly reduces carbon emissions absorbs renewable energy locally and reduces the burden on the power grid system. Finally sensitivity analysis is utilized to determine the effect of wind speed electricity cost and oilfield gas output on the system’s economic performance. The results indicate that the system developed in this study can be applied to other oilfields.

With more renewables on the Swedish electricity market while decommissioning nuclear power plants electricity supply increasingly fluctuates and electricity prices are more volatile. There is hence a need for securing the electricity supply before energy storage solutions become widespread. Electricity price fluctuations moreover affect operating income of nuclear power plants due to their inherent operational inflexibility. Since the anticipated new applications of hydrogen in fuel cell vehicles and steel production producing hydrogen has become a potential source of income particularly when there is a surplus supply of electricity at low prices. The feasibility of investing in hydrogen production was investigated in a nuclear power plant applying Swedish energy policy as background. The analysis applies a system dynamics approach incorporating the stochastic feature of electricity supply and prices. The study revealed that hydrogen production brings alternative opportunities for large-scale electricity production facilities in Sweden. Factors such as hydrogen price will be influential and require in-depth investigation. This study provides guidelines for power sector policymakers and managers who plan to engage in hydrogen production for industrial applications. Although this study was focused upon nuclear power sources it can be extended to hydrogen production from renewable energy sources such as wind and solar.

Hydrogen which is expected to be a popular type of next-generation energy is drawing attention as a fuel option for the formation of a low-carbon society. Because hydrogen energy is different in nature from existing energy technologies it is necessary to promote sufficient social recognition and acceptability of the technology for its widespread use. In this study we focused on the effect of initiatives to improve awareness of hydrogen energy technology thereby investigating the acceptability of hydrogen energy to those participating in either several hydrogen energy technology introduction events or professional seminars. According to the survey results participants in the technology introduction events tended to have lower levels of hydrogen and hydrogen energy technology knowledge than did participants in the hydrogen-energy-related seminars but confidence in the technology and acceptability of the installation of hydrogen stations near their own residences tended to be higher. It was suggested that knowledge about hydrogen and technology could lead to improved acceptability through improved levels of trust in the technology. On the other hand social benefits such as those for the environment socioeconomics and energy security have little impact on individual levels of acceptance of new technology.

The Northeast Asian Region is a home for the major world’s energy importers and Russia – the top energy exporter. Due to the depletion of national fossil energy resources the industrialised East Asian economies are facing serious energy security issues. The snapshot of the intraregional energy trade in 2019 was analysed in terms of development potential. Japan Korea and China are at the frontline of hydrogen energy technologies commercialisation and hydrogen energy infrastructure development. The drivers for such endeavours are listed and national institutions for hydrogen energy development are characterised. The priorities related to regional cooperation on hydrogen energy in Northeast Asia were derived on the basis of hydrogen production cost estimations. These priorities include steady development of international natural gas and power infrastructure. The shared process will lead to the synergy of regional fossil and renewable resources within combined power and hydrogen infrastructure.

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.

Technology roadmaps are increasingly used by governments to inform and promote technological transitions such as a transition to a hydrogen energy system. This paper develops a framework for understanding how current roadmapping practice relates to emerging theories of the governance of systems innovation. In applying this framework to a case study of hydrogen roadmaps the paper finds that roadmapping for transitions needs to place greater emphasis on ensuring good quality and transparent analytic and participatory procedures. To be most useful roadmaps should be embedded within institutional structures that enable the incorporation of learning and re-evaluation but in practice most transition roadmaps are one-off exercises

2020 has been a year for the history books! Some good most of it not so good; but 2020 has been a boom year for the future of hydrogen technologies. Patrick Chris and Andrew do their level best on this episode to talk about all the stories and the highlights of 2020 in under 50 minutes. Have a listen and let us know if we missed anything in our penultimate episode of 2020!

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Technical economic and environmental assessments of projected power-to-gas (PtG) deployment scenarios at distributed- to national-scale are reviewed as well as their extensions to nuclear-assisted renewable hydrogen. Their collective research trends outcomes challenges and limitations are highlighted leading to suggested future work areas. These studies have focused on the conversion of excess wind and solar photovoltaic electricity in European-based energy systems using low-temperature electrolysis technologies. Synthetic natural gas either solely or with hydrogen has been the most frequent PtG product. However the spectrum of possible deployment scenarios has been incompletely explored to date in terms of geographical/sectorial application environment electricity generation technology and PtG processes products and their end-uses to meet a given energy system demand portfolio. Suggested areas of focus include PtG deployment scenarios: (i) incorporating concentrated solar- and/or hybrid renewable generation technologies; (ii) for energy systems facing high cooling and/or water desalination/treatment demands; (iii) employing high-temperature and/or hybrid hydrogen production processes; and (iv) involving PtG material/energy integrations with other installations/sectors. In terms of PtG deployment simulation suggested areas include the use of dynamic and load/utilization factor-dependent performance characteristics dynamic commodity prices more systematic comparisons between power-to-what potential deployment options and between product end-uses more holistic performance criteria and formal optimizations.

