Utility Week

UTILITY WEEK | 7TH - 13TH JUNE 2019 | 15 Policy & Regulation The role of hydrogen in the future UK system Arup's Mark Neller outlines the case he will make for hydrogen. W e all recognise that we need to make major changes in the way we produce, manage and use energy, particularly as central and devolved governments in the UK are now considering legislation to move to net-zero emissions by 2050. One such major change could be the establishment of a strong hydrogen economy. Hydrogen is not a silver bullet. But it could make a substantial and complemen- tary contribution alongside electrification in our system-wide approach to decarbonisa- tion in the UK. Hydrogen is beginning to make waves across the world including in the UK, New Zealand and Japan. Hydrogen buses are due on London's streets imminently, trains are under serious consideration in Wales, and homes heated by 100 per cent hydrogen could be a reality within years, not decades. I believe the potential benefits could outweigh the challenges, and with ambi- tious targets being set, it is starting to look difficult for the UK to decarbonise the energy system without a substantial role for hydrogen. Low-regret decisions As part of an ongoing series of research on the future of energy, my team recently hosted workshops with clients and collabo- rators interested in hydrogen from across the private and public sectors. The output, our report Future of Energy: How to Establish the Hydrogen Economy by 2035, identified a series of actions required to make the hydrogen economy a reality in the UK. Action is needed now. There is a window of opportunity for the UK to benefit from leading and there are low-regret decisions that should be made today. Joined-up approach. A centrally co- ordinated initiative is needed involving multiple government departments and all sectors of the supply chain. Policy and market design. Government and industry must collaborate to design innovative market structures that give tax- payer value and reduce industry risk. Supply and demand Without a growth in demand, large-scale production of hydrogen will not happen. So what steps can we in the energy sector take? We can consider early opportunities to blend hydrogen into existing gas supplies. Up to 20 per cent can be blended into meth- ane with no need to change existing domes- tic appliances and infrastructure. Blending offers a rapid decarbonisation opportunity and provides an early opportunity to scale up production. Market mechanisms, like those deployed by government to support renewables, could be one option. Other more specific opportunities to increase demand include: transport, high-temperature industrial furnaces and domestic homes with large-scale conversion. The safety case and consumer acceptance is being looked at as part of the Hydrogen for Heat programme that Arup is project man- aging on behalf of the government. And what about supply? There are two main options for producing low-carbon hydrogen: electrolysis of water using renew- able electricity and reformation of methane with carbon capture and storage. Both are receiving investment to bring forward their development and can be integrated into existing systems and infrastructure. Fortunately, government and industry are taking the opportunity seriously, and acting now. The UK Government Hydrogen for Heat programme is progressing well, and I look forward to sharing insights in my conference presentation about projects that Arup is undertaking with partners including Cadent and National Grid in London, and with SGN in Scotland. Mark Neller, director, Arup Download Arup's Future of Energy: How to Establish the Hydrogen Economy by 2035 report at: www.arup.com/hydrogen2035 However, hydrogen needs a market frame- work including policies that will stimulate demand growth, differentiate between and reward sustainable low-carbon hydrogen production methods, such as power-to-gas technologies that take renewable electricity and convert it to produce green hydrogen. UW: Is there one thing you would like to see in the forthcoming energy white paper to do with gas – or more generally? Alongside examining investment models for nuclear and CCS, there also needs to be consideration of how to pay for capacity that provides the optionality for longer-term availability of baseload capable plant that runs on hydrogen or uses CCS. Mike Lockett chief commercial officer (Power), Uniper Group, and Uniper UK country chairman to have an electric vehicle in a given area. If we know that we're going to have to upgrade by 2050, there's a case for doing it sooner rather than later." So is hitting the net-zero target feasible? As the CCC report makes clear, hitting the target is feasible and the costs are manage- able, yet Joffe reiterates: "It's possible, but to achieve it we need to take action now, and that means government not only setting the target but really embracing the challenge, and grasping the thornier areas where they don't have the answers. There needs to be clear action on better infrastructure to sup- port decarbonisation, whether that's hydro- gen or stronger electricity supply." He adds: "There's a huge amount to do across a wide range of areas, so let's take action in every area that we can think of, and work it out as we go along – rather than waiting for the right answer to drop into our lap. In some areas, just need to start making progress and see where we go from there."

• Cover