Policy & Socio-Economics
Cost and Capacity Requirements of Electrification or Renewable Gas Transition Options that Decarbonize Building Heating in Metro Vancouver, British Columbia
Jun 2022
Publication
Northern countries face a unique challenge in decarbonizing heating demands. This study compares two pathways to reduce carbon emissions from building heating by (1) replacing natural gas heaters with electric heat pumps or (2) replacing natural gas with renewable gas. Optimal annual system cost and capacity requirements for Metro Vancouver Canada are assessed for each pathway under nine scenarios. Results show that either pathway can be lower cost but the range of costs is more narrow for the renewable gas pathway. System cost is sensitive to heat demand with colder temperatures favouring the renewable gas pathway and milder temperatures favouring the electrification pathway. These results highlight the need for a better understanding of heating profiles and associated energy system requirements.
Optimising Air Quality Co-benefits in a Hydrogen Economy: A Case for Hydrogen-specific Standards for NOx Emissions
Jun 2021
Publication
A global transition to hydrogen fuel offers major opportunities to decarbonise a range of different energyintensive sectors from large-scale electricity generation through to heating in homes. Hydrogen can be deployed as an energy source in two distinct ways in electrochemical fuel cells and via combustion. Combustion seems likely to be a major pathway given that it requires only incremental technological change. The use of hydrogen is not however without side-effects and the widely claimed benefit that only water is released as a by-product is only accurate when it is used in fuel cells. The burning of hydrogen can lead to the thermal formation of nitrogen oxides (NOx – the sum of NO + NO2) via a mechanism that also applies to the combustion of fossil fuels. NO2 is a key air pollutant that is harmful in its own right and is a precursor to other pollutants of concern such as fine particulate matter and ozone. Minimising NOx as a by-product from hydrogen boilers and engines is possible through control of combustion conditions but this can lead to reduced power output and performance. After-treatment and removal of NOx is possible but this increases cost and complexity in appliances. Combustion applications therefore require optimisation and potentially lower hydrogen-specific emissions standards if the greatest air quality benefits are to derive from a growth in hydrogen use
Energy Transition on Sifnos: An Approach to Economic and Social Transition and Development
Mar 2022
Publication
This article aims to present the potential of energy transition in insular systems for social and economic transition and development when planned and implemented appropriately with the active involvement of local communities. To this end the example of Sifnos Energy Community is examined and presented as a pilot case. It proves that energy transition apart from its obvious energy conservation and climate necessity can provide a strong contribution to the development of remote areas and the remedying of crucial issues especially in insular communities such as unemployment low standards of living isolation and energy supply security. Energy transition on Sifnos has been undertaken by the Sifnos Energy Community (SEC) with the target to achieve 100% energy independency through effective and rational projects. The major project is a centralized hybrid power plant consisting of a wind park and a pumped hydro storage system. It was designed to fully cover the current electricity demand and the anticipated forthcoming load due to the overall transition to e-mobility for the transportation sector on the island. Through the exploitation of the excess electricity production with the production of potable water and hydrogen energy transition can facilitate the development of new professional activities on the island and reduce the local economy’s dependence on tourism. Additionally a daily link to the neighboring larger Cyclades islands can be established with a hydrogen powered-passenger vessel ensuring the secure and cheap overseas transportation connection of Sifnos throughout the whole year. The overall energy transition process is executed with the active involvement of the Sifnos citizens ensuring wide public acceptance and the minimization of the projects’ impacts on the natural and human environment. At the same time the anticipated benefits for the insular communities are maximized highlighting the energy transition process on Sifnos as a new sustainable development pattern. For all this effort and the already achieved results Sifnos has been declared as one of the six pilot islands of the European Community’s initiative “Clean Energy for EU Islands”.
Determinants of Consumers’ Purchasing Intentions for the Hydrogen-Electric Motorcycle
Aug 2017
Publication
In recent years increasing concerns regarding the energy costs and environmental effects of urban motorcycle use have spurred the development of hydrogen-electric motorcycles in Taiwan. Although gasoline-powered motorcycles produce substantial amounts of exhaust and noise pollution hydrogen-electric motorcycles are highly energy-efficient relatively quiet and produce zero emissions features that suggest their great potential to reduce the problems currently associated with the use of motorcycles in city environments. This study identified the significant external variables that affect consumers’ purchase intentions toward using hydrogen-electric motorcycles. A questionnaire method was employed with a total of 300 questionnaires distributed and 233 usable questionnaires returned yielding a 78% overall response rate. Structural equation modeling (SEM) was applied to test the research hypothesis. The research concluded that (1) product knowledge positively influenced purchase intentions but negatively affected the perceived risk; (2) perceived quality via hydrogen-electric motorcycles positively influenced the perceived value but negatively affected the perceived risk; (3) perceived risk negatively affected the perceived value; and (4) the perceived value positively affected purchase intentions. This study can be used as a reference for motorcycle manufacturers when planning their marketing strategies.
Towards a Low-Carbon Society via Hydrogen and Carbon Capture and Storage: Social Acceptance from a Stakeholder Perspective
Apr 2020
Publication
Transformation concepts towards a low-carbon society often require new technology and infrastructure that evoke protests in the population. Therefore it is crucial to understand positions and conflicts in society to achieve social acceptance. This paper analyses these positions using the example of implementing hydrogen and carbon capture and storage infrastructure to decarbonise the German energy system. The empirical basis of the study are explorative stakeholder interviews which were conducted with experts from politics economics civil society and science and analysed within a discursive and attitudinal framework using qualitative content analysis. These stakeholder positions are assumed to represent dominant social perceptions and reflect chances and risks for acceptance. The results indicate different positions while pursuing the common goal of addressing climate change. The general conflict concerns strategies towards a low-carbon society especially the speed of phasing-out fossil energies. Regarding the combination of hydrogen and carbon capture and storage as instrument in the context of the energy transition the stakeholder interviews indicate controversial as well as consensual perceptions. The assessments range from rejection to deeming it absolutely necessary. Controversial argumentations refer to security of supply competitiveness and environmental protection. In contrast consensus can be reached by balancing ecological and economic arguments e.g. by linking hydrogen technologies with renewable and fossil energy sources or by limiting the use of carbon capture and storage only to certain applications (industry bioenergy). In further decisions this balancing of arguments combined with openness of technology transparency of information and citizen participation need to be considered to achieve broad acceptance.
The EU Green Deal (2022 ed.)
Jan 2023
Publication
In this report we focus on the fundamentals of energy and climate policy as reformulated in the EU Green Deal. The 2022 edition includes updates following the publication of the Fit for 55 Package and the EU Hydrogen and Decarbonised Gas Markets Package. The reader is guided through the landscape of EU climate and energy policy. Starting with the big picture of the foundations of energy and climate policy we then move to discussing in more detail European climate policy security of supply and energy networks. We continue with energy wholesale and retail markets and finish with a closer look at energy innovation. Each chapter is divided into several sections aiming to give the reader a broad overview of the areas of climate and energy policy that are impacted by the EU Green Deal. The references at the end of each section serve as suggestions for further reading on each topic.
Prospects and Challenges of Green Hydrogen Economy via Multi-Sector Global Symbiosis in Qatar
Jan 2021
Publication
Low carbon hydrogen can be an excellent source of clean energy which can combat global climate change and poor air quality. Hydrogen based economy can be a great opportunity for a country like Qatar to decarbonize its multiple sectors including transportation shipping global energy markets and industrial sectors. However there are still some barriers to the realization of a hydrogen-based economy which includes large scale hydrogen production cost infrastructure investments bulk storage transport & distribution safety consideration and matching supply-demand uncertainties. This paper highlights how the aforementioned challenges can be handled strategically through a multi-sector industrial-urban symbiosis for the hydrogen supply chain implementation. Such symbiosis can enhance the mutual relationship between diverse industries and urban planning by exploring varied scopes of multi-purpose hydrogen usage (i.e. clean energy source as a safer carrier industrial feedstock and intermittent products vehicle and shipping fuel and international energy trading etc.) both in local and international markets. It enables individual entities and businesses to participate in the physical exchange of materials by-products energy and water with strategic advantages for all participants. Besides waste/by-product exchanges several different kinds of synergies are also possible such as the sharing of resources and shared facilities. The diversified economic base regional proximity and the facilitation of rules strategies and policies may be the key drivers that support the creation of a multi-sector hydrogen supply chain in Qatar.
Renewable Energy Potentials and Roadmap in Brazil, Austria, and Germany
Mar 2024
Publication
The emerging energy transition is particularly described as a move towards a cleaner lower-carbon system. In the context of the global shift towards sustainable energy sources this paper reviews the potential and roadmap for hydrogen energy as a crucial component of the clean energy landscape. The primary objective is to present a comprehensive literature overview illuminating key themes trends and research gaps in the scientific discourse concerning hydrogen production and energy policy. This review focuses particularly on specified geographic contexts with an emphasis on understanding the unique energy policies related to renewable energy in Brazil Austria and Germany. Given their distinct social systems and developmental stages this paper aims to delineate the nuanced approaches these countries adopt in their pursuit of renewable energy and the integration of hydrogen within their energy frameworks. Brazil exhibits vast renewable energy potential particularly in wind and solar energy sectors positioning itself for substantial growth in the coming years. Germany showcases a regulatory framework that promotes innovation and technological expansion reflecting its highly developed social system and commitment to transitioning away from fossil fuels. Austria demonstrates dedication to decarbonization particularly through the exploration of biomethane for residential heating and cooling.
OIES Podcast - Hydrogen Financing
Jan 2023
Publication
In this Podcast David Ledesma discusses with Stephen Craen Visiting Research Fellow OIES the challenges facing the financing of future hydrogen projects as it is expected that a substantial amount of capital will need to be invested in green hydrogen production to meet the 2050 net zero targets. Based around an ‘Archetype’ world scale hydrogen export project where 1 GW solar power is used to make green hydrogen which is converted to 250000 tpa green ammonia for export with a capital cost in the region of USD 2 billion the podcast discusses how ‘efficient financing’ can make an important contribution to minimising cost and making projects cost competitive. Stephen Craen argues that lenders and investors will look to precedents when assessing the nascent green hydrogen sector and the foremost will be LNG and offshore wind which both represent large-scale technically complex projects. Commercial structures of the green hydrogen business are expected to borrow concepts from offshore wind projects particularly in relation to price but also from LNG where this is relevant such as take-or-pay contracts. In this podcast we discuss the key issues that will need to be addressed to make a green hydrogen export project bankable concluding that commercial debt from either commercial banks or project bonds can help create competition.
The podcast can be found on their website.
The podcast can be found on their website.
State-of-the-art Expansion Planning of Integrated Power, Natural Gas, and Hydrogen Systems
Apr 2022
Publication
Renewable hydrogen is considered key in the transition towards a carbon-neutral future. This is due to its spatio-temporal storage and sector coupling potential which has seen it referred to as energy vector. However many unresolved issues remain regarding hydrogen's large-scale deployment e.g. least-cost production optimal facility siting and overall implications on power and energy systems. Expansion planning provides an option to study these issues in the holistic context of energy systems. To this end this article presents a comprehensive review on state-of-the-art expansion planning models that consider integrated power natural gas and hydrogen systems. We cluster the existing literature in terms of modelling themes and scope study the applied systematic modelling characteristics and conduct an in-depth analysis of the technical model features regarding hydrogen technologies and natural gas infrastructure. Finally we identify and discuss research gaps in the existing literature.
An Innovative Approach for Energy Transition in China? Chinese National Hydrogen Policies from 2001 to 2020
Jan 2023
Publication
To accelerate clean energy transition China has explored the potential of hydrogen as an energy carrier since 2001. Until 2020 49 national hydrogen policies were enacted. This paper explores the relevance of these policies to the development of the hydrogen industry and energy transition in China. We examine the reasons impacts and challenges of Chinese national hydrogen policies through the conceptual framework of Thomas Dye’s policy analysis method and the European Training Foundation’s policy analysis guide. This research provides an ex‐post analysis for previous policies and an ex‐ante analysis for future options. We argue that the energy supply revolution and energy technology revolution highlight the importance of hydrogen development in China. Particularly the pressure of the automobile industry transition leads to experimentation concerning the application of hydrogen in the transportation sector. This paper also reveals that hydro‐ gen policy development coincides with an increase in resource input and has positive spill over effects. Furthermore we note that two challenges have impeded progress: a lack of regulations for the industry threshold and holistic planning. To address these challenges the Chinese government can design a national hydrogen roadmap and work closely with other countries through the Belt and Road Initiative.
Everything About Hydrogen Podcast: A New Hope for Hydrogen?
Apr 2020
Publication
On this weeks episode the team discuss the Hydrogen Council the global stakeholder forum that has been at the forefront of efforts to advance the role of hydrogen and fuel cell technologies globally. We are excited to have as our guests Pierre-Etienne Franc Vice President for the Hydrogen Energy World Business Unit at Air Liquide and Stephan Herbst General Manager at Toyota Motor Europe. On the show we discuss why Air Liquide and Toyota decided to engage with the Council its strategy vision and perspective on the role that hydrogen can play in the energy transition and how companies can work with policymakers to enable this process. All this and more on the show!
The podcast can be found on their website
The podcast can be found on their website
Scientific Assessment in Support of the Materials Roadmap enabling Low Carbon Energy Technologies Hydrogen and Fuel Cells
Apr 2014
Publication
A group experts from European research organisations and industry have assessed the state of the art and future needs for materials' R&D for hydrogen and fuel cell technologies. The work was performed as input to the European Commission's roadmapping exercise on materials for the European Strategic Energy Technology Plan. The report summarises the results including key targets identified for medium term (2020/2030) and long term (2050) timescales.
Is Blue Hydrogen a Bridging Technology? - The Limits of a CO2 Price and the Role of State-induced Price Components for Green Hydrogen Production in Germany
Jun 2022
Publication
The European Commission aims to establish green hydrogen produced through electrolysis using renewable electricity and in a transition phase hydrogen produced in a low-carbon process or blue hydrogen. In an extensive cost analysis for Germany up to 2050 based on scenario data and a component-based learning rate approach we find that blue hydrogen is likely to establish itself as the most cost-effective option and not only as a medium-term low-carbon alternative. We find that expected CO2 prices below €480/tCO2 have a limited impact on the economic feasibility of electrolysis and show that substantial increases in excise tax on natural gas could lead blue hydrogen to reach a sufficient cost level for electrolysed hydrogen. Unless alternatives for green hydrogen supply through infrastructure and imports become available at lower cost electrolysed hydrogen may require long-term subsidies. As blue hydrogen comprises fugitive methane emissions and financing needs for green hydrogen support have implications for society and competition in the internal market we suggest that policymakers rely on hydrogen for decarbonising only essential energy applications. We recommend further investigations into the cost of hydrogen infrastructure and import options as well as efficient subsidy frameworks.
Everything About Hydrogen Podcast: M&A in the Modern Hydrogen Economy
Sep 2021
Publication
This week we have Christopher Jackson in the hot seat as he catches up with BayoTech CEO Mo Vargas and BayoTech’s new President Michael Koonce to discuss the acquisition of IGX Group. Mergers & Acquisition activity has been growing in the hydrogen space with commentators suggesting the market is maturing faster than expected and customers seeking more integrated solutions. In this episode we look at the IGX acquisition by BayoTech and ask why the deal made sense what it means for the market and other participants and what listeners can learn from the deal to foreshadow future activity.
