Policy & Socio-Economics

This study analyzes future synergies between the Oil and Gas (O&G) and renewables sectors in a Danish context and explores how exploiting these synergies could lead to economic and environmental benefits. We review and highlight relevant technologies and related projects and synthesize the state of the art in offshore energy system integration. All of these preliminary results serve as input data for a holistic energy system analysis in the Balmorel modeling framework. With a timeframe out to 2050 and model scope including all North Sea neighbouring countries this analysis explores a total of nine future scenarios for the North Sea energy system. The main results include an immediate electrification of all operational Danish platforms by linking them to the shore and/or a planned Danish energy island. These measures result in cost and CO2 emissions savings compared to a BAU scenario of 72% and 85% respectively. When these platforms cease production this is followed by the repurposing of the platforms into hydrogen generators with up to 3.6 GW of electrolysers and the development of up to 5.8 GW of floating wind. The generated hydrogen is assumed to power the future transport sector and is delivered to shore in existing and/or new purpose-built pipelines. The contribution of the O&G sector to this hydrogen production amounts to around 19 TWh which represents about 2% of total European hydrogen demand for transport in 2050. The levelized costs (LCOE) of producing this hydrogen in 2050 are around 4 €2020/kg H2 which is around twice those expected in similar studies. But this does not account for energy policies that may incentivize green hydrogen production in the future which would serve to reduce this LCOE to a level that is more competitive with other sources.

The Just Transition Commission started work in early 2019 with a remit to provide practical and affordable recommendations to Scottish Ministers. This report sets out their view of the key opportunities and challenges for Scotland and recommends practical steps to achieving a just transition<br/><br/>Climate action fairness and opportunity must go together. Taking action to tackle climate change must make Scotland a healthier more prosperous and more equal society whilst restoring its natural environment. We want a Scotland where wellbeing is at the heart of how we measure ourselves and our prosperity. We know that the scars from previous industrial transitions have remained raw for generations. We know that some more recent aspirations for green jobs have not delivered on all the benefits promised for Scottish workers and communities. We need rapid interventions to fully realise the potential (and mitigate the potential injustice) associated with the net-zero transition.

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.

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.

Deloitte was commissioned by the National Hydrogen Taskforce established by the COAG Energy Council to undertake an Australian and Global Growth Scenario Analysis. Deloitte analysed the current global hydrogen industry its development and growth potential and how Australia can position itself to best capitalise on the newly forming industry.



To conceptualise the possibilities for Australia Deloitte created scenarios to model the realm of possibilities for Australia out to 2050 focusing on identifying the scope and distribution of economic and environmental costs and benefits from Australian hydrogen industry development. This work will aid in analysing the opportunities and challenges to hydrogen industry development in Australia and the actions needed to overcome barriers to industry growth manage risks and best drive industry development.



The full report is available on the Deloitte website at this link

The House of Lords Science and Technology Committee will hear from officials research funders and leading research consortia about the UK’s strategy for research and development of batteries and fuel cells to help meet the net-zero target.



The Committee will question officials from government departments and research councils about the UK’s increased support for battery development and how the initiatives and funding will evolve. The Committee will compare the support given to fuel cell research and ask how this technology will be developed for applications such as heavy transport. For both technologies it will ask how training will be delivered to provide a skilled workforce.



The Committee will also hear from leaders of research consortia asking them about support for their research sectors and how this compares with countries leading the development of the technologies. The Committee will explore coordination between research into batteries fuel cells and wider strategies such as for hydrogen and whether research for transport can be transferred to applications in other sectors such as power grids and heating.



At 10.00am: Oral evidence 

Mr Tony Harper Industrial Strategy Challenge Director Faraday Battery Challenge at UK Research and Innovation (UKRI) at University of Central Lancashire

Dr Lucy Martin Deputy Director of Cross-Council Programmes and lead for Net Zero at University of Central Lancashire

Dr Bob Moran Deputy Director Head of Environment Strategy at University of Central Lancashire

Professor Paul Monks Chief Scientific Adviser at University of Central Lancashire



At 11.00am: Oral evidence

Professor Philip Taylor Director at EPSRC Supergen Energy Networks Hub and Pro-Vice Chancellor for Research and Enterprise at University of Bristol

Professor David Greenwood CEO High Value Manufacturing Catapult at University of Central Lancashire Director Industrial Engagement at University of Central Lancashire and Professor of Advanced Propulsion Systems at University of Warwick

Professor Paul Dodds Professor of Energy Systems at University of Central Lancashire



Possible questions

• On which aspects of battery and fuel cell research and development is the UK focusing and why?
• How successful have the UK’s new research initiatives been in advancing battery science and application?
• Does battery research receive greater public funding than fuel cell research? If so why?
• What technologies are seen as the most likely options for heavy transport i.e. HGVs buses and trains?
• What is the Government’s strategy for supporting the growth of skilled workers for battery and fuel cell research and development?
• To what extent is battery and fuel cell research and development coordinated in the UK? If so who is responsible for this coordination?