Algeria richly-endowed with renewable resources is well-positioned to become a vital green hydrogen provider to Europe. Aiming to aid policymakers stakeholders and energy sector participants this study embodies the first effort in literature to investigate the viability and cost-effectiveness of implementing green hydrogen production projects destined for exports to Europe via existing pipelines. A land suitability analysis utilizing multi-criteria decision making (MCDM) coupled with geographical information system (GIS) identified that over 43.55% of Algeria is highly-suitable for hydrogen production. Five optimal locations were investigated utilizing Hybrid Optimization of Multiple Electric Renewables (HOMER) with solar-hydrogen proving the most cost-effective option. Wind-based production offering higher output volumes reaching 968 kg/h requires turbine cost reductions of 17.50% (Ain Salah) to 54.50% (Djanet) to achieve a competitive levelized cost of hydrogen (LCOH) of $3.85/kg with PV systems. A techno-economic sensitivity analysis was conducted identifying Djanet as the most promising location for a 100 MW solar-hydrogen plant with a competitive LCOH ranging from $1.96/kg to $4.85/kg.

Achieving climate neutrality requires a massive transformation of current energy systems. Fossil energy sources must be replaced with renewable ones. Renewable energy sources with reasonable potential such as photovoltaics or wind power provide electricity. However since chemical energy carriers are essential for various sectors and applications the need for renewable gases comes more and more into focus. This paper determines the Austrian green hydrogen potential produced exclusively from electricity surpluses. In combination with assumed sustainable methane production the resulting renewable gas import demand is identified based on two fully decarbonised scenarios for the investigated years 2030 2040 and 2050. While in one scenario energy efficiency is maximised in the other scenario significant behavioural changes are considered to reduce the total energy consumption. A techno-economic analysis is used to identify the economically reasonable national green hydrogen potential and to calculate the averaged levelised cost of hydrogen (LCOH2) for each scenario and considered year. Furthermore roll-out curves for the necessary expansion of national electrolysis plants are presented. The results show that in 2050 about 43% of the national gas demand can be produced nationally and economically (34 TWh green hydrogen 16 TWh sustainable methane). The resulting national hydrogen production costs are comparable to the expected import costs (including transport costs). The most important actions are the quick and extensive expansion of renewables and electrolysis plants both nationally and internationally

This paper analyses the feasibility of power-to-gas in electricity markets dominated by renewables. The business case of a power-to-gas plant that is producing hydrogen is evaluated by determining the willingness to pay for electricity and by comparing this to the level and volatility of electricity prices in a number of European day-ahead markets. The short-term willingness to pay for electricity depends on the marginal costs and revenues of the plant while the long-term willingness to pay for electricity also takes into account investment and yearly fixed operational costs and therefore depends on the expected number of operating hours. The latter ultimately determines whether or not large-scale investments in the power-to-gas technology will take place.<br/>We find that power-to-gas plants are not profitable under current market conditions: even under the most optimistic assumptions for the cost and revenue parameters power-to-gas plants need to run for many hours during the year at very low prices (i.e. the long-term willingness to pay for electricity is very low) that do not currently exist in Europe. In an optimistic future scenario regarding investment costs efficiency and revenues of power-to-gas however the long-term willingness to pay for electricity is higher than the lowest recently observed day-ahead electricity prices. When prices remain at this low level investments in power-to-gas can thus become profitable.

Leading countries are developing clean energy to replace fossil fuels. In this context Russia is changing its energy policy towards fostering new energy resources such as hydrogen and helium. Hydrogen will not only contribute to Russia’s financial revenue by replacing natural gas but will also provide a basis for it to maintain its dominance over the international energy market by pioneering new energy markets. Russia is aiming to produce more than two million tons of hydrogen fuel for export to Europe and Asia by 2035. However it is facing many challenges including developing hydrogen fuel storage systems acquiring the technology required for exporting hydrogen and building trust in the fuel market. Meanwhile South Korea has a foundation for developing a hydrogen industry as it has the highest capacity in the world to produce fuel cells and the ability to manufacture LNG: (liquefied natural gas) carriers. Therefore South Korea and Russia have sufficient potential to create a new complementary and reciprocal cooperation model in the hydrogen fuel field. This study examines the present and future of Russia’s energy policy in this area as well as discusses South Korea and Russia’s cooperation plans in the hydrogen fuel sector and the related implications.

