Renewable energy sources are vital in making the ambition to reach net zero by 2050 a reality. Green hydrogen, powered by renewable sources such as wind and solar, is a clean and viable solution recognised by the UK government, which recently doubled national targets for low carbon hydrogen production capacity to 10 GW by 2030 for use across the economy. It’s no surprise, therefore, that the UK is set to become a leader in the world’s hydrogen economy, which is estimated to be worth £2 trillion by 2050.
So, why is green hydrogen the energy source to watch? Green hydrogen transforms energy from renewable sources into a gas that can be stored, transported, and used as a feedstock in industry, transportation, as a heating fuel or to generate electricity in various applications. Not to be confused with grey, blue, or yellow hydrogen, making and using green hydrogen only produces oxygen and water as by-products. Grey hydrogen is mainly produced from natural gas and generates significant carbon emissions. Blue hydrogen involves capturing carbon emissions to be stored or reused. Yellow hydrogen is produced using electrolysis from the grid, which can still be fossil fuel generated, but tends not to be the most efficient use of electrification.
Green hydrogen is the best solution for existing industries already using hydrogen, particularly those finding it difficult to electrify – which still remains the best route to decarbonisation. It therefore has an important role to play in the global energy transition. So how can the UK accelerate its adoption and help build a greener future?
Conquering the challenges
Like other energy carriers, green hydrogen is not without hurdles to be overcome to reap the full benefits. In the UK, the Government’s Hydrogen Strategy highlights some of these including the high cost of hydrogen relative to existing high carbon fuels, technological uncertainty before broader deployment, and policy and regulatory uncertainty as hydrogen is a developing energy policy. They also need to shift public opinion on the safety of hydrogen as a fuel source given its explosive properties.
Another challenge is the long legacy of the industrial use of hydrogen produced using natural gas or coal, contributing to climate change. Today, the success of hydrogen energy use is closely aligned with the future of natural gas, renewable energy and carbon capture and storage (CCS) technology. While green hydrogen is the energy industry’s primary destination, the UK Government is betting that the sector can only realistically scale up to large volumes and infrastructure with carbon-free hydrogen produced from fossil fuels combined with CCS.
There are several political, economic, and technical challenges that further complicate hydrogen’s rapid scaling. However, the state of the current gas crisis coupled with geopolitical factors has led to green hydrogen being cheaper than grey and blue hydrogen for the first time. As a result, the expected transition to Green Hydrogen is anticipated to accelerate further.
Despite the uncertainty surrounding the future of hydrogen, there are promising signs that it could become affordable and an essential component for industrial applications to reach net-zero emissions target.
Making the green switch
The need to identify and secure cheap renewable power generation sourcing and secure demand for it, is well known. The UK Net Zero electric system target is 2035 and any company with more ambitious targets needs to look at different options such as hydrogen. Fortunately, the UK is in a unique spot with a hydrogen opportunity to address these challenges and make the green switch.
The UK’s competitive advantage comes from its geography, infrastructure, and capabilities – providing an opportunity to demonstrate global leadership in low-carbon hydrogen. There are well developed supply routes and use cases for hydrogen gas with decades of experience in the production, distribution, storage, use, and regulation of gas.
Additionally, the UK has favourable geology for large-scale hydrogen storage and long-term seasonal storage. The notorious British weather and its combination of windy and sunny days means excess renewable electricity can be stored for winter when the demand is higher and less renewable electricity is generated. Hydrogen is already being stored in salt caverns and potentially can be in the North Sea’s disused oil and gas fields.
Meanwhile, in April this year, the UK backed hydrogen technologies with a £400 million government-backed loan given to Johnson Matthey as just one example of the appetite for green investment.
The UK is in a sweet spot. It must continue to make investments in green hydrogen to ensure the UK is well-equipped for producing technologies.
Technology can advance green hydrogen initiatives
Finding the forward path towards efficient green hydrogen production requires new technologies and thinking. The solution is on the horizon, but for the industry to reach this ambitious objective, it must recognise the essential role digitalisation will play in changing the status quo. The challenges in the scaled production of green hydrogen can be addressed to a large extent by using new digital technologies available today. The green hydrogen industry is racing from pilots and small-scale production to extensive facilities – finding a solution to accelerate this will be essential.
Using a dynamic process simulation model and digital twin accelerates the conceptual stage of the project by streamlining the process for selecting the type and size of electrolyser(s) and renewable farm needed and provides insight into requirements for associated static, process, and electrical equipment like pumps, motors, tanks and piping. The model uses available data to simulate renewable power generation, water treatment, and other process parameters to thoroughly analyse the variations expected in operating a facility. A complete model includes storage considerations and downstream industrial usage simulation based on project development goals.
Engineering tools help streamline the engineering processes across multiple stakeholders within the project team and facilitate interaction with external parties. These tools rely on digital twin technology for the complete lifecycle of the hydrogen production facility, from conceptual design to engineering to operation and maintenance. Technologies will allow green hydrogen project design and operations to be optimised from strategy through operations and expedite the transition to renewable energy.
The green hydrogen opportunity
Despite the uncertainties surrounding hydrogen’s future, there are indicators that it may become economical and a necessary component for industrial applications to achieve the net-zero emissions goal.
Major energy providers and distributors are currently looking into green hydrogen as part of their efforts to decarbonise, promoting natural gas production rather than oil and coal as part of their green agendas. Capitalising on sustainable energies would help to accelerate demand for green hydrogen as a viable alternative within a multi-layered energy revolution.
It’s time to take advantage of green hydrogen’s opportunity and make the switch.
Article from: David Hall, VP at Schneider Electric.
