Hydrogen storage tanks photographed in Spain, May 19, 2022. Hydrogen has a number of applications and might be utilized in many industries.
Garcia’s Angel | Bloomberg | Getty Images
Hydrogen has a role to play in Britain’s transition to a net zero economy, but its role is prone to be limited to certain sectors, in response to to the report from an influential committee of British lawmakers.
The House of Commons Science and Technology Committee said that while hydrogen has “several attractive characteristics, most of the evidence we’ve received is clear that it is not a panacea with current technologies.”
“As the UK looks to maneuver to a net zero economy, hydrogen is prone to have specific but limited roles to play across sectors to decarbonise where other technologies – corresponding to electrification and warmth pumps – are not possible, practical or economical,” we read in the report, which was published on Monday.
Described by the International Energy Agency as “a versatile energy carrier”, hydrogen has a wide selection of applications and might be utilized in many industries.
One method of manufacturing hydrogen uses electrolysis, a process where an electrical current splits water into oxygen and hydrogen.
Some call the resulting hydrogen “green” or “renewable” if the electricity utilized in the electrolysis process comes from a renewable source corresponding to wind or sun. The overwhelming majority of hydrogen produced today is based on fossil fuels.
Monday’s report sought to temper expectations about the role hydrogen could play in cutting emissions and moving to a net-zero economy.
“To make a major contribution to reducing greenhouse gas emissions in the UK, hydrogen production requires significant progress in the economic implementation of CCUS [carbon capture, utilization and storage] and/or the development of hydrogen-powered renewable energy generation capability.
“The timing of their introduction is uncertain and it could be unreasonable to assume that hydrogen could make a very large contribution to reducing UK greenhouse gas emissions in the short to medium term.”
Committee chair Greg Clark said there have been “significant infrastructural challenges in converting our energy grids to hydrogen and uncertainty about when low-carbon hydrogen could be produced on a large scale at economic cost.”
“But there are necessary uses of hydrogen across industries, so it could be, as one witness to our investigation said, ‘a big area of interest,'” Clark added.
In a comment sent to CNBC via email, CEO of industry group Hydrogen Europe, Jorgo Chatzimarkakis, said his organization believes hydrogen is “a vital part of the energy transition.”
“This is not a panacea or a silver bullet, but a missing link that can allow sectors which can be difficult to weaken – e.g. steel, cement, shipping – to be a part of the energy transition and help us speed up to net zero,” he said. added.
“There are indeed major infrastructural challenges, but they might be overcome, and the strategies by which this might be done have already been written,” Chatzimarkakis said. “A joint effort is needed from policymakers and industry across Europe and the world.”
Big plans, big challenges
Over the past few years, major economies and businesses have turned to the burgeoning green hydrogen sector to decarbonise industries which can be integral to modern life.
During a roundtable discussion at the COP27 climate summit last month, German Chancellor Olaf Scholz described green hydrogen as “one in every of the most vital technologies for a climate-neutral world.”
“Green hydrogen is key to decarbonizing our economies, especially in sectors which can be difficult to affect, corresponding to steelmaking, chemical industry, heavy shipping and aviation,” Scholz added before acknowledging that the sector needs significant work. ripen.
“After all, green hydrogen is still a fledgling industry, its production is currently too expensive in comparison with fossil fuels,” he said. “There is also the ‘hens and eggs’ dilemma of supply and demand, where market actors block one another, waiting for the other to maneuver.”
Christian Bruch, CEO of Siemens Energy, also appeared on the panel. “Hydrogen will probably be essential to decarbonise … industry,” he said.
“For us, the query now is the right way to get there in a world that is still driven business-wise by hydrocarbons,” he added. “So it takes extra effort to make green hydrogen projects … work.”