HIL ISSUE 12

Hydrogen Industry Leaders

e-magazine

May 2023

THE CLEAN

HYDROGEN LADDER: CLIMBING THE STEPS TO COMPETITIVE SUCCESS

CONTENTS

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What Will CfD Allocation Round 5 Bring to the Economy?

P / 04

What Will CfD Allocation Round 5 Bring to the Economy?

P / 06

Auction Platform to Support Renewable Hydrogen Deployment

P / 08

Standardising Definitions Could Make Global Hydrogen Market Possible

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Clean Hydrogen Ladder: Climbing the Steps to Competitive Success

P / 12

PTCs: What do They Entail and how do They Compare?

P / 16

International Projects

P / 10

Clean Hydrogen Ladder: Climbing the Steps to Competitive Success

P / 14

Mapping out the Potential for Hydrogen in Gas Networks

P / 16

International Projects

P / 18

HIL London

P / 19

Previous Editions

P / 20

HIL London Next Up

THE CLEAN HYDROGEN LADDER: CLIMBING THE STEPS TO COMPETITIVE SUCCESS

The unique challenge is developing the supply chain simultaneously.

CFD ALLOCATION ROUND 5

WHAT WILL CFD ALLOCATION ROUND 5 BRING TO THE ECONOMY?

by Chelsea Bailey

After Allocation Round 5 (AR5) of the CfD scheme opened to applications from generators of renewable technologies in March, how will this support the increase in hydrogen use and reduce the costs of doing so?

CfD has been designed to deliver the low-carbon electricity that we need to meet the UK’s climate change targets at minimum cost to consumers and do this by attracting new investment into lowcarbon generation.

The CfD was introduced under the Coalition Government to promote lowcarbon forms of generation. It is a private law contract between a generator and the Low Carbon Contracts Company (LCCC), which is owned by the government, under which the generator’s income per unit of electricity is fixed.

This is done by committing to pay or being paid a difference payment, which is calculated by comparing a reference price and the generator’s strike price. If the reference price is below the strike price, LCCC pays the generator the difference, with the money coming from a levy placed on electricity suppliers.

When the strike price is below the reference price, the generator pays LCCC the difference, and the money is channelled back to suppliers. For intermittent generators like offshore wind projects, which constitute most of the CfD portfolio, the reference price is set for each hour and is based on the results of auctions for power held the day ahead of generation.

CfD is helping to diversify the UK’s energy mix

While AR1 focused on offshore wind, AR4 has evolved to support a variety of technologies, including tidal stream and floating offshore wind for the first time, as well as established solar, onshore and offshore wind technologies.

Increasing the diversity of the UK’s energy mix has been a central aim of the CfD scheme, and AR5 is the biggest round yet.

Andy Hawkins, Policy and Commercial Development Manager at LCCC, revealed to Hydrogen Industry Leaders that the Allocation Rounds have grown massively: “It has grown in terms of introducing emerging and more established technologies. For example, AR4 was the first time since AR2 that solar was reintroduced.”

He continued by explaining the benefits of the AR: “We have seen more capacity to get procured over time because it shows that the CfD is a trust investment tool for generators and also investors; it helps the UK achieve its net zero targets as well.”

Some of the most significant differences from AR4 are the additional check of compliance with Private Network Agreement eligibility criteria in Rule 4, the simplification of Notice of Auction requirements in Rule 10, and the addition of a definition of a Private Network Generator in Schedule 1.

Speaking on these differences, Andy said that from AR5, annual auctions will be introduced, which is seen as: “A positive move for the market and shows the additional confidence in the CfD.”

Andy outlined that AR5 will be split into two Pots: “There is £170 million set aside for Pot One, which has got the introduction of remote island wind and offshore wind for the first time. Pot Two, which is the emerging technologies, has got £35 million set aside for it, with £10 million specifically just for tidal.”

Investors have confidence in the CfD

For most of the time that the CfD has been operating, reference prices have been below the strike prices of projects, and LCCC has been levying suppliers to fund difference payments to generators. However, in September 2021, market prices rose to the point where, over the whole CfD portfolio, generators were paying back to the LCCC. Given this situation, the levy on suppliers was set to zero and has remained there since. LCCC pays the accumulated surplus from generators to suppliers at the end of each quarter.

