Policy & Socio-Economics
Decarbonization Roadmaps for ASEAN and their Implications
Apr 2022
Publication
The objective of this paper is to derive for the first time decarbonization roadmaps for the ten nations of ASEAN. This study first presents a regional view of ASEAN’s fossil and renewable energy usage and energy-related CO2 emission. Results show that renewable energies have been losing ground to fossil energies in the last two decades and fossil fuels will likely continue to be an important part of ASEAN’s energy mix for the next few decades. Therefore decarbonizing efforts should focus not only on increasing the share of renewable energies in electricity generation but also on technologies to reduce CO2 emission from fossil power and industrial plants. This study next performs a technology mapping exercise for all ten ASEAN countries to determine decarbonization technologies that have high impact and high readiness for individual countries. Besides installing more sustainable renewable energies common themes coming from these roadmaps include switching from coal to gas for power generation using carbon capture and storage (CCS) technologies to decarbonize fossil and industrial plants replacing internal combustion vehicles by electric vehicles and for countries that have coal and natural gas resources upgrading them to blue hydrogen by chemical processes and using CCS to mitigate the emitted CO2. Blue hydrogen can be used to decarbonize hard-to-decarbonize industries. Policy implications of these roadmaps include imposing a credible carbon tax establishing a national hydrogen strategy intergovernmental coordination to establish regional CCS corridors funding research and development to improve carbon capture efficiency on a plant level and resolving sustainability issues of hydropower and bioenergy in ASEAN.
Energy System Modelling of Carbon-Neutral Hydrogen as an Enabler of Sectoral Integration within a Decarbonization Pathway
Jul 2019
Publication
This paper explores the alternative roles hydrogen can play in the future European Union (EU) energy system within the transition towards a carbon-neutral EU economy by 2050 following the latest policy developments after the COP21 agreement in Paris in 2015. Hydrogen could serve as an end-use fuel a feedstock to produce carbon-neutral hydrocarbons and a carrier of chemical storage of electricity. We apply a model-based energy system analysis to assess the advantages and drawbacks of these three roles of hydrogen in a decarbonized energy system. To this end the paper quantifies projections of the energy system using an enhanced version of the PRIMES energy system model up to 2050 to explore the best elements of each role under various assumptions about deployment and maturity of hydrogen-related technologies. Hydrogen is an enabler of sectoral integration of supply and demand of energy and hence an important pillar in the carbon-neutral energy system. The results show that the energy system has benefits both in terms of CO2 emission reductions and total system costs if hydrogen technology reaches high technology readiness levels and economies of scale. Reaching maturity requires a significant investment which depends on the positive anticipation of market development. The choice of policy options facilitating visibility by investors is the focus of the modelling in this paper.
Fuel Cells and Hydrogen Observatory 2019 EU and National Policies Report
Sep 2021
Publication
The policy module of the FCHO presents an overview of EU and national policies across various hydrogen and fuel cell related sectors. It provides a snapshot of the current state of hydrogen legislation and policy. Scope: While FCHO covers 38 entities around the world due to the completeness of the data at the moment of writing this report covers 29 entities. The report reflects data collected January 2019 – December 2019. Key Findings: Hydrogen policies are relatively commonplace among European countries but with large differences between member states. EU hydrogen leaders do not lag behind global outliers such as South Korea or Japan.
Technology Investment Roadmap- Global Leadership in Low Emissions Technologies
Sep 2020
Publication
Australia’s Technology Investment Roadmap is a strategy to accelerate development and commercialisation of low emissions technologies.
Annual low emissions statements are key milestones of the roadmap process. These statements prioritise low emissions technologies with potential to deliver the strongest economic and emissions reduction outcomes for Australia. They focus government investment on new and emerging technologies.
In this Statement
The first Low Emissions Technology Statement presents a vision of a prosperous Australia recognised as a global low emissions technology leader.
Annual low emissions statements are key milestones of the roadmap process. These statements prioritise low emissions technologies with potential to deliver the strongest economic and emissions reduction outcomes for Australia. They focus government investment on new and emerging technologies.
In this Statement
The first Low Emissions Technology Statement presents a vision of a prosperous Australia recognised as a global low emissions technology leader.
- priority technologies and economic stretch goals
- Australia’s big technology challenges and opportunities
- Technology Investment Framework
- monitoring transparency and impact evaluation
Hydrogen Production, Storage and Transport for Renewable Energy and Chemicals: An Environmental Footprint Assessment
Dec 2022
Publication
Hydrogen applications range from an energy carrier to a feedstock producing bulk and other chemicals and as an essential reactant in various industrial applications. However the sustainability of hydrogen production storage and transport are neither unquestionable nor equal. Hydrogen is produced from natural gas biogas aluminium acid gas biomass electrolytic water splitting and others; a total of eleven sources were investigated in this work. The environmental impact of hydrogen production storage and transport is evaluated in terms of greenhouse gas and energy footprints acidification eutrophication human toxicity potential and eco-cost. Different electricity mixes and energy footprint accounting approaches supported by sensitivity analysis are conducted for a comprehensive overview. H2 produced from acid gas is identified as the production route with the highest eco-benefit (− 41188 €/t H2) while the biomass gasification method incurred the highest eco-cost (11259 €/t H2). The water electrolysis method shows a net positive energy footprint (60.32 GJ/t H2) suggesting that more energy is used than produced. Considering the operating footprint of storage and transportation gaseous hydrogen transported via a pipeline is a better alternative from an environmental point of view and with a lower energy footprint (38 %–85%) than the other options. Storage and transport (without construction) could have accounted for around 35.5% of the total GHG footprint of a hydrogen value chain (production storage transportation and losses) if liquefied and transported via road transport instead of a pipeline. The identified results propose which technologies are less burdensome to the environment.
Green Synthetic Fuels: Renewable Routes for the Conversion of Non-Fossil Feedstocks into Gaseous Fuels and Their End Uses
Jan 2020
Publication
Innovative renewable routes are potentially able to sustain the transition to a decarbonized energy economy. Green synthetic fuels including hydrogen and natural gas are considered viable alternatives to fossil fuels. Indeed they play a fundamental role in those sectors that are difficult to electrify (e.g. road mobility or high-heat industrial processes) are capable of mitigating problems related to flexibility and instantaneous balance of the electric grid are suitable for large-size and long-term storage and can be transported through the gas network. This article is an overview of the overall supply chain including production transport storage and end uses. Available fuel conversion technologies use renewable energy for the catalytic conversion of non-fossil feedstocks into hydrogen and syngas. We will show how relevant technologies involve thermochemical electrochemical and photochemical processes. The syngas quality can be improved by catalytic CO and CO2 methanation reactions for the generation of synthetic natural gas. Finally the produced gaseous fuels could follow several pathways for transport and lead to different final uses. Therefore storage alternatives and gas interchangeability requirements for the safe injection of green fuels in the natural gas network and fuel cells are outlined. Nevertheless the effects of gas quality on combustion emissions and safety are considered.
Gas Goes Green: Tomorrow's Heat, Today's Opportunity
Sep 2021
Publication
Cutting-edge world-leading energy network innovation is vital to ensuring that our economy can continue to access the energy it needs to safeguard jobs and to maintain our international competitiveness as the world goes through decarbonisation. In this report we build on the 2020 Gas Goes Green Zero Carbon Commitment to set out the scale of investment that Britain’s gas networks wish to deliver to hydrogen innovation projects and preparing the gas networks. This work will be focused over the next ten years creating highly-skilled high-tech green jobs through investment and ensuring that the impact of that innovation is felt in communities across the UK.
Power-to-gas in Electricity Markets Dominated by Renewables
Oct 2018
Publication
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.
A Review of Energy Systems Models in the UK: Prevalent Usage and Categorisation
Feb 2016
Publication
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.
Power-to-hydrogen as Seasonal Energy Storage: An Uncertainty Analysis for Optimal Design of Low-carbon Multi-energy Systems
Jun 2020
Publication
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.
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.
Navigating Algeria Towards a Sustainable Green Hydrogen Future to Empower North Africa and Europe's Clean Hydrogen Transition
Mar 2024
Publication
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.
The Future of Clean Hydrogen in the United States: Views from Industry, Market Innovators, and Investors
Sep 2021
Publication
This report The Future of Clean Hydrogen in the United States: Views from Industry Market Innovators and Investors sheds light on the rapidly evolving hydrogen market based on 72 exploratory interviews with organizations across the current and emerging hydrogen value chain. This report is part of a series From Kilograms to Gigatons: Pathways for Hydrogen Market Formation in the United States which will build on this study to evaluate policy opportunities for further hydrogen development in the United States. The goal of the interviews was to provide a snapshot of the clean hydrogen investment environment and better understand organizations’ market outlook investment rationale and areas of interest. This interview approach was supported by traditional research methods to contextualize and enrich the qualitative findings. This report should be understood as input to a more extensive EFI analysis of hydrogen market formation in the United States; the directions that companies are pursuing in hydrogen production transport and storage and end use at this early stage of value chain development will inform subsequent analysis in important ways.
A Financial Model for Lithium-ion Storage in a Photovoltaic and Biogas Energy System
May 2019
Publication
Electrical energy storage (EES) such as lithium-ion (Li-ion) batteries can reduce curtailment of renewables maximizing renewable utilization by storing surplus electricity. Several techno-economic analyses have been performed on EES but few have investigated the financial performance. This paper presents a state-of-the-art financial model obtaining novel and significative financial and economics results when applied to Li-ion EES. This work is a significant step forward since traditional analysis on EES are based on oversimplified and unrealistic economic models. A discounted cash flow model for the Li-ion EES is introduced and applied to examine the financial performance of three EES operating scenarios. Real-life solar irradiance load and retail electricity price data from Kenya are used to develop a set of case studies. The EES is coupled with photovoltaics and an anaerobic digestion biogas power plant. The results show the impact of capital cost: the Li-ion project is unprofitable in Kenya with a capital cost of 1500 $/kWh but is profitable at 200 $/kWh. The study shows that the EES will generate a higher profit if it is cycled more frequently (hence a higher lifetime electricity output) although the lifetime is reduced due to degradation.
The Impact of Economic, Energy, and Environmental Factors on the Development of the Hydrogen Economy
Aug 2021
Publication
This article attempts to model interdependencies between socio-economic energy and environmental factors with selected data characterizing the development of the hydrogen economy. The study applies Spearman’s correlation and a linear regression model to estimate the influence of gross domestic product population final energy consumption renewable energy and CO2 emission on chosen hydrogen indicators—production patents energy technology research development and demonstration budgets. The study was conducted in nine countries selected for their actions towards a hydrogen economy based on analyses of national strategies policies research and development programs and roadmaps. The results confirm the statistically significant impact of the chosen indicators which are the drivers for the development of the hydrogen economy from 2008 to 2018. Moreover the empirical results show that different characteristics in each country contribute to the development of the hydrogen economy vision
Sector Coupling via Hydrogen to Lower the Cost of Energy System Decarbonization
Aug 2021
Publication
There is growing interest in using hydrogen (H2) as a long-duration energy storage resource in a future electric grid dominated by variable renewable energy (VRE) generation. Modeling H2 use exclusively for grid-scale energy storage often referred to as ‘‘power-to-gas-to-power (P2G2P)’’ overlooks the cost-sharing and CO2 emission benefits from using the deployed H2 assets to decarbonize other end-use sectors where direct electrification is challenging. Here we develop a generalized framework for co-optimizing infrastructure investments across the electricity and H2 supply chains accounting for the spatio-temporal variations in energy demand and supply. We apply this sector-coupling framework to the U.S. Northeast under a range of technology cost and carbon price scenarios and find greater value of power-to-H2 (P2G) vs. P2G2P routes. Specifically P2G provides grid flexibility to support VRE integration without the round-trip efficiency penalty and additional cost incurred by P2G2P routes. This form of sector coupling leads to: (a) VRE generation increase by 13–56% and (b) total system cost (and levelized costs of energy) reduction by 7–16% under deep decarbonization scenarios. Both effects increase as H2 demand for other end-uses increases more than doubling for a 97% decarbonization scenario as H2 demand quadruples. We also find that the grid flexibility enabled by sector coupling makes deployment of carbon capture and storage (CCS) for power generation less cost-effective than its use for low-carbon H2 production. These findings highlight the importance of using an integrated energy system framework with multiple energy vectors in planning cost-effective energy system decarbonization
Green Hydrogen and Energy Transition: Current State and Prospects in Portugal
Jan 2023
Publication
Hydrogen is a promising commodity a renewable secondary energy source and feedstock alike to meet greenhouse gas emissions targets and promote economic decarbonization. A common goal pursued by many countries the hydrogen economy receives a blending of public and private capital. After European Green Deal state members created national policies focused on green hydrogen. This paper presents a study of energy transition considering green hydrogen production to identify Portugal’s current state and prospects. The analysis uses energy generation data hydrogen production aspects CO2 emissions indicators and based costs. A comprehensive simulation estimates the total production of green hydrogen related to the ratio of renewable generation in two different scenarios. Then a comparison between EGP goals and Portugal’s transport and energy generation prospects is made. Portugal has an essential renewable energy matrix that supports green hydrogen production and allows for meeting European green hydrogen 2030–2050 goals. Results suggest that promoting the conversion of buses and trucks into H2-based fuel is better for CO2 reduction. On the other hand given energy security thermoelectric plants fueled by H2 are the best option. The aggressive scenario implies at least 5% more costs than the moderate scenario considering economic aspects.