The podcast can be found on their website
The podcast can be found on their website
UK Low Carbon Hydrogen Standard: Guidance on the Greenhouse Gas Emissions and Sustainability Criteria
Apr 2022
Publication
The Low Carbon Hydrogen Standard sets a maximum threshold for the amount of greenhouse gas emissions allowed in the production process for hydrogen to be considered ‘low carbon hydrogen’. Compliance with the standard will help ensure new low carbon hydrogen production makes a direct contribution to our carbon reduction targets.
This guidance sets out the methodology for calculating the emissions associated with hydrogen production and the steps producers should take to prove that the hydrogen they produce is compliant with the standard.
It is for use by hydrogen producers seeking support from government schemes and policies that have adopted the standard.
The standard requires hydrogen producers to:
This guidance sets out the methodology for calculating the emissions associated with hydrogen production and the steps producers should take to prove that the hydrogen they produce is compliant with the standard.
It is for use by hydrogen producers seeking support from government schemes and policies that have adopted the standard.
The standard requires hydrogen producers to:
- meet a GHG emissions intensity of 20g CO2e/MJLHV of produced hydrogen or less for the hydrogen to be considered low carbon
- calculate their greenhouse gas (GHG) emissions up to the ‘point of production’
- set out a risk mitigation plan for fugitive hydrogen emissions
- meet additional requirements for the use of biogenic inputs where relevant and as appropriate for the feedstock source and classification
Fugitive Hydrogen Emissions in a Future Hydrogen Economy
Apr 2022
Publication
There is an increasing body of evidence that leakage of hydrogen to the atmosphere will have an indirect warming effect on the climate and so should be minimised.<br/>This study investigates and quantifies the current understanding of potential hydrogen emissions in the different sectors across a future hydrogen value-chain. It shows that there are some key areas in production distribution and end-use where there could potentially be significant leaks of hydrogen to the atmosphere. In some of these areas there are clear mitigation options while with others the options are less clear due to uncertainty in either data or future technology development.<br/>The report recommends further research and development to reduce the main leak pathways and additional evidence gathering in key areas where there is currently inadequate data to make accurate predictions.<br/>The study was commissioned by BEIS and conducted by the Frazer-Nash consultancy.
Everything About Hydrogen Podcast: Where Does Hydrogen Fit in the Global Energy Transition?
Apr 2022
Publication
On this episode the EAH team discusses the role of hydrogen in the energy transition with Michael Liebreich Chairman and CEO of Liebreich Associates. Michael is an acknowledged thought leader on clean energy mobility technology climate sustainability and finance. He is the founder and senior contributor to Bloomberg New Energy Finance a member of numerous industry governmental and multilateral advisory boards an angel investor a former member of the board of Transport for London and an Advisor to the UK Board of Trade.
The podcast can be found on their website
The podcast can be found on their website
Moving Toward the Low-carbon Hydrogen Economy: Experiences and Key Learnings from National Case Studies
Sep 2022
Publication
The urgency to achieve net-zero carbon dioxide (CO2) emissions by 2050 as first presented by the IPCC special report on 1.5°C Global Warming has spurred renewed interest in hydrogen to complement electrification for widespread decarbonization of the economy. We present reflections on estimates of future hydrogen demand optimization of infrastructure for hydrogen production transport and storage development of viable business cases and environmental impact evaluations using life cycle assessments. We highlight challenges and opportunities that are common across studies of the business cases for hydrogen in Germany the UK the Netherlands Switzerland and Norway. The use of hydrogen in the industrial sector is an important driver and could incentivise large-scale hydrogen value chains. In the long-term hydrogen becomes important also for the transport sector. Hydrogen production from natural gas with capture and permanent storage of the produced CO2 (CCS) enables large-scale hydrogen production in the intermediate future and is complementary to hydrogen from renewable power. Furthermore timely establishment of hydrogen and CO2 infrastructures serves as an anchor to support the deployment of carbon dioxide removal technologies such as direct air carbon capture and storage (DACCS) and biohydrogen production with CCS. Significant public support is needed to ensure coordinated planning governance and the establishment of supportive regulatory frameworks which foster the growth of hydrogen markets.
Life-Cycle Greenhouse Gas Emissions Of Biomethane And Hydrogen Pathways In The European Union
Oct 2021
Publication
Gaseous fuels with low life-cycle emissions of greenhouse gases (GHG) play a prominent role in the European Union’s (EU) decarbonization plans. Renewable and low-GHG hydrogen are highlighted in the ambitious goals for a cross-sector hydrogen economy laid out in the European Commission’s Hydrogen Strategy. Renewable hydrogen and biomethane are given strong production incentives in the Commission’s proposed revision to the Renewable Energy Directive (REDII). The EU uses life-cycle analysis (LCA) to determine whether renewable gas pathways meet the GHG reduction thresholds for eligibility in the REDII. This study aims to support European policymakers with a better understanding of the uncertainties regarding gaseous fuels’ roles in meeting climate goals. Life-cycle GHG analysis is complex and differences in methodology as well as data inputs and assumptions can spell the difference between a renewable gas pathway qualifying or not for REDII eligibility at the 50% to 80% GHG reduction level. It is thus important for European policymakers to use robust LCA to ensure that policy only supports gas pathways consistent with a vision of deep decarbonization. For this purpose we conduct sensitivity analysis of the life-cycle GHG emissions of a number of low-GHG gas pathways including biomethane produced from four feedstocks: wastewater sludge manure landfill gas (LFG) and silage maize; and hydrogen produced from eight sources: natural gas combined with carbon capture and storage (CCS) coal with CCS biomass gasification renewable electricity 2030 EU grid electricity wastewater sludge biomethane manure biomethane and LFG biomethane. For each pathway we estimate the life-cycle GHG intensity using a default central case identify key parameters that strongly affect the fuel’s GHG intensity and conduct a sensitivity analysis by changing these key parameters according to the range of possible values collected from the literature. Figure ES1 summarizes the full range of possible GHG intensities for each gaseous pathway we analyzed in this study—biomethane is depicted in the top figure and hydrogen is shown in the bottom. The bars represent the GHG intensity of the central case and vertical error bars indicate the maximum and minimum GHG intensity of each pathway according to our sensitivity analysis. The dotted orange horizontal line illustrates the fossil comparator which is 94 grams of carbon dioxide equivalent per megajoule (gCO2e/MJ) for transport fuels in the REDII. The dotted yellow line represents the GHG intensity of a 65% GHG reduction goal for biomethane used in the transportation sector or 70% GHG reduction for hydrogen. Pathways are situated from left to right in increasing order of GHG intensity of the central case. Comparing the central cases of the four biomethane pathways the waste-based biomethane pathways generally have negative GHG intensity. However considering the uncertainty in these GHG intensities manure biomethane might have more limited carbon reduction potential in the 100-year timeframe if methane leakage from its production process is high. In contrast wastewater sludge biomethane and LFG biomethane even after accounting for uncertainties retain relatively low GHG emissions. On the other hand biomethane produced from silage maize can have much higher emissions; in the central case we find that silage maize biogas only reduces GHG emissions by 30% relative to the fossil comparator—the low carbon reduction potential is due to the significant emissions emerging from direct and indirect land use change involved in growing maize. Taking into account the variation in assumptions silage maize biomethane can be worse for the climate than fossil fuels.
The Effects of Perceived Barriers on Innovation Resistance of Hydrogen-Electric Motorcycles
Jun 2018
Publication
As environmental awareness among the public gradually improves it is predicted that the trend of green consumption will make green products enter the mainstream market. Hydrogen-electric motorcycles with eco-friendly and energy-efficient characteristics have great advantages for development. However as a type of innovative product hydrogen-electric motorcycles require further examination with regard to consumer acceptance and external variables of the products. In this study consumer behavioral intention (BI) for the use of hydrogen-electric motorcycles and its influencing factors are discussed using innovation resistance as the basis and environmental concern as the adjusting variable. Consumers’ willingness-to-pay (WTP) for hydrogen-electric motorcycles is estimated using the contingent valuation method (CVM). The results found that (1) perception barriers viz. usage barrier value barrier risk barrier tradition barrier and price barrier are statistically significant whereas image barrier is not; (2) a high degree of environmental concern will reduce the consumers’ innovation resistance to the hydrogen-electric motorcycles; (3) up to 94.79% of the respondents of the designed questionnaire suggested that the promotion of hydrogen-electric motorcycles requires a subsidy of 21.9% of the total price from the government. The mean WTP of consumers for the purchase of hydrogen-electric motorcycles is 10–15% higher than that of traditional motorcycles.
Strategic Policy Targets and the Contribution of Hydrogen in a 100% Renewable European Power System
Jul 2021
Publication
The goal of the European energy policy is to achieve climate neutrality. The long-term energy strategies of various European countries include additional targets such as the diversification of energy sources maintenance of security of supply and reduction of import dependency. When optimizing energy systems these strategic policy targets are often only considered in a rudimentary manner and thus the understanding of the corresponding interdependencies is lacking. Moreover hydrogen is considered as a key component of a fully decarbonized energy system but its role in the power sector remains unclear due to the low round-trip efficiencies. This study reveals how fully decarbonized European power systems can benefit from hydrogen in terms of overall system costs and the achievement of strategic policy targets. We analyzed a broad spectrum of scenarios using an energy system optimization model and varied model constraints that reflect strategic policy targets. Our results are threefold. First compared to power systems without hydrogen systems using hydrogen realize savings of 14–16% in terms of the total system costs. Second the implementation of a hydrogen infrastructure reduces the number of infeasible scenarios when structural policy targets are considered within the power system. Third the role of hydrogen is highly diverse at a national level. Particularly in countries with low renewable energy potential hydrogen plays a crucial role. Here high levels of self-sufficiency and security of supply are achieved by deploying hydrogen-based power generation of up to 46% of their annual electricity demand realized via imports of green hydrogen.
Techno-Economic Feasibility of a Solar-Wind-Fuel Cell Energy System in Duqm, Oman
Jul 2022
Publication
Duqm is located in the Al Wasta Governorate in Oman and is currently fed by 10 diesel generators with a total capacity of around 76 MW and other rental power sources with a size of 18 MW. To make the electric power supply come completely from renewables one novel solution is to replace the diesel with hydrogen. The extra energy coming from the PV-wind system can be utilized to produce green hydrogen that will be utilized by the fuel cell. Measured data of solar insolation hourly wind speeds and hourly load consumption are used in the proposed system. Finding an ideal configuration that can match the load demand and be suitable from an economic and environmental point of view was the main objective of this research. The Hybrid Optimization Model for Multiple Energy Resources (HOMER Pro) microgrid software was used to evaluate the technical and financial performance. The findings demonstrated that the suggested hybrid system (PV-wind-fuel cell) will remove CO2 emissions at a cost of energy (COE) of USD 0.436/kWh and will reduce noise. With a total CO2 emission of 205676830 kg/year the levelized cost of energy for the current system is USD 0.196/kWh. The levelized cost for the diesel system will rise to USD 0.243/kWh when taking 100 US dollars per ton of CO2 into account. Due to system advantages the results showed that using solar wind and fuel cells is the most practical and cost-effective technique. The results of this research illustrated the feasibility and effectiveness of utilizing wind and solar resources for both hydrogen and energy production and also suggested that hydrogen is a more cost-effective long-term energy storage option than batteries.
Renewable Hydrogen Supply Chains: A Planning Matrix and an Agenda for Future Research
Oct 2022
Publication
Worldwide energy systems are experiencing a transition to more sustainable systems. According to the Hydrogen Roadmap Europe (FCH EU 2019) hydrogen will play an important role in future energy systems due to its ability to support sustainability goals and will account for approximately 13% of the total energy mix in the coming future. Correct hydrogen supply chain (HSC) planning is therefore vital to enable a sustainable transition. However due to the operational characteristics of the HSC its planning is complicated. Renewable hydrogen supply can be diverse: Hydrogen can be produced de-centrally with renewables such as wind and solar energy or centrally by using electricity generated from a hydro power plant with a large volume. Similarly demand for hydrogen can also be diverse with many new applications such as fuels for fuel cell electrical vehicles and electricity generation feedstocks in industrial processes and heating for buildings. The HSC consists of various stages (production storage distribution and applications) in different forms with strong interdependencies which further increase HSC complexity. Finally planning of an HSC depends on the status of hydrogen adoption and market development and on how mature technologies are and both factors are characterised by high uncertainties. Directly adapting the traditional approaches of supply chain planning for HSCs is insufficient. Therefore in this study we develop a planning matrix with related planning tasks leveraging a systematic literature review to cope with the characteristics of HSCs. We focus only on renewable hydrogen due to its relevance to the future low-carbon economy. Furthermore we outline an agenda for future research from the supply chain management perspective in order to support HSC development considering the different phases of HSCs adoption and market development.
Challenges Toward Achieving a Successful Hydrogen Economy in the US: Potential End-use and Infrastructure Analysis to the Year 2100
Jul 2022
Publication
Fossil fuels continue to exacerbate climate change due to large carbon emissions resulting from their use across a number of sectors. An energy transition away from fossil fuels seems inevitable and energy sources such as renewables and hydrogen may provide a low carbon alternative for the future energy system particularly in large emitting nations such as the United States. This research quantifies and maps potential hydrogen fuel distribution pathways for the continental US reflecting technological changes barriers to deployment and end-use-cases from 2020 to 2100 clarifying the potential role of hydrogen in the US energy transition. The methodology consists of two parts a linear optimization of the global energy system constrained by carbon reduction targets and system cost followed by a projection of hydrogen infrastructure development. Key findings include the emergence of trade pattern diversification with a greater variety of end-uses associated with imported fuels and greater annual hydrogen consumption over time. Further sensitivity analysis identified the influence of complementary technologies including nuclear power and carbon capture and storage technologies. We conclude that hydrogen penetration into the US energy system is economically viable and can contribute toward achieving Paris Agreement and more aggressive carbon reduction targets in the future.
Chile and its Potential Role Among the Most Affordable Green Hydrogen Producers in the World
Jul 2022
Publication
As result of the adverse effects caused by climate change the nations have decided to accelerate the transition of the energy matrix through the use of non-conventional sources free of polluting emissions. One of these alternatives is green hydrogen. In this context Chile stands out for the exceptional climate that makes it a country with a lot of renewable resources. Such availability of resources gives the nation clear advantages for hydrogen production strong gusts of wind throughout the country the most increased solar radiation in the world lower cost of production of electrical supplies among others. Due to this the nation would be between the lowest estimated cost for hydrogen production i.e. 1.5 USD/kg H2 approximately scenario that would place it as one of the cheapest green hydrogen producer in the world.
An Eco-technoeconomic Analysis of Hydrogen Production using Solid Oxide Electrolysis Cells that Accounts for Long-term Degradation
Sep 2022
Publication
This paper presents an eco-technoeconomic analysis (eTEA) of hydrogen production via solid oxide electrolysis cells (SOECs) aimed at identifying the economically optimal size and operating trajectories for these cells. Notably degradation effects were accounted by employing a data-driven degradationbased model previously developed by our group for the analysis of SOECs. This model enabled the identification of the optimal trajectories under which SOECs can be economically operated over extended periods of time with reduced degradation rate. The findings indicated that the levelized cost of hydrogen (LCOH) produced by SOECs (ranging from 2.78 to 11.67 $/kg H2) is higher compared to gray hydrogen generated via steam methane reforming (SMR) (varying from 1.03 to 2.16 $ per kg H2) which is currently the dominant commercial process for large-scale hydrogen production. Additionally SOECs generally had lower life cycle CO2 emissions per kilogram of produced hydrogen (from 1.62 to 3.6 kg CO2 per kg H2) compared to SMR (10.72–15.86 kg CO2 per kg H2). However SOEC life cycle CO2 emissions are highly dependent on the CO2 emissions produced by its power source as SOECs powered by high-CO2-emission sources can produce as much as 32.22 kg CO2 per kg H2. Finally the findings of a sensitivity analysis indicated that the price of electricity has a greater influence on the LCOH than the capital cost.