Andy spoke about how LCCC are aware of the economic issues for the generators from AR4 and fully understands that: “The market is volatile at the moment, but the Strike Price gives out security to generators and to investors that they know how much they’re going to get over a certain period of time that ultimately helps them with reducing the cost of capital for their projects.”

This security is key to building confidence in the hydrogen industry. Oliver Coe, Lead Contract Manager – Hydrogen at Low Carbon Contracts Company, explained that the scheme is good for the consumer, reaching our net zero targets and retaining investor confidence.

He said: “I think as a general endorsement of the CfD as a mechanism is that investors have confidence in it and that it is being replicated across the energy industry. We’ve got the Dispatchable Power Agreement, which is power with carbon capture; we’ve got the Industrial Carbon Capture business model and hydrogen business models.”

Dr Alex Holland Principal Technology Analyst IDTechEx

A decrease in the capital cost of electrolyser systems is also expected as technology improvements are made and manufacturing scale and experience are achieved.

AUCTION PLATFORM

AUCTION PLATFORM TO SUPPORT RENEWABLE HYDROGEN DEPLOYMENT

by Chelsea Bailey

Through the European Hydrogen Bank (EHB), the European Commission is holding an auction system for renewable hydrogen production to support producers through a fixed price payment per kg of hydrogen produced for a maximum of 10 years of operation.

The first pilot auctions are currently being designed and are due to be launched in autumn 2023, backed by €800 million from the Innovation Fund.

A centralised auction platform will be run, where successful bidders could access the Innovation Fund and Member States could further support renewable hydrogen deployment through their own budgets via the platform.

EHB will establish a full hydrogen

value chain

Intended to be operational by the end of the year, the EHB is based on four pillars. Two of these are financing mechanisms, focusing on creating the EU domestic market and international imports into the EU.

The third pillar is linked to transparency and coordination. It focuses on assessing demand, infrastructure needs, hydrogen flows, and cost data. The final pillar is streamlining existing financial instruments. This is coordinating and blending these with new public and private funding, both in the UK and internationally.

By bridging the cost cap in the EU between renewable and fossil hydrogen and increasing revenue stability, the EHB will increase the bankability of projects and bring overall capital costs down.

The European Commission also proposes to create an EU auction platform through its Hydrogen Bank, offering “auctions-asa-service” for Member States, using both the Innovation Fund and Member State resources to fund potential renewable hydrogen projects, without prejudice to EU State aid rules.

The European Hydrogen Bank will establish a full hydrogen value chain in the EU, alongside the Net-Zero Industry Act. Those industries that make early decisions to redirect or focus on cleantech deployment will benefit.

Kadri Simson European Commissioner for Energy

“Auctions-as-a-service” offers a digital, neutrally-operated marketplace in which suppliers and buyers come together under fixed rules. It creates optimal purchasing conditions that can lead to a reduction in costs, ensures no lobbying takes place, and saves effort and time.

On the international dimension of the EHB, the European Commission is exploring how it can be designed to promote EU support for renewable hydrogen imports. It proposes to offer a green premium for renewable hydrogen imports via a similar auction system as used for the domestic market.

The scheme will see applicants submitting a single bid during the qualification phase for a ten-year fixed premium (in €/kg), which is then ranked compared to other bids on price.

Producers could be able to bid for a fixed premium subsidy of up to €4 ($4.36) per kilogam of hydrogen in the EU’s first competitive auction. It makes Europe’s support regime potentially more generous than the US hydrogen tax credits, which offers producers up to $3/kg.

Talking on the release of the EHB, Kadri Simson, Commissioner for Energy, said: “As part of the Net-Zero Industry Act, the Commission today adopted a plan to set up the European Hydrogen Bank. The European Union is a powerhouse for research and innovation, and we want to keep it that way!”

Commission is focusing on facilitating the financing of the hydrogen industry.

To achieve the 10mt of domestic renewable hydrogen production predicted in the REPowerEU plan, total investment needs are estimated at €335-471 billion including €200-300 billion needed for additional renewable energy production. Most of this will come from private funding, but public funding will play an important role in leveraging private investment.

As far as national resources are concerned, the State aid framework provides possibilities to crowd-in private investments and to roll out net zero.