Hydrogen-based energy carriers including hydrogen ammonia and synthetic hydrocarbons are expected to help reduce residual carbon dioxide emissions in the context of the Paris Agreement goals although their potential has not yet been fully clarified in light of their competitiveness and complementarity with other mitigation options such as electricity biofuels and carbon capture and storage (CCS). This study aimed to explore the role of hydrogen in the global energy system under various mitigation scenarios and technology portfolios using a detailed energy system model that considers various energy technologies including the conversion and use of hydrogen-based energy carriers. The results indicate that the share of hydrogen-based energy carriers generally remains less than 5% of global final energy demand by 2050 in the 2 ◦C scenarios. Nevertheless such carriers contribute to removal of residual emissions from the industry and transport sectors under specific conditions. Their share increases to 10–15% under stringent mitigation scenarios corresponding to 1.5 ◦C warming and scenarios without CCS. The transport sector is the largest consumer accounting for half or more of hydrogen production followed by the industry and power sectors. In addition to direct usage of hydrogen and ammonia synthetic hydrocarbons converted from hydrogen and carbon captured from biomass or direct air capture are attractive transport fuels growing to half of all hydrogen-based energy carriers. Upscaling of electrification and biofuels is another common cost-effective strategy revealing the importance of holistic policy design rather than heavy reliance on hydrogen.

In the literature different energy carriers are proposed in future long-distance hydrogen value chains. Hydrogen can be stored and transported in different forms e.g. as compressed dense-phase hydrogen liquefied hydrogen and in chemically bound forms as different chemical hydrides. Recently different high-level value chain studies have made extrapolative investigations and compared such options with respect to energy efficiency and cost. Three recent journal papers overlap as the liquid hydrogen option has been considered in all three studies. The studies are not fully aligned in terms of underlying assumptions and battery limits. A comparison reveals partly vast differences in results for chain energy efficiency for long-distance liquid hydrogen transport which are attributable to distinct differences in the set of assumptions. Our comparison pinpoints the boiloff ratio i.e. evaporation losses due to heat ingress in liquid hydrogen storage tanks as the main cause of the differences and this assumption is further discussed. A review of spherical tank size and attributed boiloff ratios is presented for existing tanks of different vintage as well as for recently proposed designs. Furthermore the prospect for further extension of tanks size and reduction of boiloff ratio is discussed with a complementary discussion about the use of economic assumptions in extrapolative and predictive studies. Finally we discuss the impact of battery limits in hydrogen value chain studies and pinpoint knowledge needs and the need for a detailed bottom-up approach as a prerequisite for improving the understanding for pros and cons of the different hydrogen energy carriers.

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

From an evaluation of the GB housing stock it is clear that a mosaic of low carbon heating technologies will be needed to reach net zero. While heat pumps are an important component of this mix our analysis shows that it is likely to be impractical to heat many GB homes with heat pumps only. A combination of lack of exterior space and/or the thermal properties of the building fabric mean that a heat pump is not capable of meeting the space heating requirement of 8 to 12m homes (or 37% to 54% of the 22.7m homes assessed in this report) or can do so only through the installation of highly disruptive and intrusive measures such as solid wall insulation. Hybrid heat pumps that are designed to optimise efficiency of the system do not have the same requirements of a heat pump and may be a suitable solution for some of these homes. This is likely to mean that decarbonised gas networks are therefore critical to delivery of net zero. 3 to 4m homes1 (or 14% to 18% of homes assessed in our analysis) could be made suitable for heat pump retrofit through energy efficiency measures such as cavity wall insulation. For 7 to 10m homes there are no limiting factors and they require minimal/no upgrade requirements to be made heat pump-ready. Nevertheless given firstly the levels of disruption to the floors and interiors of homes caused by the installation of heat pumps and secondly the cost and disruption associated with the requirement to significantly upgrade the electricity distribution networks to cope with large numbers of heat pumps operating at peak demand times - combined with the availability of a decarbonised gas network which requires a simple like-for-like boiler replacement - is likely to mean that many of these ‘swing’ properties will be better served through a gas based technology such as hydrogen (particularly when consumer choice is factored in) or a hybrid system. A recent trial run in winter 2018-19 by the Energy System Catapult revealed that all participants were reluctant to make expensive investments to improve the energy efficiency of their homes just to enhance the performance of their heat pump. They were more interested in less costly upgrades and tangible benefits such as lower bills or greater comfort. This means that renewable gases including hydrogen as heating fuels are a crucial component of the journey to net zero and the UK’s hydrogen ambitions should be reflective of this. The analysis presented in this paper focuses on the external fabric of the buildings further analysis should be undertaken to consider the internal system changes that would be required for heat pumps and hydrogen boilers for example BEIS Domestic Heat Distribution Systems: Gathering Report from February 2021 which considers the suitability of radiators for the low carbon transition.

In this paper a systematic review of academic literature and policy papers since 2008 is undertaken with an aim of identifying the prevalent energy systems models and tools in the UK. A list of all referenced models is presented and the literature is analysed with regards sectoral coverage and technological inclusion as well as mathematical structure of models. The paper compares available models using an appropriate classification schema the introduction of which is aimed at making the model landscape more accessible and perspicuous thereby enhancing the diversity of models within use. The distinct classification presented in this paper comprises three sections which specify the model purpose and structure technological detail and mathematical approach. The schema is not designed to be comprehensive but rather to be a broad classification with pertinent level of information required to differentiate between models. As an example the UK model landscape is considered and 22 models are classified in three tables as per the proposed schema.