Steel Manufacturing Clusters in a Hydrogen Economy – Simulation of Changes in Location and Vertical Integration of Steel Production in Northwestern Europe
Feb 2022
Publication
With the move to a hydrogen-based primary steel production envisioned for the near future in Europe existing regional industrial clusters loose major assets. Such a restructuring of industries may result in a new geographical distribution of the steel industry and also to another quality of vertical integration at sites. Both implications could turn out as drivers or barriers to invest in new technologies and are thus important in respect to vertical integration of sites and to regional policy. This paper describes an approach to model production stock invest for the steel industries in North-Western Europe. Current spatial structures are reproduced with capacity technical and energy efficiency data on the level of single facilities like blast furnaces. With the model developed both investments in specific technologies and at specific production sites can be modelled. The model is used to simulate different possible future scenarios. The case with a clear move to hydrogen-based production is compared to a reference scenario without technological shift. The scenarios show that existing trends like movement of production to the coast may be accelerated by the new technology but that sites in the hinterland can also adapt to a hydrogen economy. Possible effects of business cycles or a circular economy on regional value chains are explored with a Monte-Carlo analysis.
Risk-adjusted Preferences of Utility Companies and Institutional Investors for Battery Storage and Green Hydrogen Investment
Feb 2022
Publication
Achieving climate-neutrality requires considerable investment in energy storage systems (ESS) to integrate variable renewable energy sources into the grid. However investments into ESS are often unprofitable in particular for grid-scale battery storage and green hydrogen technologies prompting many actors to call for policy intervention. This study investigates investor-specific risk-return preferences for ESS investment and derives policy recommendations. Insights are drawn from 1605 experimental investment-related decisions obtained from 42 high-level institutional investors and utility representatives. Results reveal that both investor groups view revenue stacking as key to making ESS investment viable. While the expected return on investment is the most important project characteristic risk-return preferences for other features diverge between groups. Institutional investors appear more open to exploring new technological ventures (20% of utility respondents would not consider making investments into solar photovoltaic-hydrogen) whereas utilities seem to prefer greenfield projects (23% of surveyed institutional investors rejected such projects). Interestingly both groups show strong aversion towards energy market price risk. Institutional investors require a premium of 6.87 percentage points and utilities 5.54 percentage points for moving from a position of fully hedged against market price risk to a scenario where only 20% of revenue is fixed underlining the need for policy support.
H2ero Net Zero: Hydrogen Europe Position Paper on the Fit for 55 Package
Jun 2021
Publication
Hydrogen has seen unprecedented development in the year 2020. From innovative niche technology it is fast becoming a systemic element in the European Union’s (EU) efforts to transition to a climate-neutral society in 2050. It will become a crucial energy vector and the other leg of the energy transition – alongside renewable electricity – by replacing coal oil and gas across different segments of the economy. The rapid development of hydrogen is important for meeting the EU’s climate objectives and preserving and enhancing the EU’s industrial and economic competitiveness securing jobs and value creation in this high-tech sector.
Europe is currently leading in hydrogen technology and European companies and knowledge institutions can be instrumental in advancing technological developments and industrial scale-up. It is imperative that Europe maintains this leadership position and seizes the current momentum for hydrogen technologies. The EU is well placed to become the birthplace of a global hydrogen economy denominated in Euro currency.
It is time that hydrogen moves from an afterthought to a central pillar of the energy system. The “Fit for 55 Package” presents a unique opportunity to begin putting into place a concrete and fit for purpose framework for the development of a clean hydrogen economy. In this paper you will find Hydrogen Europe’s recommendations on how hydrogen can:
Europe is currently leading in hydrogen technology and European companies and knowledge institutions can be instrumental in advancing technological developments and industrial scale-up. It is imperative that Europe maintains this leadership position and seizes the current momentum for hydrogen technologies. The EU is well placed to become the birthplace of a global hydrogen economy denominated in Euro currency.
It is time that hydrogen moves from an afterthought to a central pillar of the energy system. The “Fit for 55 Package” presents a unique opportunity to begin putting into place a concrete and fit for purpose framework for the development of a clean hydrogen economy. In this paper you will find Hydrogen Europe’s recommendations on how hydrogen can:
- Unleash the potential of renewables.
- Bring “efficiency” to the energy “system” of the future.
- Enable a carbon-neutral transport system.
An Overview of Economic Analysis and Environmental Impacts of Natural Gas Conversion Technologies
Dec 2020
Publication
This study presents an overview of the economic analysis and environmental impact of natural gas conversion technologies. Published articles related to economic analysis and environmental impact of natural gas conversion technologies were reviewed and discussed. The economic analysis revealed that the capital and the operating expenditure of each of the conversion process is strongly dependent on the sophistication of the technical designs. The emerging technologies are yet to be economically viable compared to the well-established steam reforming process. However appropriate design modifications could significantly reduce the operating expenditure and enhance the economic feasibility of the process. The environmental analysis revealed that emerging technologies such as carbon dioxide (CO2) reforming and the thermal decomposition of natural gas offer advantages of lower CO2 emissions and total environmental impact compared to the well-established steam reforming process. Appropriate design modifications such as steam reforming with carbon capture storage and utilization the use of an optimized catalyst in thermal decomposition and the use of solar concentrators for heating instead of fossil fuel were found to significantly reduced the CO2 emissions of the processes. There was a dearth of literature on the economic analysis and environmental impact of photocatalytic and biochemical conversion processes which calls for increased research attention that could facilitate a comparative analysis with the thermochemical processes.
Hydrogen Supply Chains for Mobility—Environmental and Economic Assessment
May 2018
Publication
Hydrogen mobility is one option for reducing local emissions avoiding greenhouse gas (GHG) emissions and moving away from a mainly oil-based transport system towards a diversification of energy sources. As hydrogen production can be based on a broad variety of technologies already existing or under development a comprehensive assessment of the different supply chains is necessary regarding not only costs but also diverse environmental impacts. Therefore in this paper a broad variety of hydrogen production technologies using different energy sources renewable and fossil are exemplarily assessed with the help of a Life Cycle Assessment and a cost assessment for Germany. As environmental impacts along with the impact category Climate change five more advanced impact categories are assessed. The results show that from an environmental point of view PEM and alkaline electrolysis are characterized by the lowest results in five out of six impact categories. Supply chains using fossil fuels in contrast have the lowest supply costs; this is true e.g. for steam methane reforming. Solar powered hydrogen production shows low impacts during hydrogen production but high impacts for transport and distribution to Germany. There is no single supply chain that is the most promising for every aspect assessed here. Either costs have to be lowered further or supply chains with selected environmental impacts have to be modified.
Perspective on the Hydrogen Economy as a Pathway to Reach Net-zero CO2 Emissions in Europe
Jan 2022
Publication
The envisioned role of hydrogen in the energy transition – or the concept of a hydrogen economy – has varied through the years. In the past hydrogen was mainly considered a clean fuel for cars and/or electricity production; but the current renewed interest stems from the versatility of hydrogen in aiding the transition to CO2 neutrality where the capability to tackle emissions from distributed applications and complex industrial processes is of paramount importance. However the hydrogen economy will not materialise without strong political support and robust infrastructure design. Hydrogen deployment needs to address multiple barriers at once including technology development for hydrogen production and conversion infrastructure co-creation policy market design and business model development. In light of these challenges we have brought together a group of hydrogen researchers who study the multiple interconnected disciplines to offer a perspective on what is needed to deploy the hydrogen economy as part of the drive towards net-zero-CO2 societies. We do this by analysing (i) hydrogen end-use technologies and applications (ii) hydrogen production methods (iii) hydrogen transport and storage networks (iv) legal and regulatory aspects and (v) business models. For each of these we provide key take home messages ranging from the current status to the outlook and needs for further research. Overall we provide the reader with a thorough understanding of the elements in the hydrogen economy state of play and gaps to be filled.
The Hydrogen Economy and Jobs of the Future
Nov 2018
Publication
Growth in the hydrogen and fuel cell industries will lead to vast new employment opportunities and these will be created in a wide variety of industries skills tasks and earnings. Many of these jobs do not currently exist and do not have occupational titles defined in official classifications. In addition many of these jobs require different skills and education than current jobs and training requirements must be assessed so that this rapidly growing part of the economy has a sufficient supply of trained and qualified workers. We discuss the current hydrogen economy and technologies. We then identify by occupational titles the new jobs that will be created in the expanding hydrogen/fuel cell economy estimate the average US salary for each job identify the minimum educational attainment required to gain entry into that occupation and specify the recommended university degree for the advanced educational requirements. We provide recommendations for further research.
Fission Battery Markets and Economic Requirements
Oct 2022
Publication
Fission Batteries (FBs) are nuclear reactors for customers with heat demands less than 250 MWt—replacing oil and natural gas in a low-carbon economy. Individual FBs would have outputs between 5 and 30 MWt. The small FB size has two major benefits: (1) the possibility of mass production and (2) ease of transport and leasing with return of used FBs to factory for refurbishing and reuse. Comparatively these two features are lacking in larger conventional reactors. Larger reactors are not transportable and thus can’t obtain the manufacturing economics possible with mass production or the operational advantages of returning the FB to the factory after use. Leasing places the regulatory maintenance and fuel-cycle burden on the leasing company that is minimized by large-fleet operations of identical units. The markets and economic requirements for FBs were examined. The primary existing markets are industrial biofuels off-grid electricity and container ships. Two major future markets were identified—advanced biofuels and hydrogen. In a low-carbon world the competitive price range for heat is $20–50/MWh ($6–15/million BTU) and $70–115/MWh for non-grid electricity. The primary competition in these sectors is likely to be biofuels and hydrogen produced using alternative energy sources—grid electricity is non-competitive. Larger users of energy have alternative low-carbon energy choices including modular nuclear reactors and fossil fuels with carbon capture and sequestration (CCS).
The Socio-technical Dynamics of Net-zero Industrial Megaprojects: Outside-in and Inside-out Analyses of the Humber Industrial Cluster
Feb 2023
Publication
Although energy-intensive industries are often seen as ‘hard-to-decarbonise’ net-zero megaprojects for industrial clusters promise to improve the technical and economic feasibility of hydrogen fuel switching and carbon capture and storage (CCS). Mobilising insights from the megaproject literature this paper analyses the dynamics of an ambitious first-of-kind net-zero megaproject in the Humber industrial cluster in the United Kingdom which includes CCS and hydrogen infrastructure systems industrial fuel switching CO2 capture green and blue hydrogen production and hydrogen storage. To analyse the dynamics of this emerging megaproject the article uses a socio-technical system lens to focus on developments in technology actors and institutions. Synthesising multiple megaproject literature insights the paper develops a comprehensive framework that addresses both aggregate (‘outside-in’) developments and the endogenous (‘inside-out’) experiences and activities regarding three specific challenges: technical system integration actor coordination and institutional alignment. Drawing on an original dataset involving expert interviews (N = 46) site visits (N = 7) and document analysis the ‘outside-in’ analysis finds that the Humber megaproject has progressed rapidly from outline visions to specific technical designs enacted by new coalitions and driven by strengthening policy targets and financial support schemes. The complementary ‘inside-out’ analysis however also finds 12 alignment challenges that can delay or derail materialisation of the plans. While policies are essential aggregate drivers institutional misalignments presently also prevent project-actors from finalising design and investment decisions. Our analysis also finds important tensions between the project's high-pace delivery focus (to meet government targets) and allowing sufficient time for pilot projects learning-by-doing and design iterations.
Can the Hydrogen Economy Concept be the Solution to the Future Energy Crisis?
Feb 2022
Publication
The Hydrogen Economy concept is being proposed as a means of reducing and eventually decarbonising the world’s energy use. It looks to hydrogen as being a replacement for methane (natural gas) and generally as a way of removing all fossil fuels from the energy supply. The concept however has at least four flaws as follows: (1) hydrogen has significantly different properties to methane; (2) hydrogen has properties that create significant hazards; (3) hydrogen has a very small initiation (activation) energy; and (4) liquid hydrogen cannot readily replace liquefied natural gas (LNG). Hydrogen’s hazards will prevent it from being accepted in a societal sense. To the question ‘Can the Hydrogen Economy concept be the solution to the future energy crisis?’ the answer is ‘no’. Hydrogen has and will have a role in world energy but that role will be limited to industry. For the future we need an advanced electric economy.
The Value of Flexible Fuel Mixing in Hydrogen-fueled Gas Turbines - A Techno-economic Study
Jul 2022
Publication
In electricity systems mainly supplied with variable renewable electricity (VRE) the variable generation must be balanced. Hydrogen as an energy carrier combined with storage has the ability to shift electricity generation in time and thereby support the electricity system. The aim of this work is to analyze the competitiveness of hydrogen-fueled gas turbines including both open and combined cycles with flexible fuel mixing of hydrogen and biomethane in zero-carbon emissions electricity systems. The work applies a techno-economic optimization model to future European electricity systems with high shares of VRE.<br/>The results show that the most competitive gas turbine option is a combined cycle configuration that is capable of handling up to 100% hydrogen fed with various mixtures of hydrogen and biomethane. The results also indicate that the endogenously calculated hydrogen cost rarely exceeds 5 €/kgH2 when used in gas turbines and that a hydrogen cost of 3–4 €/kgH2 is for most of the scenarios investigated competitive. Furthermore the results show that hydrogen gas turbines are more competitive in wind-based energy systems as compared to solar-based systems in that the fluctuations of the electricity generation in the former are fewer more irregular and of longer duration. Thus it is the characteristics of an energy system and not necessarily the cost of hydrogen that determine the competitiveness of hydrogen gas turbines.
Day-ahead Economic Optimization Scheduling Model for Electricity–hydrogen Collaboration Market
Aug 2022
Publication
This paper presents a day-ahead economic optimization scheduling model for Regional Electricity–Hydrogen Integrated Energy System (REHIES) with high penetration of renewable energies. The electricity–hydrogen coupling devices are modelled with energy storage units and Insensitive Electrical Load (ISEL). The proposed objective function is able to capture the maximum benefits for REHIES in terms of economic benefits and can be summarized as a Quadratic Programming (QP) problem. The simulation verification is performed by MATLAB/CPLEX solver. The simulation results show that the proposed optimization model adapts the market requirement by contributing flexible collaboration between electricity and hydrogen. Also the translational properties of ISEL can implement higher economic profits and more effective utilization of renewable energy.