Future Pathways for Energy Networks: A Review of International Experiences in High Income Countries
Oct 2022
Publication
Energy networks are the systems of pipes and wires by which different energy vectors are transported from where they are produced to where they are needed. As such these networks are central to facilitating countries’ moves away from a reliance on fossil fuels to a system based around the efficient use of renewable and other low carbon forms of energy. In this review we highlight the challenges facing energy networks from this transition in a sample of key high income countries. We identify the technical and other innovations being implemented to meet these challenges and describe some of the new policy and regulatory developments that are incentivising the required changes. We then review evidence from the literature about the benefits of moving to a more integrated approach based on the concept of a Multi-Vector Energy Network (MVEN). Under this approach the different networks are planned and operated together to achieve greater functionality and performance than simply the sum of the individual networks. We find that most studies identify a range of benefits from an MVEN approach but that these findings are based on model simulations. Further work is therefore needed to verify whether the benefits can be realised in practice and to identify how any risks can be mitigated.
Determining the Production and Transport Cost for H2 on a Global Scale
May 2022
Publication
Hydrogen (H2) produced using renewable energy could be used to reduce greenhouse gas (GHG) emissions in industrial sectors such as steel chemicals transportation and energy storage. Knowing the delivered cost of renewable H2 is essential to decisionmakers looking to utilize it. The cheapest location to source it from as well as the transport method and medium are also crucial information. This study presents a Monte Carlo simulation to determine the delivered cost for renewable H2 for any usage location globally as well as the most cost-effective production location and transport route from nearly 6000 global locations. Several industrially dense locations are selected for case studies the primary two being Cologne Germany and Houston United States. The minimum delivered H2 cost to Cologne is 9.4 €/kg for small scale (no pipelines considered) shipped from northern Egypt as a liquid organic hydrogen carrier (LOHC) and 7.6 €/kg piped directly as H2 gas from southern France for large scale (pipelines considered). For smallscale H2 in Houston the minimum delivered cost is 8.6 €/kg trucked as H2 gas from the western Gulf of Mexico and 7.6 €/kg for large-scale demand piped as H2 gas from southern California. The south-west United States and Mexico northern Chile the Middle East and north Africa south-west Africa and north-west Australia are identified as the regions with the lowest renewable H2 cost potential with production costs ranging from 6.7—7.8 €/kg in these regions. Each is able to supply differing industrially dominant areas. Furthermore the effect of parameters such as year of construction electrolyser and H2 demand is analysed. For the case studies in Houston and Cologne the delivered H2 cost is expected to reduce to about 7.8 €/kg by 2050 in Cologne (no pipelines considered PEM electrolyser) and 6.8 €/kg in Houston.
A Hybrid Perspective on Energy Transition Pathways: Is Hydrogen the Key for Norway?
Jun 2021
Publication
Hydrogen may play a significant part in sustainable energy transition. This paper discusses the sociotechnical interactions that are driving and hindering development of hydrogen value chains in Norway. The study is based on a combination of qualitative and quantitative methods. A multi-level perspective (MLP) is deployed to discuss how exogenous trends and uncertainties interact with processes and strategies in the national energy system and how this influences the transition potential associated with Norwegian hydrogen production. We explore different transition pathways towards a low-emission society in 2050 and find that Norwegian hydrogen production and its deployment for decarbonization of maritime and heavy-duty transport decarbonisation of industry and flexibility services may play a crucial role. Currently the development is at a branching point where national coordination is crucial to unlock the potential. The hybrid approach provides new knowledge on underlying system dynamics and contributes to the discourse on pathways in transition studies.
Risk of the Hydrogen Economy for Atmospheric Methane
Dec 2022
Publication
Hydrogen (H2) is expected to play a crucial role in reducing greenhouse gas emissions. However hydrogen losses to the atmosphere impact atmospheric chemistry including positive feedback on methane (CH4) the second most important greenhouse gas. Here we investigate through a minimalist model the response of atmospheric methane to fossil fuel displacement by hydrogen. We find that CH4 concentration may increase or decrease depending on the amount of hydrogen lost to the atmosphere and the methane emissions associated with hydrogen production. Green H2 can mitigate atmospheric methane if hydrogen losses throughout the value chain are below 9 ± 3%. Blue H2 can reduce methane emissions only if methane losses are below 1%. We address and discuss the main uncertainties in our results and the implications for the decarbonization of the energy sector.
Industrial Status, Technological Progress, Challenges, and Prospects of Hydrogen Energy
Apr 2022
Publication
Under the requirements of China's strategic goal of "carbon peaking and carbon neutrality" as a renewable clean and efficient secondary energy source hydrogen benefits from abundant resources a wide variety of sources a high combustion calorific value clean and non-polluting various forms of utilization energy storage mediums and good security etc. It will become a realistic way to help energy transportation petrochemical and other fields to achieve deep decarbonization and will turn into an important replacement energy source for China to build a modern clean energy system. It is clear that accelerating the development of hydrogen energy has become a global consensus. In order to provide a theoretical support for the accelerated transformation of hydrogen-related industries and energy companies and provide a basis and reference for the construction of "Hydrogen Energy China" this paper describes main key technological progresses in the hydrogen industry chain such as hydrogen production storage transportation and application. The status and development trends of hydrogen industrialization are analyzed and then the challenges faced by the development of the hydrogen industry are discussed. At last the development and future of the hydrogen industry are prospected. The following conclusions are achieved. (1) Hydrogen technologies of our country will become mature and enter the road of industrialization. The whole industry chain system of the hydrogen industry is gradually being formed and will realize the leap-forward development from gray hydrogen blue hydrogen to green hydrogen. (2) The overall development of the entire hydrogen industry chain such as hydrogen production storage and transportation fuel cells hydrogen refueling stations and other scenarios should be accelerated. Besides in-depth integration and coordination with the oil and gas industry needs more attention which will rapidly promote the high-quality development of the hydrogen industry system. (3) The promotion and implementation of major projects such as "north-east hydrogen transmission" "west-east hydrogen transmission" "sea hydrogen landing" and utilization of infrastructures such as gas filling stations can give full play to the innate advantages of oil and gas companies in industrial chain nodes such as hydrogen production and refueling etc. which can help to achieve the application of "oil gas hydrogen and electricity" four-station joint construction form a nationwide hydrogen resource guarantee system and accelerate the planning and promotion of the "Hydrogen Energy China" strategy.
Greenhouse Gas Emission Dynamics of Saudi Arabia: Potential of Hydrogen Fuel for Emission Footprint Reduction
Mar 2023
Publication
The growth of population gross domestic product (GDP) and urbanization have led to an increase in greenhouse gas (GHG) emissions in the Kingdom of Saudi Arabia (KSA). The leading GHG-emitting sectors are electricity generation road transportation cement chemicals refinery iron and steel. However the KSA is working to lead the global energy sustainability campaign to reach net zero GHG emissions by 2060. In addition the country is working to establish a framework for the circular carbon economy (CCE) in which hydrogen acts as a transversal facilitator. To cut down on greenhouse gas emissions the Kingdom is also building several facilities such as the NEOM green hydrogen project. The main objective of the article is to critically review the current GHG emission dynamics of the KSA including major GHG emission driving forces and prominent emission sectors. Then the role of hydrogen in GHG emission reduction will be explored. Finally the researchers and decision makers will find the helpful discussions and recommendations in deciding on appropriate mitigation measures and technologies.
Multi-model Assessment of Heat Decarbonisation Options in the UK Using Electricity and Hydrogen
May 2022
Publication
Delivering low-carbon heat will require the substitution of natural gas with low-carbon alternatives such as electricity and hydrogen. The objective of this paper is to develop a method to soft-link two advanced investment-optimising energy system models RTN (Resource-Technology Network) and WeSIM (Whole-electricity System Investment Model) in order to assess cost-efficient heat decarbonisation pathways for the UK while utilising the respective strengths of the two models. The linking procedure included passing on hourly electricity prices from WeSIM as input to RTN and returning capacities and locations of hydrogen generation and shares of electricity and hydrogen in heat supply from RTN to WeSIM. The outputs demonstrate that soft-linking can improve the quality of the solution while providing useful insights into the cost-efficient pathways for zero-carbon heating. Quantitative results point to the cost-effectiveness of using a mix of electricity and hydrogen technologies for delivering zero-carbon heat also demonstrating a high level of interaction between electricity and hydrogen infrastructure in a zero-carbon system. Hydrogen from gas reforming with carbon capture and storage can play a significant role in the medium term while remaining a cost-efficient option for supplying peak heat demand in the longer term with the bulk of heat demand being supplied by electric heat pumps.
Methanol as a Renewable Energy Carrier: An Assessment of Production and Transportation Costs for Selected Global Locations
Jun 2021
Publication
The importing of renewable energy will be one part of the process of defossilizing the energy systems of countries and regions which are currently heavily dependent on the import of fossil-based energy carriers. This study investigates the possibility of importing renewable methanol comprised of hydrogen and carbon dioxide. Based on a methanol synthesis simulation model the net production costs of methanol are derived as a function of hydrogen and carbon dioxide expenses. These findings enable a comparison of the import costs of methanol and hydrogen. For this the hydrogen production and distribution costs for 2030 as reported in a recent study for four different origin/destination country combinations are considered. With the predicted hydrogen production costs of 1.35–2 €/kg and additional shipping costs methanol can be imported for 370–600 €/t if renewable or process-related carbon dioxide is available at costs of 100 €/t or below in the hydrogen-producing country. Compared to the current fossil market price of approximately 400 €/t renewable methanol could therefore become cost-competitive. Within the range of carbon dioxide prices of 30–100 €/t both hydrogen and methanol exhibit comparable energy-specific import costs of 18–30 €/GJ. Hence the additional costs for upgrading hydrogen to methanol are balanced out by the lower shipping costs of methanol compared to hydrogen. Lastly a comparison for producing methanol in the hydrogen’s origin or destination country indicates that carbon dioxide in the destination country must be 181–228 €/t less expensive than that in the origin country to balance out the more expensive shipping costs for hydrogen.
A Simulated Roadmap of Hydrogen Technology Contribution to Climate Change Mitigation Based on Representative Concentration Pathways Considerations
Apr 2018
Publication
Hydrogen as fuel has been a promising technology toward climate change mitigation efforts. To this end in this paper we analyze the contribution of hydrogen technology to our future environmental goals. It is assumed that hydrogen is being produced in higher efficiency across time and this is simulated on Global Change Assessment Model (GCAM). The environmental restrictions applied are the expected emissions representative concentration pathways (RCP) 2.6 4.5 and 6.0. Our results have shown increasing hydrogen production as the environmental constraints become stricter and hydrogen more efficient in being produced. This increase has been quantified and provided on open access as Supporting Information to this manuscript.
The Viability of Implementing Hydrogen in the Commonwealth of Massachusetts
Sep 2022
Publication
In recent years there has been an increased interest in hydrogen energy due to a desire to reduce greenhouse gas emissions by utilizing hydrogen for numerous applications. Some countries (e.g. Japan Iceland and parts of Europe) have made great strides in the advancement of hydrogen generation and utilization. However in the United States there remains significant reservation and public uncertainty on the use and integration of hydrogen into the energy ecosystem. Massachusetts similar to many other states and small countries faces technical infrastructure policy safety and acceptance challenges with regards to hydrogen production and utilization. A hydrogen economy has the potential to provide economic benefits a reduction in greenhouse gas emissions and sector coupling to provide a resilient energy grid. In this paper the issues associated with integrating hydrogen into Massachusetts and other similar states or regions are studied to determine which hydrogen applications have the most potential understand the technical and integration challenges and identify how a hydrogen energy economy may be beneficial. Additionally hydrogen’s safety concerns and possible contribution to greenhouse gas emissions are also reviewed. Ultimately a set of eight recommendations is made to guide the Commonwealth’s consideration of hydrogen as a key component of its policies on carbon emissions and energy.
Risk Perception of an Emergent Technology: The Case of Hydrogen Energy
Jan 2006
Publication
Although hydrogen has been used in industry for many years as a chemical commodity its use as a fuel or energy carrier is relatively new and expert knowledge about its associated risks is neither complete nor consensual. Public awareness of hydrogen energy and attitudes towards a future hydrogen economy are yet to be systematically investigated. This paper opens by discussing alternative conceptualisations of risk then focuses on issues surrounding the use of emerging technologies based on hydrogen energy. It summarises expert assessments of risks associated with hydrogen. It goes on to review debates about public perceptions of risk and in doing so makes comparisons with public perceptions of other emergent technologies—Carbon Capture and Storage (CCS) Genetically Modified Organisms and Food (GM) and Nanotechnology (NT)—for which there is considerable scientific uncertainty and relatively little public awareness. The paper finally examines arguments about public engagement and "upstream" consultation in the development of new technologies. It is argued that scientific and technological uncertainties are perceived in varying ways and different stakeholders and different publics focus on different aspects or types of risk. Attempting to move public consultation further "upstream" may not avoid this because the framing of risks and benefits is necessarily embedded in a cultural and ideological context and is subject to change as experience of the emergent technology unfolds.
Economically Viable Large-scale Hydrogen Liquefaction
Mar 2016
Publication
The liquid hydrogen demand particularly driven by clean energy applications will rise in the near future. As industrial large scale liquefiers will play a major role within the hydrogen supply chain production capacity will have to increase by a multiple of today’s typical sizes. The main goal is to reduce the total cost of ownership for these plants by increasing energy efficiency with innovative and simple process designs optimized in capital expenditure. New concepts must ensure a manageable plant complexity and flexible operability. In the phase of process development and selection a dimensioning of key equipment for large scale liquefiers such as turbines and compressors as well as heat exchangers must be performed iteratively to ensure technological feasibility and maturity. Further critical aspects related to hydrogen liquefaction e.g. fluid properties ortho-para hydrogen conversion and coldbox configuration must be analysed in detail. This paper provides an overview on the approach challenges and preliminary results in the development of efficient as well as economically viable concepts for large-scale hydrogen liquefaction.
Opportunities and Limitations of Hydrogen Energy in Poland against the Background of the European Union Energy Policy
Jul 2022
Publication
One of the strategic goals of developed countries is to significantly increase the share of renewable energy sources in electricity generation. However the process may be hindered by e.g. the storage and transport of energy from renewable sources. The European Union countries see the development of the hydrogen economy as an opportunity to overcome this barrier. Therefore since 2020 the European Union has been implementing a hydrogen strategy that will increase the share of hydrogen in the European energy mix from the current 2 percent to up to 13–14 percent by 2050. In 2021 following the example of other European countries the Polish government adopted the Polish Hydrogen Strategy until 2030 with an outlook until 2040 (PHS). However the implementation of the strategy requires significant capital expenditure and infrastructure modernisation which gives rise to question as to whether Poland is likely to achieve the goals set out in the Polish Hydrogen Strategy and European Green Deal. The subject of the research is an analysis of the sources of financing for the PHS against the background of solutions implemented by the EU countries and a SWOT/TOWS analysis on the hydrogen economy in Poland. The overall result of the SWOT/TOWS analysis shows the advantage of strengths and related opportunities. This allows for a positive assessment of the prospects for the hydrogen economy in Poland. Poland should continue its efforts to take advantage of the external factors (O/S) such as EU support an increased price competitiveness of hydrogen and the emergence of a competitive cross-border hydrogen market in Europe. At the same time the Polish authorities should not forget about the weaknesses and threats that may inhibit the development of the domestic hydrogen market. It is necessary to modernise the infrastructure; increase the share of renewable energy sources in hydrogen production; increase R&D expenditure and in particular to complete the negotiations related to the adoption of the Fit for 55 package.
