HIL Issue 21

Hydrogen Industry Leaders eMagazine February 2024

COMING UP 2

ISSUE 21

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Steering a Hydrogen-Powered Steel Industry

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Joining the Hydrogen Dots: How Hydrogen Maps Will Develop the Industry

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Innovating Electrolysis: Promoting Performance with Alternative Materials

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The Brief History of Hydrogen in Aviation: Is it Just the Beginning?

Fuelling the Future: Hydrogen’s Role in Transforming the UK Automative Landscape

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FOREWORD

“Joining the Hydrogen Dots: How Hydrogen Maps Will Develop the Industry”

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Navigating Financial Instruments and Models for Energy Production in 2024

As we enter a new year, what can the hydrogen sector expect to see over the next 12 months? This issue breaks down the movements in legislation, policy announcements and the latest discoveries across Europe.

Additionally, Hydrogen Industry Leaders brings you the general objectives of the latest insights into the renewables market, a demystified outlook on the HBM, and how to negotiate a long- term global commitment to hydrogen.

In this issue we also highlight how to steer a hydrogen-powered steel industry, the brief history of hydrogen in aviation and how to navigate financial instruments and models for energy production in 2024.

Hydrogen Industry Leaders looks at current hydrogen projects, innovations and policies shaping the hydrogen economy that will undoubtedly lead the way for the future of low-carbon energy.

Floyd March Editor f.march@peloton-events.co.uk Hannah Wintle Multi Media Journalist

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Accelerate Your Industry Knowledge

Chelsea Bailey Multi Media Journalist Olivia Staveley Graphic Designer 3

ISSUE 21

STEERING A HYDROGENPOWERED STEEL INDUSTRY

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Steel is a vital material which is used for a wide range of applications, including infrastructure, buildings, transport, and home appliances. However, the steel sector is one of the most significant contributors to climate change.

According to IRENA’s ‘Towards a Circular Steel Industry’ report, the iron and steel sector is responsible for roughly 7% of overall carbon emissions. Addressing the impact the sector has on climate change will require a shift towards sustainable energy sources for producing steel.

HYDROGEN COULD BE USED TO REPLACE COAL IN STEEL PRODUCTION Hydrogen Industry Leaders spoke to Mark Allen, Green Steel Leader at the Materials Processing Institute, and member of the Institute of Materials, Metals and Mining (MIMMM).

Mark began by explaining that hydrogen could be used to displace fossil fuels in steel production: “One of the areas where hydrogen could be used is instead of coal in blast furnaces to produce direct iron. This will ideally come from green hydrogen so then you have a legitimate green product.”

The use of hydrogen would make it possible to completely decarbonise the process, since it would only produce water vapour as chemical by-product.

Continuing, Mark expressed that hydrogen’s potential is being seen in other sectors, and the steel sector could follow: “There is a strong pull from the customer base which is leading many European steel manufacturers to now come up with plans on how they can decarbonise their steel production and the carbon used in creating the steel in the first place, and how they can be the first people to produce green steel and bring it to market.”

For example, H2 Green Steel has recently announced it has raised more than €4 billion in debt financing for the world’s first largescale green steel plant, a massive milestone in Europe’s journey to accelerate the decarbonise of the steel industry.

H2 Green Steel revealed that the construction of a green steel plant in Boden, Sweden, with

BY CHELSEA BAILEY

integrated green hydrogen and green iron production, is well under way. The aim is that by 2030 it will annually produce five million tons of green steel.

Scandinavian countries seem to be the ones that are making the most progress, Mark said: “Sweden and Norway are ahead nations because of the combination of government and European funding. It is giving them some degree of confidence.”

TEESSIDE IS PERFECTLY PLACED TO HELP TO AMPLIFY THE EMERGENCE OF THE HYDROGEN ECONOMY The UK needs to follow and take on a leading role in the transition to clean steel production in order to meet its net zero target.

A major hydrogen area in the UK is Teesside.

This has come after the government announced its multi million investment in to develop Tees Valley as the country’s first ever hydrogen transport hub.

It has a long history of industrial activity, ranging from steelmaking to chemicals. The region is continuing to play a key role in UK industry today, with its leading industrial businesses helping to contribute millions to the local and UK economy every year.

