Can Hydrogen be the Transformative Fuel and Energy Carrier we need in a Zero Carbon World?
At Hydrogen Ireland we believe “Renewable hydrogen”, made with wind (on and off shore), AD and solar electricity, has the potential to be the lowest priced transformative fuel faster than what was forecast even two years ago.
Analysts are suggesting renewable hydrogen is likely to pass hydrogen made via steam reforming by being the most cost-effective form of the energy within 10 years.
The UK government has confirmed its commitment to developing hydrogen as a strategic zero emission energy carrier as it gives the UK an opportunity to meet its clean growth goals, deliver on decarbonisation while capturing the related commercial and industrial opportunities. They are involved in several activities including
- Investing £120m in hydrogen innovation
- Supporting deployment of low carbon hydrogen business models
- Providing £100m for the deployment of Zero Carbon Hydrogen Production projects
The UK has also established a Hydrogen Advisory Council which will consider the relationship between production and end use, including strategic considerations for where and when hydrogen is deployed, alongside coordination with potential demand volumes and cost implications.
Renewable hydrogen technology could eventually help replace fossil fuels in transport, electricity and in industrial processes as all of us move to cut greenhouse gas emissions.
A report by Bloomberg found electrolysers used in China could already be as little as a fifth of the cost estimated in 2018, they suggested renewable hydrogen could be competitive with existing technologies – before 2030. Electrolysers can get much cheaper much sooner than most expect and there will be very little demand for hydrogen from fossil fuels when you factor in CCS.
There are estimates that the new hydrogen economy could create thousands of jobs and generate billions per year in in GDP and this is supported by The European Commission who recently launched a strategy that positions green hydrogen as central to the continent’s goal to reach climate neutrality, net zero emissions, by 2050.
Storing and moving Renewable Hydrogen is challenging. For hydrogen to become as widespread as natural gas, a massive coordinated program of infrastructure upgrades and construction will be required. It is estimated a carbon price ranging from of c£35/tCO2 (steel manufacturing, cement production, chemical/ammonia) to £130/tCO2 (Marine/ships) would be required to encourage customers to switch from fossil fuel to clean hydrogen. Heavy lorries could also be cheaper to run on hydrogen than diesel by 2031, although batteries remain a cheaper solution for cars, buses and light vans.
For the hydrogen industry to grow and be successful policy is critical. We in the Renewable hydrogen industry are small fish in a big ocean but we can see there is a real potential for costs to fall however, this will only be achieved when hydrogen solutions are scaled up and a network supply chain and infrastructure are implemented.
Hydrogen is a true versatile energy carrier. The Renewable Energy Industry has shown the way (especially on the Island of Ireland) to carbon-free electricity. For every sector to meet net-zero emissions targets, we need to be innovative and brave by going beyond electricity and have a carbon-free energy carrier. We at Hydrogen Ireland believe hydrogen can deliver these solutions but only with real, sustained and cross sectoral support.
By Mark Welsh.
Hydrogen Ireland Board Member