Everything About Hydrogen Podcast: Global Energy Majors in the Hydrogen Space
Jul 2022
Publication
On today’s episode of Everything About Hydrogen we are speaking with Paul Bogers Vice President for Hydrogen at Shell. As a company Shell needs no introduction but the company’s work and investments in the hydrogen space make it a global leader in the energy transition especially when it comes to the hydrogen component. Paul is amongst the executives at Shell that are working to bring their hydrogen vision to fruition and it is great to have him with us on the show today.
The podcast can be found on their website
The podcast can be found on their website
Deep Decarbonization of the Indian Economy: 2050 Prospects for Wind, Solar, and Green Hydrogen
May 2022
Publication
The paper explores options for a 2050 carbon free energy future for India. Onshore wind and solar sources are projected as the dominant primary contributions to this objective. The analysis envisages an important role for so-called green hydrogen produced by electrolysis fueled by these carbon free energy sources. This hydrogen source can be used to accommodate for the intrinsic variability of wind and solar complementing opportunities for storage of power by batteries and pumped hydro. The green source of hydrogen can be used also to supplant current industrial uses of grey hydrogen produced in the Indian context largely from natural gas with important related emissions of CO2. The paper explores further options for use of green hydrogen to lower emissions from otherwise difficult to abate sectors of both industry and transport. The analysis is applied to identify the least cost options to meet India’s zero carbon future.
Quantifying the Impacts of Heat Decarbonisation Pathways on the Future Electricity and Gas Demand
May 2022
Publication
The decarbonisation of heat supply will play a critical role in meeting the emissions reduction target. There is however great uncertainty associated with the achievable levels of heat decarbonisation and the optimal heat technology mix which can have serious implications for the future electricity and gas demand. This work employs an integrated gas electricity and heat supply model to quantify the impacts of heat decarbonisation pathways on the future electricity and gas demand. A case study in the Great Britain is performed considering two heat decarbonisation scenarios in 2050: one is the predominantly electrified heat supply and the other is the predominantly hydrogen-based heat supply. The electricity demand becomes more volatile in the electrified heat scenario as the peak surges to 107.3 GW compared to 51.1 GW in the 2018 reference scenario while the peak in hydrogen-based heat scenario is 78.4 GW. The peak gas demand declines from 247.6 GW for 2018 to 81.7 GW for electrified heat scenario and to 85.1 GW for hydrogen-based heat scenario confirming that the seasonality associated with heat demand is shifting away from the gas network and towards electricity network. Moreover a sensitivity analysis shows that the future electricity demand is highly sensitive to parameters such as relative heat demand coefficient of performance of air source heat pumps and share of electricity in hydrogen production. Finally the application of a load shifting strategy demonstrates that demand-side flexibility has the potential to maintain the electricity system balance and minimise the generation and network infrastructure requirements arising from heat electrification. While the case study presented in this paper is based on the Great Britain the findings regarding the future electricity and gas demand are relevant for the global energy transition.
Towards a Climate-neutral Energy System in the Netherlands
Jan 2022
Publication
This paper presents two different scenarios for the energy system of the Netherlands that achieve the Dutch government’s national target of near net-zero greenhouse gas emissions in 2050. Using the system optimisation model OPERA the authors have analysed the technology sector and cost implications of the assumptions underlying these scenarios. While the roles of a number of key energy technology and emission mitigation options are strongly dependent on the scenario and cost assumptions the analysis yields several common elements that appear in both scenarios and that consistently appear under differing cost assumptions. For example one of the main options for the decarbonisation of the Dutch energy system is electrification of energy use in end-use sectors and for the production of renewable hydrogen with electrolysers. As a result the level of electricity generation in 2050 will be three to four times higher than present generation levels. Ultimately renewable energy – particularly from wind turbines and solar panels – is projected to account for the vast majority of electricity generation around 99% in 2050. Imbalances between supply and demand resulting from this variable renewable electricity production can be managed via flexibility options including demand response and energy storage. Hydrogen also becomes an important energy carrier notably for transportation and in industry. If import prices are lower than costs of domestic production from natural gas with CCS or through electrolysis from renewable electricity (2.4–2.7 €/kgH2) the use of hydrogen increases especially in the built environment.
Pipeline to 2050 - Building the Foundations for a Harmonised Heat Strategy
Nov 2020
Publication
Following up on our report Uncomfortable Home Truths: why Britain urgently needs a low carbon heat strategy Pipeline to 2050 sets out recommendations for BEIS’ forthcoming Heat and Buildings Strategy. Based on the findings of five roundtables held between January and July 2020 with cross-party parliamentarians policy-makers and experts from industry academia and non-governmental organisations the publication calls for a joined-up approach that simultaneously addresses all aspects of heat decarbonisation.<br/>The report highlights that today there is a patchwork of heat policy initiatives. Although they might incentivise positive development in themselves are nevertheless too dispersed and not enough to drive the level of coordinated action that is needed given the complexity of heat decarbonisation. Setting out propositions to tackle challenges associated with the transition to low carbon heat in the areas of governance funding innovation and public engagement; the publication calls for a Heat and Buildings Strategy that shows a step change in terms of ambition for heat decarbonisation.<br/>The report recommends that the Heat and Buildings Strategy needs to put forward a systematic approach that joins up all policy aspects and principles needed for the transition to low carbon heat. Moreover given the cross-sectoral engagement needed between consumers industry research and various levels of the government it argues that the Strategy has to be constructed in a way that simultaneously catalyses action from all stakeholders that are needed to take part in the process for effective heat decarbonisation.
Challenges to the Future of LNG: Decarbonisation, Affordability, and Profitability
Oct 2019
Publication
Decarbonisation should be very much on the radar of new LNG projects currently taking FID commissioning around 2024-25 and planning to operate up to 2050. The LNG community needs to replace an `advocacy’ message – based on the generality of emissions from combustion of natural gas being lower than from other fossil fuels – with certified data on carbon and methane emissions from specific elements of the value chain for individual projects. As carbon reduction targets tighten over the coming decade LNG cargoes which do not have value chain emissions certified by accredited authorities or which fail to meet defined emission levels run the risk of progressively being deemed to have a lower commercial value and eventually being excluded from jurisdictions with the strictest standards. There will be no place in this process for confidentiality; nothing less than complete transparency of data and methodologies will be acceptable.<br/>In relation to affordability prospects for new projects look much better than they did three years ago. Cost estimates for most new projects suggest that they will be able to deliver profitably to most established and anticipated import markets at or below the wholesale prices prevailing in those markets over the past decade although affordability in south Asian countries may be challenging. But new projects need to factor in costs related to future decarbonisation requirements in both exporting and importing countries. To the extent that LNG suppliers can meet standards through relatively low-cost offsets – forest projects low-cost biogas and biomethane – this may not greatly impact their commercial viability. However any requirement to transform methane into hydrogen with CCS in either the exporting or importing country would substantially impact project economics and the affordability of LNG relative to other energy choices.
Recovery Through Reform: Advancing a Hydrogen Economy While Minimizing Fossil Fuel Subsidies
Feb 2021
Publication
This brief explores recent momentum on hydrogen and evaluates potential implications for subsidies for fossil fuel-based hydrogen given the government's commitments on fossil fuel subsidies.
Spending on hydrogen has the potential to significantly influence the direction taken by the world’s energy systems. In December 2020 Canada unveiled a national hydrogen strategy following the announcement of a strengthened climate plan. The strategy emphasized both blue and green hydrogen. As the government considers whether to provide subsidies for hydrogen we recommend government:
This brief is one of three International Institute for Sustainable Development (IISD) policy briefs in its Recovery Through Reform series which assesses how efforts to achieve a green recovery from COVID-19 in Canada rely on—and can contribute to—fossil fuel subsidy reform.
Spending on hydrogen has the potential to significantly influence the direction taken by the world’s energy systems. In December 2020 Canada unveiled a national hydrogen strategy following the announcement of a strengthened climate plan. The strategy emphasized both blue and green hydrogen. As the government considers whether to provide subsidies for hydrogen we recommend government:
- Ensure that any subsidies for hydrogen are in line with the government’s commitments to phase out inefficient fossil fuel subsidies by 2025 and meet net-zero by 2050.
- Thoroughly evaluate the potential efficiency of subsidies for hydrogen against robust social environmental and economic criteria. • Improve transparency by publicly reporting on direct spending and tax expenditures for hydrogen production.
- Follow international best practices being set by Canada’s peers. For example Germany and Spain have laid out hydrogen strategies prioritizing green hydrogen.
This brief is one of three International Institute for Sustainable Development (IISD) policy briefs in its Recovery Through Reform series which assesses how efforts to achieve a green recovery from COVID-19 in Canada rely on—and can contribute to—fossil fuel subsidy reform.
Hydrogen and Decarbonisation of Gas- False Dawn or Silver Bullet?
Mar 2020
Publication
This Insight continues the OIES series considering the future of gas. The clear message from previous papers is that on the (increasingly certain) assumption that governments in major European gas markets remain committed to decarbonisation targets the existing natural gas industry is under threat. It is therefore important to develop a decarbonisation narrative leading to a low- or zero-carbon gas implementation plan.
Previous papers have considered potential pathways for gas to decarbonise specifically considering biogas and biomethane and power-to-gas (electrolysis) . This paper goes on to consider the potential for production transport and use of hydrogen in the decarbonising energy system. Previous papers predominately focused on Europe which has been leading the way in decarbonisation. Hydrogen is now being considered more widely in various countries around the world so this paper reflects that wider geographical coverage.
Since the term ‘hydrogen economy’ was first used in 1970 there have been a number of ‘false dawns’ with bold claims for the speed of transition to hydrogen. This Insight argues that this time for some applications at least there are grounds for optimism about a future role for decarbonised hydrogen but the lesson from history is that bold claims need to be examined carefully and treated with some caution. There are no easy or low-cost solutions to decarbonisation of the energy system and this is certainly the case for possible deployment of low-carbon hydrogen. A key challenge is to demonstrate the technical commercial economic and social acceptability of various possibilities at scale. Hydrogen will certainly play a role in decarbonisation of the energy system although the size of the role may be more limited than envisaged in some more optimistic projections.
Open document on OIES website
Previous papers have considered potential pathways for gas to decarbonise specifically considering biogas and biomethane and power-to-gas (electrolysis) . This paper goes on to consider the potential for production transport and use of hydrogen in the decarbonising energy system. Previous papers predominately focused on Europe which has been leading the way in decarbonisation. Hydrogen is now being considered more widely in various countries around the world so this paper reflects that wider geographical coverage.
Since the term ‘hydrogen economy’ was first used in 1970 there have been a number of ‘false dawns’ with bold claims for the speed of transition to hydrogen. This Insight argues that this time for some applications at least there are grounds for optimism about a future role for decarbonised hydrogen but the lesson from history is that bold claims need to be examined carefully and treated with some caution. There are no easy or low-cost solutions to decarbonisation of the energy system and this is certainly the case for possible deployment of low-carbon hydrogen. A key challenge is to demonstrate the technical commercial economic and social acceptability of various possibilities at scale. Hydrogen will certainly play a role in decarbonisation of the energy system although the size of the role may be more limited than envisaged in some more optimistic projections.
Open document on OIES website
The Future of Gas Infrastructure Remuneration in Spain
Oct 2019
Publication
The European Union (EU) has adopted ambitious decarbonization targets for 2050.
Renewable electricity and electrification are the key drivers but are not sufficient on their own to meet the targets. A number of countries expect decarbonized gas (e.g. renewable hydrogen and biomethane) to be part of a future decarbonized energy system.
Within that context this paper examines proposals recently issued by Spain’s energy regulator (CNMC) to define the methodology for remunerating gas distribution and transmission networks and LNG regasification terminals. Their proposals would reduce significantly the remuneration of these activities. Bearing in mind the objective of decarbonization this paper analyzes key features of the proposals and concludes with recommendations. We suggest:
Link to document on OIES website
Renewable electricity and electrification are the key drivers but are not sufficient on their own to meet the targets. A number of countries expect decarbonized gas (e.g. renewable hydrogen and biomethane) to be part of a future decarbonized energy system.
Within that context this paper examines proposals recently issued by Spain’s energy regulator (CNMC) to define the methodology for remunerating gas distribution and transmission networks and LNG regasification terminals. Their proposals would reduce significantly the remuneration of these activities. Bearing in mind the objective of decarbonization this paper analyzes key features of the proposals and concludes with recommendations. We suggest:
- Adoption of a common methodology for remunerating new investment in gas and electricity infrastructure assets. The Regulatory Asset Base (RAB) approach is a suitable methodology especially for high-risk investment to integrate hydrogen.
- CNMC reconsideration of its proposals for existing assets. The aim should be to ensure that even if remuneration is reduced to some extent investors will still be compensated adequately and that the companies will continue to support the investments needed to digitalize processes deliver natural gas and eventually deliver renewable gas where it is economic to do so. This is an important signal for current and future investors whose investments will be regulated by the CNMC.
- Clarification of the methodology for remunerating renewable gas facilities. If renewable gas (especially hydrogen) requires access to regulated gas networks the CNMC methodology must provide suitable incentives to invest in network expansion and upgrading as required as well as to maintain natural gas operations. Even if no decision is made in the short-term regarding hydrogen it would be prudent to leave the door open by making the regulation compatible with future decisions involving hydrogen development.
- Consideration of potentially stranded assets. The CNMC and the Government should coordinate over the remuneration of infrastructure assets when national policy decisions may lead to the stranding of these assets.
- Decarbonization of the energy system as a whole. The CNMC and the Government should consider how best to promote the decarbonization of the energy system as a whole rather than its individual parts and what role is to be played by regulated networks and by unregulated initiatives in competitive markets especially for the development of hydrogen systems.
Link to document on OIES website
Power to Gas Linking Electricity and Gas in a Decarbonising World
Oct 2018
Publication
Since the COP 21 meeting in Paris in December 2015 there has been a growing realisation that with the long-term objective that the energy system should be approaching carbon-neutrality by 2050 continuing to burn significant quantities of fossil-derived natural gas will not be sustainable. If existing natural gas infrastructure is to avoid becoming stranded assets plans to decarbonise the gas system need to be developed as a matter of urgency in the next three to five years given the typical life expectancy of such assets of 20 years or more. One of the options to decarbonise gas is “power-to-gas”: production of hydrogen or renewable methane via electrolysis using surplus renewable electricity. This Energy Insight reviews the status of power-to-gas and makes an assessment of potential future development pathways and the role which it could play in decarbonising the energy system.