In order to achieve the government’s commitment to net zero by 2050, carbon intensive areas like Teesside (accounting for 5.6% of the UK’s industrial emissions) must be decarbonised.

Mark highlighted that it isn’t just its industrial potential that makes it perfectly placed for hydrogen, but its location: “We are right next to the North Sea, and have got offshore wind assets. If anyone has the geography to make CCUS work successfully and genuinely help to avoid emissions, it is Teesside.”

THE MATERIALS PROCESSING INSTITUTE IS ENCOURAGING PARTNERSHIP RESEARCH AND COORDINATION There are several hydrogen projects currently taking place in Teesside such as BP’s HyGreen Teesside, EDF Energy’s Tees Green Hydrogen and Net Zero Teesside.

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Collaboration is key to see the hydrogen economy realised and the Materials Processing Institute is working with clients to demonstrate and scale-up next generation decarbonisation technology to help accelerate industrial decarbonisation and progress business to a net zero future.

Mark explained: “We have created a hydrogen steelmaking interest group to help people across the supply chain from hydrogen producers, iron ore producers, steel makers and technology providers. We wanted to bring people together to discuss how we are going to make this happen, and communicate about who is doing what in the sphere. Steel makers are preparing to move into hydrogen iron making or the use of hydrogen for heating.”

HYDROGEN HAS BEEN PROVEN TO HAVE GREAT IRONMAKING POSSIBILITIES The Materials Processing Institute has done feasibility studies including one involving hydrogen heating for steel, which received government funding as part of the Industrial Fuel Switching Programme.

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The ‘H2DRI pilot’ project examined the feasibility of direct reduction of iron ores using hydrogen, integrating with an existing electric arc furnace at a pilot melting and steelmaking plant, hydrogen network and characterisation facilities.

It aimed to confirm the design for future trials and demonstrate the net energy benefit of using microwaves as well as radiant heating to enhance reaction to kinetics.

Going forward, Mark stated that the Institute aims to continue its work on showing hydrogen’s potential for the steel industry: “We are looking for investment to build an accessible pilot hydrogen dri unit on site next to our pilot steel plant so that we can accelerate the practical and scientific knowledge needed to make green ironmaking a reality.”

Hydrogen provides the possibility to completely redesign the process of steelmaking, and as an energy intensive industry with hard-to-abate emissions, the industry offers the potential for large carbon emission savings.

HYDROGEN, LIKE SAND, GETS EVERYWHERE. ENGINEERING AND MATERIAL CRITICAL ASSESSMENT TO PROTECT YOUR ASSETS FROM HYDROGEN DEGRADATION • Global Expertise across a Network of 9000+ staff in 280+ Locations Worldwide • Modelling and Simulation of Critical Assets • Static and Dynamic Fracture Mechanics in Hydrogen Environments • SSRT Testing • Non-Metallics Permeation Assessment • Europe Leading Testing Capacity Mark Eldridge Director of Hydrogen

+44 (0)7827 926757 mark.eldridge@element.com 7

ISSUE 21

The Brief History of Hydrogen in Aviation: Is it Just the Beginning?

After the latest Oxford Institute for Energy Studies Research Paper discussing the need to decarbonise the aviation sector, where does hydrogen fit in and is it a feasible solution?

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There has often been a misconception that the increased efficiency gains in aviation, including larger carrying capabilities meaning fewer flights being required, and increased efficiency in propulsion technology is a way to decarbonise aviation.

In actual fact, despite the efficiency gains, the rapid growth in the sector has offset the efficiency savings which have seen a vast increase in emissions, totalling around 2% of global energy-related CO2 emissions in 2022.

ADVANCEMENTS IN EFFICIENCY HAVEN’T OFFSET GROWING SECTOR The report covered this, explaining: “The aviation industry segment has seen significant advancements in engine technology and aircraft design, leading to the ability to accommodate more passengers and goods transported within the same footprint.

“However, the rapid growth of aviation, surpassing efficiency improvements, has resulted in a considerable increase in emissions.”

In addition to this, the report explained that this gap in efficiency measures and increasing CO2 emissions is set to widen in the short to medium term.