Parliament TV video of the meeting



This is part three of a three part enquiry.

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

The Hydrogen Taskforce welcomes the opportunity to submit evidence to the Business Energy and Industrial Strategy Committee’s inquiry into decarbonising heat in homes. It is the Taskforce’s view that:

• Decarbonising heat is one of the biggest challenges that the UK faces in meeting Net Zero and several solutions will be required;
• Hydrogen can play a valuable role in reducing the cost of decarbonising heat. Its high energy density enables it to be stored cost effectively at scale providing system resilience;
• Hydrogen heating can be implemented at minimal disruption to the consumer;
• The UK holds world-class advantages in hydrogen production distribution and application; and
• Other economies are moving ahead in the development of this sector and the UK must respond.

In March 2020 the Taskforce has defined a set of policy recommendations for Government which are designed to ensure that hydrogen can scale to meet the future demands of a net zero energy system: • Development of a cross departmental UK Hydrogen Strategy within UK Government;• Commit £1bn of capex funding over the next spending review period to hydrogen production storage and distribution projects;• Develop a financial support scheme for the production of hydrogen in blending industry power and transport.• Amend Gas Safety Management Regulations (GSMR) to enable hydrogen blending and take the next steps towards 100% hydrogen heating through supporting public trials and mandating 100% hydrogen-ready boilers by 2025; and• Commit to the support of 100 Hydrogen Refuelling Stations (HRS) by 2025 to support the rollout of hydrogen transport.





You can download the whole document from the Hydrogen Taskforce website here

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.

The transition of Malaysia from fossil fuels to renewable energy sources provides significant challenges and opportunities for various energy sectors. Incorporation of H₂ in the primary energy mix requires a deal of complexity in its relation to production transportation and end-use. The Sarawak State Government in Malaysia implemented a hydrogen energy roadmap for the year 2005–2030 on the state-level but despite the great enthusiasm and full support given by the government the development of hydrogen technology is still far from its goals. This is due to several factors that hinder its progress including (1) inability of hydrogen to be integrated with current primary energy infrastructure (2) limited technology resources to produce sustainable hydrogen and (3) lack of technical expertise in the field of hydrogen. In this paper a potential national roadmap and milestones are presented based on the power-to-gas (P2G) approach combined with its implications on the national natural gas (NG) pipeline network. Besides that the long-term and short-term strategies and implementation mechanisms are discussed in detail. Furthermore complete research schemes are formulated to be inline with the presented vision to further enhance technology development and implementation.

Scaling up renewables to meet the 1.5ºC climate goal

As global economies aim to become carbon neutral competitive hydrogen produced with renewables has emerged as a key component of the energy mix. Falling renewable power costs and improving electrolyser technologies could make ""green"" hydrogen cost competitive by 2030 this report finds.

Green hydrogen can help to achieve net-zero carbon dioxide (CO₂) emissions in energy-intensive hard-to-decarbonise sectors like steel chemicals long-haul transport shipping and aviation. But production costs must be cut to make it economical for countries worldwide. Green hydrogen currently costs between two and three times more than ""blue"" hydrogen which is produced using fossil fuels in combination with carbon capture and storage (CCS).

This report from the International Renewable Energy Agency (IRENA) outlines strategies to reduce electrolyser costs through continuous innovation performance improvements and upscaling from megawatt (MW) to multi-gigawatt (GW) levels.

Among the findings:

• Electrolyser design and construction: Increased module size and innovation with increased stack manufacturing have significant impacts on cost. Increasing plant size from 1 MW (typical in 2020) to 20 MW could reduce costs by over a third. Optimal system designs maximise efficiency and flexibility.
• Economies of scale: Increasing stack production with automated processes in gigawatt-scale manufacturing facilities can achieve a step-change cost reduction. Procurement of materials: Scarcity of materials can impede electrolyser cost reduction and scale-up.
• Efficiency and flexibility in operations: Power supply incurs large efficiency losses at low load limiting system flexibility from an economic perspective.
• Industrial applications: Design and operation of electrolysis systems can be optimised for specific applications in different industries. Learning rates: Based on historic cost declines for solar photovoltaics (PV) the learning rates for fuel cells and electrolysers – whereby costs fall as capacity expands – could reach values between 16% and 21%.
• Ambitious climate mitigation: An ambitious energy transition aligned with key international climate goals would drive rapid cost reduction for green hydrogen. The trajectory needed to limit global warming at 1.5oC could make electrolysers an estimated 40% cheaper by 2030.