Link to document on the OIES website
Link to document on the OIES website
The Heralds of Hydrogen: The Economic Sectors that are Driving the Hydrogen Economy in Europe
Jan 2021
Publication
This paper looked at 39 hydrogen associations across Europe to understand which economic sectors support the hydrogen transition in Europe and why they do so. Several broad conclusions can be drawn from this paper. It is clear that the support for hydrogen is broad and from a very wide spectrum of economic actors that have clear interests in the success of the hydrogen transition. Motivations for support differ. Sales and market growth are important for companies pursuing professional scientific and technical activities as well as manufacturers of chemicals machinery electronic or electrical equipment and fabricated metals. The increasing cost of CO2 combines with regulatory and societal pressure to decarbonize and concerns from investors about the long-term profitability of sectors with high emissions. This makes hydrogen especially interesting for companies working in the energy transport steel and chemical industries. Another motivation is the ability to keep using existing fixed assets relevant for ports oil and gas companies and natural gas companies. More sector-specific concerns are a technological belief held by some motor vehicle manufacturers in the advantages of FCVs over BEVs for private mobility which is held more widely regarding heavy road transport. Security of supply and diversifying the current business portfolio come up specifically for natural gas companies. Broader concerns about having to shift into other energy technologies as a core business are reasons for interest from the oil and gas sector and ports.
Perhaps the most important lesson is that the hydrogen transition has already begun – but it needs continued policy support and political commitment. Carbon-intensive industries such as steel and chemicals are clearly interested and willing to invest billions but need policy support to avoid carbon leakage to high-carbon competitors before they commit. The gas grid is ready and many operators and utility companies are eager but they need clearance to experiment with blending in hydrogen. Hydrogen road vehicles still face many regulatory hurdles. There are several clusters that can serve as models and nuclei for the future European hydrogen economy in different parts of Europe. However these nuclei will need more public funding and regulatory support for them to grow.
Link to document on Oxford Institute for Energy Studies website
Perhaps the most important lesson is that the hydrogen transition has already begun – but it needs continued policy support and political commitment. Carbon-intensive industries such as steel and chemicals are clearly interested and willing to invest billions but need policy support to avoid carbon leakage to high-carbon competitors before they commit. The gas grid is ready and many operators and utility companies are eager but they need clearance to experiment with blending in hydrogen. Hydrogen road vehicles still face many regulatory hurdles. There are several clusters that can serve as models and nuclei for the future European hydrogen economy in different parts of Europe. However these nuclei will need more public funding and regulatory support for them to grow.
Link to document on Oxford Institute for Energy Studies website
Analysis of the Existing Barriers for the Market Development of Power to Hydrogen (P2H) in Italy
Sep 2020
Publication
New technological solutions are required to control the impact of the increasing presence of renewable energy sources connected to the electric grid that are characterized by unpredictable production (i.e. wind and solar energy). Energy storage is becoming essential to stabilize the grid when a mismatch between production and demand occurs. Among the available solutions Power to Hydrogen (P2H) is one of the most attractive options. However despite the potential many barriers currently hinder P2H market development. The literature reports general barriers and strategies to overcome them but a specific analysis is fundamental to identifying how these barriers concretely arise in national and regional frameworks since tailored solutions are needed to foster the development of P2H local market. The paper aims to identify and to analyze the existing barriers for P2H market uptake in Italy. The paper shows how several technical regulatory and economic issues are still unsolved resulting in a source of uncertainty for P2H investment. The paper also suggests possible approaches and solutions to address the Italian barriers and to support politics and decision-makers in the definition and implementation of the national hydrogen strategy.
Energy From Waste and the Circular Economy
Jul 2020
Publication
The Energy Research Accelerator (ERA) and the Birmingham Energy Institute have launched a policy commission to examine the state of play barriers challenges and opportunities for Energy from Waste (EfW) to form part of the regional energy circular economy in the Midlands. This policy commission explores the case for regional investment whilst helping shape the regional local government and industry thinking surrounding critical issues such as fuel poverty and poor air quality.
The Challenge
Tackling climate change is one of the most pressing issues of our time. To follow the path for limiting global warming below 2ᵒC set out in the 2015 Paris agreement requires significant reduction in greenhouse gas emissions. The UK has committed to bring all greenhouse gas emissions to net zero by 2050 requiring action at a local regional and national level to transition to a zero carbon economy.
To decarbonise and decentralise the UK’s energy system we must implement technologies that provide energy supply solutions across the UK.
In the Midlands many industrial sites are unable to access supply of affordable clean and reliable energy to meet their demands.
Energy from Waste (EfW) could offer a solution to the Midlands based industrial sites. EfW sites provide affordable secure energy supply solutions that form part of a developing circular economy. EfW reduces our reliance on landfills and obtains the maximum value from our waste streams. There are a number of merging technologies that could potentially play an important role which treats waste as a resource properly integrated into an energy and transport system and fully respects the potential of linking in the circular economy.
Investment into EfW infrastructure in the region could lead to job creation and economic growth and could help provide inward investment needed to redevelop old industrial sites and retiring power stations. However for EfW to be part of a net-zero energy system (either in transition or long-term) technologies and processes are needed that reduce the current carbon emissions burden.
EfW could play a significant role in the net zero carbon transition in the Midlands supplying heat power and green fuels and solve other problems - the region has some of the highest levels of energy/fuel poverty and poor air quality in the UK. The policy commission will help shape the regional local government and industry thinking surrounding this important topic.
Report Recommendations
Recovery Resource Cluster
The EfW policy commission proposes three major areas where it believes that government investment would be highly beneficial
The National Centre for the Circular Economy would analyse material flows throughout the economy down to regional and local levels and develop deep expertise in recycling and EfW technologies. The CCE would also provide expert guidance and support for local authorities as they develop local or regional strategies and planning frameworks.
The R&D Grand Challenge aims to make big advances in small-scale carbon capture technologies in order to turn 100% of CO2 produced through the process of converting waste to energy into useful products. This is very important for areas such as the Midlands which are remoted from depleted oil and gas reservoirs.
The Challenge
Tackling climate change is one of the most pressing issues of our time. To follow the path for limiting global warming below 2ᵒC set out in the 2015 Paris agreement requires significant reduction in greenhouse gas emissions. The UK has committed to bring all greenhouse gas emissions to net zero by 2050 requiring action at a local regional and national level to transition to a zero carbon economy.
To decarbonise and decentralise the UK’s energy system we must implement technologies that provide energy supply solutions across the UK.
In the Midlands many industrial sites are unable to access supply of affordable clean and reliable energy to meet their demands.
Energy from Waste (EfW) could offer a solution to the Midlands based industrial sites. EfW sites provide affordable secure energy supply solutions that form part of a developing circular economy. EfW reduces our reliance on landfills and obtains the maximum value from our waste streams. There are a number of merging technologies that could potentially play an important role which treats waste as a resource properly integrated into an energy and transport system and fully respects the potential of linking in the circular economy.
Investment into EfW infrastructure in the region could lead to job creation and economic growth and could help provide inward investment needed to redevelop old industrial sites and retiring power stations. However for EfW to be part of a net-zero energy system (either in transition or long-term) technologies and processes are needed that reduce the current carbon emissions burden.
EfW could play a significant role in the net zero carbon transition in the Midlands supplying heat power and green fuels and solve other problems - the region has some of the highest levels of energy/fuel poverty and poor air quality in the UK. The policy commission will help shape the regional local government and industry thinking surrounding this important topic.
Report Recommendations
Recovery Resource Cluster
The EfW policy commission proposes three major areas where it believes that government investment would be highly beneficial
- Building a network of local and regional Resource Recovery Clusters
- Creating a National Centre for the Circular Economy
- Launching an R&D Grand Challenge to develop small-scale circular carbon capture technologies.
The National Centre for the Circular Economy would analyse material flows throughout the economy down to regional and local levels and develop deep expertise in recycling and EfW technologies. The CCE would also provide expert guidance and support for local authorities as they develop local or regional strategies and planning frameworks.
The R&D Grand Challenge aims to make big advances in small-scale carbon capture technologies in order to turn 100% of CO2 produced through the process of converting waste to energy into useful products. This is very important for areas such as the Midlands which are remoted from depleted oil and gas reservoirs.
Pathway to Net Zero Emissions
Oct 2021
Publication
A feasible path to limit planetary warming to 1.5°C requires certain countries and sectors to go below net zero and to do so well before the middle of the century according to new analysis from the authors of the Energy Transition Outlook. DNV’s pathway to net zero says North America and Europe must be carbon neutral by 2042 whereas Indian Subcontinent is set to be a net emitter by 2050 Net zero report says carbon capture storage and use is required as energy production will not be carbon neutral by 2050 Aim to halve emissions by 2030 is out of reach but massive early action is needed if we are to have any chance of reaching a 1.5°C future DNV’s new report “Pathway to Net Zero Emissions” describes a feasible way to limit global warming to 1.5°C Policy makers are set to meet in Glasgow for the COP 26 summit with an eye on achieving zero emissions by 2050. For this to happen North America and Europe must be carbon neutral by 2042 and then carbon negative thereafter according to DNV’s pathway to net zero. The pathway also finds that Greater China must reduce emissions by 98% from 2019 levels by 2050. There are regions that cannot realistically transition completely away from fossil fuels in the same timeframe such as the Indian Subcontinent which will reduce emissions by 64%. Pathway to Net Zero Emissions also lays out the pace at which different industry sectors need to decarbonize. The so-called hard-to-abate sectors will take longer to decarbonize and even if sectors like maritime (-90% CO2 emissions in 2050) and iron and steel production (-82%) scale up the introduction of greener technologies they will still be net emitters by 2050.
Analysis of Strategic Directions in Sustainable Hydrogen Investment Decisions
Jun 2020
Publication
This study seeks to find the appropriate strategies necessary to make sustainable and effective hydrogen energy investments. Within this scope nine different criteria are defined regarding social managerial and financial factors. A hesitant interval-valued intuitionistic fuzzy (IVIF) decision-making trial and evaluation laboratory (DEMATEL) methodology is considered to calculate the degree of importance of the criteria. Additionally impact relation maps are also generated to visualize the causality relationship between the factors. The findings indicate that the technical dimension has the greatest importance in comparison to managerial and financial factors. Furthermore it is also concluded that storage and logistics research and development and technological infrastructure are the most significant factors to be considered when defining hydrogen energy investment strategies. Hence before investing in hydrogen energy necessary actions should be taken to minimize the storage and logistic costs. Among them building the production site close to the usage area will contribute significantly to this purpose. In this way possible losses during the transportation of hydrogen can be minimized. Moreover it is essential to identify the lowest-cost hydrogen storage method by carrying out the necessary research and development activities thereby increasing the sustainability and effectiveness of hydrogen energy investment projects.
Rising To the Challenge of a Hydrogen Economy: The Outlook for Emerging Hydrogen Value Chains, From Production to Consumption
Jul 2021
Publication
For many a large-scale hydrogen economy is essential to a a clean energy future with three quarters of the more than 1100 senior energy professionals we surveyed saying Paris Agreement targets will not be possible without it.
DNV’s research Rising to the challenge of a hydrogen economy explores the outlook for emerging hydrogen value chains from production to consumption. It combines the wider view from the energy industry with commentary from business leaders and experts. Our research finds that the challenge is not in the ambition but in changing the timeline: from hydrogen on the horizon to hydrogen in our homes businesses and transport systems.
We see that the energy industry is rising to this challenge. By 2025 almost half (44%) of energy companies globally involved in hydrogen expect it to account for more than a tenth of their revenue rising to 73% of companies by 2030 – up significantly from just 8% of companies today. The research identifies infrastructure and cost as two of the biggest hurdles while the right regulations are deemed the most powerful enabler followed by carbon pricing. Proving the safety case will also be key to scaling the hydrogen economy.
Download your complimentary copy of DNV’s latest hydrogen research at their website link
DNV’s research Rising to the challenge of a hydrogen economy explores the outlook for emerging hydrogen value chains from production to consumption. It combines the wider view from the energy industry with commentary from business leaders and experts. Our research finds that the challenge is not in the ambition but in changing the timeline: from hydrogen on the horizon to hydrogen in our homes businesses and transport systems.
We see that the energy industry is rising to this challenge. By 2025 almost half (44%) of energy companies globally involved in hydrogen expect it to account for more than a tenth of their revenue rising to 73% of companies by 2030 – up significantly from just 8% of companies today. The research identifies infrastructure and cost as two of the biggest hurdles while the right regulations are deemed the most powerful enabler followed by carbon pricing. Proving the safety case will also be key to scaling the hydrogen economy.
Download your complimentary copy of DNV’s latest hydrogen research at their website link
Life Cycle Costing Analysis: Tools and Applications for Determining Hydrogen Production Cost for Fuel Cell Vehicle Technology
Jul 2021
Publication
This work investigates life cycle costing analysis as a tool to estimate the cost of hydrogen to be used as fuel for Hydrogen Fuel Cell vehicles (HFCVs). The method of life cycle costing and economic data are considered to estimate the cost of hydrogen for centralised and decentralised production processes. In the current study two major hydrogen production methods are considered methane reforming and water electrolysis. The costing frameworks are defined for hydrogen production transportation and final application. The results show that hydrogen production via centralised methane reforming is financially viable for future transport applications. The ownership cost of HFCVs shows the highest cost among other costs of life cycle analysis.
Towards a Large-Scale Hydrogen Industry for Australia
Oct 2020
Publication
As nations around the world seek to reduce carbon dioxide emissions in order to mitigate climate change risks there has been a resurgence of interest in the use of hydrogen as a zero-emissions energy carrier. Hydrogen can be produced from diverse feedstocks via a range of low-emissions pathways and has broad potential in the process of decarbonization across the energy transport and industrial sectors.<br/>With an abundance of both renewable and fossil fuel energy resources a comparatively low national energy demand and excellent existing regional resource trading links Australia is well positioned to pursue industrial-scale hydrogen production for both domestic and export purposes. In this paper we present an overview of the progress at the government industry and research levels currently undertaken to enable a large-scale hydrogen industry for Australia.
Modeling and Economic Operation of Energy Hub Considering Energy Market Price and Demand
Feb 2022
Publication
This paper discusses the economic operation strategy of the energy hub which is being established in South Korea. The energy hub has five energy conversion devices: a turbo expander generator a normal fuel cell a fuel cell with a hydrogen outlet a small-scale combined heat and power device and a photovoltaic device. We are developing the most economically beneficial operation strategy for the operators who own the hub without making any systematic improvements to the energy market. First sixteen conversion efficiency matrices can be achieved by turning each device (except the PV) on or off. Next even the same energy must be divided into different energy flows according to price. The energy flow is controlled to obtain the maximum profit considering the internal load of the energy hub and the price fluctuations of the energy market. Using our operating strategy the return on investment period is approximately 9.9 years which is three years shorter than that without the operating strategy.
Planning and Operational Aspects of Individual and Clustered Multi-Energy Microgrid Options
Feb 2022
Publication
With the restructuring of the power system household-level end users are becoming more prominent participants by integrating renewable energy sources and smart devices and becoming flexible prosumers. The use of microgrids is a way of aggregating local end users into a single entity and catering for the consumption needs of shareholders. Various microgrid architectures are the result of the local energy community following different decarbonisation strategies and are frequently not optimised in terms of size technology or other influential factors for energy systems. This paper discusses the operational and planning aspects of three different microgrid setups looking at them as individual market participants within a local electricity market. This kind of implementation enables mutual trade between microgrids without additional charges where they can provide flexibility and balance for one another. The developed models take into account multiple uncertainties arising from photovoltaic production day-ahead electricity prices and electricity load. A total number of nine case studies and sensitivity analyses are presented from daily operation to the annual planning perspective. The systematic study of different microgrid setups operational principles/goals and cooperation mechanisms provides a clear understanding of operational and planning benefits: the electrification strategy of decarbonising microgrids outperforms gas and hydrogen technologies by a significant margin. The value of coupling different types of multi-energy microgrids with the goal of joint market participation was not proven to be better on a yearly level compared to the operation of same technology-type microgrids. Additional analyses focus on introducing distribution and transmission fees to an MG cooperation model and allow us to come to the conclusion of there being a minor impact on the overall operation.