“When considering the levels of possible remaining efficiency gain with HBR turbofan engines, we are fast approaching the wall of theoretical efficiency. In recent decades, there has been significant progress in enhancing the fuel efficiency of modern jet engines.”

BY FLOYD MARCH

ENGINE DESIGNS HAVE BEEN A CORE FOCUS Engine design efforts have been two fold: “Firstly, to enhance propulsion efficiency, and secondly, to increase thermal efficiency, while concurrently addressing issues such as noise reduction and the mitigation of Nitrogen Oxides (NOX) emissions.”

To address this challenge, there are two key methods to follow. Firstly, decarbonising the fuel itself offers a solution where structural changes aren’t required and aircraft can operate in the same way.

The second, and more complex method, further propulsion innovation could lead to the use of hydrogen in aviation, and in some cases even none combustion methods such as electricity.

Hydrogen in aviation is multidisciplinary, with hydrogen combustion and hydrogen fuel cells being an option to further explore.

The report picked up on this notion but highlighted that hydrogen-powered flight is unlikely to serve as a primary means of decarbonisation, with SAF being favoured by the sector.

“As illustrated in the graph below, hydrogen can serve as a direct fuel source for aircraft propulsion through two main techniques. The initial approach involves using it in a manner similar to traditional jet fuel in hydrogen compatible jet engines.

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“This offers the advantage of complete carbon emissions elimination. In this scenario, the primary exhaust emissions from these jet engines would consist of water vapour (H2O), NOX, and residual heat.”

The second approach represents a novel development in aviation, as it achieves takeoff by utilising electricity generated from hydrogen-fed fuel cells instead of relying on combustion.

This method, along with electric batterypowered flight, marks a significant departure from the conventional means of taking to the skies in the last century. In a fuel cell-powered aircraft, hydrogen is converted into electricity, which, in turn, propels an electric motor and a fan or propeller to generate the required thrust.

THE HYDROGEN AVIATION STORY IS IN ITS INFANCY BUT IS MAKING STEADY PROGRESS With the report mapping out the progress in this field, Hydrogen Industry Leaders learned: “Beginning in 2020 and continuing forwards, there has been a discernible surge in the number of projects involving hydrogenpowered aircraft. One of the most significant and ambitious endeavors is Airbus’ ZEROe initiative, which has set the goal of introducing the world’s first commercial aircraft powered by hydrogen by the year 2035.”

Furthermore, the team behind the HY4 project achieved another noteworthy accomplishment in September 2023 by conducting the first flight using liquid hydrogen and fuel cells.

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The world’s first commercial aircraft powered by hydrogen by the year 2035

In early 2022, following the pandemic: “Two out of the three leading turbofan engine manufacturers introduced notable advancements in hydrogen-powered technology for commercial aviation. In the same month, CFM, a collaborative partnership between General Electric and Safran Aircraft Engines, announced their cooperation with Airbus to perform tests on an aircraft engine powered by hydrogen.

To summarise the differences and similarities between the two hydrogen propulsion methods, the image below provides a comparative overview of hydrogen-powered fuel cells and combustion.

While SAF remains one of the most attractive avenues to reducing emissions in the aviation sector, hydrogen definitely has a vital role to play, but navigating CAPEX and OPEX in hydrogen will cause multiple headaches for those working in the sector.

Whether the future is a mix of both or one becomes dominant in the aviation sector, it is undoubtedly and exciting time to be working in the sector, with the biggest challenges laying ahead of us as we push to 2050 decarbonisation targets.

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NAVIGATING FINANCIAL INSTRUMENTS AND MODELS FOR ENERGY PRODUCTION IN 2024 Financial instrument debates and different models for energy production dominated conversations throughout 2023. With the EU, UK and US having the same decarbonisation goal but different avenues to achieving this has created a lot of excitement in the private sector as market opportunities arise.

Looking to encapsulate all of these discussions from 2023 as the hydrogen sector pushes on with 2024 goals and objectives, PwC released the ‘Financial Instruments and Models for Energy Production’ report.

Amongst many things, this report highlights the macroeconomic conditions for energy investment, barriers to investment and financial support schemes at Member State level.