Comparative Levelized Cost Analysis of Transmitting Renewable Solar Energy
Feb 2023
Publication
A bottom-up cost analysis for delivering utility-scale PV-generated electricity as hydrogen through pipelines and as electricity through power is undertaken. Techno-economic generation and demand data for California are used to calculate the levelized cost of transmitting (LCOT) energy and the levelized cost of electricity (LCOE) prior to distribution. High-voltage levels of 230 kV and 500 kV and 24-inch and 36-inch pipelines for 100 to 700 miles of transmission are considered. At 100 miles of transmission the cost of transmission between each medium is comparable. At longer distances the pipeline scenarios become increasingly cheaper at low utilization levels. The all-electric pathways utilizing battery energy storage systems can meet 95% of the load for as low as 356 USD/MWh whereas when meeting 100% of load with the hydrogen gas turbine and fuel cell pathways the costs are 278 and 322 USD/MWh respectively.
Beyond the triangle of renewable Energy Acceptance: The Five Dimensions of Domestic Hydrogen Acceptance
Aug 2022
Publication
The ‘deep’ decarbonization of the residential sector is a priority for meeting national climate change targets especially in countries such as the UK where natural gas has been the dominant fuel source for over half a century. Hydrogen blending and repurposing the national grid to supply low-carbon hydrogen gas may offer respective short- and long-term solutions to achieving emissions reduction across parts of the housing sector. Despite this imperative the social acceptance of domestic hydrogen energy technologies remains underexplored by sustainability scholars with limited insights regarding consumer perceptions and expectations of the transition. A knowledge deficit of this magnitude is likely to hinder effective policymaking and may result in sub-optimal rollout strategies that derail the trajectory of the net zero agenda. Addressing this knowledge gap this study develops a conceptual framework for examining the consumer-facing side of the hydrogen transition. The paper affirms that the spatiotemporal patterns of renewable energy adoption are shaped by a range of interacting scales dimensions and factors. The UK’s emerging hydrogen landscape and its actor-network is characterized as a heterogenous system composed of dynamic relationships and interdependencies. Future studies should engage with domestic hydrogen acceptance as a co-evolving multi-scalar phenomenon rooted in the interplay of five distinct dimensions: attitudinal socio-political community market and behavioral acceptance. If arrived to behavioral acceptance helps realize the domestication of hydrogen heating and cooking established on grounds on cognitive sociopolitical and sociocultural legitimacy. The research community should internalize the complexity and richness of consumer attitudes and responses through a more critical and reflexive approach to the study of social acceptance.
The Significance of Formal & Legal Factors in Selecting a Location for a Hydrogen Buffer to Stabilize the Operation of Power Distribution Networks
Oct 2022
Publication
This article presents the conceptual assumptions for the process of identifying and evaluating the formal & legal factors that impact the choice of a hydrogen buffer location to stabilize the operation of power distribution networks. The assumption for the research process was establishing a methodological framework for an in-depth analysis of legislative acts (the EU legislation and the national law) to enable identification of synthetic groups of formal & legal factors to be further analyzed using the DEMATEL method. As a result the cause-and-effect relations between the variables were examined and an in-depth analysis was carried out to investigate the level of impact of the formal & legal factors on the functioning and location of a hydrogen energy buffer.
Transition to Renewable Energy for Communities: Energy Storage Requirements and Dissipation
Aug 2022
Publication
The transition of residential communities to renewable energy sources is one of the first steps for the decarbonization of the energy sector the reduction of CO2 emissions and the mitigation of global climate change. This study provides information for the development of a microgrid supplied by wind and solar energy which meets the hourly energy demand of a community of 10000 houses in the North Texas region; hydrogen is used as the energy storage medium. The results are presented for two cases: (a) when the renewable energy sources supply only the electricity demand of the community and (b) when these sources provide the electricity as well as the heating needs (for space heating and hot water) of the community. The results show that such a community can be decarbonized with combinations of wind and solar installations. The energy storage requirements are between 2.7 m3 per household and 2.2 m3 per household. There is significant dissipation in the storage–regeneration processes—close to 30% of the current annual electricity demand. The entire decarbonization (electricity and heat) of this community will result in approximately 87500 tons of CO2 emissions avoidance.
Roadmap Towards Zero Emissions, BEVs and FCEVs
Oct 2021
Publication
A “combined world” of fuel cell electric vehicles (FCEVs) and battery electric vehicles (BEVs) will create a greener transportation sector faster and cheaper than one of the solutions alone. Hydrogen Council with analytical support from McKinsey and Company published a report that highlights the complementary roles of FCEVs and BEVs in a decarbonised transportation sector.
The analysis found that each solution has comparable systemic efficiencies and similar CO2 life cycle intensity. From the vehicle user perspective FCEVs and BEVs will provide the flexibility and convenience to meet their specific context of use and geographic location. Additionally the costs of two supporting infrastructure for FCEVs and BEVs is cheaper than one infrastructure network primarily due to the reduced peak loads and avoidance of costly upgrades on the electricity grid. The report’s messages were developed in dialogue with the Observatory Group which consisted of representatives of government agencies and academia as well as associations and companies active in sectors like regenerative electricity generation electricity grid equipment manufacturing electric vehicle charging fleet management.
The paper can be found on their website.
The analysis found that each solution has comparable systemic efficiencies and similar CO2 life cycle intensity. From the vehicle user perspective FCEVs and BEVs will provide the flexibility and convenience to meet their specific context of use and geographic location. Additionally the costs of two supporting infrastructure for FCEVs and BEVs is cheaper than one infrastructure network primarily due to the reduced peak loads and avoidance of costly upgrades on the electricity grid. The report’s messages were developed in dialogue with the Observatory Group which consisted of representatives of government agencies and academia as well as associations and companies active in sectors like regenerative electricity generation electricity grid equipment manufacturing electric vehicle charging fleet management.
The paper can be found on their website.
The Hydrogen Economy - Where is the Water?
Jul 2022
Publication
"Green hydrogen” i.e. hydrogen produced by splitting water with a carbon “free” source of electricity via electrolysis is set to become the energy vector enabling a deep decarbonisation of society and a virtuous water based energy cycle. If to date water electrolysis is considered to be a scalable technology the source of water to enable a “green hydrogen” economy at scale is questionable. Countries with the highest renewable energy potential like Australia are also among the driest places on earth. Globally 380000 GL/year of wastewater is available and this is much more than the 34500 GL/year of water required to produce the projected 2.3 Gt of hydrogen of a mature hydrogen economy. Hence the need to assess both technically and economically whether some wastewater treatment effluent are a better source for green hydrogen. Analysis of Sydney Water’s wastewater treatment plants alone shows that these plants have 37.6 ML/day of unused tertiary effluents which if electrolysed would generate 420000 t H2/day or 0.88 Mt H2/year and cover ∼100% of Australia’s estimated production by 2030. Furthermore the production of oxygen as a by-product of the electrolysis process could lead to significant benefits to the water industry not only in reducing the cost of the hydrogen produced for $3/kg (assuming a price of oxygen of $3–4 per kg) but also in improving the environmental footprint of wastewater treatment plants by enabling the onsite re-use of oxygen for the treatment of the wastewater. Compared to desalinated water that requires large investments or stormwater that is unpredictable it is apparent that the water utilities have a critical role to play in managing water assets that are “climate independent” as the next “golden oil” opportunity and in enabling a “responsible” hydrogen industry that sensibly manages its water demands and does not compete with existing water potable water demand.
Clean Energy Futures: An Australian Based Foresight Study
Aug 2022
Publication
Political decarbonisation commitments and outcompeting renewable electricity costs are disrupting energy systems. This foresight study prepares stakeholders for this dynamic reactive change by examining visions that constitute a probable plausible and possible component of future energy systems. Visions were extrapolated through an expert review of energy technologies and Australian case studies. ‘Probable–Abundant’ envisages a high penetration of solar and wind with increased value of balancing services: batteries pumped hydro and transmission. This vision is exemplified by the South Australian grid where variable and distributed sources lead generation. ‘Plausible–Traded’ envisages power and power fuel exports given hydrogen and high-voltage direct-current transmission advances reflected by public and private sector plans to leverage rich natural resources for national and intercontinental exchanges. ‘Possible–Zero’ envisages the application of carbon removal and nuclear technologies in response to the escalating challenge of deep decarbonisation. The Australian critical minerals strategy signals adaptations of high-emission industries to shifting energy resource values. These visions contribute a flexible accessible framework for diverse stakeholders to discuss uncertain energy systems changes and consider issues from new perspectives. Appraisal of preferred futures allows stakeholders to recognise observed changes as positive or negative and may lead to new planning aspirations.
Life Cycle Assessment of Hydrogen from Proton Exchange Membrane Water Electrolysis in Future Energy Systems
Jan 2019
Publication
This study discusses the potential of H2 production by proton exchange membrane water electrolysis as an effective option to reduce greenhouse gas emissions in the hydrogen sector. To address this topic a life cycle assessment is conducted to compare proton exchange membrane water electrolysis versus the reference process - steam methane reforming. As a relevant result we show that hydrogen production via proton exchange membrane water electrolysis is a promising technology to reduce CO2 emissions of the hydrogen sector by up to 75% if the electrolysis system runs exclusively on electricity generated from renewable energy sources. In a future (2050) base-load operation mode emissions are comparable to the reference system.
The results for the global warming potential show a strong reduction of greenhouse gas emissions by 2050. The thoroughly and in-depth modelled components of the electrolyser have negligible influence on impact categories; thus emissions are mainly determined by the electricity mix. With 2017 electricity mix of Germany the global warming potential corresponds to 29.5 kg CO2 eq. for each kg of produced hydrogen. Referring to the electricity mix we received from an energy model emissions can be reduced to 11.5 kg CO2 eq. in base-load operation by the year 2050. Using only the 3000 h of excess power from renewables in a year will allow for the reduction of the global warming potential to 3.3 kg CO2 eq. From this result we see that an environmentally friendly electricity mix is crucial for reducing the global warming impact of electrolytic hydrogen.
The results for the global warming potential show a strong reduction of greenhouse gas emissions by 2050. The thoroughly and in-depth modelled components of the electrolyser have negligible influence on impact categories; thus emissions are mainly determined by the electricity mix. With 2017 electricity mix of Germany the global warming potential corresponds to 29.5 kg CO2 eq. for each kg of produced hydrogen. Referring to the electricity mix we received from an energy model emissions can be reduced to 11.5 kg CO2 eq. in base-load operation by the year 2050. Using only the 3000 h of excess power from renewables in a year will allow for the reduction of the global warming potential to 3.3 kg CO2 eq. From this result we see that an environmentally friendly electricity mix is crucial for reducing the global warming impact of electrolytic hydrogen.
Hydrogen Insights 2022
Sep 2022
Publication
Authored by the Hydrogen Council in collaboration with McKinsey and Company Hydrogen Insights 2022 presents an updated perspective on hydrogen market development and actions required to unlock hydrogen at scale.
The pipeline of hydrogen projects is continuing to grow but actual deployment is lagging.
680 large-scale project proposals worth USD 240 billion have been put forward but only about 10% (USD 22 billion) have reached final investment decision (FID). While Europe leads in proposed investments (~30%) China is slightly ahead on actual deployment of electrolyzers (200 MW) while Japan and South Korea are leading in fuel cells (more than half of the world’s 11 GW manufacturing capacity).
The urgency to invest in mature hydrogen projects today is greater than ever.
For the world to be on track for net zero emissions by 2050 investments of some USD 700 billion in hydrogen are needed through 2030 – only 3% of this capital is committed today. Ambition and proposals by themselves do not translate into positive impact on climate change; investments and implementation on the ground is needed.
Joint action by the public and private sectors is urgently required to move from project proposals to FIDs.
Both governments and industry need to act to implement immediate actions for 2022 to 2023 – policymakers need to enable demand visibility roll out funding support and ensure international coordination; industry needs to increase supply chain capability and capacity advance projects towards final investment decision (FID) and develop infrastructure for cross-border trade.
The paper can be found on their website.
The pipeline of hydrogen projects is continuing to grow but actual deployment is lagging.
680 large-scale project proposals worth USD 240 billion have been put forward but only about 10% (USD 22 billion) have reached final investment decision (FID). While Europe leads in proposed investments (~30%) China is slightly ahead on actual deployment of electrolyzers (200 MW) while Japan and South Korea are leading in fuel cells (more than half of the world’s 11 GW manufacturing capacity).
The urgency to invest in mature hydrogen projects today is greater than ever.
For the world to be on track for net zero emissions by 2050 investments of some USD 700 billion in hydrogen are needed through 2030 – only 3% of this capital is committed today. Ambition and proposals by themselves do not translate into positive impact on climate change; investments and implementation on the ground is needed.
Joint action by the public and private sectors is urgently required to move from project proposals to FIDs.
Both governments and industry need to act to implement immediate actions for 2022 to 2023 – policymakers need to enable demand visibility roll out funding support and ensure international coordination; industry needs to increase supply chain capability and capacity advance projects towards final investment decision (FID) and develop infrastructure for cross-border trade.
The paper can be found on their website.
A Thorough Emission-Cost Analysis of the Gradual Replacement of Carbon-Rich Fuels with Carbon-Free Energy Carriers in Modern Power Plants: The Case of Cyprus
Aug 2022
Publication
Global efforts towards de-carbonization give rise to remarkable energy challenges which include renewable energy penetration increase and intermediate energy carriers for a sustainable transition. In order to reduce the dependence on fossil fuels alternative sources are considered by commodities to satisfy their increasing electricity demand as a consequence of a rise in population and the quantity of residential appliances in forthcoming years. The near-term trends appear to be in fuel and emission reduction techniques through the integration of carbon capture and storage and more efficient energy carriers exploiting alternative energy sources such as natural gas and hydrogen. Formulating both the fuel consumption and emission released the obtained experimental results showed that the total production cost can be reduced by making use of natural gas for the transition towards 2035’s targets. Maximum profits will be achieved with hydrogen as the only fuel in modern power plants by 2050. In this way the lowest electricity production can be achieved as well as the elimination of carbon dioxide emissions. Since the integration of renewable energy resources in the sectors of electricity heating/cooling and transportation will continuously be increased alternative feedstocks can serve as primary inputs and contribute to production cost profits improved utilization factors and further environmental achievements.