Continuing, Kadri explained that hydrogen has a huge role in the transition to decarbonisation: “Renewable hydrogen will also play an important role in the EU’s transition to climate neutrality by 2050. The European Hydrogen Bank will establish a full hydrogen value chain in the EU, alongside the Net-Zero Industry Act. Those industries that make early decisions to redirect or focus on cleantech deployment will benefit.”

Hydrogen needs investment to scale up

Through its work with the EHB and other InvestEU implementing partners to seek ways to scale up support to investment in the net zero industry supply chain, the European

Additionally, with the adoption of the Temporary Crisis and Transition Framework and the endorsement of the General Block Exemption Regulation, the Commission has adapted State aid rules to further allow flexibility for the Member States to grant aid to speed up and simplify.

Also, several Union funding programmes, such as the Recovery and Resilience Facility, InvestEU, cohesion policy programmes or the Innovation Fund are available to fund investments in net zero technology manufacturing projects.

The Innovation Fund is providing a promising and cost-efficient avenue to support the scaling up of manufacturing and deployment of renewable hydrogen.

STANDARDISING DEFINITIONS

STANDARDISING DEFINITIONS COULD MAKE GLOBAL HYDROGEN MARKET POSSIBLE

by Hannah Wintle

A recent report by the International Energy Agency (IEA) has suggested using the emissions intensity of hydrogen production to standardise definitions on global scale, in an effort to strengthen the prospect of a global hydrogen trade.

Hoping to move away from terminologies based on colours or terms such as ‘sustainable’ or ‘clean’, an internationally agreed emissions accounting framework has been proposed as an alternative.

The IEA argues that these blanket terms obscure the many different levels of emissions and are, therefore, impractical as a basis for contracting decisions. This, in turn, may deter potential investors, hindering the growth of hydrogen as a more sustainable alternative to fossil fuels.

By assessing the emissions intensity of various hydrogen production routes, the report aims to assist governments in facilitating market and regulatory interoperability and allow them to decide which level aligns with their own circumstances.

Current EU standards dictate that hydrogen should be considered ‘green’ when the emissions intensity is 18g CO2e / MJ. Critics argue that this number should be lower if the ultimate goal is to achieve carbon neutrality.

Clarity triggers investment

Currently, only 4% of announced hydrogen projects are under construction or have received an FID. Impacting the wider commitment to hydrogen investment is the uncertainty of future demand, the

lack of infrastructure required to deliver hydrogen to end users, and the lack of clarity in certification schemes and regulatory frameworks.

This clarity may be achieved by adopting transparency on the emissions intensity of hydrogen production, which may then facilitate future investment. Branding the current terminology as ‘impractical’, the IEA claim that in referencing the emissions intensity of hydrogen production in its definition and regulations can enable interoperability and limit market fragmentation.

While several certification systems or regulatory frameworks to define the sustainability attributes of hydrogen are in development, despite their commonalities in scope, system boundaries, production pathways, models for chain of custody, and emissions intensity levels, it is ventured that any inconsistencies in approaches risk forming a barrier to the development of an international hydrogen trade.

Alternatively, the report recommends referring to the emissions intensity of hydrogen production based on a shared understanding of the applied methodology for regulation and certification. This may offer further market development by facilitating a minimum level of interoperability and enable mutual recognition, rather than replacing or duplicating current efforts to develop these frameworks.

Product passports allow transparency

However, there is also a case made for governments and companies to consider any other sustainability requirements they

may have, before deciding whether to use hydrogen as a clean fuel and feedstock.

Using emissions intensity as a first step within regulations and certification schemes to enable interoperability remains paramount, though the IEA emphasise the importance of governments’ and companies’ ability to incorporate additional sustainability criteria. This may include the origin of the energy source, land or water use, and socio-economic aspects such as working conditions.

One suggestion to bring these criteria together, is to use ‘product passports’, which will also standardise processes, minimise costs, and maximise transparency.

Though the G7 make up one quarter of today’s global hydrogen production and demand, for an international hydrogen market to be developed, it is also acknowledged that the involvement of other stakeholders, including among emerging economies, is essential.

Driving the need for a global trade in hydrogen is the increased interest in low-emission hydrogen as a result of the global energy crisis and desire to decrease reliance on fossil fuels.