On the topic of macroeconomic conditions for energy investment, the investor’s dialogue on energy explained: “Over the last couple of years, Europe has experienced a period of profound macroeconomic and geopolitical change, characterised by often unpredictable events that have made it necessary to accelerate the energy transition process and to adapt funding flows to the evolving needs.”

They summarised these four macroeconomic trends under the need to tackle the climate crisis, ending the EU’s dependence on Russian fossil fuels, challenges around rising interest rates in an inflationary context and rising global technology competition.

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BY FLOYD MARCH

“ This is why it is important to create a favourable financing environment that prevents the energy transition and the development of clean technologies from slowing down.

EXAMPLES OF NOTABLE SHIFTS INCREASING The publication of the European Taxonomy, which provide companies, investors and policymakers with appropriate definitions for which economic activities can be considered environmentally sustainable, thus helping the EU to scale up sustainable investment and implement the European Green Deal.

The transformation of the EIB into the European Climate Bank, and the ensuing commitment to gradually increasing its share of finance dedicated to green investment to over 50% by 2025 and beyond.

The need to reduce independence on Russian fossil fuels has been widely reported in recent years, which has been a key factor in the rise of interest rates in an inflationary context. This is echoed across the report but with a specific focus on inflation, author’s explained: “In the coming decade, rising interest rates mean that capital is more expensive, and harder to get to, which could prove especially daunting for nascent cleantech industries attempting to establish themselves on the market.”

BARRIERS TO INVESTMENT SPAN MULTIPLE SUB-SECTORS Legal: Associated with risks and barriers concerning compliance with the regulatory and policy frameworks, the permitting framework, as well as social acceptance of these projects on behalf of the general population Economic: Associated with risks and barriers deriving from economic factors like market dynamics and organisation, access to capital, transaction costs, off-taker risks and incentive schemes Technical: Associated with risks arising from technical features of projects like technology and resource availability, including supply chain risks Energy market development: Barriers emerging from the immature nature of the market for emerging technologies

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On average, about 83% of the mapped instruments support energy production, 468 in total.

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To address the challenges faced by energy production projects and to enhance investments in energy production to achieve policy goals, the public sector can implement a series of financial support schemes.

“Financial instruments not only improve the financing conditions for a specific type of project (e.g., by de-risking it, increasing the financing available, improving the financing conditions, etc.), but also send a strong signal to market players about governments’ and public authorities’ commitment to that sector.”

A mapping exercise was conducted to gather an overview of the existing financial support schemes available for energy projects, including energy production.

The purpose of the mapping was to assess the current availability of instruments and schemes to support energy production projects, in order to assess to what extent they are effective in addressing barriers and mobilising additional finance.

ENERGY PRODUCTION INSTRUMENTS “However, out of these that have been identified as available for this category, just 76 are targeting only energy production.

Additionally, 92 of them support energy production and another segment (T&D 10 times, Storage 7 times, H&C 25 times, Energy Services and Prosumers 50 times).”

“Finally, 171 instruments support all the five segments. In Luxembourg and Portugal all identified instruments are partly or entirely destined for energy production.”

In contrast, France, Greece, and Ireland are the only countries where fewer than 70% of the identified instruments target energy production. Hence, it is clear how the production of energy is the sector of the energy value chain that receives the most attention across all EU countries.

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Figure 1: Share of Energy Production Instruments Out of the Total Mapped

WHAT’S THE RELEVANCE OF DIFFERENT INSTRUMENTS ACROSS THE HYDROGEN SECTOR? All of the instruments discussed in the report have their own nuances and specific requirements to be successful.

The first that was discussed were bridge loans which are short-term instruments which are used by an individual or company until they are able to secure permanent (long-term) financing or pay an existing obligation.

Long-term loans are a basic tool used for financing investments. They are suitable for improving the financing conditions for mature RE technologies with good access to commercial financing.

Subordinated loans can be a powerful instrument for less established RES with limited access to commercial lenders or for projects exposed to market risk.

In addition to loans, guarantees are another instrument to investment. In this instance, guarantees cover the risk of no payment to the money provider. These are relevant for improving access to finance and financing conditions for RE projects, particularly in cases involving high perceived risk.