The Smart Community: Strategy Layers for a New Sustainable Continental Framework
Feb 2023
Publication
The topic investigated in this article is a comparison contrast and integration effort of European strategies for sustainable development with the evolving market initiatives that are beginning to fuel the fourth industrial revolution. Several regulatory initiatives from continental bodies come into effect to radically change access to finances for business development based on sustainability goals and an analysis of the legislation and trends becomes essential for an effective pivot tactic in the face of adversity as well as change management policies to pre-emptively adapt and perform. The general research question is “what the strategic tools are best employed to overcome the hurdles laid forth by the drastic changes legally required for a sustainable future?” The research methods include a quantitative analysis of norms regulations and legislation including strategic initiatives circulated in the European Union governmental bodies integrated with qualitative research of the literature. The study finds and draws synergies between national strategies that have recently been drafted or are currently evolving with sustainability-centric initiatives such as the hydrogen initiative the nuclear initiative the natural gas initiative the renewables initiative the synthetics and biomass initiative the ESG initiative the digital initiative. The findings are to contribute to the business administration field by providing an appropriate image of the organizational design model in the sustainability era and a strategy framework to build the optimum long-term vision founded on continental regulatory initiatives that have come into effect.
Building the Green Hydrogen Market - Current State and Outlook on Green Hydrogen Demand and Electrolyzer Manufacturing
Jul 2022
Publication
Over the past two years requirements to meet climate targets have been intensified. In addition to the tightening of the climate targets and the demand for net-zero achievement by as early as 2045 there have been discussions on implementing and realizing these goals. Hydrogen has emerged as a promising climate-neutral energy carrier. Thus over the last 1.5 years more than 25 countries have published hydrogen roadmaps. Furthermore various studies by different authorities have been released to support the development of a hydrogen economy. This paper examines published studies and hydrogen country roadmaps as part of a meta-analysis. Furthermore a market analysis of electrolyzer manufacturers is conducted. The prospected demand for green hydrogen from various studies is compared to electrolyzer manufacturing capacities and selected green hydrogen projects to identify potential market ramp-up scenarios and to evaluate if green hydrogen demand forecasts can be filled.
Policy Toolbox for Low Carbon and Renewable Hydrogen
Nov 2021
Publication
The report “Policy Toolbox for Low Carbon and Renewable Hydrogen” is based on an assessment of the performance of hydrogen policies in different stages of market maturity and segments of the value chain. 48 policies were shortlisted based on their economic efficiency and effectiveness and mapped to barriers across the value chain and over time. These policies were subsequently clustered into policy packages for three country archetypes: a self-sufficient hydrogen producer an importer and an exporter of hydrogen.
The paper can be found on their website.
The paper can be found on their website.
EU Carbon Diplomacy: Assessing Hydrogen Security and Policy Impact in Australia and Germany
Dec 2021
Publication
Hydrogen is fast becoming a new international “super fuel” to accelerate global climate change ambitions. This paper has two inter-weaving themes. Contextually it focuses on the potential impact of the EU’s new Carbon Border Adjustment Mechanism (CBAM) on fossil fuel-generated as opposed to green hydrogen imports. The CBAM as a transnational carbon adjustment mechanism has the potential to impact international trade in energy. It seeks both a level playing field between imports and EU internal markets (subject to ambitious EU climate change policies) and to encourage emissions reduction laggards through its “carbon diplomacy”. Countries without a price on carbon will be charged for embodied carbon in their supply chains when they export to the EU. Empirically we focus on two hydrogen export/import case studies: Australia as a non-EU state with ambitions to export hydrogen and Germany as an EU Member State reliant on energy imports. Energy security is central to energy trade debates but needs to be conceptualized beyond supply and demand economics to include geopolitics just transitions and the impacts of border carbon taxes and EU carbon diplomacy. Accordingly we apply and further develop a seven-dimension energy security-justice framework to the examples of brown blue and green hydrogen export/import hydrogen operations with varying carbon-intensity supply chains in Australia and Germany. Applying the framework we identify potential impact—risks and opportunities—associated with identified brown blue and green hydrogen export/import projects in the two countries. This research contributes to the emerging fields of international hydrogen trade supply chains and international carbon diplomacy and develops a potentially useful seven-dimension energy security-justice framework for energy researchers and policy analysts.
Prospects and Obstacles for Green Hydrogen Production in Russia
Jan 2021
Publication
Renewable energy is considered the one of the most promising solutions to meet sustainable development goals in terms of climate change mitigation. Today we face the problem of further scaling up renewable energy infrastructure which requires the creation of reliable energy storages environmentally friendly carriers like hydrogen and competitive international markets. These issues provoke the involvement of resource-based countries in the energy transition which is questionable in terms of economic efficiency compared to conventional hydrocarbon resources. To shed a light on the possible efficiency of green hydrogen production in such countries this study is aimed at: (1) comparing key Russian trends of green hydrogen development with global trends (2) presenting strategic scenarios for the Russian energy sector development (3) presenting a case study of Russian hydrogen energy project «Dyakov Ust-Srednekanskaya HPP» in Magadan region. We argue that without significant changes in strategic planning and without focus on sustainable solutions support the further development of Russian power industry will be halted in a conservative scenario with the limited presence of innovative solutions in renewable energy industries. Our case study showed that despite the closeness to Japan hydrogen market economic efficiency is on the edge of zero with payback period around 17 years. The decrease in project capacity below 543.6 MW will immediately lead to a negative NPV. The key reason for that is the low average market price of hydrogen ($14/kg) which is only a bit higher than its production cost ($12.5/kg) while transportation requires about $0.96/kg more. Despite the discouraging results it should be taken into account that such strategic projects are at the edge of energy development. We see them as an opportunity to lead transnational energy trade of green hydrogen which could be competitive in the medium term especially with state support.
Green Hydrogen Production and Use in Low- and Middle-income Countries: A Least-cost Geospatial Modelling Approach Applied to Kenya
May 2023
Publication
With the rising threat of climate change green hydrogen is increasingly seen as the high-capacity energy storage and transport medium of the future. This creates an opportunity for low- and middle-income countries to leverage their high renewable energy potential to produce use and export low-cost green hydrogen creating environmental and economic development benefits. While identifying ideal locations for green hydrogen production is critical for countries when defining their green hydrogen strategies there has been a paucity of adequate geospatial planning approaches suitable to low- and middle-income countries. It is essential for these countries to identify green hydrogen production sites which match demand to expected use cases such that their strategies are economically sustainable. This paper therefore develops a novel geospatial cost modelling method to optimize the location of green hydrogen production across different use cases with a focus on suitability to low- and middle-income countries. This method is applied in Kenya to investigate the potential hydrogen supply chain for three use cases: ammonia-based fertilizer freight transport and export. We find hydrogen production costs of e3.7–9.9/kgH2 are currently achievable across Kenya depending on the production location chosen. The cheapest production locations are identified to the south and south-east of Lake Turkana. We show that ammonia produced in Kenya can be cost-competitive given the current energy crisis and that Kenya could export hydrogen to Rotterdam with costs of e7/kgH2 undercutting current market prices regardless of the carrier medium. With expected techno-economic improvements hydrogen production costs across Kenya could drop to e1.8–3.0/kgH2 by 2030.
Renewable Energy, Carbon Capture & Sequestration and Hydrogen Solutions as Enabling Technologies for Reduced CO2 Energy Transition at a National Level: An Application to the 2030 Italian National Energy Scenarios
Dec 2022
Publication
Globally climate change fossil fuel depletion and greenhouse emissions are fundamental problems requiring massive effort from the international scientific community to be addressed and solved. Following the Clean Energy for all Europeans Package (CEP) guidelines the Italian Government has established challenging and tight objectives both on energy and climate matter to be targeted by 2030. Accordingly research activities on different topics are carried out in Italy looking at the installation of intermittent renewable energy systems (IRES) implementation of carbon capture and sequestration (CCS) on existing power plants and hydrogen technology and infrastructure penetration for accomplishing the end-users demands. The optimal integration of the above-mentioned technologies is one of the most effective weapons to address these objectives. The paper investigates different energy scenarios for meeting the Italian National Energy and Climate Plan (NECP) 2030 targets showing how the combined implementation of around +12 GW of IRES and +6 GW of electrolyzers compared to the national estimates simultaneously with the CCS of around 10 Mt of CO2 per year can reduce the CO2 emissions up to about 247 Mt/year. Thanks to the adoption of the well-established software platform EnergyPlan the integration of IRES plants CCS and hydrogen-based technologies have been explored and the most successful results for concurrently reducing the impact of industrial transport residential and energy sectors and mitigating the greenhouse emissions substantially relies on the diversifications. Results show both the technical and economic convenience of a 2030 energy scenario which implements properly hydrogen IRES and CCS penetration in the energy system meeting the NECP 2030 targets and maintaining both the over-generation of the power plants below 5 TWh and the initial capital expenditure to be sustained for this scenario to occur below +80% compared to the 2019 energy scenario.
Scenario Modeling of Sustainable Development of Energy Supply in the Arctic
Dec 2021
Publication
The 21st century is characterized not only by large-scale transformations but also by the speed with which they occur. Transformations—political economic social technological environmental and legal-in synergy have always been a catalyst for reactions in society. The field of energy supply like many others is extremely susceptible to the external influence of such factors. To a large extent this applies to remote (especially from the position of energy supply) regions. The authors outline an approach to justifying the development of the Arctic energy infrastructure through an analysis of the demand for the amount of energy consumed and energy sources taking into account global trends. The methodology is based on scenario modeling of technological demand. It is based on a study of the specific needs of consumers available technologies and identified risks. The paper proposes development scenarios and presents a model that takes them into account. Modeling results show that in all scenarios up to 50% of the energy balance in 2035 will take gas but the role of carbon-free energy sources will increase. The mathematical model allowed forecasting the demand for energy types by certain types of consumers which makes it possible to determine the vector of development and stimulation of certain types of resources for energy production in the Arctic. The model enables considering not only the growth but also the decline in demand for certain types of consumers under different scenarios. In addition authors’ forecasts through further modernization of the energy sector in the Arctic region can contribute to the creation of prerequisites that will be stimulating and profitable for the growth of investment in sustainable energy sources to supply consumers. The scientific significance of the work lies in the application of a consistent hybrid modeling approach to forecasting demand for energy resources in the Arctic region. The results of the study are useful in drafting a scenario of regional development taking into account the Sustainable Development Goals as well as identifying areas of technology and energy infrastructure stimulation.
Political Economy of Green Hydrogen Rollout: A Global Perspective
Dec 2021
Publication
The present paper dwells on the role of green hydrogen in the transition towards climateneutral economies and reviews the central challenges for its emancipation as an economically viable source of energy. The study shows that countries with a substantial share of renewables in the energy mix advanced natural gas pipeline infrastructure and an advanced level of technological and economic development have a comparative advantage for the wider utilization of hydrogen in their national energy systems. The central conclusion this review paper is that a green hydrogen rollout in the developed and oil-exporting developing and emerging countries is not a risk for the rest of the world in terms of the increasing technological disparities and conservation of underdevelopment and concomitant socio-economic problems of the Global South. The targets anchored in Paris Agreement but even more in the EU Green Deal and the European Hydrogen Strategy will necessitate a substantial rollout of RESs in developing countries and especially in the countries of the African Union because of the prioritization of the African continent within the energy cooperation frameworks of the EU Green Deal and the EU Hydrogen Strategy. Hence the green hydrogen rollout will bridge the energy transition between Europe and Africa on the one hand and climate and development targets on the other.
Future Energy Scenarios 2021
Jul 2022
Publication
Our Future Energy Scenarios (FES) draw on hundreds of experts’ views to model four credible energy pathways for Britain over coming decades. Matthew Wright our head of strategy and regulation outlines what the 2021 outlook means for consumers society and the energy system itself.<br/>This year’s Future Energy Scenarios insight reveals a glimpse of a Britain that is powered with net zero carbon emissions.<br/>Our analysis shows that our country can achieve its legally-binding carbon reduction targets: in three out of four scenarios in the analysis the country reaches net zero carbon emissions by 2050 with Leading the Way – our most ambitious scenario – achieving it in 2047 and becoming net negative by 2050.
Investment Estimation in the Energy and Power Sector towards Carbon Neutrality Target: A Case Study of China
Mar 2023
Publication
The transition towards low-carbon energy and power has been extensively studied by research institutions and scholars. However the investment demand during the transition process has received insufficient attention. To address this gap an energy investment estimation method is proposed in this paper which takes the unit construction costs and potential development of major technology in the energy and power sector as input. The proposed estimation method can comprehensively assess the investment demand for various energy sources in different years including coal oil natural gas biomass power and hydrogen energy. Specifically we applied this method to estimate the investment demand of China’s energy and power sector from 2020 to 2060 at five year intervals. The results indicate that China’s cumulative energy investment demand over this period is approximately 127 trillion CNY with the power sector accounting for the largest proportion at 92.35% or approximately 117 trillion CNY. The calculated cumulative investment demand is consistent with the findings of several influential research institutions providing validation for the proposed method.
