Policy & Socio-Economics

In response to the urgent need to mitigate climate change via net-zero targets many nations are renewing their interest in clean hydrogen as a net-zero energy carrier. Although clean hydrogen can be directly used in various sectors for deep decarbonization the relatively low energy density and high production costs have raised doubts as to whether clean hydrogen development is worthwhile. Here we improve on the GCAM model by including a more comprehensive and detailed representation of clean hydrogen production distribution and demand in all sectors of the global economy and simulate 25 scenarios to explore the costeffectiveness of integrating clean hydrogen into the global energy system. We show that due to costly technical obstacles clean hydrogen can only provide 3%–9% of the 2050 global final energy use. Nevertheless clean hydrogen deployment can reduce overall energy decarbonization costs by 15%–22% mainly via powering ‘‘hard-to-electrify’’ sectors that would otherwise face high decarbonization expenditures. Our work provides practical references for cost-effective clean hydrogen planning.

A sustainable future hydrogen economy hinges on the development of green hydrogen and the shift away from grey hydrogen but this is highly reliant on reducing production costs which are currently too high for green hydrogen to be competitive. This study predicts the cost trajectory of alkaline and proton exchange membrane (PEM) electrolyzers based on ongoing research and development (R&D) scale effects and experiential learning consequently influencing the levelized cost of hydrogen (LCOH) projections. Electrolyzer capital costs are estimated to drop to 88 USD/kW for alkaline and 60 USD/kW for PEM under an optimistic scenario by 2050 or 388 USD/kW and 286 USD/kW respectively under a pessimistic scenario with PEM potentially dominating the market. Through a combination of declining electrolyzer costs and a levelized cost of electricity (LCOE) the global LCOH of green hydrogen is projected to fall below 5 USD/kgH2 for solar onshore and offshore wind energy sources under both scenarios by 2030. To facilitate a quicker transition the implementation of financial strategies such as additional revenue streams a hydrogen/carbon credit system and an oxygen one (a minimum retail price of 2 USD/kgO2 ) and regulations such as a carbon tax (minimum 100 USD/tonCO2 for 40 USD/MWh electricity) and a contract-for-difference scheme could be pivotal. These initiatives would act as financial catalysts accelerating the transition to a greener hydrogen economy.

Hydrogen is gaining importance to decarbonize the energy system and tackle the climate crisis. This exploratory study analyzes three focus groups with representatives from relevant organizations in a Northern German region that has unique beneficial characteristics for the transition to a hydrogen economy. Based upon this data (1) a category system of innovation adoption barriers for hydrogen technologies is developed (2) decision levels associated with the barriers are identified (3) detailed insights on how decision levels contribute to the adoption barriers are provided and (4) the barriers are evaluated in terms of their importance. Our analysis adds to existing literature by focusing on short-term barriers and exploring relevant decision levels and their associated adoption barriers. Our main results comprise the following: flaws in the funding system complex approval procedures lack of networks and high costs contribute to hydrogen adoption barriers. The (Sub-)State level is relevant for the uptake of the hydrogen economy. Regional entities have leeway to foster the hydrogen transition especially with respect to the distribution infrastructure. Funding policy technological suitability investment and operating costs and the availability of distribution infrastructure and technical components are highly important adoption barriers that alone can impede the transition to a hydrogen economy.

The study investigates the potential of transitioning Iraq a nation significantly dependent on fossil fuels toward a green hydrogen-based energy system as a pathway to achieving sustainable economic resilience. As of 2022 Iraqi energy supply is over 90% reliant on hydrocarbons which also account for 95% of the country foreign exchange earnings. The global energy landscape is rapidly shifting towards cleaner alternatives and the volatility of oil prices has made it imperative for the country to diversify its energy sources. Green hydrogen produced through water electrolysis powered by renewable energy sources such as solar and wind offers a promising alternative given country vast renewable energy potential. The analysis indicates that with strategic investments in green hydrogen infrastructure the country could reduce its hydrocarbon dependency by 30% by the year 2030. This transition could not only address pressing environmental challenges but also contribute to the economic stability of the country. However the shift to green hydrogen is not without significant challenges including water scarcity technological limitations and the necessity for a robust regulatory framework. The findings underscore the importance of international partnerships and supportive policies in facilitating this energy transition. Adopting renewable energy and green hydrogen technologies the country has the potential to become a leader in sustainable energy within the region. This shift would not only drive economic growth and energy security but also contribute to global efforts towards environmental sustainability positioning country favorably in a future low-carbon economy.