Countries and regions with a large demand but limited ability to produce low-emission hydrogen could therefore benefit from international supply chains, enhancing the need for robust regulations in hydrogen trade.

Definitions based on emissions intensity could form the basis for these regulations, strengthening the prospect of an international hydrogen market.

For a common framework to be implemented effectively, the IEA emphasise that recognition of the new definitions and system as a whole must be adopted by governments, and that compliancy with regulations is essential.

The G7 are poised to lead the change

Ultimately, the proposal to standardise definitions through the use of emissions intensity of hydrogen production is to scale up the production and use of hydrogen, ammonia, and hydrogenbased fuels, eventually leading to the development of a global hydrogen market.

In identifying the G7 as the leaders in decarbonisation efforts and technology development for emerging hydrogen applications, the report calls for the utilisation of their technological leadership and economic power to facilitate an increase in the production and use of low-emission hydrogen.

Source: International Energy Agency

HYDROGEN LADDER

CLEAN HYDROGEN LADDER: CLIMBING THE STEPS TO COMPETITIVE SUCCESS

by Floyd March

With the hydrogen sector in the unprecedented situation of having to grow multiple parts of the sector simultaneously, it is worth grading each sector on merit in terms of unavoidability and competitiveness.

Hydrogen will be used in some form or another across most sectors, but Michael Liebrich, through Liebreich Associates, has worked on a tiered system, breaking down each sector that will utilise hydrogen in the coming years.

Focussing on chemicals and processes, power systems, transport and heating, ratings were given for A-G, similar to that seen in an EPC rating chart. Additionally, the ladder is based on peerreviewed research. It brings together all the different factors that will decide the success of clean hydrogen solutions, including thermodynamics, micro- and macro-economics, safety, resilience and geopolitics.

Chemicals and processes as a subsector were the highest rated in terms of unavoidability, which comes as little surprise. Fertilisers, hydrogenation, methanol, and desulphurisation were rated ‘A’, the highest possible on the list. This is regarded as unavoidable as the hydrogen industry must transition away from grey to green hydrogen on an industrial scale to really boost the green hydrogen economy and reduce emissions.

Chemicals and processes are undoubtedly unavoidable

Globally, the use of hydrogen in processes such as fertilisers, oil refining and petrochemicals production currently accounts for around 2% of global CO 2 emissions. Clean hydrogen could find its biggest wins in this sector, which will have compounded benefits for other sectors by creating a business case, proving the viability and establishing the supply chain.

Steel is an interesting position, rated ‘B’ on the scale, as there has been recent investment interest between Sweden and the UK. However, the future for clean hydrogen in steel production is not a dead cert.

This is due to competitive alternatives such as molten oxide electrolysis, which is better positioned as it currently stands. Michael Liebreich added to this: “As clean hydrogen gets cheaper, and if cheap CO 2 becomes available via direct air capture (unlikely) or as a byproduct of biogas production (more likely), we could start to see it used to make a range of chemical feedstocks.”

Power systems will have a unique relationship with hydrogen

Increasing the use of clean hydrogen in power systems is also a high priority. Unlike chemicals and processes, the merited use case is more of a mixed response. In terms of long-term storage, rated ‘B’, there are huge opportunities for clean hydrogen to be utilised.

Michael explained that: “The economy of the future, which is going to be vastly more deeply electrified than today, needs longterm storage. It’s not just about providing backup for issues regarding intermittency; it is also going to be about providing deep resilience.”

Hydrogen can be stored in salt caverns, depleted gas fields or as compressed gas at various strategic points. It can be converted back into electricity centrally at 60% or more electrical efficiency via fuel cells, providing the required level of grid resilience.

Moving on, the clean hydrogen ladder theory focused on the transport sector. The biggest winner in this category was trains, rated ‘C’. Trains are uniquely positioned to use hydrogen, as they are fit for long-distance travelling and are particularly useful where parts of the railway are difficult to electrify.

Hydrogen for heating has the potential over industrial, commercial and domestic settings

Heating is another sector that is featured on the clean hydrogen ladder, split between industrial, commercial and domestic. Again, through the Liebreich Associates, it was a mixed bag of results, but there is cautious optimism that they could climb the ladder as the hydrogen economy evolves.