Analysis of the Levelized Cost of Renewable Hydrogen in Austria
Mar 2023
Publication
Austria is committed to the net-zero climate goal along with the European Union. This requires all sectors to be decarbonized. Hereby hydrogen plays a vital role as stated in the national hydrogen strategy. A report commissioned by the Austrian government predicts a minimum hydrogen demand of 16 TWh per year in Austria in 2040. Besides hydrogen imports domestic production can ensure supply. Hence this study analyses the levelized cost of hydrogen for an off-grid production plant including a proton exchange membrane electrolyzer wind power and solar photovoltaics in Austria. In the first step the capacity factors of the renewable electricity sources are determined by conducting a geographic information system analysis. Secondly the levelized cost of electricity for wind power and solarphotovoltaics plants in Austria is calculated. Thirdly the most cost-efficient portfolio of wind power and solar photovoltaics plants is determined using electricity generation profiles with a 10-min granularity. The modelled system variants differ among location capacity factors of the renewable electricity sources and the full load hours of the electrolyzer. Finally selected variables are tested for their sensitivities. With the applied model the hydrogen production cost for decentralized production plants can be calculated for any specific location. The levelized cost of hydrogen estimates range from 3.08 EUR/kg to 13.12 EUR/kg of hydrogen whereas it was found that the costs are most sensitive to the capacity factors of the renewable electricity sources and the full load hours of the electrolyzer. The novelty of the paper stems from the model applied that calculates the levelized cost of renewable hydrogen in an off-grid hydrogen production system. The model finds a cost-efficient portfolio of directly coupled wind power and solar photovoltaics systems for 80 different variants in an Austria-specific context.
Technical, Economic, Carbon Footprint Assessment, and Prioritizing Stations for Hydrogen Production Using Wind Energy: A Case Study
Jul 2021
Publication
While Afghanistan’s power sector is almost completely dependent on fossil fuels it still cannot meet the rising power demand of this country. Deploying a combination of renewable energy systems with hydrogen production as the excess energy storage mechanism could be a sustainable long-term approach for addressing some of the energy problems of Afghanistan. Since Badakhshan is known to have a higher average wind speed than any other Afghan province in this study a technical economic and carbon footprint assessment was performed to investigate the potential for wind power and hydrogen production in this province. Wind data of four stations in Badakhshan were used for technical assessment for three heights of 10 30 and 40 m using the Weibull probability distribution function. This technical assessment was expanded by estimating the energy pattern factor probability of wind speeds greater than 5 m/s wind power density annual power output and annual hydrogen output. This was followed by an economic assessment which involved computing the Leveled Cost Of Energy (LCOE) the Leveled Cost Of Hydrogen (LCOH) and the payback period and finally an carbon footprint assessment which involved estimating the consequent CO2 reduction in two scenarios. The assessments were performed for 22 turbines manufactured by reputable companies with capacities ranging from 600 kW to 2.3 MW. The results showed that the entire Badakhshan province and especially Qal’eh-ye Panjeh and Fayazabad have excellent potentials in terms of wind energy that can be harvested for wind power and hydrogen production. Also wind power generation in this province will be highly cost-effective as the produced electricity will cost about one-third of the price of electricity supplied by the government. For better evaluation the GIS maps of wind power and hydrogen outputs were prepared using the IDW method. These maps showed that the eastern and northeastern parts of Badakhshan province have higher wind power-hydrogen production potentials. The results of ranking the stations with SWARA-EDAS hybrid MCDM methods showed that Qal’eh-ye Panjeh station was the best location to produce hydrogen from wind energy.
Accelerating the Green Hydrogen Revolution: A Comprehensive Analysis of Technological Advancements and Policy Interventions
Apr 2024
Publication
Promoting green hydrogen has emerged as a pivotal discourse in the contemporary energy landscape driven by pressing environmental concerns and the quest for sustainable energy solutions. This paper delves into the multifaceted domain of C-Suite issues about green hydrogen encompassing both technological advancements and policy considerations. The question of whether green hydrogen is poised to become the focal point of the upcoming energy race is explored through an extensive analysis of its potential as a clean and versatile energy carrier. The transition from conventional fossil fuels to green hydrogen is considered a fundamental shift in energy paradigms with far-reaching implications for global energy markets. The paper provides a comprehensive overview of state-of-the-art green hydrogen technologies including fuel cells photocatalysts photo electrocatalysts and hydrogen panels. In tandem with technological advancements the role of policy and strategy in fostering the development of green hydrogen energy assumes paramount significance. The paper elucidates the critical interplay between government policies market dynamics and corporate strategies in shaping the green hydrogen landscape. It delves into policy mechanisms such as subsidies carbon pricing and renewable energy mandates shedding light on their potential to incentivize the production and adoption of green hydrogen. This paper offers a nuanced exploration of C-Suite issues surrounding green hydrogen painting a comprehensive picture of the technological and policy considerations that underpin its emergence as a transformative energy source. As the global community grapples with the imperatives of climate change mitigation and the pursuit of sustainable energy solutions understanding these issues becomes imperative for executives policymakers and stakeholders alike.
Fuelling the Transition Podcast: Using Hydrogen to Achieve Net-zero
Jan 2021
Publication
In order to achieve the EU’s target of 55% carbon reduction by 2030 hydrogen will have to make a key contribution to the energy mix. With many applications in industrial heat mobility power and chemical refineries hydrogen can be used to decarbonise where electrification is not possible. Equinor is a broad energy company with 21000 employees developing oil gas wind and solar energy in more than 30 countries worldwide. Equinor have been at the forefront of promoting hydrogen projects in Europe and developing low-carbon hydrogen solutions. In this episode Johan Leuraers Chief Consultant - Policy and Regulatory Affairs at Equinor and John Williams Head of Hydrogen Expertise Cluster at AFRY Management Consulting join us to discuss the main barriers to the uptake of hydrogen and the next steps to kick-start the hydrogen economy.
The podcast can be found on their website.
The podcast can be found on their website.
Global Hydrogen and Synfuel Exchanges in an Emission-Free Energy System
Apr 2023
Publication
This study investigates the global allocation of hydrogen and synfuels in order to achieve the well below 2 ◦C preferably 1.5 ◦C target set in the Paris Agreement. For this purpose TIMES Integrated Assessment Model (TIAM) a global energy system model is used. In order to investigate global hydrogen and synfuel flows cost potential curves are aggregated and implemented into TIAM as well as demand technologies for the end use sectors. Furthermore hydrogen and synfuel trades are established using liquid hydrogen transport (LH2 ) and both new and existing technologies for synfuels are implemented. To represent a wide range of possible future events four different scenarios are considered with different characteristics of climate and security of supply policies. The results show that in the case of climate policy the renewable energies need tremendous expansion. The final energy consumption is shifting towards the direct use of electricity while certain demand technologies (e.g. aviation and international shipping) require hydrogen and synfuels for full decarbonization. Due to different security of supply policies the global allocation of hydrogen and synfuel production and exports is shifting while the 1.5 ◦C target remains feasible in the different climate policy scenarios. Considering climate policy Middle East Asia is the preferred region for hydrogen export. For synfuel production several regions are competitive including Middle East Asia Mexico Africa South America and Australia. In the case of security of supply policies Middle East Asia is sharing the export volume with Africa while only minor changes can be seen in the synfuel supply.
Distributional Trends in the Generation and End-Use Sector of Low-Carbon Hydrogen Plants
Mar 2023
Publication
This paper uses established and recently introduced methods from the applied mathematics and statistics literature to study trends in the end-use sector and the capacity of low-carbon hydrogen projects in recent and upcoming decades. First we examine distributions in plants over time for various end-use sectors and classify them according to metric discrepancy observing clear similarity across all industry sectors. Next we compare the distribution of usage sectors between different continents and examine the changes in sector distribution over time. Finally we judiciously apply several regression models to analyse the association between various predictors and the capacity of global hydrogen projects. Across our experiments we see a welcome exponential growth in the capacity of zero-carbon hydrogen plants and significant growth of new and planned hydrogen plants in the 2020’s across every sector.
Navigating the Implementation of Tax Credits for Natural-Gas-Based Low-Carbon-Intensity Hydrogen Projects
Mar 2024
Publication
This paper delves into the critical role of tax credits specifically Sections 45Q and 45V in the financing and economic feasibility of low-carbon-intensity hydrogen projects with a focus on natural-gas-based hydrogen production plants integrated with carbon capture and storage (CCS). This study covers the current clean energy landscape underscoring the importance of low-carbon hydrogen as a key component in the transition to a sustainable energy future and then explicates the mechanics of the 45Q and 45V tax credits illustrating their direct impact on enhancing the economic attractiveness of such projects through a detailed net present value (NPV) model analysis. Our analysis reveals that the application of 45Q and 45V tax credits significantly reduces the levelized cost of hydrogen production with scenarios indicating a reduction in cost ranging from USD 0.41/kg to USD 0.81/kg of hydrogen. Specifically the 45Q tax credit demonstrates a slightly more advantageous impact on reducing costs compared to the 45V tax credit underpinning the critical role of these fiscal measures in enhancing project returns and feasibility. Furthermore this paper addresses the inherent limitations of utilizing tax credits primarily the challenge posed by the mismatch between the scale of tax credits and the tax liability of the project developers. The concept and role of tax equity investments are discussed in response to this challenge. These findings contribute to the broader dialogue on the financing of sustainable energy projects providing valuable insights for policymakers investors and developers in the hydrogen energy sector. By quantifying the economic benefits of tax credits and elucidating the role of tax equity investments our research supports informed decision-making and strategic planning in the pursuit of a sustainable energy future.
China's Hydrogen Development Strategy in the Context of Double Carbon Targets
Dec 2022
Publication
As a clean low-carbon efficient and renewable energy source hydrogen has gradually become an important energy carrier to combat climate change and achieve sustainable development in the world. China is now facing the stress of realizing the carbon peak and carbon neutrality goals where hydrogen will play a significant role. Against this backdrop to develop China's hydrogen strategy under the carbon peak and carbon neutrality goals this paper explores the hydrogen resource endowment in China presents the concepts such as Hydrogen Ethics and the Hu's Hydrogen Line and discusses the status quo and existing advantages in hydrogen production storage transport and utilization in China. Six major obstacles and challenges that China's hydrogen energy industry is facing are pointed out i.e. cost problem inadequate hydrogen infrastructures low energy efficiency mismatching the development progress of renewable energy insufficient market demand shortcomings in technology and imperfect policy system. Finally five policy suggestions for the future development of China's hydrogen energy industry are proposed as follows: (1) make an action plan as a response to the national hydrogen development plan; (2) build an international and domestic double-cycle hydrogen economic system; (3) incorporate hydrogen into the establishment of a clean low-carbon safe and efficient energy system; (4) accelerate the technological innovation to form advanced hydrogen technologies; and (5) construct hydrogen-oriented industrial clusters/parks to expand the hydrogen utilization market. It is concluded that for meeting the carbon peak and carbon neutrality goals China should leverage the dual advantages of hydrogen as an energy carrier and an industrial raw material allowing the hydrogen industry to play a synergistic role in ensuring the country's energy security promoting the socio-economic transformation and upgrading and protecting the ecological environment thereby providing a technical option and support for China to achieve the ultimate goal of carbon neutrality.
Green Hydrogen in Developing Countries
Aug 2020
Publication
In the future green hydrogen—hydrogen produced with renewable energy resources—could provide developing countries with a zero-carbon energy carrier to support national sustainable energy objectives and it needs further consideration by policy makers and investors. Developing countries with good renewable energy resources could produce green hydrogen locally generating economic opportunities and increasing energy security by reducing exposure to oil price volatility and supply disruptions. Support from development finance institutions and concessional funds could play an important role in deploying first-of-a-kind green hydrogen projects accelerating the uptake of green hydrogen in developing countries and increasing capacity and creating the necessary policy and regulatory enabling environment.
Techno-Economic Analysis of Solar Thermal Hydrogen Production in the United Arab Emirates
Oct 2022
Publication
Solar thermal technology can provide the United Arab Emirates and the Middle East region with abundant clean electricity to mitigate the rising levels of carbon dioxide and satisfy future demand. Hydrogen can play a key role in the large-scale application of solar thermal technologies such as concentrated solar plants in the region by storing the surplus electricity and exporting it to needed countries for profit placing the Middle East and the United Arab Emirates as major future green hydrogen suppliers. However a hydrogen supply chain comparison between hydrogen from CSP and other renewable under the UAE’s technical and economic conditions for hydrogen export is yet to be fully considered. Therefore in this study we provide a techno-economic analysis for well-to-ship solar hydrogen supply chain that compares CSP and PV technologies with a solid oxide water electrolyzer for hydrogen production assuming four different hydrogen delivery pathways based on the location of electrolyzer and source of electricity assuming the SOEC can be coupled to the CSP plant when placed at the same site or provided with electric heaters when placed at PV plant site or port sites. The results show that the PV plant achieves a lower levelized cost of electricity than that of the CSP plant with 5.08 ¢/kWh and 8.6 ¢/kWh respectively. Hydrogen production results show that the scenario where SOEC is coupled to the CSP plant is the most competitive scenario as it achieves the payback period in the shortest period compared to the other scenarios and also provides higher revenues and a cheaper LCOH of 7.85 $/kgH2.
Sufficiency, Sustainability, and Circularity of Critical Materials for Clean Hydrogen
Jan 2022
Publication
Effective global decarbonization will require an array of solutions across a portfolio of low-carbon resources. One such solution is developing clean hydrogen. This unique fuel has the potential to minimize climate change impacts helping decarbonize hard-to-abate sectors such as heavy industry and global transport while also promoting energy security sustainable growth and job creation. The authors estimate suggest that hydrogen needs to grow seven-fold to support the global energy transition eventually accounting for ten percent of total energy consumption by 2050. A scaleup of this magnitude will increase demand for materials such as aluminum copper iridium nickel platinum vanadium and zinc to support hydrogen technologies - renewable electricity technologies and the electrolyzers for renewable hydrogen carbon storage for low-carbon hydrogen or fuel cells using hydrogen to power transport. This report a joint product of the World Bank and the Hydrogen Council examines these three critical areas. Using new data on the material intensities of key technologies the report estimates the amount of critical minerals needed to scale clean hydrogen. In addition it shows how incorporating sustainable practices and policies for mining and processing materials can help minimize environmental impacts. Key among these approaches is the use of recycled materials innovations in design in order to reduce material intensities and adoption of policies from the Climate Smart Mining (CSM) Framework to reduce impacts to greenhouse gas emissions and water footprint.