Producing Low Carbon Gas- Future Gas Series part 2
Jul 2018
Publication
Of all the sectors in the UK decarbonising heat remains one of the most challenging. Heat used for industrial domestic and commercial purposes generates around a third of all UK carbon emissions 70% of which is due to burning natural gas. In order to meet our legally binding national climate change targets unabated natural gas use for heat must be phased out. Low carbon gas - including hydrogen and biogases - is one option to replace it. The Future Gas Series examines the opportunities and challenges associated with using low carbon gas to help decarbonise the UK economy.<br/><br/>This is the second report in the three-part Future Gas Series. Part 1: Next Steps for the Gas Grid explored the potential to decarbonise the existing gas grid. The report Part 2: the Production of Low Carbon Gas focuses on the issues related to the production of low carbon gas. It considers the different production technologies the potential scale of deployment of each method and the potential feedstocks. It also discusses issues related to bulk transport and storage of gas. Put together from expert evidence from across industry and academia it provides a balanced guide for policy makers in this area. It was a co-chaired by James Heappey MP (Conservative) Alan Whitehead MP (Labour) and Alistair Carmichael MP (SNP).<br/><br/>Carbon Connect suggests that biogases- such as biomethane and bioSNG- provide low regrets opportunities in the near term to provide low carbon heat and could also potentially make use of waste that would otherwise go to landfill. However they require further support to allow them to continue contributing to decarbonising the UK economy. Hydrogen could provide huge decarbonisation opportunities and has applications across the energy system from putting hydrogen in the gas grid to be burnt for heat in homes to hydrogen buses and trains. However to realise this potential a market for hydrogen must be built up. This should incentivise business to invest in hydrogen technologies reward those who use hydrogen and build up hydrogen infrastructure.<br/><br/>
Use of Hydrogen as Fuel: A Trend of the 21st Century
Jan 2022
Publication
The unbridled use of fossil fuels is a serious problem that has become increasingly evident over the years. As such fuels contribute considerably to environmental pollution there is a need to find new sustainable sources of energy with low emissions of greenhouse gases. Climate change poses a substantial challenge for the scientific community. Thus the use of renewable energy through technologies that offer maximum efficiency with minimal pollution and carbon emissions has become a major goal. Technology related to the use of hydrogen as a fuel is one of the most promising solutions for future systems of clean energy. The aim of the present review was to provide an overview of elements related to the potential use of hydrogen as an alternative energy source considering its specific chemical and physical characteristics as well as prospects for an increase in the participation of hydrogen fuel in the world energy matrix.
Investment Frameworks for Development of CCUS in the UK
Jul 2019
Publication
The CCUS Advisory Group (CAG) established in March 2019 is an industry-led group considering the critical challenges facing the development of CCUS market frameworks and providing insight into potential solutions. The CAG brings together experts from across the CCUS industry finance and legal sectors.<br/>The CAG has examined a range of business models focusing on industrial CCUS power production CO? transport and storage and hydrogen production. It has considered how the proposed business models interact in order to minimise issues such as cross-chain risk and has considered issues such as delivery capability. The conclusions of the CAG can be found in this report.
Economic Feasibility of Green Hydrogen Production by Water Electrolysis Using Wind and Geothermal Energy Resources in Asal-Ghoubbet Rift (Republic of Djibouti): A Comparative Evaluation
Dec 2021
Publication
The Republic of Djibouti has untapped potential in terms of renewable energy resources such as geothermal wind and solar energy. This study examines the economic feasibility of green hydrogen production by water electrolysis using wind and geothermal energy resources in the Asal–Ghoubbet Rift (AG Rift) Republic of Djibouti. It is the first study in Africa that compares the cost per kg of green hydrogen produced by wind and geothermal energy from a single site. The unit cost of electricity produced by the wind turbine (0.042 $/kWh) is more competitive than that of a dry steam geothermal plant (0.086 $/kWh). The cost of producing hydrogen with a suitable electrolyzer powered by wind energy ranges from $0.672/kg H2 to $1.063/kg H2 while that produced by the high-temperature electrolyzer (HTE) powered by geothermal energy ranges from $3.31/kg H2 to $4.78/kg H2 . Thus the AG Rift area can produce electricity and green hydrogen at low-cost using wind energy compared to geothermal energy. The amount of carbon dioxide (CO2 ) emissions reduced by using a “Yinhe GX113-2.5MW” wind turbine and a single flash geothermal power plant instead of fuel-oil generators is 2061.6 tons CO2/MW/year and 2184.8 tons CO2/MW/year respectively.
Delivering an Energy Export Transition: Impact of Conflicting and Competing Informational Contexts on Public Acceptance of Australia's Hydrogen Export Industry
Mar 2024
Publication
This study uses an online quasi-experiment with a national sample from Australia to evaluate public acceptance of hydrogen exports. It explores the complex communications environment that messaging about hydrogen exports is typically encountered in. We find that acceptance of green hydrogen exports is significantly higher than blue or brown hydrogen exports and acceptance of blue hydrogen exports higher than brown hydrogen exports. Additionally results show economic-framed benefit messages are associated with lesser public acceptance when encountered in communication contexts that outline differently-focused environmental downsides (competing contexts) but not same-focused economic downsides (conflicting contexts). In contrast environment-framed benefit messages are associated with lesser public acceptance when presented in communication contexts that outline same-focused environmental downsides (conflicting contexts) but not differentlyfocused economic downsides (competing contexts). Overall the study indicates message framing can impact acceptance of hydrogen exports and that organisations should consider the informational context within which their communications will be received.
Mind the Gap—A Socio-Economic Analysis on Price Developments of Green Hydrogen, Synthetic Fuels, and Conventional Energy Carriers in Germany
May 2022
Publication
In recent years the development of energy prices in Germany has been frequently accompanied by criticism and warnings of socio-economic disruptions. Especially with respect to the electricity sector the debate on increasing energy bills was strongly correlated with the energy system transition. However whereas fossil fuels have rapidly increased in price recently renewable substitutes such as green hydrogen and synthetic fuels also enter the markets at comparatively high prices. On the other hand the present fossil fuel supply is still considered too low-priced by experts because societal greenhouse gas-induced environmental impact costs are not yet compensated. In this study we investigate the development of the price gap between conventional energy carriers and their renewable substitutes until 2050 as well as a suitable benchmark price incorporating the societal costs of specific energy carriers. The calculated benchmark prices for natural gas (6.3 ct kWh−1 ) petrol (9.9 ct kWh−1 ) and grey hydrogen from steam methane reformation (12 ct kWh−1 ) are nearly 300% above the actual prices for industry customers in 2020 but below the price peaks of early 2022. In addition the price gap between conventional fuels and green hydrogen will be completely closed before 2050 for all investigated energy carriers. Furthermore prognosed future price developments can be considered rather moderate compared to historic and especially to the recent price dynamics in real terms. A gradual implementation of green hydrogen and synthetic fuels next to increasing CO2 prices however may temporarily lead to further increasing expenses for energy but can achieve lower price levels comparable to those of 2020 in the long term.
Net Zero after Covid: Behavioural Principles for Building Back Better
Dec 2020
Publication
Alongside our Sixth Carbon Budget Advice the Climate Change Committee (CCC) are publishing a paper from Professor Nick Chater the Committee’s behavioural science specialist. This paper considers three behavioural principles that explain how people have adapted so rapidly and how we might “build back better” as we emerge from the pandemic with a particular focus on meeting the challenge of dramatically reducing greenhouse gas (GHG) emissions over the coming decades. The principles are:
- The power law of practice: People organizations and whole industries learn to adapt to new ways of working following a surprisingly predictable pattern. This can help predict where adaptation to new ways of living and working is likely to succeed or fail.
- The status quo effect: People and organizations tend to prefer the current status quo but can often adjust rapidly to prefer a new status quo. However we tend to systematically underestimate such effects and therefore can sometimes resist changes that in retrospect we may ultimately prefer.
- Unwritten rules: Our social behaviour is guided by implicit guidelines about what is “appropriate” which can be somewhat independent of our personal values. Changing these implicit rules alongside changes in regulation and the law is crucial to adapting to new circumstances—and the pandemic has shown that rapid change is possible though sometimes resisted (e.g. new norms about mask wearing and social distancing).
Lowest Cost Decarbonisation for the UK: The Critical Role of CCS
Sep 2016
Publication
A new report to the Secretary of State for Business Energy and Industrial Strategy from the Parliamentary Advisory Group on Carbon Capture and Storage (CCS) advises that that the UK should kickstart CCS in order to save consumers billions a year from the cost of meeting climate change targets.
Potential of New Business Models for Grid Integrated Water Electrolysis
Feb 2018
Publication
Grid integrated water electrolysers have the potential of coupling electric power systems subjected to high shares of renewable energy sources with sectors of hydrogen demand thus contributing to European decarbonization goals in future. We therefore investigate the business potential of future electrolyser applications in cross-commodity arbitrage trading by applying a complex power market simulation method for future scenarios and different European countries. Based on this we evaluate the potential of additional provision of grid services towards grid operators in order to increase the electrolyser utilization ratio. For this we use a method that identifies measures of transmission grid operators in order to ensure secure grid operation. In this context uncertain hydrogen prices and different sectors of hydrogen demand are addressed through sensitivities of different hydrogen sales prices. The analysis shows a high dependency of business model efficiency on the hydrogen price. While cross-commodity arbitrage trading can achieve profitability for the transportation sector applications for the industry sector and natural gas system are less efficient. The results however indicate that for these less efficient applications grid service provision can be an option of increasing the electrolyser utilization ratio thus increasing its profitability.
Research and Development Investment and Collaboration Framework for the Hydrogen Economy in South Korea
Sep 2021
Publication
South Korea developed its hydrogen strategies to achieve carbon neutrality and dominate the hydrogen economy amidst and with the impetus of the coronavirus disease 2019 (COVID-19) pandemic. The government strives toward the goal via continuous investment in green hydrogen technologies as well as strategic collaborations. To facilitate the transition into the hydrogen economy this study presents a research and development (R&D) investment and collaboration framework as a national strategy. The framework offers abundant information to elucidate the technology R&D spectrum and regional dimensions of the strategy. Furthermore the proposed framework was applied to the Korean hydrogen economy comprising 955 nationally funded projects worth USD 565.7 million. The statuses and trends of the government’s investment in nationally funded research projects are illustrated with regard to the value chains of the hydrogen economies of 16 regions as well as nine technology clusters relating to the hydrogen economy thereby determining the research organizations that played crucial roles in each cluster of the 16 regions between 2015 and 2020. The results indicate that the research organizations in Daejeon acquired the highest government R&D funding in many hydrogen-economy-related research fields and that an R&D spectrum-based research/strategic collaboration is required to accomplish specialized complexes in the regions.
Liquid Hydrogen as Prospective Energy Carrier: A Brief Review and Discussion of Underlying Assumptions Applied in Value Chain Analysis
Nov 2021
Publication
In the literature different energy carriers are proposed in future long-distance hydrogen value chains. Hydrogen can be stored and transported in different forms e.g. as compressed dense-phase hydrogen liquefied hydrogen and in chemically bound forms as different chemical hydrides. Recently different high-level value chain studies have made extrapolative investigations and compared such options with respect to energy efficiency and cost. Three recent journal papers overlap as the liquid hydrogen option has been considered in all three studies. The studies are not fully aligned in terms of underlying assumptions and battery limits. A comparison reveals partly vast differences in results for chain energy efficiency for long-distance liquid hydrogen transport which are attributable to distinct differences in the set of assumptions. Our comparison pinpoints the boiloff ratio i.e. evaporation losses due to heat ingress in liquid hydrogen storage tanks as the main cause of the differences and this assumption is further discussed. A review of spherical tank size and attributed boiloff ratios is presented for existing tanks of different vintage as well as for recently proposed designs. Furthermore the prospect for further extension of tanks size and reduction of boiloff ratio is discussed with a complementary discussion about the use of economic assumptions in extrapolative and predictive studies. Finally we discuss the impact of battery limits in hydrogen value chain studies and pinpoint knowledge needs and the need for a detailed bottom-up approach as a prerequisite for improving the understanding for pros and cons of the different hydrogen energy carriers.
UK Hydrogen Strategy
Aug 2021
Publication
The UK’s first-ever Hydrogen Strategy drives forward the commitments laid out in the Prime Minister’s ambitious 10 Point Plan for a green industrial revolution by setting the foundation for how the UK government will work with industry to meet its ambition for 5GW of low carbon hydrogen production capacity by 2030 – the equivalent of replacing natural gas in powering around 3 million UK homes each year as well as powering transport and businesses particularly heavy industry.<br/>A booming UK-wide hydrogen economy could be worth £900 million and create over 9000 high-quality jobs by 2030 potentially rising to 100000 jobs and worth up to £13 billion by 2050. By 2030 hydrogen could play an important role in decarbonising polluting energy-intensive industries like chemicals oil refineries power and heavy transport like shipping HGV lorries and trains by helping these sectors move away from fossil fuels. Low-carbon hydrogen provides opportunities for UK companies and workers across our industrial heartlands.<br/>With government analysis suggesting that 20-35% of the UK’s energy consumption by 2050 could be hydrogen-based this new energy source could be critical to meet our targets of net zero emissions by 2050 and cutting emissions by 78% by 2035 – a view shared by the UK’s independent Climate Change Committee. In the UK a low-carbon hydrogen economy could deliver emissions savings equivalent to the carbon captured by 700 million trees by 2032 and is a key pillar of capitalising on cleaner energy sources as the UK moves away from fossil fuels.
A Multi-objective MILP Model for the Design and Operation of Future Integrated Multi-vector Energy Networks Capturing Detailed Spatio-temporal Dependencies
Dec 2017
Publication
A multi-objective optimisation model based on mixed integer linear programming is presented that can simultaneously determine the design and operation of any integrated multi-vector energy networks. It can answer variants of the following questions: What is the most effective way in terms of cost value/profit and/or emissions of designing and operating the integrated multi-vector energy networks that utilise a variety of primary energy sources to deliver different energy services such as heat electricity and mobility given the availability of primary resources and the levels of demands and their distribution across space and time? When to invest in technologies where to locate them; what resources should be used where when and how to convert them to the energy services required; how to transport the resources and manage inventory? Scenarios for Great Britain were examined involving different primary energy sources such as natural gas biomass and wind power in order to satisfy demands for heat electricity and mobility via various energy vectors such as electricity natural gas hydrogen and syngas. Different objectives were considered such as minimising cost maximising profit minimising emissions and maximising renewable energy production subject to the availability of suitable land for biomass and wind turbines as well as the maximum local production and import rates for natural gas. Results suggest that if significant mobility demands are met by hydrogen-powered fuel cell vehicles then hydrogen is the preferred energy vector over natural gas for satisfying heat demands. If natural gas is not used and energy can only be generated from wind power and biomass electricity and syngas are the preferred energy carriers for satisfying electricity and heat demands.