Equity is a type of ownership instrument, where the equity provider becomes an owner or co-owner of the investment. Equity instruments are relevant for providing initial capital to new RE technologies and young companies and for closing financing gaps for mature technologies.

As we have seen across the UK, US andd Europe, grants are sums of money given to a project promoter conditionally or unconditionally. Grants can be relevant in addressing a number of investment barriers, depending on the types of beneficiaries targeted and cost components covered.

RECOMMENDATIONS FOR FINANCING HYDROGEN IN THE FUTURE With the report outlining a multitude of recommendations, the core aspects included the fact that countries with low availability of diverse financial instruments and less mature financial markets would benefit from targeted efforts on developing and expanding the offering of financial instruments for clean energy production.

On the other hand, countries with more developed financial markets, the use of guarantees, equity and bonds should be prioritised to meet the investment needs for closing their renewable energy production gaps, reserving grant financing for less mature technologies only.

Finally, the report explained: “The design of new financial instruments should take into account the features found to support effectiveness, such as broad scope, accessibility, long-term stability.

However, some of these features might not be always needed (e.g. technology neutrality is to be preferred, but in some cases, specific technologies may need to be targeted).”

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JOINING THE HYDROGEN DOTS: HOW HYDROGEN MAPS WILL DEVELOP THE INDUSTRY With more projects entering the hydrogen markets at different stages of deployment, from planning, building, test phases and full production, the Hydrogen Energy Association has created a free-to-access hydrogen project map to track the progress being made.

The Hydrogen Energy Association has brought together the full bread hydrogen projects across the value chain – mapping for the first time, the swell of incredible work going into the hydrogen economy in the UK.

The map shines a light on projects which are post-FEED or have been shortlisted for public funding, raising awareness among investors, governments and key players in the hydrogen industry.

100 MEMBER ASSOCIATION ALLOWS FOR A HOLISTIC VIEW OF THE INDUSTRY With more than 100 members covering the full value chain, the HEA’s map reflects projects across low-carbon production, hydrogen infrastructure, hydrogen mobility use, commercial and industrial use and hydrogen for domestic heating use.

FRACTURED INDUSTRY CAN BE BROUGHT TOGETHER THROUGH MAPPING Hydrogen having multiple use cases across different sectors can often lead to fractured awareness of production and storage levels, so maps like these go along way in bringing different parts of the supply chain together.

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BY FLOYD MARCH

Key Hydrogen Production

In Progress

Transport

Under Construction

Infrastructure

FEED completed/final investment decision

Hydrogen Hub Industrial Domestic Heating

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Painting a better picture of the hydrogen projects happening now can have larger implications further down the line.

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Celia Greaves, HEA CEO and Founder, said: “We are committed to spreading this resource far and wide, fostering industry collaboration, building a strong UK hydrogen narrative, and creating commercial and investment opportunities for the hydrogen industry.

“This map is a vital resource to evidence how the UK Industry acts on its ambition, and we expect it to grow rapidly as increasing numbers of projects move forward.”

The HEA has mapped more than 70 lowcarbon hydrogen production projects that are in operation or advancing quickly towards final investment decisions. The first wave of large-scale electrolytic hydrogen projects will be in operation in 2025. Aberdeen H2 Hub (400MW), Cromarty Hydrogen Hub (300MW), Lowestoft hydrogen production facility (200MW) and Hybont (250MW) are some of these pioneering projects Other notable projects include: • Protium’s industrial use project partnering with Budweiser Brewing Group UK&I - a pioneering example of Hydrogen decarbonising a hard-to-bate sector.

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• Project Union – various projects to connect hydrogen production, storage and demand to enable net zero and empower a UK hydrogen economy.

• Key hydrogen mobility examples such as Fleetwide Conversion for Aberdeen City Council, and Teesside Transport Hub with various HEA members involved.

As the hydrogen sector continues to grow and more post-FEED are added,t here are hopes this will help to paint a picture of how far along the UK is in growing the hydrogen economy.

Efforts such as this go a long way in building the business case for hydrogen in the UK, and while these interactive maps might only play a small part in doing so, painting a better picture of the hydrogen projects happening now can have larger implications further down the line.

