Number 2 of the Government’s 10 Point Plan:
“Working with industry aiming to generate 5GW of low carbon hydrogen production capacity by 2030 for industry, transport, power and homes, and aiming to develop the first town heated entirely by hydrogen by the end of the decade”
- A ‘twin track’ approach to supporting multiple technologies including ‘green’ electrolytic and ‘blue’ carbon capture-enabled hydrogen production.
- A UK hydrogen economy could be worth £900 million and create over 9,000 high-quality jobs by 2030, potentially rising to 100,000 jobs and worth up to £13 billion by 2050
- 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 2050 20-35% of the UK’s energy consumption could be hydrogen-based.
- A consultation to be launched, based on offshore wind, to look at ways to overcome the cost gap between low carbon hydrogen and fossil fuels, plus a consultation on a £240 million Net Zero Hydrogen Fund, to support the commercial deployment of new low carbon hydrogen production plants.
- Working with industry to assess the safety, technical feasibility, and cost effectiveness of mixing 20% hydrogen into the existing gas supply.
- £105 million in UK government funding provided to support polluting industries to significantly slash their emissions
In the original press release, and elsewhere, it was mentioned that 3 million homes would be powered by hydrogen by 2030 but BEIS have now amended the press release and confirmed that this was an equivalent illustration and that hydrogen will predominantly be used in heavy industry.
As stated in the strategy, with currently almost no low carbon production of hydrogen in the UK or globally, meeting the 2030 target will require rapid and significant scale up over coming years. It then describes where Hydrogen comes from:
“There are almost no abundant natural sources of pure hydrogen, which means that it has to be manufactured. The most common production route is steam methane reformation (SMR), where natural gas is reacted with steam to form hydrogen. This is a carbon-intensive process, but one which can be made low carbon through the addition of carbon capture, usage and storage (CCUS) – to produce a gas often called ‘blue hydrogen’. Hydrogen can also be produced through electrolysis, where electricity is used to split water into hydrogen and oxygen – gas from this process is often referred to as ‘green hydrogen’ or zero carbon hydrogen when the electricity comes from renewable sources. Today most hydrogen produced and used in the UK and globally is high carbon, coming from fossil fuels with no carbon capture; less than 1% can be called low carbon. For hydrogen to play a part in our journey to net zero, all current and future production will need to be low carbon.”
So in following its “twin track” approach the government assumes that blue hydrogen will initially start the strategy going with green hydrogen becoming more abundant (and cheap) in later decades. Without specifying proportions however, it seems that in both mix and, as shown below, use, the government is relying on the market to find the best combination.
Some key points:
Here is a graph from the report showing the estimated hydrogen demand in various sectors, in Terawatt Hours (TWh) (one Trillion Kilowatt hours), in 2030 & 2035.
Note in particular the 0-45 estimate for heating, this reflects the uncertainty about the lesser priority of hydrogen for domestic use and the availability today of alternatives, eg Heat Pumps. To put this into perspective the anticipated <1 TWh in 2030 and up to 45 TWh in 2035 represents about 0.2% and 10% respectively of the UK’s current energy demand for space and water heating.
It’s likely therefore that, as mentioned in the Climate Change Committee’s (CCC’s) balanced pathway to Net Zero, hydrogen may play a part in heating where the housing is near to the hydrogen production and electrification is not possible or where there is stored hydrogen created from surplus renewable energy.
Unless using this stored hydrogen however, it makes little sense to use green hydrogen for heating when the renewable energy used to create it would be better used to provide the heating directly and so save the wasted energy from conversion.
It’s often quoted that “the only waste from using hydrogen is water”. This is true when hydrogen is used in “fuel cells”, where a chemical reaction takes place, or where hydrogen is burned in pure oxygen but it is not true when, as would be the case with heating, it is burned in air. Air’s main constituent is Nitrogen and burning hydrogen in it produces other pollutants, known as NOx. The strategy considers these and how industry must ensure they are kept within emission limits, opponents however consider that, along with the infrastructure changes needed, it’s unacceptable to plan for any such emissions.
As explained in an Annex, with an established battery electric vehicle industry now well established, cars and vans do not feature in transport assumptions, leaving the use of hydrogen for haulage, busses, rail, shipping and aviation however, given the rapid development in battery technology, the annex casts doubt over the likelihood of the first three. Consequently, as mentioned above, it seems the government will wait and see what the markets come up with.
In 2050 the strategy estimates somewhere between 20% to 35% of the UK’s total energy demand being provided by hydrogen. In the CCC’s 6th Carbon Budget report last year, its balanced pathway relied upon a maximum of about 20%. Until the government releases its own energy pathway it’s not possible to reconcile the two.
As blue hydrogen relies on a supply of natural gas there’s suspicion outside government over its promotion as an energy source by the fossil fuel industry and studies, including this one in the USA, indicate that current production methods, including carbon capture and storage, result in significant CO2 and Methane (CH4) emissions, both in the extraction of the gas in the first place and then leakage in the capture and storage processes.
This view was reinforced by reports that Chris Jackson, the chair of the UK Hydrogen and Fuel Cell Association resigned in advance of the government’s strategy saying he could no longer lead an industry association that included oil companies backing blue hydrogen projects, because the schemes were “not sustainable” and “make no sense at all”.
As mentioned above, in its twin track approach, the government sees blue hydrogen as useful in creating a path to green hydrogen but, with BEIS talking about up to 15 year contracts, concern has been voiced among climate groups that over-reliance on blue could lock the UK into decades of North Sea gas production, fossil-fuel imports and millions of tonnes of carbon emissions.
ACT’s view is that there will be a place for hydrogen in providing energy where electrification is not possible and in some industrial and chemical processes. With the uncertainties over the impacts of its production however and without scaled-up and effective capture and storage, blue hydrogen is wholly inappropriate as a solution and so efforts are better directed towards immediate reductions in the use of fossil fuels with any hydrogen pathway being primarily towards green hydrogen.
Other relevant links:
ACT’s Technologies to support Net Zero Section 3 Hydrogen
The Telegraph Billions to be funnelled into hydrogen subsidies as UK races to hit net zero
The Guardian Government reveals plans for £4bn hydrogen investment by 2030
BBC News Hydrogen power offers jobs boost, says government
UKERC Pathway to net zero heating in the UK
The Climate Change Committee Hydrogen in a low-carbon economy