Michael had a bold statement regarding hydrogen for domestic heating: “Heat pumps multiply, hydrogen divides. If you are looking at using the UK’s primary winter source of zero-carbon energy, offshore wind, heat pumps are about six times more efficient.”

Using wind power to generate hydrogen and then using that for heat would have a system efficiency of around 50%. Using the same power via a heat pump would have an average coefficient of performance of 3.

Industrial heat is another interesting one. Low-and mid-temperature industrial heat - up to 160C and perhaps higher - will be much more cheaply and precisely supplied by heat pumps. Many people seem to think that high-temperature industrial heat has to be delivered by gas.

The race to competitive success in the industrial sector could go either way and will likely see a split between the two, case by case. However, with grey hydrogen being used for a lot of processes, it may be more appealing to go with the technology already known by the sector.

Finally, commercial heating was rated an ‘E’, and it was added: “It is just possible we might use hybrid heating in commercial properties, using electricity most of the time but switching to hydrogen to relieve the grid during specific times of stress.

by Floyd March

Different countries have been making varying decisions about the level of commitment to green hydrogen production over the coming decades. Arguably, Joe Biden’s America is leading the way through the IRA, cleared in 2022.

The $369 billion committed to spending on energy and climate saw the introduction of a clean hydrogen production tax credit, otherwise known as a PTC. The aim of the tax credit is an expansion of the investment tax credit (ITC) in Section 48 of the Internal Revenue Code and will apply to any hydrogen project or storage technology. The legislation strengthens the hydrogen economy by permitting taxpayers to combine additional credits and take advantage of direct payment. Additionally, it permits the transfer of tax credits related to hydrogen.

The US leads the way for hydrogen incentivisation

Other countries are yet to match this level of investment in hydrogen, which has led to the first major commitment and is slowly shaping what the global hydrogen market may look like. Others will undoubtedly look to follow the US and amend their own versions of internal revenue codes.

This specific Act amended the Code to create Section 45V for a 10-year period, allowing for ‘qualified clean hydrogen’ to be produced and has been split into a four-tiered incentive programme.

It is calculated through each taxable year at an amount equalling $0.60/kg of clean hydrogen which is then multiplied by an applicable percentage according to the lifecycle ghg rate shown in the table below.

Naturally, the success of the Act hangs in the balance unless a clear definition of ‘qualified clean hydrogen’ is found. Additionally, there are further complications with these definitions as the EU sets their rules for what is considered clean.

Differences in international definitions could cause issues

This could cause issues when it comes to importing and exporting hydrogen, as there needs to be relative synergy between nations, states and unions.

However, this Act defines it as: “Produced through a process that results in a lifecycle greenhouse gas emissions rate not greater than four kilograms of CO2e per kilogram of hydrogen.”

All hydrogen must be produced within the use, complying with the ordinary course of trade for sale, and all hydrogen produced will be verified by a third party with no ties to the company producing the hydrogen.

Pre-existing PTCs cannot be crossed over and used in tandem with one another, specifically the carbon capture tax credit through Section 45Q. This will prevent a taxpayer from stacking both Section 45V and 45Q credits and the funding going directly to carbon capture when other credits are available.

Ways to claim PTC have evolved from the past

In a shake-up of how money can be claimed back through the tax credit system, there can be claims for the value of the clean hydrogen PTC as described in Section 45V through a tax refund as if they had overpaid tax.

This is a change from the traditional credits, where direct pay can only be applied through certain non-taxable entities. In theory, this practice will allow for developers to gain more benefits for tax credits specifically related to hydrogen than sharing and transferring between tax equity investors.

In further attempts to reduce associated costs with production facilities, the Act will see credits have permission to be transferred to an unrelated person in a non-taxable cash sale.

When operating in conjunction with one another, the provisions put in place by the IRA are expected to provide substantial incentives for people looking to operate in the hydrogen field.

On an international scale, it could see people moving from operations in the UK and transitioning across as clearer definitions and tax credits are set out.

Either way, the US is very strongly positioned through the support scheme, and many countries may be looking to incentivise the markets in their countries as the race to be global exporters of hydrogen continues.

