A viable future for renewable energy in the UK?

Green hydrogen is produced by splitting water into oxygen and hydrogen using energy from renewable sources.

It is produced by electrolysis, with both electricity production and electrolysis processes resulting in zero carbon dioxide emissions.

According to the GlobalData hydrogen database, green hydrogen is still in its early stages of development, with a global production capacity of 79.46% in the feasible stage. The UK Government’s hydrogen ambitions include achieving 10GW of low-carbon hydrogen production by 2030.

Several oil and gas companies are increasing their investments in renewable energy sources that can be used to produce green hydrogen. As research and development continues to improve the efficiency of renewable energy sources, the cost of renewable energy decreases and, therefore, the cost of producing green hydrogen will decrease. According to the International Energy Agency (IEA), the levelized cost of hydrogen production in 2019 was between $3.2 and $7.7 per kg and is expected to fall to between $1.3 and $3.3 per kilogram by 2050.

What are the challenges?

The success of the UK’s green hydrogen economy depends on sustained demand, efficient production and distribution via appropriate transport infrastructure. They require consistent financing while allowing operational losses to be overlooked in the short and medium term.

As of January 2024, three UK electrolysis-based projects have announced cancellations, according to the GlobalData database. Lack of energy suppliers and government support resulting from inadequate plant details and reduced projected production capacity were key factors causing their cancellation.

In addition, two factories in the UK came to a standstill last year. The Gigastack Lincolnshire hydrogen complex has been put on hold due to the need for further development and improvement of the supply chain.

Meanwhile, construction of the Statkraft Trecwn hydrogen complex in Pembrokeshire, which planned to use solar and wind energy, has been postponed for at least a year. Although the plant is designed to operate independently of the national grid, a small grid connection is needed to maintain the equipment when renewable solar and wind energy is not available. The power required is greater than currently available in Trecwn’s stock. Therefore a new import connection is required, which is possible but will cause delays in the project.

Problems with green hydrogen

Further problems arise from the low bulk energy density of hydrogen, which necessitates storing the hydrogen at very low temperatures and high pressures to ensure sufficient energy density. Furthermore, hydrogen tends to diffuse into metal structures such as pipes and storage tanks, leading to hydrogen embrittlement. This weakens the structures, increasing the likelihood of leaks and explosions.

The UK has made significant investment in hydrogen pipeline infrastructure through the production of a ‘hydrogen backbone’. The ‘hydrogen backbone’ will be able to transport 100% hydrogen mixtures through pipes up to 2,000km in length, which will connect hydrogen production and storage sites with energy consumers in the UK.

Project Union will consider repurposing existing network infrastructure along with new pipelines to create a hydrogen pipeline network. It is expected to cost $2.8 billion (£2.2 billion) and will consist of three main pipelines: Grangemouth to Southampton, Humberside to Frodsham and Thatcham to Llanelli.

According to the GlobalData database, in addition to the “hydrogen backbone”, seven other pipeline projects with a total length of over 1,127 km have been planned/announced. All seven projects are scheduled for completion in 2030 to support the UK Government’s hydrogen ambitions.

What does the future hold for green hydrogen in the UK?

There are currently 15 active green hydrogen installations in the UK using electrolysis. The largest three use wind, solar, biomass and tidal energy as their main energy sources. According to the GlobalData database, they produce a total of 0.371 kilotons per year.

The number of green hydrogen power plants using electrolysis in the UK is expected to increase by over 600% by 2030, with 95 new plants planned/announced. The completion of the hydrogen backbone and additional pipeline infrastructure should provide sufficient transport capacity for this growth to enable the UK to meet the Government’s capacity ambitions.

Hydrogen transport infrastructure is crucial to the future of green hydrogen in the UK. Investments in this infrastructure must continue to ensure the sustainability of projects. This, in turn, will encourage further investment in the sector while stimulating demand.

Further optimization of electrolysers for green hydrogen and renewable energy production will lead to lower production costs, improving the prospects for green hydrogen. With continued investment and development, green hydrogen has the potential to deliver a viable future in the UK.

“Green hydrogen: a viable future for renewable energy in the UK?” was originally created and published by Energy Monitor, a brand of GlobalData.

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