Green hydrogen is expected to play a vital role in decarbonizing the energy system in Europe. However large-scale deployment of green hydrogen has associated potential trade-offs in terms of climate and other environmental impacts. This study aims to shed light on a comprehensive sustainability assessment of this large-scale green hydrogen deployment based on the EMPIRE energy system modeling compared with other decarbonization paths. Process-based Life Cycle Assessment (LCA) is applied and connected with the output of the energy system model revealing 45% extra climate impact caused by the dedicated 50% extra renewable infrastructure to deliver green hydrogen for the demand in the sectors of industry and transport in Europe towards 2050. Whereas the analysis shows that green hydrogen eventually wins on the climate impact within four designed scenarios (with green hydrogen with blue hydrogen without green hydrogen and baseline) mainly compensated by its clean usage and renewable electricity supply. On the other hand green hydrogen has a lower performance in other environmental impacts including human toxicity ecotoxicity mineral use land use and water depletion. Furthermore a monetary valuation of Life Cycle Impact (LCI) is estimated to aggregate 13 categories of environmental impacts between different technologies. Results indicate that the total monetized LCI cost of green hydrogen production is relatively lower than that of blue hydrogen. In overview a large-scale green hydrogen deployment potentially shifts the environmental pressure from climate and fossil resource use to human health mineral resource use and ecosystem damage due to its higher material consumption of the infrastructure.

Hydrogen presents the UK with a substantial opportunity to drive economic growth and secure skilled jobs by leveraging our natural geological and geographical advantages robust supply chain and existing energy expertise. Hydrogen UK’s most recent Economic Impact Assessment estimates that the hydrogen sector in the UK could support approximately 30000 direct jobs and contribute more than £7 billion gross value added annually by 2030. On a global scale the hydrogen market is projected to be worth $2.5 trillion by 2050.

With international competition increasing the UK must act now to capitalise on this potential. These projections are supported by a recognition that hydrogen is one of the key solutions to decarbonising the UK economy complementing other low-carbon solutions such as electrification carbon capture biofuels and energy efficiency. Additionally hydrogen will play a vital role in enhancing the UK’s energy security by storing domestically produced energy to balance intermittent renewable sources like wind and solar. As a critical component of the clean energy transition hydrogen is indispensable to achieving net zero.

As it stands the UK is well placed to capitalise on the hydrogen opportunity and emerge as a global leader. We have made early strides in establishing a framework for hydrogen development with various pilot projects and strategic investments already underway. However the next five years will be critical for the sector as we move from strategy and planning to development and delivery. It is imperative to get the first lowcarbon production projects over the line and into construction as a matter of urgency and then deliver substantial infrastructure development regulatory clarity and sustained financial support to scale-up production and distribution. A new Government presents an opportunity for policymakers to solidify commitments and accelerate the deployment of hydrogen technology ensuring the UK remains competitive in the global race.

Our manifesto outlines policy recommendations for the new UK Government to take across production distribution and storage infrastructure end use applications trade and beyond which will support a thriving British industrial base that creates jobs and growth for British people. To achieve this the UK hydrogen industry calls on policymakers to speed up the deployment of hydrogen through the recommendations set out in this Manifesto.

This report can be found on Hydrogen UK's website.