The Cost Dynamics of Hydrogen Supply in Future Energy systems - A Techno-economic Study
Nov 2022
Publication
This work aims to investigate the time-resolved cost of electrolytic hydrogen in a future climate-neutral electricity system with high shares of variable renewable electricity generation in which hydrogen is used in the industry and transport sectors as well as for time-shifting electricity generation. The work applies a techno-economic optimization model which incorporates both exogenous (industry and transport) and endogenous (time-shifting of electricity generation) hydrogen demands to elucidate the parameters that affect the cost of hydrogen. The results highlight that several parameters influence the cost of hydrogen. The strongest influential parameter is the cost of electricity. Also important are cost-optimal dimensioning of the electrolyzer and hydrogen storage capacities as these capacities during certain periods limit hydrogen production thereby setting the marginal cost of hydrogen. Another decisive factor is the nature of the hydrogen demand whereby flexibility in the hydrogen demand can reduce the cost of supplying hydrogen given that the demand can be shifted in time. In addition the modeling shows that time-shifting electricity generation via hydrogen production with subsequent reconversion back to electricity plays an important in the climate-neutral electricity system investigated decreasing the average electricity cost by 2%–16%. Furthermore as expected the results show that the cost of hydrogen from an off-grid island-mode-operated industry is more expensive than the cost of hydrogen from all scenarios with a fully interconnected electricity system.
Willingness of Chinese Households to Pay Extra for Hydrogen-fuelled Buses: A Survey Based on Willingness to Pay
Mar 2023
Publication
Hydrogen-fuelled buses play an important role in the construction of low-carbon cities as a means of green travel. Beijing as a pilot city of hydrogen-fuelled buses in China is very important in the promotion of hydrogen-fuelled buses in China. Unfortunately the public acceptance of hydrogen-fuelledfuelled buses and their environmental positive externality value have not been studied. In this paper we investigated the willingness of Beijing households to pay for the promotion of hydrogen-fuelled buses and its influencing factors by means of a web-based questionnaire. The spike model was also used to estimate the willingness to pay (WTP) for hydrogen buses. The results show that the WTP of Beijing households is CNY 3.19 per trip. The value of a positive environmental externality is approximately CNY 29.15 million per trip. Household income level environmental knowledge individual environmental ethics and perceived behavioural control are the main influencing factors of WTP. Therefore policymakers should strengthen publicity efforts to increase individuals’ environmental awareness and environmental ethics and optimize the layout of hydrogen-fuelled bus schedules and riding experiences to improve individuals’ perceptual and behaviour control. Finally the positive environmental externality value of hydrogen buses should be valued which will help increase investor interest.
Smart Power-to-gas Deployment Strategies Informed by Spatially Explicit Cost and Value Models
Oct 2022
Publication
Green hydrogen allows coupling renewable electricity to hard-to-decarbonize sectors such as long-distance transport and carbon-intensive industries in order to achieve net zero emissions. Evaluating the cost and value of power-to-gas is a major challenge owing to the spatial distribution and temporal variability of renewable electricity CO2 and energy demand. Here we propose a method based on geographic information system (GIS) and techno-economic modeling to: (i) compare the levelized cost and levelized value of power-to-gas across locations; (ii) identify potential hotspots for their future implementation in Switzerland; and (iii) set cost improvement targets as well as smart deployment strategies. Our method accounts for the spatial and temporal (both hourly and seasonal) availability of renewable electricity and CO2 sources as well as the presence of gas infrastructure heating networks oxygen and gas demand centers. We find that only green hydrogen plants connected directly to run-of-river hydropower plants are currently profitable in Switzerland (with NPV per CAPEX ranging between 2.3-5.6). However considering technological progress by 2050 a few green hydrogen plants deployed in the demand centers and powered by rooftop PV electricity will also become economically attractive. Moreover a few synthetic methane plants connected to run-of-river hydropower plants currently show slight profitability (NPV per CAPEX reaching values up to 1.3) and in 2050 (NPV per CAPEX up to 3.1) whereas those connected to rooftop PV will remain uneconomical even in 2050. Based on our findings we devise a long-term roadmap for policy makers and project developers to plan future green hydrogen projects. The proposed methodology which is applied to Switzerland can be extended to other countries.
Optimal Operation and Market Integration of a Hybrid Farm with Green Hydrogen and Energy Storage: A Stochastic Approach Considering Wind and Electricity Price Uncertainties
Mar 2024
Publication
In recent years growing interest has emerged in investigating the integration of energy storage and green hydrogen production systems with renewable energy generators. These integrated systems address uncertainties related to renewable resource availability and electricity prices mitigating profit loss caused by forecasting errors. This paper focuses on the operation of a hybrid farm (HF) combining an alkaline electrolyzer (AEL) and a battery energy storage system (BESS) with a wind turbine to form a comprehensive HF. The HF operates in both hydrogen and day-ahead electricity markets. A linear mathematical model is proposed to optimize energy management considering electrolyzer operation at partial loads and accounting for degradation costs while maintaining a straightforward formulation for power system optimization. Day-ahead market scheduling and real-time operation are formulated as a progressive mixed-integer linear program (MILP) extended to address uncertainties in wind speed and electricity prices through a two-stage stochastic optimization model. A bootstrap sampling strategy is introduced to enhance the stochastic model’s performance using the same sampled data. Results demonstrate how the strategies outperform traditional Monte Carlo and deterministic approaches in handling uncertainties increasing profits up to 4% per year. Additionally a simulation framework has been developed for validating this approach and conducting different case studies.
Investment in Wind-based Hydrogen Production under Economic and Physical Uncertainties
Feb 2023
Publication
This paper evaluates the economic viability of a combined wind-based green-hydrogen facility from an investor’s viewpoint. The paper introduces a theoretical model and demonstrates it by example. The valuation model assumes that both the spot price of electricity and wind capacity factor evolve stochastically over time; these state variables can in principle be correlated. Besides it explicitly considers the possibility to use curtailed wind energy for producing hydrogen. The model derives the investment project’s net present value (NPV) as a function of hydrogen price and conversion capacity. Thus the NPV is computed for a given price and a range of capacities. The one that leads to the maximum NPV is the ‘optimal’ capacity (for the given price). Next the authors estimate the parameters underlying the two stochastic processes from Spanish hourly data. These numerical estimates allow simulate hourly paths of both variables over the facility’s expected useful lifetime (30 years). According to the results green hydrogen production starts becoming economically viable above 3 €/kg. Besides it takes a hydrogen price of 4.7 €/kg to reach an optimal conversion capacity half the capacity of the wind park. The authors develop sensitivity analyses with respect to wind capacity factor curtailment rate and discount rate.
Greenhouse Gas Reduction Potential and Cost-effectiveness of Economy-wide Hydrogen-natural Gas Blending for Energy End Uses
Sep 2022
Publication
North American and European jurisdictions are considering repurposing natural gas infrastructure to deliver a lower carbon blend of natural gas and hydrogen; this paper evaluates the greenhouse gas reduction potential and cost-effectiveness of the repurposing. The analysis uses a bottom-up economy-wide energy-systems model of an emission-intensive jurisdiction Alberta Canada to evaluate 576 long-term scenarios from 2026 to 2050. Many scenarios were included to give the analysis broad international applicability and differ by sector hydrogen blending intensity carbon policy and hydrogen infrastructure development. Twelve hydrogen production technologies are compared in a long-term greenhouse gas and cost analysis including advanced technologies. Autothermal reforming with carbon capture provides both lower-carbon and lower-cost hydrogen compared to most other technologies in most futures even with high fugitive natural gas production emissions. Using hydrogen-natural gas blends for end-use energy applications eliminates 1–2% of economy-wide GHG emissions and marginal GHG abatement costs become negative at carbon prices over $300/tonne. The findings are useful for stakeholders expanding the international low-carbon hydrogen economy and governments engaged in formulating decarbonization policies and are considering hydrogen as an option.
Repurposing Pipelines for Hydrogen: Legal and Policy Considerations
Nov 2022
Publication
As the world looks to implement the Energy Transition repurposing existing fossil fuel infrastructure to produce or distribute “clean” energy will be critical. The most promising is using natural gas pipelines for moving hydrogen. This is the cheapest and fastest method of transport and reducing the cost of transporting hydrogen is a key step in making it economically viable. However while there are technical challenges the greater challenge is in the legal arena. This paper seeks to outline the numerous legal — treaty statutory and contractual — and regulatory obstacles to repurposing natural gas pipelines for hydrogen transport. Gas pipelines exist in a complex microclimate of international public and private law and domestic law and contracts. Ownership is often layered and tangled; financing doubly so; and myriad state interests compound the private interests including national security concerns energy supply imperatives and geopolitical balance. State aid — investment subsidies and tax breaks — may encumber the project with additional legal obligations. And the contracts that control the development of a pipeline project may inject further legal complexity such as dispute mediation procedures and fora and applicable law. This paper seeks to map all the likely areas of future conflict or difficulty so that work on developing the requisite legal regime and remedies to permit use of natural gas pipelines for hydrogen transport can begin now. For policy and lawmakers as well as the private sector evaluating these known unknowns is a good starting point for reconsidering legislation regulation contracts and project risk in preparation for the future probability of hydrogen pipelines.
Impacts of Green Energy Expansion and Gas Import Reduction on South Korea’s Economic Growth: A System Dynamics Approach
Jun 2023
Publication
South Korea ranking ninth among the largest energy consumers and seventh in carbon dioxide emissions from 2016 to 2021 faces challenges in energy security and climate change mitigation. The primary challenge lies in transitioning from fossil fuel dependency to a more sustainable and diversified energy portfolio while meeting the growing energy demand for continued economic growth. This necessitates fostering innovation and investment in the green energy sector. This study examines the potential impact of green energy expansion (through integrating renewable energy and hydrogen production) and gas import reduction on South Korea’s economic growth using a system dynamics approach. The findings indicate that increasing investment in green energy can result in significant growth rates ranging from 7% to 35% between 2025 and 2040. Under the expansion renewable energy scenario (A) suggests steady but sustainable economic growth in the long term while the gas import reduction scenario (B) displays a potential for rapid economic growth in the short term with possible instability in the long term. The total production in Scenario B is USD 2.7 trillion in 2025 and will increase to USD 4.8 trillion by 2040. Scenario C which combines the effects of both Scenarios A and B results in consistently high economic growth rates over time and a substantial increase in total production by 2035–2040 from 20% to 46%. These findings are critical for policymakers in South Korea as they strive for sustainable economic growth and transition to renewable energy.
Transition Analysis of Budgetary Allocation for Projects on Hydrogen-Related Technologies in Japan
Oct 2020
Publication
Hydrogen technologies are promising candidates of new energy technologies for electric power load smoothing. However regardless of long-term public investment hydrogen economy has not been realized. In Japan the National Research and Development Institute of New Energy and Industrial Technology Development Organization (NEDO) a public research-funding agency has invested more than 200 billion yen in the technical development of hydrogen-related technologies. However hydrogen technologies such as fuel cell vehicles (FCVs) have not been disseminated yet. Continuous and strategic research and development (R&D) are needed but there is a lack of expertise in this field. In this study the transition of the budgetary allocations by NEDO were analyzed by classifying NEDO projects along the hydrogen supply chain and research stage. We found a different R&D focus in different periods. From 2004 to 2007 empirical research on fuel cells increased with the majority of research focusing on standardization. From 2008 to 2011 investment in basic research of fuel cells increased again the research for verification of fuel cells continued and no allocation for research on hydrogen production was confirmed. Thereafter the investment trend did not change until around 2013 when practical application of household fuel cells (ENE-FARM) started selling in 2009 in terms of hydrogen supply chain. Hydrogen economy requires a different hydrogen supply infrastructure that is an existing infrastructure of city gas for ENE-FARM and a dedicated infrastructure for FCVs (e.g. hydrogen stations). We discussed the possibility that structural inertia could prevent the transition to investing more in hydrogen infrastructure from hydrogen utilization technology. This work has significant implications for designing national research projects to realize hydrogen economy.
Future Energy Scenarios 2022
Jul 2022
Publication
Future Energy Scenarios (FES) represent a range of different credible ways to decarbonise our energy system as we strive towards the 2050 target.<br/>We’re less than 30 years away from the Net Zero deadline which isn’t long when you consider investment cycles for gas networks electricity transmission lines and domestic heating systems.<br/>FES has an important role to play in stimulating debate and helping to shape the energy system of the future.
Future Energy Scenarios 2019
Jul 2019
Publication
Decarbonising energy is fundamental in the transition towards a sustainable future. Our Future Energy Scenarios aim to stimulate debate to inform the decisions that will help move us towards achieving carbon reduction targets and ultimately shape the energy system of the future.
Positioning Germany in an International Hydrogen Economy: A Policy Review
Apr 2024
Publication
Germany the European Union member state with the largest fiscal space and its leading manufacturer of industrial goods is pursuing an ambitious hydrogen strategy aiming at establishing itself as a major technology provider and importer of green hydrogen. The success of its hydrogen strategy represents not only a key element in realizing the European vision of climate neutrality but also a central driver of an emerging global hydrogen economy. This article provides a detailed review of German policy highlighting its prominent international dimension and its implications for the development of a global renewable hydrogen economy. It provides an overview of the strategy’s central goals and how these have evolved since the launch of the strategy in 2020. Next it moves on to provide an overview of the strategy’s main areas of intervention and highlights corresponding policy instruments. For this we draw on a comprehensive assessment of hydrogen policy instruments which have been systematically analyzed and coded. This was complemented by a detailed analysis of policy documents and information gathered in six interviews with government officials and staff of key implementing agencies. The article places particular emphasis on the strategy’s international dimension. While less significant in financial terms than domestic hydrogen-related spending it represents a defining feature of the German hydrogen strategy setting it apart from strategies in other major economies. The article closes with a reflection on the key features of the strategy compared to other important countries identifies gaps of the strategy and discusses important avenues for future research.
