LONDON, UK – 30 January – A new industry report finds that to reach our net zero targets and address the UK’s need for energy security, it is critical to have a hydrogen network that supports a strong hydrogen economy. Accelerating hydrogen networks will play a critical role in easing pressure on the already fragile UK electrical system and reduce costs by making use of current assets.
The report, undertaken by Hydrogen UK and its members, makes five key recommendations for the acceleration of hydrogen networks to boost the UK hydrogen economy:
- Take interim measures to facilitate design and planning before the design of Transport Business Models
- Design Regulated Asset Base models in both growth and steady state phases
- Create a strategic planning body which facilitates the coordination between networks and storage infrastructure projects
- Political commitment to the development of a national network of 100% hydrogen pipelines
- Determine a national strategy to decarbonise industry.
Hydrogen is expected to play a significant role in the UK’s future energy mix. The Energy Security Strategy increased the UK’s hydrogen production ambition to 10GW by 2030. Developing 100% hydrogen networks is crucial to meeting this aim and ensuring the decarbonisation benefit is felt in end-use sectors across the country.
Announcing the report’s publication, Hydrogen UK’s Head of Policy Brett Ryan said:
“We know that hydrogen will play a vital role in the UK’s transition to net zero. This report highlights the importance of accelerating the deployment of hydrogen networks for boosting UK energy security and help the UK reach its net zero commitments. Achieving 100% hydrogen networks across the country is vital if the government’s recent commitment to increase hydrogen production to 10GW by 2030 is to become a reality.”
Horace Wheeler, Head of Net Zero Economics at Cadent Gas Ltd, said:
“This excellent report by Hydrogen UK sets out the critical role of networks in facilitating a hydrogen economy and meeting the UK’s net zero ambitions. Following the government’s consultation on hydrogen transportation and storage, this report provides a clear lens on the next steps needed to make hydrogen a reality.”
Tim Harwood, Hydrogen Programme Director at Northern Gas Networks said:
“This report demonstrates beyond doubt that the UK requires a mix of all types of low carbon energy across generation, industry and heat, if it is to meet its climate change objectives, but also to meet energy resilience targets in situations where renewables can’t meet demand. The gas networks currently deliver 900TWh of energy every year, something that cannot be replaced by electricity alone. We need hydrogen to be a major player in the energy mix, replacing natural gas across heat, industry and as a reliable resilient back up when renewables are not available.”
Joss Clarke, Head of External Affairs at SGN, said:
“Hydrogen UK’s report highlights how we can capture the existing benefits of our network infrastructure to transition to net zero as quickly as possible. Networks will be instrumental in supporting the development of the UK’s hydrogen economy, nurturing world leading sectors from Aberdeen to the Isle of Wight. Net zero will need the UK to design a whole system architecture that enables a mix of hydrogen, green gas, electric and hybrid solutions to be deployed. To deliver this, we must allow for investment in low carbon technologies while minimising cost risks to consumers and incentivising investors to help secure and grow jobs and the UK economy.”
Rebecca Zeitlin, Marketing Director at Levidian said:
“This report highlights the importance of a long-term strategy for adopting hydrogen networks in the UK and their importance in delivering a decarbonised future. It also raises some critical areas for near-term focus, including how we can utilise blending to deliver significant decarbonisation quickly. Hydrogen UK also continues to champion the need to support industrial decarbonisation away from clusters in this report, which will play a key part in achieving the UK’s net zero objectives.”
The role of gas networks is to move grid scale quantities of energy in a reliable, efficient, and cost-effective manner. Crucially, existing gas networks hold the potential to transport hydrogen, through the repurposing of current pipelines and the construction of new ones.
Hydrogen networks are an important requirement for the successful implementation of a secure and resilient hydrogen economy for the UK. They are fundamental in harnessing the unique potential hydrogen offers in decarbonising hard-to-abate sectors. Hydrogen networks will allow the UK to make the most of its natural strengths and connect geographically constrained assets that will be critical in decarbonising the energy system.
This report marks the second in a series of reports from Hydrogen UK (HUK) – the UK’s largest and leading hydrogen trade association – that it will be publishing throughout 2023. The previous report, Hydrogen Storage: Delivery on the UK’s Energy Needs, was released in December 2022. The full Networks Report can be read here.
About Hydrogen UK
Hydrogen UK is the UK’s leading trade association supporting all organisations that are operating across this sector to scale up hydrogen solutions.
Hydrogen UK Members
Afry, AHT Group, Arup Group Limited, Arval UK Limited, Baker McKenzie, Baringa, Baxi Heating, Bayotech, BNP Paribas, BOC Ltd, Bosch Thermotechnology Ltd, BP, Cadent, Catalsys, Centrica, Clugston, Develop Training, DNV GL, EDF Energy, Equilibrion Ltd, Equinor Energy Trading Ltd, Exolum Ventures, ExxonMobil, First Hydrogen, Foresight Group, Fortescue Future Industries, Gexcon, GHD, Green Hydrogen Solutions Ltd, Greenergy, H2GO Power, HiiROC, Hydrasun, Inficon, ITM Power PLC, Johnson Matthey PLC, Kellas Midstream, Kiwa Energy, Levidian, Lhyfe, Marubeni Europwer, Morrison Energy Services, National Grid, National Nuclear Laboratory, NNB Generation Company (SZC) Limited, Northern Gas Networks Limited, NZTC, Ørsted, Phillips 66, Progressive Energy, RWE, SGN, Shell, Slaughter and May, Snam, Spirit Energy, SSE PLC, Tevva, Thirty47, Transitus Energy, UK Energy Storage Ltd, Uniper Energy Ltd, Vertex
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