An economy runs on hydrogen fuel is far more efficient than the conventional fossil-fuel driven economy. Hydrogen economy will ensure not only a clean source of energy with zero carbon emission that would enable the UK to heat its homes, but also produces enough energies for transport as well as industries. The successful hydrogen city model could be replicated in diverse parts of the glob and also in the Commonwealth of Nations, creating tens of thousands of new green jobs.
The UK is in an advantageous position to embark on the transition from fossil fuel economy to a hydrogen economy as it already has world-leading electrolyser companies, and unparalleled carbon capture and storage sites.
In partnership with industry the UK is aiming for 5GW of low carbon hydrogen production capacity by 2030. Hubs where renewable energy, CCUS and hydrogen congregate will put the UK’s industrial ‘SuperPlaces’ at the forefront of technological development. In addition, the UK is also pioneering hydrogen heating trials, starting with a Hydrogen Neighbourhood and scaling up to a potential Hydrogen Town before the end of this decade.
Low-carbon hydrogen production
Working alongside partners in industry, the aim and the objectives of the UK is to develop 5GW of low carbon hydrogen production capacity by 2030 that could create around 8,000 jobs across its industrial heartlands and beyond. This will be supported by a range of measures, including a £240 million Net Zero Hydrogen Fund, and the UK’s hydrogen business models and a revenue mechanism would attract private sector investment.
The UK is already a world leader in investigating the use of hydrogen for heating, replacing fossil fuels like natural gas with hydrogen and hydrogen blends. The UK will to accelerate this work and support industry.
For example, Ofgem will publish details later this month on the proposed network demonstration in the Levenmouth area of Fife, intended to provide hydrogen to 300 homes over a four-year period. Simultaneously, the Britain is scaling-up the electric heat pump market, ensuring that consumers could exploit a range of low carbon heating options.
Producing low carbon hydrogen at scale will be made possible by carbon capture and storage infrastructure, and the UK plans to grow both of these new British industries side by side and the industrial ‘SuperPlaces’ would become pioneers. This will help the UK to build and develop resilient supply chains, support jobs and position UK companies at the forefront of an exciting growing global market, as well help things like industrial processes, industrial heat, power, shipping and trucking to make the shift to net zero. The UK companies would be able to win new markets in diverse parts of the globe and in the Commonwealth of Nations where UK brands have, over the years, became household names for their superior quality products that are always famous for their durability.
Policy impacts
- Aiming for 5GW Hydrogen production capacity by 2030 in partnership with industry.
- Lower carbon heating and cooking with no change in experience for domestic consumers through hydrogen blends and reducing the emissions of the gas used by up to 7%.
Target Milestones
- 2021-Publish our Hydrogen Strategy and begin consultation on Government’s preferred business models for hydrogen
- 2022-Finalise hydrogen business models
- 2023-Work with industry to complete testing necessary to allow up to 20% blending of hydrogen into the gas distribution grid for all homes on the gas grid
- 2023-By 2023 we will support industry to begin hydrogen heating trials in a local neighbourhood
- 2025-We hope to see 1 GW of Hydrogen production capacity
- 2025- Will support industry to begin a large village hydrogen heating trial, and set out plans for a possible pilot hydrogen town before the end of the decade.
The Technology
ITM Power is a manufacturer of PEM (proton exchange membrane) electrolysers, a technology which enables the generation of hydrogen from water and are active in projects in the UK and throughout Europe. The company is based in Sheffield. Coupled with a renewable energy supply, this production method is capable of producing zero carbon hydrogen. The Gigastack project explores the potential to scale up electrolyser size and integrate those units with offshore wind facilities. BEIS is currently supporting a consortium led by ITM Power along with Orsted, Phillips 66, and Element Energy through its Low Carbon Hydrogen Supply Programme.