Hydrogen from Offshore Wind: Investor Perspective on the Profitability of a Hybrid System Including for Curtailment
Mar 2020
Publication
Accommodating renewables on the electricity grid may hinder development opportunities for offshore wind farms (OWFs) as they begin to experience significant curtailment or constraint. However there is potential to combine investment in OWFs with Power-to-Gas (PtG) converting electricity to hydrogen via electrolysis for an alternative/complementary revenue. Using historic wind speed and simulated system marginal costs data this work models the electricity generated and potential revenues of a 504 MW OWF. Three configurations are analysed; (1) all electricity is sold to the grid (2) all electricity is converted to hydrogen and sold and (3) a hybrid system where power is converted to hydrogen when curtailment occurs and/or when the system marginal cost is low with the effect of curtailment analysed in each scenario. These represent the status quo a potential future configuration and an innovative business model respectively. The willingness of an investor to build PtG are determined by changes to the net present value (NPV) of a project. Results suggest that configuration (1) is most profitable and that curtailment mitigation alone is not sufficient to secure investment in PtG. By acting as an artificial floor in the electricity price a hybrid configuration (3) is promising and increases NPV for all hydrogen values greater than €4.2/kgH2. Hybrid system attractiveness increases with curtailment only if the hydrogen value is significantly above the levelised cost of €3.77/kgH2. In order for an investor to choose to pursue configuration (2) the offshore wind farm would have to anticipate 8.5% curtailment and be able to receive €4.5/kgH2 or 25% curtailment and receive €4/kgH2. The capital costs and discount rates are the most sensitive parameters and ambitious combinations of technology improvements could produce a levelised cost of €3/kgH2.
Everything About Hydrogen Podcast: 'Having Hydrogen for Breakfast, Lunch and Dinner'
Apr 2023
Publication
On today’s show Chris Patrick and Alicia speak with Petra Schwager from UNIDO about her work promoting global green hydrogen development with particular emphasis on the Global South.
The podcast can be found on their website.
The podcast can be found on their website.
Hydrogen Production, Storage, Utilisation and Environmental Impacts: A Review
Oct 2021
Publication
Dihydrogen (H2) commonly named ‘hydrogen’ is increasingly recognised as a clean and reliable energy vector for decarbonisation and defossilisation by various sectors. The global hydrogen demand is projected to increase from 70 million tonnes in 2019 to 120 million tonnes by 2024. Hydrogen development should also meet the seventh goal of ‘affordable and clean energy’ of the United Nations. Here we review hydrogen production and life cycle analysis hydrogen geological storage and hydrogen utilisation. Hydrogen is produced by water electrolysis steam methane reforming methane pyrolysis and coal gasification. We compare the environmental impact of hydrogen production routes by life cycle analysis. Hydrogen is used in power systems transportation hydrocarbon and ammonia production and metallugical industries. Overall combining electrolysis-generated hydrogen with hydrogen storage in underground porous media such as geological reservoirs and salt caverns is well suited for shifting excess of-peak energy to meet dispatchable on-peak demand.
Circular Economy for the Energy System as a Leverage for Low-carbon Transition: Long-Ter, Analysis of the Case of the South-East Region of France
Mar 2024
Publication
The circular economy is a decisive strategy for reconciling economic development and the environment. In France the CE was introduced into the law in 2015 with the objective of closing the loop. The legislation also delegates energy policy towards the French regions by granting them the jurisdiction to directly plan the energy–climate issues on their territory and to develop local energy resources. Thereby the SUD PACA region has redefined its objectives and targeted carbon neutrality and the transition to a CE by 2050. To study this transition we developed a TIMESPACA optimization model. The results show that following a CE perspective to develop a local energy system could contribute to reducing CO2 emissions by 50% in final energy consumption and reaching almost free electricity production. To obtain greater reductions the development of the regional energy systems should follow a careful policy design favoring the transition to low energy-consuming behavior and the strategical allocation of resources across the different sectors. Biomethane should be allocated to the buildings and industrial sector while hydrogen should be deployed for buses and freight transport vehicles.
The Role of Hydrogen in the Visegrad Group Approach to Energy Transition
Oct 2022
Publication
Hydrogen is an energy carrier in which hopes are placed for an easier achievement of climate neutrality. Together with electrification energy efficiency development and RES hydrogen is expected to enable the ambitious energy goals of the European Green Deal. Hence the aim of the article is to query the development of the hydrogen economy in the Visegrad Group countries (V4). The study considers six diagnostic features: sources of hydrogen production hydrogen legislation financial mechanisms objectives included in the hydrogen strategy environmental impact of H2 and costs of green hydrogen investments. The analysis also allowed to indicate the role that hydrogen will play in the energy transition process of the V4 countries. The analysis shows that the V4 countries have similar approaches to the development of the hydrogen market but the hydrogen strategies published by each of the Visegrad countries are not the same. Each document sets goals based on the hydrogen production to date and the specifics of the domestic energy and transport sectors as there are no solutions that are equally effective for all. Poland’s hydrogen strategy definitely stands out the strongest.
Opportunities for Production and Utilization of Green Hydrogen in the Philippines
Jun 2021
Publication
The Philippines is exploring different alternative sources of energy to become energy-independent while significantly reducing the country’s greenhouse gas emissions. Green hydrogen from renewable energy is one of the most sustainable alternatives with its application as an energy carrier and as a source of clean and sustainable energy as well as raw material for various industrial processes. As a preliminary study in the country this paper aims to explore different production and utilization routes for a green hydrogen economy in the Philippines. Production from electrolysis includes various available renewable sources consisting of geothermal hydropower wind solar and biomass as well as ocean technology and nuclear energy when they become available in the future. Different utilization routes include the application of green hydrogen in the transportation power generation industry and utility sectors. The results of this study can be incorporated in the development of the pathways for hydrogen economy in the Philippines and can be applied in other emerging economies.
Future Energy Scenarios 2020
Jul 2020
Publication
Our Future Energy Scenarios (FES) outline four different credible pathways for the future of energy over the next 30 years. Based on input from over 600 experts the report looks at the energy needed in Britain across electricity and gas - examining where it could come from how it needs to change and what this means for consumers society and the energy system itself.
Vision for a European Metrology Network for Energy Gases
Mar 2022
Publication
As Europe moves towards decarbonising its energy infrastructure new measurement needs will arise that require collaborative efforts between European National Metrology Institutes and Designated Institutes to tackle. Such measurement needs include flow metering of hydrogen or hydrogen enriched natural gas in the gas grid for billing quality assurance of hydrogen at refuelling stations and equations of state for carbon dioxide in carbon capture and storage facilities. The European metrology network for energy gases for the first time provides a platform where metrology institutes can work together to develop a harmonised strategy prioritise new challenges and share expertise and capabilities to support the European energy gas industry to meet stringent EU targets for climate change and emissions reductions
Decarbonisation of Heat and the Role of ‘Green Gas’ in the United Kingdom
May 2018
Publication
This paper looks at the possible role of ‘green gas’ in the decarbonisation of heat in the United Kingdom. The option is under active discussion at the moment because of the UK’s rigorous carbon reduction targets and the growing realisation that there are problems with the ‘default’ option of electrifying heat. Green gas appears to be technically and economically feasible. However as the paper discusses there are major practical and policy obstacles which make it unlikely that the government will commit itself to developing ‘green gas’ in the foreseeable future.
A Techno-economic Analysis of Cross-regional Renewable Hydrogen Supply Routes in China
Jun 2023
Publication
The cross-regional renewable hydrogen supply is significant for China to resolve the uneven distribution of renewable energy and decarbonize the transportation sector. Yet the economic comparison of various hydrogen supply routes remains obscure. This paper conducts a techno-economic analysis on six hydrogen supply routes for hydrogen refueling stations including gas-hydrogen tube-trailer gas-hydrogen pipeline liquid-hydrogen truck natural gas pipeline MeOH truck and NH3 truck. Furthermore the impacts of three critical factors are examined including electrolyzer selection transportation distance and electricity price. The results indicate that with a transport distance of 2000 km the natural gas pipeline route offers the lowest cost while the gas-hydrogen tube-trailer route is not economically feasible. The gas-hydrogen pipeline route shows outstanding cost competitiveness between 200 and 2000 km while it is greatly influenced by the utilization rate. The liquid-hydrogen truck route demonstrates great potential with the electricity price decreasing. This study may provide guidance for the development of the cross-regional renewable hydrogen supply for hydrogen refueling stations in China.
Impact of International Transportation Chains on Cost of Green E-hydrogen: Global Cost of Hydrogen and Consequences for Germany and Finland
Jun 2023
Publication
Widely available and low-cost solar photovoltaics and wind power can enable production of renewable electricity-based hydrogen at many locations throughout the world. Hydrogen is expected to emerge as an important energy carrier constituting some of the final energy demand; however its most important role will be as feedstock for further processing to e-fuels e-chemicals and e-steel. Apart from meeting their own hydrogen demand countries may have opportunities to export hydrogen to countries with area limitations or higher production costs. This paper assesses the feasibility of e-hydrogen imports to Germany and Finland from two case regions with a high availability of low-cost renewable electricity Chile and Morocco in comparison to domestic supply. Special attention is paid to the transport infrastructure which has a crucial impact on the economic viability of imports via two routes shipping and pipelines. This study has found that despite lower e-hydrogen production costs in Morocco and Chile compared to Germany and Finland additional transportation costs make imports of e-hydrogen economically unattractive. In early 2020s imported fuel costs are 39–79% and 34–100% higher than e-hydrogen produced in Germany and Finland respectively. In 2050 imported e-hydrogen is projected to be 39–70% more expensive than locally produced e-hydrogen in Germany and 43–54% in the case of Finland. e-Hydrogen may become a fuel that is mostly produced domestically and may be feasible for imports only in specific locations. Local e-hydrogen production may also lower dependence on imports enhance energy security and add jobs.
Clean Hydrogen Is a Challenge for Enterprises in the Era of Low-Emission and Zero-Emission Economy
Jan 2023
Publication
Hydrogen can be considered an innovative fuel that will revolutionize the energy sector and enable even more complete use of the potential of renewable sources. The aim of the paper is to present the challenges faced by companies and economies that will produce and use hydrogen. Thanks to the use of hydrogen in the energy transport and construction sectors it will be possible to achieve climate neutrality by 2050. By 2050 global demand for hydrogen will increase to 614 million metric tons a year and thanks to the use of hydrogen in energy transport and construction it will be possible to achieve climate neutrality. Depending on the method of hydrogen production the processes used and the final effects several groups can be distinguished marked with different colors. It is in this area of obtaining friendly hydrogen that innovative possibilities for its production open up. The costs of hydrogen production are also affected by network fees national tax systems availability and prices of carbon capture utilization and storage installations energy consumption rates by electrolyzers and transport methods. It is planned that 1 kg of hydrogen will cost USD 1. The study used the desk research method which made it possible to analyze a huge amount of descriptive data and numerical data.
Benefits of an Integrated Power and Hydrogen Offshore Grid in a Net-zero North Sea Energy System
Jun 2022
Publication
The North Sea Offshore Grid concept has been envisioned as a promising alternative to: 1) ease the integration of offshore wind and onshore energy systems and 2) increase the cross-border capacity between the North Sea region countries at low cost. In this paper we explore the techno-economic benefits of the North Sea Offshore Grid using two case studies: a power-based offshore grid where only investments in power assets are allowed (i.e. offshore wind HVDC/HVAC interconnectors); and a power-and-hydrogen offshore grid where investments in offshore hydrogen assets are also permitted (i.e. offshore electrolysers new hydrogen pipelines and retrofitted natural gas pipelines). In this paper we present a novel methodology in which extensive offshore spatial data is analysed to define meaningful regions via data clustering. These regions are incorporated to the Integrated Energy System Analysis for the North Sea region (IESA-NS) model. In this optimization model the scenarios are run without any specific technology ban and under open optimization. The scenario results show that the deployment of an offshore grid provides relevant cost savings ranging from 1% to 4.1% of relative cost decrease (2.3 bn € to 8.7 bn €) in the power-based and ranging from 2.8% to 7% of relative cost decrease (6 bn € to 14.9 bn €) in the power-and-hydrogen based. In the most extreme scenario an offshore grid permits to integrate 283 GW of HVDC connected offshore wind and 196 GW of HVDC meshed interconnectors. Even in the most conservative scenario the offshore grid integrates 59 GW of HVDC connected offshore wind capacity and 92 GW of HVDC meshed interconnectors. When allowed the deployment of offshore electrolysis is considerable ranging from 61 GW to 96 GW with capacity factors of around 30%.
Climate Change Committee: Progress in Reducing Emissions, 2022 Report to Parliament
Jun 2022
Publication
This statutory report provides a comprehensive overview of the UK Government’s progress to date in reducing emissions. It is accompanied by a new Monitoring Framework which details the CCC’s updated approach to tracking real-world progress through a host of new indicators.<br/>This is a pivotal point in the UK’s journey to Net Zero. The UK is one of the few countries with emissions targets in line with the long-term temperature goal of the Paris Agreement. Policy ambition has moved substantially with the publication of the UK’s Net Zero Strategy. Now is the time to deliver the promised action.
Everything About Hydrogen Podcast: Using the Law and Regulation to Facilitate Hydrogen Development
Jun 2022
Publication
Burges Salmon’s energy lawyers are known for ground-breaking work in the energy power and utilities sector. They understand the opportunities the technologies and the challenges which the sector presents. Their reputation has been built upon first-of-a-kind projects and deals and an intimate knowledge of energy regulation. Burges Salmon specialists provide expert advice throughout the project/plant life cycle. Over the years this has in turn led to investors and funders requesting their services in the knowledge that they understand the key issues technologies face. They have a team of over 80 lawyers who focus on helping developers investors and funders achieve their aims in the sector. The team has won or been shortlisted for all the key industry awards in energy over the last decade.