GAS NETWORKS

MAPPING OUT THE POTENTIAL FOR HYDROGEN IN GAS NETWORKS

by Chelsea Bailey

The UK’s gas networks consist of over 280,000 km of pipes, and around 75% of the gas distribution pipelines have been replaced under the Iron Mains Risk Reduction Programme. As a result, the gas networks stand in a strong position to transition to new low-carbon gases.

Energy Networks Association’s latest report ‘A hydrogen vision for the UK’ highlights how the evolution of a UK-wide hydrogen network can unlock economic growth, provide customer choice, and boost energy security.

The report outlines that the gas networks are ready to deliver hydrogen infrastructure in a UK-wide, coordinated way, which brings value to consumers and unlocks the economic potential of a decarbonised energy system.

It states that the gas networks in Great Britain stand ready to invest £6.8bn in hydrogen-focused innovation projects by 2031/32: “We are already delivering an extensive range of programmes, operating in collaboration with consumers – drawing on years of expertise running safe, reliable networks, the know-how of our workforce and investment in innovation.”

The industry must conduct further research into hydrogen

To deliver this vision, the report reveals five key pledges. The first is that the industry must play a lead role in delivering against the UK’s hydrogen ambitions. It is essential that the industry must deliver the trials, and projects outlined by the government this decade, such as the H100 Neighbourhood Trial, the Hydrogen Village Trials and Town Pilot.

Following this, the industry must conduct further research and testing in an open and transparent manner. To ensure that it does this, the report explained that it is crucial for the industry to continue supporting hydrogen.

It explained that the gas network must: “Continue our internal modelling and scenario planning in each network, engaging others in the industry to enable while systems planning. We will bring new data together periodically to update the hydrogen vision maps and publish them on the ENA website and continue to build evidence to support the safety case for hydrogen.”

Communication is key to demonstrating hydrogen possibilities

The third pledge outlined that it is essential that the industry engages with consumers across the networks on delivering net zero. Communicating with current gas consumers on the potential role of hydrogen in the energy system transition, will help build the case for hydrogen.

In addition, it is necessary to continue to engage with devolved, regional, and local authorities and other stakeholders to demonstrate the possibilities of hydrogen in different regions and understand future demand, capacity, and location needs.

As well as communication, collaboration with stakeholders across the sector using a ‘whole systems’ approach will help to boost confidence in hydrogen. Supporting the government in gathering further evidence will help to enable the 2026 decision on the role of hydrogen for UK heating.

The ENA, as part of this, has said it will: “Convene a meeting of CEOs and senior officials to take stock of progress to date in demonstrating the safety and feasibility of hydrogen for heat and agree the critical areas of evidence outstanding including who is responsible for providing and verifying it and to what timescales.”

Also, ENA will convene meetings of gas and electricity networks to discuss respective approaches to network planning for net zero and agree areas where joint working will be successful.

Governments need to be committed to scaling-up hydrogen Finally, the last pledge explains that investment in both developing a skilled workforce for the future, and a UK supply chain is needed.

This includes working with IGEM and EU Skills to develop and deliver hydrogenspecific standards and training, providing evidence to the UK Government on the need to inform planning for net zero

and skills education, working with the supply chain to develop skills, logistics and homegrown talent, and developing new themes of innovation to support the customers through net zero.

However, the gas networks cannot achieve this alone. There is a need for stakeholders across the industry to work with them, particularly policymakers and the devolved administrators, as well as those responsible for developing the frameworks for regulation and planning of the hydrogen network.

To enable and accelerate the development of hydrogen, the report states that the government must ensure that the current level of political commitment to hydrogen production development is matched for hydrogen network infrastructure development. It explained: “There is a need for political commitment and Ministerial recognition of hydrogen beyond just this first step, which involves network infrastructure build-out.”

GREATER CLARITY WOULD HELP THE SECTOR TO ALIGN INVESTMENTS INTO PRODUCTION, STORAGE, DISTRIBUTION, AND END-USE, RECOGNISING THAT THESE ARE MULTI-YEAR PROJECTS TO BECOME OPERATIONAL.

‘A hydrogen vision for the UK’ Report Energy Networks Association

INTERNATIONAL PROJECTS

HYDROGEN PROJECTS FROM AROUND THE WORLD

UK

Committing to ensuring green hydrogen is utilised in the UK, Octopus Energy Generation and RES have announced a joint venture named HYRO to ensure gas will be replaced with green hydrogen in UK facilities.