Can Norway be an important hydrogen exporter to the European Union (EU) by 2030? We explore three scenarios in which Norway’s hydrogen export market may develop: A Business-as-usual B Moderate Onshore C Accelerated Offshore. Applying a sector-coupled energy system model we examine the techno-economic viability spatial and socio-economic considerations for blue and green hydrogen export in the form of ammonia by ship. Our results estimate the costs of low-carbon hydrogen to be 3.5–7.3€/kg hydrogen. While Norway may be cost-competitive in blue hydrogen exports to the EU its sustainability is limited by the reliance on natural gas and the nascent infrastructure for carbon transport and storage. For green hydrogen exports Norway may leverage its strong relations with the EU but is less cost-competitive than countries like Chile and Morocco which benefit from cheaper solar power. For all scenarios significant land use is needed to generate enough renewable energy. Developing a green hydrogen-based export market requires policy support and strategic investments in technology infrastructure and stakeholder engagement ensuring a more equitable distribution of renewable installations across Norway and national security in the north. Using carbon capture and storage technologies and offshore wind to decarbonise the offshore platforms is a win-win solution that would leave more electricity for developing new industries and demonstrate the economic viability of these technologies. Finally for Norway to become a key hydrogen exporter to the EU will require a balanced approach that emphasises public acceptance and careful land use management to avoid costly consequences.

Hydrogen primarily produced from steam methane reforming plays a crucial role in oil refining and provides a solution for the oil and gas industry's long-term energy transition by reducing CO2 emissions. This paper examines hydrogen’s role in this transition. Firstly experiences from oil and gas exploration including in-situ gasification can be leveraged for hydrogen production from subsurface natural hydrogen reservoirs. The produced hydrogen can serve as fuel for generating steam and heat for thermal oil recovery. Secondly hydrogen can be blended into gas for pipeline transportation and used as an alternative fuel for oil and gas hauling trucks. Additionally hydrogen can be stored underground in depleted gas fields. Lastly oilfield water can be utilized for hydrogen production using geothermal energy from subsurface oil and gas fields. Scaling up hydrogen production faces challenges such as shared use of oil and gas infrastructures increased carbon tax for promoting blue hydrogen and the introduction of financial incentives for hydrogen production and consumption hydrogen leakage prevention and detection.

In 2015 during the lead up to the Paris Climate Agreement the United States set forth a Nationally Determined Contribution that outlines national goals for greenhouse gas emission reductions. It was not until 2021 that the US put forth a long-term strategy that lays out the pathway to reach these goals. The US long-term strategy lays the framework for research needs to meet the greenhouse gas emission reduction goals and incentivizes industry to meet the goals using a variety of policies. The five US long term strategy core elements are to decarbonize electricity electrify end uses and switch to clean fuels cut energy waste reduce methane and other non-carbon dioxide greenhouse gas emissions and to scale up carbon dioxide removal. Implementation of the long term strategy has generally been funded by tax incentives and government grants that were approved as part of the Inflation Reduction Act. Political headwinds societal Not in My Backyard resistance long-term economic funding cumbersome permitting requirements and incentives vs. taxation debate are significant policy/nontechnical hurdles. Technical challenges remain regarding effective energy efficiency implementation the use of hydrogen as a fuel cost effective carbon emission treatment nuclear energy expansion renewables expansion and grid integration biofuel integration efficient and safe energy storage and electrical grid adequacy/expansion. This review article condenses the multitude of technical and policy issues facing the US long-term strategy providing readers with an overview of the extent and magnitude of the challenges while outlining possible solutions.

Currently modern hydrogen technologies due to their low or zero emissions constitute one of the key elements of energy transformation and sustainable development. The growing interest in hydrogen is driven by the European climate policy aimed at limiting the use of fossil fuels for energy purposes. Although not all opinions regarding the technical and economic potential of hydrogen energy are positive many prepared forecasts and analyses show its prospective importance in several areas of the economy. The aim of this article is to provide a comprehensive review of modern materials current hydrogen technologies and strategies and show the opportunities problems and challenges Poland faces in the context of necessary energy transformation. The work describes the latest trends in the production transportation storage and use of hydrogen. The environmental social and economic aspects of the use of green hydrogen were discussed in addition to the challenges and expectations for the future in the field of hydrogen technologies. The main goals of the development of the hydrogen economy in Poland and the directions of actions necessary to achieve them were also presented. It was found that the existence of the EU CO2 emissions allowance trading system has a significant impact on the costs of hydrogen production. Furthermore the production of green hydrogen will become economically justified as the costs of energy obtained from renewable sources decrease and the costs of electrolysers decline. However the realisation of this vision depends on the progress of scientific research and technical innovations that will reduce the costs of hydrogen production. Government support mechanisms for the development of hydrogen infrastructure and technologies will also be of key importance.