The podcast can be found on their website
The podcast can be found on their website
Promising Technology Analysis and Patent Roadmap Development in the Hydrogen Supply Chain
Oct 2022
Publication
Hydrogen energy one of the energy sources of the future represents a substantial issue which affects the industries and national technologies that will develop in the future. In order to utilize hydrogen energy a hydrogen supply chain is required so that hydrogen can be processed and transported to vehicles. It is helpful for technology and policy development to analyze technologies necessary to charge the hydrogen energy generated into vehicles through the supply chain to discover technologies with high potential for future development. The purpose of this paper is to identify promising technologies required in storing transporting and charging vehicles generated by the hydrogen fuel supply chain. Afterward the promising technologies identified are expected to help researchers set a direction in researching technologies and developing related policies. Therefore we provide technology information that can be used promisingly in the future so that researchers in the related field can utilize it effectively. In this paper data analysis is performed using related patents and research papers for technical analysis. Promising technologies that will be the core of the hydrogen fuel supply chain in the future were identified using the published patents and research paper database (DB) in Korea the United States Europe China and Japan. A text mining technique was applied to preprocess data and then a generic topographic map (GTM) analysis discovered promising technologies. Then a technology roadmap was identified by analyzing the promising technology derived from patents and research papers in parallel. In this study through the analysis of patents and research papers related to the hydrogen supply chain the development status of hydrogen storage/transport/charging technology was analyzed and promising technologies with high potential for future development were found. The technology roadmap derived from the analysis can help researchers in the field of hydrogen research establish policies and research technologies.
Everything About Hydrogen Podcast: Electron Stewardship in the Orkney Islands
Nov 2019
Publication
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
The podcast can be found on their website
100% Renewable Energy in Japan
Feb 2022
Publication
Low-cost solar photovoltaics and wind offer a reliable and affordable pathway to deep decarbonization of energy which accounts for three quarters of global emissions. However large-scale deployment of solar photovoltaics and wind requires space and may be challenging for countries with dense population and high per capita energy consumption. This study investigates the future role of renewable energy in Japan as a case study. A 40-year hourly energy balance model is presented of a hypothetical 100% renewable Japanese electricity system using representative demand data and historical meteorological data. Pumped hydro energy storage high voltage interconnection and dispatchable capacity (existing hydro and biomass and hydrogen energy produced from curtailed electricity) are included to balance variable generation and demand. Differential evolution is used to find the least-cost solution under various constraints. This study shows that Japan has 14 times more solar and offshore wind resources than needed to supply 100% renewable electricity and vast capacity for off-river pumped hydro energy storage. Assuming significant cost reductions of solar photovoltaics and offshore wind towards global norms in the coming decades driven by large-scale deployment locally and global convergence of renewable generation costs the levelized cost of electricity is found to be US$86/Megawatt-hour for a solar-dominated system and US$110/Megawatt-hour for a wind-dominated system. These costs can be compared with 2020 average system prices on the spot market in Japan of US$102/Megawatt-hour. Cost of balancing 100% renewable electricity in Japan ranges between US$20–27/Megawatt-hour for a range of scenarios. In summary Japan can be self-sufficient for electricity supply at competitive costs provided that the barriers to the mass deployment of solar photovoltaics and offshore wind in Japan are overcome.
Life Cycle Assessment Integration into Energy System Models: An Application for Power-to-Methane in the EU
Nov 2019
Publication
As the EU energy system transitions to low carbon the technology choices should consider a broader set of criteria. The use of Life Cycle Assessment (LCA) prevents burden shift across life cycle stages or impact categories while the use of Energy System Models (ESM) allows evaluating alternative policies capacity evolution and covering all the sectors. This study does an ex-post LCA analysis of results from JRC-EU-TIMES and estimates the environmental impact indicators across 18 categories in scenarios that achieve 80–95% CO2 emission reduction by 2050. Results indicate that indirect CO2 emissions can be as large as direct ones for an 80% CO2 reduction target and up to three times as large for 95% CO2 reduction. Impact across most categories decreases by 20–40% as the CO2 emission target becomes stricter. However toxicity related impacts can become 35–100% higher. The integrated framework was also used to evaluate the Power-to-Methane (PtM) system to relate the electricity mix and various CO2 sources to the PtM environmental impact. To be more attractive than natural gas the climate change impact of the electricity used for PtM should be 123–181 gCO2eq/kWh when the CO2 comes from air or biogenic sources and 4–62 gCO2eq/kWh if the CO2 is from fossil fuels. PtM can have an impact up to 10 times larger for impact categories other than climate change. A system without PtM results in ~4% higher climate change impact and 9% higher fossil depletion while having 5–15% lower impact for most of the other categories. This is based on a scenario where 9 parameters favor PtM deployment and establishes the upper bound of the environmental impact PtM can have. Further studies should work towards integrating LCA feedback into ESM and standardizing the methodology.
Everything About Hydrogen Podcast: Decarbonising the Gas Grid with Cadent
Mar 2020
Publication
On this weeks episode the team are talking all things hydrogen with Lorna Millington Future Networks Manager in the Safety and Network Strategy team at Cadent. On the show we discuss the role that Cadent and other gas distribution network operators (GDNOs) are playing in supporting the transition towards a low (and eventually zero) carbon gas grid through the use of hydrogen. The potential for hydrogen to support decarbonisation of heat through the gas network is one of the most exciting emerging themes for countries that have large existing gas networks and who are looking to repurpose those assets towards national net zero objectives. As a leader on hydrogen into the gas grid projects Cadent offer a wealth of knowledge around the potential opportunities and considerations for displacing natural gas with hydrogen over time. And given the chance to reduce up to 6 million tonnes of CO2 a year through using more hydrogen in the gas grid this is a show you won’t want to miss! All this and more on the show!
The podcast can be found on their website
The podcast can be found on their website
A Perspective on Hydrogen Investment, Deployment and Cost Competitiveness
Feb 2021
Publication
Deployment and investments in hydrogen have accelerated rapidly in response to government commitments to deep decarbonisation establishing hydrogen as a key component in the energy transition.
To help guide regulators decision-makers and investors the Hydrogen Council collaborated with McKinsey & Company to release the report ‘Hydrogen Insights 2021: A Perspective on Hydrogen Investment Deployment and Cost Competitiveness’. The report offers a comprehensive perspective on market deployment around the world investment momentum as well as implications on cost competitiveness of hydrogen solutions.
The document can be downloaded from their website
To help guide regulators decision-makers and investors the Hydrogen Council collaborated with McKinsey & Company to release the report ‘Hydrogen Insights 2021: A Perspective on Hydrogen Investment Deployment and Cost Competitiveness’. The report offers a comprehensive perspective on market deployment around the world investment momentum as well as implications on cost competitiveness of hydrogen solutions.
The document can be downloaded from their website
Heat and Buildings Strategy
Oct 2021
Publication
The heat and buildings strategy sets out the government’s plan to significantly cut carbon emissions from the UK’s 30 million homes and workplaces in a simple low-cost and green way whilst ensuring this remains affordable and fair for households across the country. Like the transition to electric vehicles this will be a gradual transition which will start by incentivizing consumers and driving down costs.<br/>There are about 30 million buildings in the UK. Heating these buildings contributes to almost a quarter of all UK emissions. Addressing the carbon emissions produced in heating and powering our homes workplaces and public buildings can not only save money on energy bills and improve lives but can support up to 240000 skilled green jobs by 2035 boosting the economic recovery levelling up across the country and ensuring we build back better.<br/>The heat and buildings strategy builds on the commitments made in Clean growth: transforming heating our Energy white paper and the Prime Minister’s 10 point plan. This strategy aims to provide a clear direction of travel for the 2020s set out the strategic decisions that need to be taken this decade and demonstrate how we plan to meet our carbon targets and remain on track for net zero by 2050.
Alberta Hydrogen Roadmap
Nov 2021
Publication
Alberta is preparing for a lower emission future. The Hydrogen Roadmap is a key part of that future and Alberta's Recovery Plan. The roadmap is our path to building a provincial hydrogen economy and accessing global markets. It contains several policy actions that will be introduced in the coming months and years and it provides support to the sector as technology and markets develop.<br/>Alberta is already the largest hydrogen producer in Canada. We have all the resources expertise and technology needed to quickly become a global supplier of clean low-cost hydrogen. With a worldwide market estimated to be worth over $2.5 trillion a year by 2050 hydrogen can be the next great energy export that fuels jobs investment and economic opportunity across our province.
Investigating the Implications of a New-build Hybrid Power System for Roll-on/Roll-off Cargo Ships from a Sustainability Perspective – A Life Cycle Assessment Case Study
Aug 2016
Publication
Marine transport has been essential for international trade. Concern for its environmental impact was growing among regulators classification societies ship operators ship owners and other stakeholders. By applying life cycle assessment this article aimed to assess the impact of a new-build hybrid system (i.e. an electric power system which incorporated lithium ion batteries photovoltaic systems and cold-ironing) designed for Roll-on/Roll-off cargo ships. The study was carried out based on a bottom-up integrated system approach using the optimised operational profile and background information for manufacturing processes mass breakdown and end of life management plans. Resources such as metallic and non-metallic materials and energy required for manufacture operation maintenance dismantling and scrap handling were estimated. During operation 1.76 x 10^8 kg of marine diesel oil was burned releasing carbon monoxide carbon dioxide particulate matter hydrocarbons nitrogen oxides and sulphur dioxide which ranged 5–8 orders of magnitude. The operation of diesel gensets was the primary cause of impact categories that were relevant to particulate matter or respiratory inorganic health issues photochemical ozone creation eutrophication acidification global warming and human toxicity. Disposing metallic scrap was accountable for the most significant impact category ecotoxicity potential. The environmental benefits of the hybrid power system in most impact categories were verified in comparison with a conventional power system onboard cargo ships. The estimated results for individual impact categories were verified using scenario analysis. The study concluded that the life cycle of a new-build hybrid power system would result in significant impact on the environment human beings and natural reserves and therefore proper management of such a system was imperative.
Willingness to Pay and Public Acceptance for Hydrogen Buses: A Case Study of Perugia
Sep 2015
Publication
Sustainability transportation is characterized by a positive externality on the environment health social security land use and social inclusion. The increasing interest in global warming has caused attention to be paid to the introduction of the hydrogen bus (H2B). When introducing new environmental technologies such as H2B it is often necessary to assess the environmental benefits related to this new technology. However such benefits are typically non-priced due to their public good nature. Therefore we have to address this problem using the contingent valuation (CV) method. This method has been developed within environmental economics as a means to economically assess environmental changes which are typically not traded in the market. So far several big cities have been analyzed to evaluate the perceived benefit related to H2B introduction but to the best of our knowledge no one has performed a CV analysis of a historical city where smog also damages historical buildings. This paper presents the results obtained using a multi-wave survey. We have investigated user preferences to elicit their willingness to pay for H2B introduction in Perugia taking into account all types of negative externalities due to the traffic pollution. The results confirm that residents in Perugia are willing to pay extra to support the introduction of H2B.
Model Supported Business Case Scenario Analysis for Decentral Hydrogen Conversion, Storage and Consumption within Energy Hubs
Mar 2022
Publication
Recently smart energy hubs with hydrogen conversion and storage have received increased attention in the Netherlands. The hydrogen is to be used for vehicle filling stations industrial processes and heating. The scientific problem addressed in this paper is the proper sizing of capacities for renewable energy generation hydrogen conversion and storage in relation to a feasible business case for the energy hub while achieving security of supply. Scenario analysis is often used during the early stages of the energy planning process and for this an easy-to-use analysis model is required. This paper investigates available modelling approaches and develops an algorithmic modelling method which is worked out in Microsoft Excel and offers ease of use for scenario analysis purposes. The model is applied to case study which leads to important insights such as the expected price of hydrogen and the proper sizing of electrolyser and hydrogen storage for that case. The model is made available open-source. Future work is proposed in the direction of application of the model for other project cases and comparison of results with other available modelling tools.
Green Ammonia as a Spatial Energy Vector: A Review
May 2021
Publication
Green hydrogen is considered a highly promising vector for deep decarbonisation of energy systems and is forecast to represent 20% of global energy use by 2050. In order to secure access to this resource Japan Germany and South Korea have announced plans to import hydrogen; other major energy consumers are sure to follow. Ammonia a promising hydrogen derivative may enable this energy transport by densifying hydrogen at relatively low cost using well-understood technologies. This review seeks to describe a global green ammonia import/export market: it identifies benefits and limitations of ammonia relative to other hydrogen carriers the costs of ammonia production and transport and the constraints on both supply and demand. We find that green ammonia as an energy vector is likely to be critical to future energy systems but that gaps remain in the literature. In particular rigorous analysis of production and transport costs are rarely paired preventing realistic assessments of the delivered cost of energy or the selection of optimum import/export partners to minimise the delivered cost of ammonia. Filling these gaps in the literature is a prerequisite to the development of robust hydrogen and ammonia strategies and to enable the formation of global import and export markets of green fuel
Hydrogen Economy Model for Nearly Net-Zero Cities with Exergy Rationale and Energy-Water Nexus
May 2018
Publication
The energy base of urban settlements requires greater integration of renewable energy sources. This study presents a “hydrogen city” model with two cycles at the district and building levels. The main cycle comprises of hydrogen gas production hydrogen storage and a hydrogen distribution network. The electrolysis of water is based on surplus power from wind turbines and third-generation solar photovoltaic thermal panels. Hydrogen is then used in central fuel cells to meet the power demand of urban infrastructure. Hydrogen-enriched biogas that is generated from city wastes supplements this approach. The second cycle is the hydrogen flow in each low-exergy building that is connected to the hydrogen distribution network to supply domestic fuel cells. Make-up water for fuel cells includes treated wastewater to complete an energy-water nexus. The analyses are supported by exergy-based evaluation metrics. The Rational Exergy Management Efficiency of the hydrogen city model can reach 0.80 which is above the value of conventional district energy systems and represents related advantages for CO2 emission reductions. The option of incorporating low-enthalpy geothermal energy resources at about 80 ◦C to support the model is evaluated. The hydrogen city model is applied to a new settlement area with an expected 200000 inhabitants to find that the proposed model can enable a nearly net-zero exergy district status. The results have implications for settlements using hydrogen energy towards meeting net-zero targets.
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