Public Acceptance for the Implementation of Hydrogen Self-refueling Stations
Sep 2021
Publication
The utilization of hydrogen energy is important for achieving a low-carbon society. Japan has set ambitious goals for hydrogen stations and fuel cell vehicles focusing on the introduction and dissemination of self-refuelling systems. This paper evaluates public trust in the fuel equipment and self-handling technology related to self-refuelling hydrogen stations and compares it with that for widespread gasoline stations. To this end the results of an online survey of 300 people with Japanese driver licenses are reported and analyzed. The results show that trust in the equipment and self-handling is more important for the user than trust in the fuel. In addition to introduce and disseminate new technology such as hydrogen stations users must be made aware of the risk of using the technology until it becomes as familiar as existing gasoline station technology.
Hydrogen is Essential for Sustainability
Nov 2018
Publication
Sustainable energy conversion requires zero emissions of greenhouse gases and criteria pollutants using primary energy sources that the earth naturally replenishes quickly like renewable resources. Solar and wind power conversion technologies have become cost effective recently but challenges remain to manage electrical grid dynamics and to meet end-use requirements for energy dense fuels and chemicals. Renewable hydrogen provides the best opportunity for a zero emissions fuel and is the best feedstock for production of zero emission liquid fuels and some chemical and heat end-uses. Renewable hydrogen can be made at very high efficiency using electrolysis systems that are dynamically operated to complement renewable wind and solar power dynamics. Hydrogen can be stored within the existing natural gas system to provide low cost massive storage capacity that (1) could be sufficient to enable a 100% zero emissions grid; (2) has sufficient energy density for end-uses including heavy duty transport; (3) is a building block for zero emissions fertilizer and chemicals; and (4) enables sustainable primary energy in all sectors of the economy.
National Hydrogen Roadmap: Pathways to an Economically Sustainable Hydrogen Industry in Australia
Apr 2021
Publication
The National Hydrogen Roadmap provides a blueprint for the development of a hydrogen industry in Australia.
Recently there has been a considerable amount of work undertaken (both globally and domestically) seeking to quantify the economic opportunities associated with hydrogen. The National Hydrogen Roadmap takes that analysis a step further by focusing on how those opportunities can be realised.
National Hydrogen Roadmap
The National Hydrogen Roadmap provides a blueprint for the development of a hydrogen industry in Australia.
The primary objective of the Roadmap is to provide a blueprint for the development of a hydrogen industry in Australia. With a number of activities already underway it is designed to help inform the next series of investment amongst various stakeholder groups (e.g. industry government and research) so that the industry can continue to scale in a coordinated manner.
Pathways to an economically sustainable industry
The low emissions hydrogen value chain now consists of a series of mature technologies. While there is considerable scope for further R&D this level of maturity has meant that the narrative has shifted from one of technology development to market activation.
Barriers to market activation stem from a lack of supporting infrastructure and/or the cost of hydrogen supply. However both barriers can be overcome via a series of strategic investments along the value chain from both the private and public sector.
The report shows that while government assistance is needed to kick-start the industry it can become economically sustainable thereafter. This is demonstrated by first assessing the target price of hydrogen needed for it be competitive with other energy carriers and feedstocks. Second the assessment considers the current state of the industry namely the cost and maturity of the underpinning technologies and infrastructure. It then identifies the material cost drivers and consequently the key priorities and areas for investment needed to make hydrogen competitive in each of the identified markets.
The opportunity for hydrogen to compete favourably on a cost basis in local applications such as transport and remote area power systems is within reach based on potential cost reductions to 2025. Further the development of a hydrogen export industry represents a significant opportunity for Australia and a potential 'game changer' for the local industry and the broader energy sector due to associated increases in scale."
You can read the full report on the CSIRO website at this link
Recently there has been a considerable amount of work undertaken (both globally and domestically) seeking to quantify the economic opportunities associated with hydrogen. The National Hydrogen Roadmap takes that analysis a step further by focusing on how those opportunities can be realised.
National Hydrogen Roadmap
The National Hydrogen Roadmap provides a blueprint for the development of a hydrogen industry in Australia.
The primary objective of the Roadmap is to provide a blueprint for the development of a hydrogen industry in Australia. With a number of activities already underway it is designed to help inform the next series of investment amongst various stakeholder groups (e.g. industry government and research) so that the industry can continue to scale in a coordinated manner.
Pathways to an economically sustainable industry
The low emissions hydrogen value chain now consists of a series of mature technologies. While there is considerable scope for further R&D this level of maturity has meant that the narrative has shifted from one of technology development to market activation.
Barriers to market activation stem from a lack of supporting infrastructure and/or the cost of hydrogen supply. However both barriers can be overcome via a series of strategic investments along the value chain from both the private and public sector.
The report shows that while government assistance is needed to kick-start the industry it can become economically sustainable thereafter. This is demonstrated by first assessing the target price of hydrogen needed for it be competitive with other energy carriers and feedstocks. Second the assessment considers the current state of the industry namely the cost and maturity of the underpinning technologies and infrastructure. It then identifies the material cost drivers and consequently the key priorities and areas for investment needed to make hydrogen competitive in each of the identified markets.
The opportunity for hydrogen to compete favourably on a cost basis in local applications such as transport and remote area power systems is within reach based on potential cost reductions to 2025. Further the development of a hydrogen export industry represents a significant opportunity for Australia and a potential 'game changer' for the local industry and the broader energy sector due to associated increases in scale."
You can read the full report on the CSIRO website at this link
Labour Implications of the Net-zero Transition and Clean Energy Exports in Australia
Mar 2024
Publication
We examine the employment implications of a domestic net-zero transition and establishment of clean energy export systems for an historically significant energy exporting country through a case study of Australia. The labour impacts of a multi-decadal transition are simulated across both the domestic and export energy systems considering a wide range of energy technologies resources and activities with assessment according to occupation lifecycle stage education and skill requirements. Across all net-zero scenario pathways by mid-century the total gross employment created for the domestic and export sectors comprises 210–490 thousand jobs and 350–510 thousand jobs respectively. This represents a significant expansion of energy sector employment from the current total of 120 thousand across domestic and export sectors an increase from less than 1 % of the total Australian workforce in 2020 to 3–4 % by 2060. The need to build out energy system infrastructure at large-scale over a number of decades results in construction jobs continuing over that timeframe and a subsequent need for a large ongoing operations and maintenance workforce for new energy system assets. Those employed in domestic energy markets work primarily in utility solar PV onshore wind batteries and electricity transmission and distribution activities while export market jobs are dominated by clean hydrogen production and shipping supply chains. Crucially these export jobs are unevenly distributed across the country in regions of highest quality solar resource. All states and territories experience net job growth across each decade to 2060. However in a few sub-state regions net job losses occur in the short-term.
Exploring the Australian Public's Response to Hydrogen
Sep 2021
Publication
Over the past three years there has been a rapid increase in discussions across the different levels of Australia's governments about the role that hydrogen might play in helping the world transition to a low carbon future. While those working in the energy industry are aware of the opportunities and challenges that lay ahead the general public is less engaged. However we know from the introduction of previous technologies that public attitudes towards technologies including whether they view them to be safe can severely impact overall acceptance. Understanding how the public perceives hydrogen both for domestic and export use and the potential benefits it brings to Australia is critical for the industry to progress. In this paper we present the initial findings of a national survey of the Australian public conducted in March 2021 which builds on the results of a previous survey conducted in 2018. The 2021 respondents were drawn from all Australian states and territories (n=3020) and quotas were used to ensure adequate representation of age groups and gender. Overall the respondents have favorable views about using hydrogen for energy in Australia with caveats about production-related environmental impacts and issues such as safety. While there has been a slight increase in support for hydrogen as a possible solution for energy and environmental challenges since the 2018 survey the effect size is very small. This suggests that while hydrogen discussions have increased at a policy level little has been done to improve public understanding of hydrogen in communication strategies will be needed as the Australian hydrogen industry continues to develop and gain more widespread media attention.
Hydrogen Production, Distribution, Storage and Power Conversion in a Hydrogen Economy - A Technology Review
Aug 2021
Publication
To meet ambitious targets for greenhouse gas emissions reduction in the 2035-2050 timeframe hydrogen has been identified as a clean “green” fuel of interest. In comparison to fossil fuel use the burning of hydrogen results in zero CO2 emissions and it can be obtained from renewable energy sources. In addition to zero CO2 emissions hydrogen has several other attractive properties such as higher gravimetric energy content and wider flammability limits than most fossil fuels. However there are practical limitations to its widespread use at present which include low volumetric energy density in the gaseous state and high well-to-wheel costs when compared to fossil fuel production and distribution. In this paper a review is undertaken to identify the current state of development of key areas of the hydrogen network such as production distribution storage and power conversion technology. At present high technology costs still are a barrier to widespread hydrogen adoption but it is envisioned that as scale of production increases then costs are likely to fall. Technical barriers to a hydrogen economy adoption are not as significant as one might think as key technologies in the hydrogen network are already mature with working prototypes already developed for technologies such as liquid hydrogen composite cryotanks and proton exchange membrane fuel cells. It is envisioned that with continuous investment to achieve requisite scale that a hydrogen economy could be realised sooner rather than later with novel concepts such as turboelectric distributed propulsion enabled by a shift to hydrogen-powered network.
Next Steps for the Gas Grid- Future Gas Series Part 1
Sep 2014
Publication
Policy Connect Carbon Connect and sector and Parliamentary experts have collaborated to present options for the gas grid to play a useful role in the UK’s transition to a low carbon energy system through the widespread use of low carbon gas. The report calls on Government to support the transition to a more flexible gas grid that uses various forms of gas including low carbon gases such as hydrogen and biomethane.
Net Zero Strategy: Build Back Greener
Oct 2021
Publication
Last year the Prime Minister set out his 10 point plan for a green industrial revolution laying the foundations for a green economic recovery from the impact of COVID-19 with the UK at the forefront of the growing global green economy.
This strategy builds on that approach to keep us on track for UK carbon budgets our 2030 Nationally Determined Contribution and net zero by 2050. It includes:
This strategy builds on that approach to keep us on track for UK carbon budgets our 2030 Nationally Determined Contribution and net zero by 2050. It includes:
- our decarbonisation pathways to net zero by 2050 including illustrative scenarios
- policies and proposals to reduce emissions for each sector
- cross-cutting action to support the transition.
A Historical Analysis of Hydrogen Economy Research, Development, and Expectations, 1972 to 2020
Jan 2023
Publication
Global climate change concerns have pushed international governmental actions to reduce greenhouse gas emissions by adopting cleaner technologies hoping to transition to a more sustainable society. The hydrogen economy is one potential long-term option for enabling deep decarbonization for the future energy landscape. Progress towards an operating hydrogen economy is discouragingly slow despite global efforts to accelerate it. There are major mismatches between the present situation surrounding the hydrogen economy and previous proposed milestones that are far from being reached. The overall aim of this study is to understand whether there has been significant real progress in the achievement of a hydrogen economy or whether the current interest is overly exaggerated (hype). This study uses bibliometric analysis and content analysis to historically map the hydrogen economy’s development from 1972 to 2020 by quantifying and analyzing three sets of interconnected data. Findings indicate that interest in the hydrogen economy has significantly progressed over the past five decades based on the growing numbers of academic publications media coverage and projects. However various endogenous and exogenous factors have influenced the development of the hydrogen economy and created hype at different points in time. The consolidated results explore the changing trends and how specific events or actors have influenced the development of the hydrogen economy with their agendas the emergence of hype cycles and the expectations of a future hydrogen economy.
Global Gas Report 2022
May 2022
Publication
This edition of the Global Gas Report covers two very turbulent years in the global gas industry and the wider global energy markets. The Covid-19 pandemic lockdowns with a brief period of excess supply and low prices gave way to tight energy markets extreme price volatility and a compounding geopolitical challenge to energy security. At the time of writing the ongoing Russia-Ukraine conflict has been affecting the flows of gas and has put Europe on a quest to diversify its energy and gas supply that is now opening a new paradigm in the energy industry. This report comes at a time when the situation for global commodity and gas markets is in a state of rapid change and the strategic path forwards for the gas industry and energy policy-makers is continually developing. One thing is clear this is a critical and decisive moment for the gas industry. How it navigates the way through this crisis and charts a path forward will shape its long-term success and the role that it will play in the energy transition and beyond. This is the moment for the gas industry to demonstrate that gas can deliver a sustainable and secure energy future for all and that natural gas and a portfolio of decarbonized low- and zero-carbon gases are key to an achievable energy transition. This year’s report assesses key gas market trends from 2020 and 2021 including Covid-19 outcomes tightness of supply price volatility investments and the upward reversal in the global emissions trend. It then turns to the main topic on the global energy agenda – security – and considers key variables impacting it from industry and policy perspectives as well as considering possible paths to reinforce it. Finally the report looks at the main decarbonization pathways for gas supply as they progressively develop to make gas itself a low or zero-carbon fuel for the future. This report seeks to deliver insights about the global gas sector and to inform its stakeholders partners and importantly global decision-makers about the state of play today and possibilities for the future. It concludes with key insights on how sustainability security and competitiveness can help to deliver a sustainable future in line with the goals of the Paris Agreement and the UN Sustainable Development Agenda.
Financing Efficiency Evaluation and Influencing Factors of Hydrogen Energy Listed Enterprises in China
Jan 2022
Publication
Existing studies of financing efficiency concentrate on capital structure and a single external environment or internal management characteristic. Few of the studies include the internal and external financing environments at the same time for hydrogen energy industry financing efficiency. This paper used the data envelopment analysis (DEA) model and the Malmquist index to measure the financing efficiency of 70 hydrogen energy listed enterprises in China from 2014 to 2020 from both static and dynamic perspectives. Then a tobit model was constructed to explore the influence of external environment and internal factors on the financing efficiency. The contributions of this paper are studying the internal and external financing environments and integrating financing cost efficiency and capital allocation efficiency into the financing efficiency of hydrogen energy enterprises. The results show that firstly the financing efficiency of China’s hydrogen energy listed enterprises showed an upward trend during the years 2014–2020. Secondly China’s hydrogen energy enterprises mainly gather in the eastern coastal areas and their financing efficiency is more than that in western areas. Thirdly the regional economic development level enterprise scale financing structure capital utilization efficiency and profitability have significant effects on the financing efficiency. These results can promote the achievement of “carbon neutrality” in China.
Achieving Net Zero Electricity Sectors in G7 Members
Oct 2021
Publication
Achieving Net Zero Electricity Sectors in G7 Members is a new report by the International Energy Agency that provides a roadmap to driving down CO2 emissions from electricity generation to net zero by 2035 building on analysis in Net Zero by 2050: A Roadmap for the Global Energy Sector.
The new report was requested by the United Kingdom under its G7 Presidency and followed the G7 leaders’ commitment in June 2021 to reach “an overwhelmingly decarbonised” power system in the 2030s and net zero emissions across their economies no later than 2050. It is designed to inform policy makers industry investors and citizens in advance of the COP26 Climate Change Conference in Glasgow that begins at the end of October 2021.
Starting from recent progress and the current state of play of electricity in the G7 the report analyses the steps needed to achieve net zero emissions from electricity and considers the wider implications for energy security employment and affordability. It identifies key milestones emerging challenges and opportunities for innovation.
The report also underscores how G7 members can foster innovation through international collaboration and as first movers lower the cost of technologies for other countries while maintaining electricity security and placing people at the centre of clean energy transitions.
Link to their website
The new report was requested by the United Kingdom under its G7 Presidency and followed the G7 leaders’ commitment in June 2021 to reach “an overwhelmingly decarbonised” power system in the 2030s and net zero emissions across their economies no later than 2050. It is designed to inform policy makers industry investors and citizens in advance of the COP26 Climate Change Conference in Glasgow that begins at the end of October 2021.