As a live map, projects are being added all the time. If companies would like their project – which must have completed its FEED and / or been shortlisted for public funding – to be featured, they can submit information here https://ukhea.co.uk/uk-hydrogen-project-map.

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Innovating Electrolysis: Promoting Performance with Alternative Materials For green hydrogen to take up its position as the key alternative energy source it has been predicted to become, the lag in technology observed in producing it must be addressed.

While various electrolyser technologies are already wielding results globally, recent research conducted by IDTechEx reviews their incumbent materials and suggests various innovations in this area to enhance performance.

At present, there are four main electrolyser technologies. The oldest and most mature of these is the alkaline water electrolyser (AWE), having been in use since the 1920s and currently taking the lead for green hydrogen production.

Proton exchange membrane electrolysers (PEM) is the second most used, and is proving to be a popular option when it comes to new green hydrogen projects.

Newer electrolyser technologies include the anion exchange membrane electrolyser (AEM), a hybrid of AWE and PEM, and the solid-oxide electrolyser (SOEC), which can operate at temperatures >600°C.

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BY HANNAH WINTLE

While all four of these technologies work by using electricity to split water into hydrogen and oxygen, IDTechEx predicts that AWE and PEM technologies will dominate green hydrogen production over the course of the next decade.

AWE CATALYST MATERIALS REQUIRE FURTHER DEVELOPMENT The current anode and cathode catalyst materials utilised in AWE technologies are nickel alloys, such as Raney nickel, however these can pose problems such as degradation, or its limited current density having a detrimental impact on performance potential.

To mitigate against these issues, IDTechEx suggests that new catalyst materials could be developed and adopted, including mixtures of transition metals and non-metals such as iron-doped nickel phosphide.

Improvements in electrode structure on both micro and macro scales could also be made, with innovations already coming from Veco Precision, who have developed a high surface area 3D nickel electrode.

IRIDIUM-USE IN PEM TECHNOLOGIES IS NOT SUSTAINABLE The key innovation area put forward for PEMEL technologies revolves around the reduction of iridium use at the anode. Iridium black and iridium oxide have long been the materials of choice, with current loadings of ~1-3 mg/cm2 or ~1-2.5 g/kW of PEM capacity proving problematic.

Loadings of this size will create future supply chain issues as there will not be enough iridium to sustain a stable supply, resulting in challenges when constructing and delivering these electrolysers to future customers.

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As iridium is irreplaceable due to it being one of the only elements capable of remaining stable under the conditions seen in the anode, the solutions centre around reducing the amount of iridium used rather than replacing it entirely. Ultimately, developing new catalysts with competitive activity but reduced iridium loading will be paramount in mitigating supply chain risks.

One solution is to use iridium-ruthenium mixed oxides, and this method is now being used commercially. Supported iridium catalysts are another possibility, which work by depositing iridium nanoparticles on antimony-doped tin oxide.

However, while there are many examples of the latter within academic research, this innovation has yet to be commercialised, with only a few players such as Ames Goldsmith developing these materials.

SOEC TECHNOLOGIES TO TRANSITION TO METAL-SUPPORTED CELLS

AEM MEMBRANE DURABILITY MUST BE ADDRESSED

Due to its ability to operate under very high temperatures, the SOEC utilises different materials to the other electrolyser types.

Therefore, all cell components must be thermally compatible and have similar thermal expansion coefficients.

As a hybrid between AWE and PEM technologies, the AEM was developed out of the need to have an abundance of materials, a benefit of the AWE, while also benefiting from the high efficiency of the PEM.

A key innovation area for SOEC technology is in the transition to metal-supported cells.

At present, conventional solid oxide cells are either hydrogen electrode-supported cells, or electrolyte-supported cells.

This technology is still relatively new, with no industry-standard materials attributed to the anion exchange membrane (AEM), the key component of the electrolyser.

Using the hydrogen electrode or electrolyte as the support material in this way causes issues such as ohmic resistances due to the thick hydrogen electrode or electrolyte layers, as well as sensitivity to redox cycling.

Metal-supported cells offer a solution to these issues, as they utilise a porous metal layer which supports the cell. This allows for not only thinner cell components and subsequently lower ohmic resistances, but also mechanical robustness, high redox cycling potential, and less expensive ceramic materials used.

