ECO-POWER


HYDROGEN IMPLEMENTATION ACROSS EUROPE: WHERE DOES THE UK STAND?


It’s been over a year since the UK Government’s ‘world leading’


hydrogen strategy was launched, and in this time UK businesses have increasingly faced an unprecedented convergence of


cost pressures such as raw materials, fuel, taxes and labour. Questions surrounding cleaner fuel have never been more


prominent, but how exactly does the UK compare with neighbouring Europe’s own path to hydrogen implementation? Vidal Bharath, chief commercial officer, Bramble Energy, comments


T


here is no doubt that hydrogen is firmly on the UK’s energy radar. In Spring 2022, the


government launched a £375 million package of support for innovative energy technologies, £240 million of which was specifically earmarked to support the production of hydrogen as a clean, low-cost energy technology. At the same time, the national 2030 hydrogen power target was doubled from 5GW to 10GW. This scaling up of proposed hydrogen


investment and capacity development is a step in the right direction, with the UK government reiterating that it sees hydrogen playing an increasingly important role in the country’s net zero strategy. However, questions remain as to whether the UK has allocated the necessary funding and resources required to make genuine headway in the hydrogen arena. While £240 million is an eye watering sum, it


is significantly less than the amounts being put forward by several European nations. In France, for example, €9.1 billion of public


investment will be injected to develop decarbonised hydrogen by 2030. Germany, meanwhile, has allocated €8 billion of funding as part of its own national hydrogen strategy. There are also concerns over the UK’s focus on a


twin-track strategy comprising both blue and green hydrogen investment. Specifically, a recent report by the International Renewable Energy Agency (IRENA) suggested that multi-million-dollar investments into blue hydrogen (produced using conventional fuels like gas with carbon capture) could end up as ‘stranded assets’, with green hydrogen expected to become cheaper in most markets by as early as 2030. These forecasts suggest that the UK should


be making a clear strategic shift towards more sustainable, futureproofed green hydrogen investments – an approach several other economies have been taking. However, we remain cognisant of the need to utilise blue hydrogen in the interim as a stepping stone away from much more damaging grey hydrogen that relies on coal


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sources. While not perfect, emissions arising from blue hydrogen is at least captured and, broadly, not released to the environment. In the case of the EU, a plan aimed at making


Europe independent from Russian fossil fuels before 2030 – known as REPowerEU – has outlined ambitions to produce ten million tonnes, and import a further ten million tonnes, of green hydrogen in the EU by 2030. Equally, a project of common European interest


in the hydrogen value chain known as IPCEI Hy2Use has been rolled out with the aim of reducing EU dependency on natural gas through the increased supply and use of renewable and low-carbon hydrogen.


INVESTMENT IS CRITICAL The disparity in both investment and strategic emphasis suggest that the UK currently lags behind its European neighbours on hydrogen implementation – a reality that’s being reinforced by moves from industry players. While October 2022 saw progress in Sweden, for


example, with the port of Gothenburg opening a public electric-charging and hydrogen refuelling station – the first of its kind in the Nordic region – to keep up to one million alternative-fuel trucks a day running, the UK experienced several backwards steps. Shell made a call to close all its UK hydrogen fuelling stations. Such signs are worrying and need to be


addressed by the UK government. Right now, there is a distinct lack of clarity as


to how hydrogen will work in practice in the UK, and many organisations are either unaware that hydrogen is a fuel which they can tap into, or don’t have the time or resources to explore it properly. Here, the UK can learn from other countries.


Creating both the right bodies to regulate and promote the industry, and setting clear and attainable targets that outline how hydrogen will work in practice to inject confidence into the sector. The EU has outlined such clear forecasts


indicating that hydrogen will become a staunch ENERGY & SUSTAINABILITY SOLUTIONS - Winter 22/23


part of the energy mix – a belief that is lacking in the UK at present. It has stated that 17% of new trucks in 2030 will run on hydrogen, while the Hydrogen Roadmap Europe outlines that as much as 24% of energy use could be hydrogen-based in 2050.


OBSTACLES TO IMPLEMENTATION A government report published in June 2022 highlighted issues such as a shortage of hydrogen compression suppliers, as well as line-pipe manufacturers that are fully qualified to produce hydrogen service pipes. While education into the benefits of hydrogen is needed, training programmes aimed at upskilling in hydrogen are critical areas which need to be reviewed. Incentivisation will have a major role to play. The


rebate on tax paid on red diesel was dropped earlier in 2022, creating room to potentially introduce similar financial support for those organisations that opt to embrace hydrogen power. More collaborative efforts between the public


and private sector alike are also required for implementation. The good news is that certain initiatives are already beginning to emerge, with the Western Gateway partnership and the GW4 Alliance of Bath, Bristol, Cardiff and Exeter universities powering a vision to make South West England and South Wales the first ‘hydrogen ecosystem’ in the UK. Moving forwards, it will be good to see more expansive partnerships to gather momentum. During these recessionary times, it will naturally


be harder to garner greater investment in, and support for, hydrogen as a fuel alternative. Yet, if the UK is to be considered a serious contender in the hydrogen arena, it is essential.


Bramble Energy www.brambleenergy.com


www.essmag.co.uk


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