Starting from recent progress and the current state of play of electricity in the G7 the report analyses the steps needed to achieve net zero emissions from electricity and considers the wider implications for energy security employment and affordability. It identifies key milestones emerging challenges and opportunities for innovation.
The report also underscores how G7 members can foster innovation through international collaboration and as first movers lower the cost of technologies for other countries while maintaining electricity security and placing people at the centre of clean energy transitions.
Link to their website
Economic and Technical Analysis of Power to Gas Factory Taking Karamay as an Example
May 2022
Publication
Power to gas (PTG) refers to the technology of converting power into energy-storage gas which can absorb excess power when there is excess power and release energy-storage gas when needed. Based on the carbon dioxide (CO2 ) emission of Karamay City in Northwest China this study designed a process flow of the CO2 absorption process and the hydrogen and CO2 methanation process in PTG technology. The results show that the efficiency of the CO2 absorption process was 91.5% and the methanation efficiency was 77.5%. The heat recovery module was set during the process and the total heat recovered was 17.85 MW. The cost of producing synthetic natural gas (SNG) in the PTG factory was 1782 USD/ton. In terms of cost the cost of hydrogen production from electrolyzed water accounted for the largest proportion. In terms of product profit the sale of pure oxygen was the largest part of the profit. At present the carbon emission reduction index profit brought by SNG production accounted for a small proportion. In the future with technological progress industrial upgrading and the improvement in the carbon trading market PTG technology is expected to become one of the ways to achieve carbon-emission-reduction targets.
Which way to Net Zero? A Comparative Analysis of Seven UK 2050 Decarbonisation Pathways
Dec 2021
Publication
Since the UK’s Net Zero greenhouse gas emissions target was set in 2019 organisations across the energy systems community have released pathways on how we might get there – which end-use technologies are deployed across each sector of demand how our fossil fuel-based energy supply would be transferred to low carbon vectors and to what extent society must change the way it demands energy services. This paper presents a comparative analysis between seven published Net Zero pathways for the UK energy system collected from Energy Systems Catapult National Grid ESO Centre for Alternative Technology and the Climate Change Committee. The key findings reported are that (i) pathways that rely on less stringent behavioural changes require more ambitious technology development (and vice versa); (ii) electricity generation will increase by 51-160% to facilitate large-scale fuel-switching in heating and transport the vast majority of which is likely to be generated from variable renewable sources; (iii) hydrogen is an important energy vector in meeting Net Zero for all pathways providing 100-591 TWh annually by 2050 though the growth in demand is heavily dependent on the extent to which it is used in supplying heating and transport demand. This paper also presents a re-visited analysis of the potential renewable electricity generation resource in the UK. It was found that the resource for renewable electricity generation outstrips the UK’s projected 2050 electricity demand by a factor 12-20 depending on the pathway. As made clear in all seven pathways large-scale deployment of flexibility and storage is required to match this abundant resource to our energy demand.
Techno-economic Assessment of a Hybrid Off-grid DC System for Combined Heat and Power Generation in Remote Islands
Mar 2019
Publication
Hybrid renewable energy systems that combine heat and electricity generation is an achievable option for remote areas where grid is uneconomical to extend. In this study a renewable-based system was designed to satisfy the electrical and thermal demands of a remote household in an off-grid Greek island. A hybrid DC system consisted of a combination of photovoltaic modules wind turbine electrolyzer-hydrogen tank fuel cell and batteries were analysed using HOMER Pro software. Based on the optimal obtained system it is found that such a system can satisfy both electrical and thermal load demand throughout the year in a reliable manner.
Towards a Sustainable Hydrogen Economy: Optimisation-based Framework for Hydrogen Infrastructure Development
Sep 2016
Publication
This work studies the development of a sustainable hydrogen infrastructure that supports the transition towards a low-carbon transport system in the United Kingdom (UK). The future hydrogen demand is forecasted over time using a logistic diffusion model which reaches 50% of the market share by 2070. The problem is solved using an extension of SHIPMod an optimisation-based framework that consists of a multi-period spatially-explicit mixed-integer linear programming (MILP) formulation. The optimisation model combines the infrastructure elements required throughout the different phases of the transition namely economies of scale road and pipeline transportation modes and carbon capture and storage (CCS) technologies in order to minimise the present value of the total infrastructure cost using a discounted cash-flow analysis. The results show that the combination of all these elements in the mathematical formulation renders optimal solutions with the gradual infrastructure investments over time required for the transition towards a sustainable hydrogen economy.
Challenges in the Decarbonization of the Energy Sector
Jun 2020
Publication
In order to limit the effects of climate change the carbon dioxide emissions associated with the energy sector need to be reduced. Significant reductions can be achieved by using appropriate technologies and policies. In the context of recent discussions about climate change and energy transition this article critically reviews some technologies policies and frequently discussed solutions. The options for carbon emission reductions are grouped into (1) generation of secondary energy carriers (2) end-use energy sectors and (3) sector interdependencies. The challenges on the way to a decarbonized energy sector are identified with respect to environmental sustainability security of energy supply economic stability and social aspects. A global carbon tax is the most promising instrument to accelerate the process of decarbonization. Nevertheless this process will be very challenging for humanity due to high capital requirements the competition among energy sectors for decarbonization options inconsistent environmental policies and public acceptance of changes in energy use.
Developing Networks for the Future: Long-Term Development Plan 2019
Oct 2019
Publication
This report provides you with the information you need if you have plans to interact with or connect to our gas networks. Our vision is to set the standards that all of our customers love and others aspire to. This means that our long-term plans are shaped by our customers and stakeholders. This annual publication is an important opportunity to share our latest long-term plan and our strategic thinking and seek feedback so we can continue to adapt our activities going forward. We want to make it as easy and efficient as possible for you to interact with us.
Cadent Long Term Development Plan 2019
Cadent Long Term Development Plan 2019
The Green Hydrogen Puzzle: Towards a German Policy Framework for Industry
Nov 2021
Publication
Green hydrogen will play a key role in building a climate-neutral energy-intensive industry as key technologies for defossilising the production of steel and basic chemicals depend on it. Thus policy-making needs to support the creation of a market for green hydrogen and its use in industry. However it is unclear how appropriate policies should be designed and a number of challenges need to be addressed. Based on an analysis of the ongoing German debate on hydrogen policies this paper analyses how policy-making for green hydrogen development may support industry defossilisation. For the assessment of policy instruments a simplified multi-criteria analysis (MCA) is used with an innovative approach that derives criteria from specific challenges. Four challenges and seven relevant policy instruments are identified. The results of the MCA reveal the potential of each of the selected instruments to address the challenges. The paper furthermore outlines how instruments might be combined in a policy package that supports industry defossilisation creates synergies and avoids trade-offs. The paper’s impact may reach beyond the German case as the challenges are not specific to the country. The results are relevant for policy-makers in other countries with energy-intensive industries aiming to set the course towards a hydrogen future.
Transitioning Remote Arctic Settlements to Renewable Energy Systems – A Modelling Study of Longyearbyen, Svalbard
Nov 2019
Publication
As transitioning away from fossil fuels to renewable energy sources comes on the agenda for a range of energy systems energy modelling tools can provide useful insights. If large parts of the energy system turns out to be based on variable renewables an accurate representation of their short-term variability in such models is crucial. In this paper we have developed a stochastic long-term energy model and applied it to an isolated Arctic settlement as a challenging and realistic test case. Our findings suggest that the stochastic modelling approach is critical in particular for studies of remote Arctic energy systems. Furthermore the results from a case study of the Norwegian settlement of Longyearbyen suggest that transitioning to a system based on renewable energy sources is feasible. We recommend that a solution based mainly on renewable power generation but also including energy storage import of hydrogen and adequate back-up capacity is taken into consideration when planning the future of remote Arctic settlements.
Industrial Boilers: Study to Develop Cost and Stock Assumptions for Options to Enable or Require Hydrogen-ready Industrial Boilers
Dec 2022
Publication
This study aims to help the Department for Business Energy and Industrial Strategy (BEIS) determine whether the government should intervene to enable or require hydrogen-ready industrial boiler equipment. It will do this based on information from existing literature along with qualitative and quantitative information from stakeholder engagement. The study draws on evidence gathered through BEIS’ Call for Evidence (CfE) on hydrogen-ready industrial boilers. The assessment will advance the overall understanding of hydrogen-ready industrial boilers based on four outputs: definitions of hydrogen-readiness comparisons of the cost and resource requirement to install and convert hydrogen-ready industrial boiler equipment supply chain capacity for conversion to hydrogen and estimates of the UK industrial boiler population.
Enabling or Requiring Hydrogen-ready Industrial Boiler Equipment: Call for Evidence, Summary of Responses
Dec 2022
Publication
On 20 December 2021 the Department for Business Energy and Industrial Strategy (BEIS) launched a Call for Evidence (CfE) on enabling or requiring hydrogen-ready industrial boiler equipment. The aim was to gather evidence from a broad range of UK manufacturers industrial end-users supply chain participants and other experts to enable the development of proposals. The CfE was open for 12 weeks closing on 14 March 2022. The CfE followed the publication of the UK Hydrogen Strategy on 17 August 2021. In the Strategy government committed to run a CfE on hydrogen-ready industrial equipment by theend of 2022. The published CfE focussed on industrial boilers due to their widespread use and because BEIS analysis indicates a significant proportion of the demand for hydrogen in industry will come from this equipment category. Furthermore the technology required for hydrogen boilers is relatively advanced and more standardised than for other types of industrial<br/>equipment. For these reasons industrial boiler equipment presents a good test case for hydrogen-ready industrial equipment more broadly.<br/>The CfE contained the following three sections:<br/>• The opportunity for hydrogen-ready industrial boilers<br/>• The role for government to support hydrogen-ready industrial boiler equipment<br/>• The role of the supply chain and economic opportunities for the UK<br/>Respondents were asked to support their answers with evidence relating to their business product or sector published literature studies or to their broader expertise. To raise awareness of the CfE BEIS officials held two online webinars on 1 February 2022 and 3 February 2022. These were open to boiler manufacturers industrial end-users supply chain participants trade associations professional bodies and any other person(s) with an interest in the area.<br/>To build on evidence gathered through the CfE BEIS commissioned an independent study from Arup and Kiwa Gastec to further examine whether government should enable or require hydrogen-ready industrial boiler equipment. This study investigated the following topics:<br/>• definitions of hydrogen-readiness for industrial boilers<br/>• comparisons of the cost and resource requirement to install and convert hydrogen-ready industrial boiler equipment<br/>• industrial boiler supply chain capacity for conversion to hydrogen<br/>• estimates of the UK industrial boiler population<br/>The final report for this study has been published alongside the government response to the call for evidence. The conclusions and recommendations of that report do not necessarily represent the view of BEIS.
Clean Technology Selection of Hydrogen Production on an Industrial Scale in Morocco
Nov 2022
Publication
Sustainable hydrogen production is a priority for Morocco and it’s part of the country’s national energy strategy which is currently being developed. Many processes can be used for its production. However it’s necessary to select the appropriate one for Morocco’s case. In this study a multi-criteria analysis was followed to select the best clean and renewable catalytic process for hydrogen production on an industrial scale. Ten routes were evaluated using the AHP method coupled with the Fuzzy Vikor method for criteria weighting and ranking of alternatives respectively. The results showed that alkaline water electrolysis coupled with renewable energy sources is the most suitable for industrial production in Morocco. The processes that are not well ranked and require further study and development before deployment on an industrial scale are biophotolysis photo fermentation photolysis and thermolysis. The parametric sensitivity analysis performed validated the result obtained. Then the potential for hydrogen production using solar energy is investigated. It was found that Morocco can produce 1057.26 million tons of green hydrogen showing how attractive the selected catalytic process is. This study enables investors and decision-makers to make an informed decision about whether to develop a green hydrogen production industrial installation in Morocco.
The Vision of France, Germany, and the European Union on Future Hydrogen Energy Research and Innovation
Jul 2021
Publication
Hydrogen (H2) is an essential vector for freeing our societies from fossil fuels and effectively initiating the energy transition. Offering high energy density hydrogen can be used for mobile stationary or industrial applications of all sizes. This perspective on the crucial role of hydrogen is shared by a growing number of countries worldwide (e.g. China Germany Japan Republic of Korea Australia and United States) which are publishing ambitious roadmaps for the development of hydrogen and fuel cell technologies supported by substantial financial efforts.
International Competitiveness of Low-carbon Hydrogen Supply to the Northwest European Market
Oct 2022
Publication
This paper analyses which sources of low-carbon hydrogen for the Northwest European market are most competitive taking into account costs of local production conversion and transport. Production costs of electrolysis are strongly affected by local renewable electricity costs and capacity factors. Transport costs are the lowest by pipelines for distances under 10000 km with costs linearly increasing with distance. For larger distances transport as ammonia is more efficient with less relation to distance despite higher conversion costs. The most competitive low-carbon hydrogen supply to the Northwest European market appears to be local Steam Methane Reforming with Carbon Capture and Storage when international gas prices return back to historical levels. When gas prices however remain high then import from Morocco with electrolysis directly connected to offshore wind generation is found to be the most competitive source of low-carbon hydrogen. These conclusions are robust for various assumptions on costs and capacity factors.
A Recent Review of Primary Hydrogen Carriers, Hydrogen Production Methods, and Applications
Mar 2023
Publication
Hydrogen is a promising energy carrier especially for transportation owing to its unique physical and chemical properties. Moreover the combustion of hydrogen gas generates only pure water; thus its wide utilization can positively affect human society to achieve global net zero CO2 emissions by 2050. This review summarizes the characteristics of the primary hydrogen carriers such as water methane methanol ammonia and formic acid and their corresponding hydrogen production methods. Additionally state-of-the-art studies and hydrogen energy applications in recent years are also included in this review. In addition in the conclusion section we summarize the advantages and disadvantages of hydrogen carriers and hydrogen production techniques and suggest the challenging tasks for future research.
Cross-regional Electricity and Hydrogen Deployment Research Based on Coordinated Optimization: Towards Carbon Neutrality in China
Sep 2022
Publication
In order to achieve carbon neutrality in a few decades the clean energy proportion in power mix of China will significantly rise to over 90%. A consensus has been reached recently that it will be of great significance to promote hydrogen energy that is produced by variable renewable energy power generation as a mainstay energy form in view of its potential value on achieving carbon neutrality. This is because hydrogen energy is capable of complementing the power system and realizing further electrification especially in the section that cannot be easily replaced by electric energy. Power system related planning model is commonly used for mid-term and long-term planning implemented through power installation and interconnection capacity expansion optimization. In consideration of the high importance of hydrogen and its close relationship with electricity an inclusive perspective which contains both kinds of the foresaid energy is required to deal with planning problems. In this study a joint model is established by coupling hydrogen energy model in the chronological operation power planning model to realize coordinated optimization on energy production transportation and storage. By taking the carbon neutrality scenario of China as an example the author applies this joint model to deploy a scheme research on power generation and hydrogen production inter-regional energy transportation capacity and hydrogen storage among various regions. Next by taking the technology progress and cost decrease prediction uncertainty into account the main technical– economic parameters are employed as variables to carry out sensitivity analysis research with a hope that the quantitative calculation and results discussion could provide suggestion and reference to energy-related companies policy-makers and institute researchers in formulating strategies on related energy development.
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