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Why hydrogen can’t be overlooked when it comes to the energy transition

Why hydrogen can’t be overlooked when it comes to the energy transition

Guest/partner contributor
Posted on: 29 July 2024

Hydrogen presents solutions for green on-demand power and heat| energy storage| and decarbonisation of hard-to-abate sectors| writes Naomi Anderson of Xoserve.

Naomi Anderson

In the UK, the extent of hydrogen’s role in the energy transition is still a topic of debate among policymakers and industry experts, resulting in little progress in exploring its use within domestic heating. Yet, despite some uncertainty in this sector, hydrogen may still form part of a blended energy system, writes Naomi Anderson of Xoserve.

Hydrogen has many advantages as an energy source and not just as a way of decarbonising heat, which is arguably the biggest net zero dilemma. Alongside a plethora of generation avenues spanning an entire hydrogen rainbow, it presents solutions for green on-demand power and heat, energy storage, and the decarbonisation of hard-to-abate sectors.

With a roster of uses, it's no surprise many governments worldwide are considering hydrogen as a potential low-carbon fuel in their net zero strategy.

Overcoming fossil fuel dependency

Achieving net zero will require a carefully balanced energy mix including electrification supported by a network of low-carbon gas such as hydrogen alongside improved energy efficiency for Britain’s ageing housing stock.

The future energy system will need to replace coal and gas plants, which are relied upon to balance user demand for heat and power with the flick of a switch. To significantly reduce our reliance on fossil fuels, there are three critical challenges to overcome: affordability, grid connection delays, and a lack of storage capacity that prevents us from harnessing the true power of renewables.

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Renewable energy storage

Firstly, let's look at storage. Whichever path is taken to reach net zero, storage will play a significant role, as closing the energy demand gap currently filled by fossil fuels won’t be possible without it. Renewable energy coupled with lithium battery storage could provide a solution in the future, but right now, technology is costly to manufacture and unsuitable for supporting the nation's power grid. According to a Royal Society report, in 2050 Britain will need up to 100 TWh of electricity storage. In comparison, the world’s largest solar-plus-storage project has a capacity of 3,287MWh, built over 4,600 acres and would start degrading after five years.

As we begin changing our energy system and considering the intermittent nature of wind and solar, one question remains at the forefront: If we’re electrifying everything, how can we store enough power to meet demand? Particularly during times when renewable energy generation is low and demand is high. A blended energy system featuring electricity generated from solar PV and wind, supported by low-carbon gas, is one potential scenario for storing energy for later use and maximising renewable energy availability.

When renewable energy produces more power than is needed, surplus power can be converted into green hydrogen using an electrolyser and stored for extended durations without diminishing. Then, the stored hydrogen can be called upon to plug the gap during high consumer demand and low renewable output.

This method could avoid prolonged periods of wind and solar curtailment, and help smooth out intermittency issues and seasonal power supply imbalances. Yet it’s not just green hydrogen that can mitigate challenges with energy storage, biomethane produced from organic matter, can be used to bolster supply when demand is at its peak while utilising existing gas infrastructure. Although biomethane has its benefits, it does not solve the issue of curtailment.

Addressing curtailment and bottlenecks

Electrification and renewable energy will have a central role in the net zero transition. Yet curtailment, where renewable energy production is reduced because there is too much electricity in the grid, wastes potential power and increases system costs, ultimately impacting customer bills. According to the Carbon Tracker, curtailment could add £150 to UK energy bills in the next two years.

Storing green hydrogen from solar or wind during periods of high renewable generation is one way to mitigate the consequences of curtailment and make use of otherwise discarded renewable energy generation that consumers are still paying for while battery technology is advancing and can match renewable generation outputs.

As the country's demand for sustainable energy increases, and with the bulk of renewable energy coming from wind generated in Scotland, it is creating a bottleneck that’s preventing energy from passing through to where it's needed.

In England, there is a wealth of gas network infrastructure that can utilised to meet this disproportionate supply and demand. A mixture of wind, solar, biomethane and hydrogen production alongside storage distributed across the UK could ease the bottleneck between England and Scotland, creating a more balanced energy system.

Affordable and reliable heat

The energy transition needs to establish an affordable, reliable, and sustainable system for end users to heat their homes without the risk of another crisis. There is no one-size-fits-all approach to net zero, we have a complex energy system that can’t be revolutionised overnight by turning off all fossil fuels and powering up renewable energy. The cost would be too great and the result disappointing.

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For instance, installing heat pumps requires an upfront cost, even with grants that can significantly reduce the initial expense, many households in Britain will find them unaffordable. If the responsibility falls on landlords or housing associations to install low-carbon heating, how can authorities ensure that the systems fitted are low-cost to run, not just cheap to install? Having a broader range of fuel for heat, could provide more scope for technology to develop and an opportunity for businesses and residents to choose the most economical heating system for them.

Blended future energy system

What the UK really needs now are clear policy signals about the future energy mix. Until we start to see firmer decisions and policies around fuel development, distribution and energy storage, the investment will be slow to materialise, commercial frameworks cannot evolve and our infrastructure will remain unprepared.

As we continue to decarbonise, policymakers and the energy industry need to keep in mind that the future energy system will require a mix of options – both with energy storage and fuel production, which will vary depending on different scenarios, locations, and consumer needs.

Existing energy storage already has the potential to reduce our dependence on fossil fuels, each serving different purposes, from small on-site battery storage to large green hydrogen storage facilities for industry and transport.

It's unlikely we will move from various to a single technology. Similarly, fuel production must remain diverse, blending renewables and low-carbon gas such as hydrogen into one energy system. Relying on a single source to transition a nation to net zero while ensuring both affordability and security is unrealistic.

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