Two manufacturing facilities belonging to Kimberly-Clark will be equipped with onsite electrolysers that will utilise renewable electricity to produce green hydrogen. The hydrogen generated will be stored and supplied to the hydrogen-ready boilers present in the factories.

With a combined capacity of 22.5MW, the electrolyser projects located in Wales and Kent are anticipated to significantly decrease annual CO2 emissions. Moreover, they have secured a position on the shortlist for funding by the Government.

HYRO is collaborating with industrial enterprises to establish and manage green hydrogen facilities, with intentions to allocate £3 billion ($3.7 billion) towards constructing such plants across the United Kingdom.

Canada

Atura Power is expected to provide Canada’s Hamilton-Oshawa Port Authority (HOPA) with green hydrogen as a fresh MoU is signed. After in-depth investigations into the potential use of green hydrogen across its operations, HOPA has come to the conclusion that the use of hydrogen produced by Atura is a viable solution to meet decarbonisation targets.

The introduction of green hydrogen into HOPAs operation could act as a call to action for the uptake of hydrogen elsewhere. The operations cover the largest port in the Great Lakes region of Canada, including facilities in Oshawa, Hamilton and Niagara.

Ian Hamilton, President and Chief Executive Officer of HOPA Ports, explained: “We are eager to explore the potential of using hydrogen to power our operations and are proud to support the growth of renewable energy in Ontario.”

Cummins is expected to build a 20MW electrolyser for Atura Power, which is expected to be operational as early as 2024.

USA

Honeywell recently announced its breakthrough Liquid Organic Hydrogen Carrier (LOHC) solution to enable longdistance transportation.

Tackling current bottlenecks to the development of hydrogen at scale, this solution can make use of existing refineries and infrastructure. This will allow cost and time savings across the whole hydrogen value chain.

Addressing further issues of low density, high flammability aspects of hydrogen and the difficulty around transportation, Honeywell have proposed a solution to this and the issues around new infrastructure required for ammonia conversion.

The LOHC solution combines hydrogen gas chemically through the Honeywell UOP Toluene Saturation Process into a liquid carrier compatible with existing infrastructure. This allows it to be transported in the same way as traditional gas and similar hydrocarbons.

The hydrogen can also be recovered using existing infrastructure through idle oil refining assets using Honeywell UOP’s Methylcyclohexane Dehydrogenation Process.

Japan

Japan has announced ambitions to increase its annual hydrogen supply to 12 million tonnes in 2040, from its current two million tonnes.

Under plans to revise its Basic Hydrogen Strategy in late May 2023, the Japanese Government is hoping that JPY 15 trillion ($112.86bn) of public and private investment will follow over the next 15 years to advance the use of hydrogen and renewable energy sources.

Prime Minister Fumio Kishida, explained that the country is putting its focus on its decarbonisation efforts: “We will step up efforts for decarbonisation at home while responding to fierce international competition in the fields of renewable energy and hydrogen.”

The Basic Hydrogen Strategy was released in December 2017, and focused on establishing an integrated international hydrogen supply chain by 2030.

It outlined sourcing blue and green hydrogen from global producers and transporting it to the country in hydrogen carriers, reducing production costs, enhancing storage and transport, and expanding hydrogen and ammonia use.

To accelerate the use of hydrogen, in 2020, the Japan Hydrogen Association (JH2A) was launched with the objective of the early creation of a hydrogen-based economy in Japan. It focuses on demand creation, cost reduction and creating a funding system.

Building the Hydrogen Economy

LONDON 20 2 3

The Radisson Hotel and Conference Centre, Heathrow

5 July 2023

Making the best use of existing infrastructure, ensuring final investment decisions are improved and building a future-proof hydrogen economy are integral aspects of building a secure hydrogen economy. HIL London will explore how the UK is performing in all these areas and the opportunities in the region.

• How do we build a future-proof hydrogen economy?

• What type of infrastructure will the industry need to develop/retrofit?

• How do we boost the amounts of final investment decisions?

• What are the main bottlenecks, and how do we make the most of these opportunities?

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