At present, the membrane faces issues including optimisation in ionic conductivity needed, degradation challenges, and loss of ionic conductivity over time due to degradation.

To solve these problems, more experimentation needs to be conducted with various materials, typically containing quaternary ammonium groups, chemical stabilisation of polymer backbones though techniques such as cross-linking, and reinforcing the membrane with a support material like PEEK mesh, or a inorganic filler such as zirconia.

Ionomr Innovations have developed an AEM which utilises a PEEK mesh as a reinforcing material, and the company has acknowledged the long durability this has granted the membrane.

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Already utilising this solution is Ceres Power, who use porous metal supports by way of laser drilled plates in their solid oxide fuel cell technology.

As the market for electrolysers continues to develop with the demands of the emerging green hydrogen economy, IDTechEx forecasts the electrolyser materials and component market to grow at a similar rate, with AWE and PEM technologies expected to offer the largest opportunities given their popularity.

ALREADY UTILISING THIS SOLUTION IS CERES POWER, WHO USE POROUS METAL SUPPORTS BY WAY OF LASER DRILLED PLATES IN THEIR SOLID OXIDE FUEL CELL TECHNOLOGY.

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Fueling the Future: Hydrogen’s Role in Transforming the UK Automotive Landscape Transportation needs to be decarbonised and dramatically lower the sector’s emissions. This is key not just from a regulatory perspective, but also for the automotive sector to maintain its importance and prosperity in the future.

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BY CHELSEA BAILEY

“We need more support to get more vehicles on the roads so that we can build up volumes, get the costs down, and support the UK supply chain.”

Moving to a net zero future creates an interesting opportunity for the automotive, energy, and transportation industries. The introduction of alternative powertrains is becoming a choice between battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs) powered by hydrogen.

THE AUTOMOTIVE SECTOR NEEDS TO FOCUS ON A CARBONNEUTRAL FUTURE Reaching net zero is one of the biggest challenges that the automotive industry is dealing with at the moment, other challenges include how the pandemic showed the vulnerability of the automotive supply chain, and the integration of technology that are transforming the industry and creating new opportunities and risks.

Not only will reaching net zero require innovative solutions but also a fundamental shift in the automotive sector’s mindset, with a commitment to sustainability and a vision for a carbon-neutral future needing to be a key priority.

HYDROGEN IS DESIRABLE FOR AUTOMOTIVE APPLICATIONS DUE TO THE GLOBAL AVAILABILITY OF SUPPLY Hydrogen Industry Leaders spoke to Greg Harris, Chief Commercial Officer at Intelligent Energy about hydrogen’s significant role in building a sustainable future for the automotive sector.

Greg began by highlighting that hydrogen could be used to ensure resources are best used: “Hydrogen has an interesting role to play in the automotive sector because hydrogen can be generated with excess electricity from renewables. You can get better use of existing resources by using hydrogen as a way to store the energy and then transport it and use it where it is needed.”

This could help to combat any intermittency issues, which is a huge barrier to the adoption of renewable energy. The value of hydrogen as an energy carrier lies in its ability to be compressed and stored in cylinders in unlimited amounts for subsequent use during extended periods of intermittent renewable energy generation.

Continuing, he added that the industry is looking at BEVs as a greener solution: “With reaching net zero, the industry thinks it could be possible with electric vehicles. Although it is easy to plug them in at work or home, it is a difficult thing to do for heavy-duty vehicles, long-distance vehicles, taxis, and people who don’t have access to the same parking place every day.”

Although multiple factors seem to point to BEVs as the best option for meeting net zero, hydrogen’s appeal as a sustainable solution is rising. Hydrogen is desirable for automotive applications due to the global availability of a sufficient and competitive supply, the distribution of the available hydrogen supply between the automotive sector and other industry applications, and the achievable efficiency of hydrogen vs green electricity.

Hydrogen’s great potential has been proven by industry, as according to Hydrogen Fuel Cell Partnership data, during the third quarter of 2023, 966 new hydrogen fuel cell cars were sold in the US, which is 531% more than a year ago.

On this, Greg stated: “With hydrogen, you can refuel it like a diesel car, it just takes a little bit longer to do. However, you need the infrastructure.”

Similar to a regular petrol or diesel vehicle, you have to stop and fill the car up with hydrogen as the tank empties. This can be done at a dedicated hydrogen refuelling station. They’re quick to fuel, taking less than five minutes.

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“You can get better use of existing resources by using hydrogen as a way to store the energy and then transport it to use where it is needed.”

The downside of hydrogen refuelling stations is the infrastructure, due to the lack of refuelling stations. However, the number of these locations are set to grow in the next few years as HGV and buses are likey to use hydrogen fuel cell technology over conventional batteries.

According to Autosport, Inoue Katsushi, who is in charge of Honda’s electrification efforts recently revealed that he believes hydrogen cars are likely to become more commonplace.

Meanwhile, Hyundai has said it is seeking to popularise hydrogen by 2040. This is mainly to ensure FCEVs achieve price parity with BEVs by the end of the decade.

THE INDUSTRY IS EXPECTING THE PRICE OF HYDROGEN TO BECOME MORE ATTRACTIVE AND COST-EFFECTIVE Having the right infrastructure in place and the availability of hydrogen is one of the main barriers that the automotive sector currently faces stopping it from adopting hydrogen on a wide scale. If there isn’t enough hydrogen available or the right infrastructure in place, hydrogen-powered vehicles can’t become a reality.

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The second major barrier is the cost of hydrogen, Greg expressed: “In the short term, the cost of hydrogen has rocketed because there has been more demand and the supply hasn’t increased. We’ve seen the prices double or triple in the past few years.”

However, the industry expects that pricing levels for green hydrogen in the automotive sector will still be relatively attractive.

Greg stated that he does believe that hydrogen has the potential to be comparable to diesel cars and become even more costeffective in the future: “We have seen that the price of hydrogen is viable and it would be comparing well to running either diesel or electric because it is not that much different in terms of the cost of running the vehicles.

In other countries, there is a larger availability that keeps the costs low. Ideally, we want to get below $2 per kilowatt as a target because then you are offsetting the higher vehicle prices as well.”

Greg argued that he believes that even though planning for green and blue hydrogen is pivotal to meet decarbonisation targets, the focus needs to be on ensuring the demand is met.

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He said: “In the short term to medium term, we think it is more important that hydrogen is available and cheap enough to support the initial uptake because once you’ve got vehicles running on hydrogen, you can then move the hydrogen production towards net zero. I think focusing just on green hydrogen straight away could become a barrier because people may find it even more difficult to get hold of the hydrogen needed.”

THE UK COULD TAKE LEARNINGS FROM OTHER COUNTRIES’ HYDROGEN STRATEGIES To overcome the current barriers that the automotive sector faces, the UK could take lessons from other countries. For example, South Korea has made a high profile and strong government strategy focusing not only on the automotive sector but a whole energy approach towards hydrogen fuel cells.

Greg explained that the strategy shows how important support is: “South Korea has this joined-up strategy that covers the whole of the value chain combining financial support and legislation that supports the shift towards hydrogen. If you look at just the automotive sector in South Korea, they support the production of clean hydrogen by subsidising the cost of natural gas when it is used to make hydrogen.”

Continuing, he explained that the UK must support getting hydrogen-powered fuel cells to market: “In South Korea, there has been support for buying fuel cell vehicles to have the market grow. I’d say that the UK needs to have more developed strategies, especially because there are lots of discussions happening in the industry about making investments for hydrogen production.”

To see the UK have more developed strategies, confidence needs to be built

for the government and the supply chain.

Greg added that other countries have been working on this: “Other countries have seen their governments run auctions on producing hydrogen or producing electricity from fuel cells. In the EU, they have committed to hydrogen refueling stations on the major motorway networks across Europe.”

Heavy-duty trucks are looking to be one of the most attractive automotive applications for hydrogen-powered fuel cells. This network of hydrogen refueling stations means that companies can seriously look at running commercial vehicles on hydrogen because they know that the infrastructure is there and in range.

Greg explained that Intelligent Energy is hoping that the UK Government implement more government strategies: “We need government support for the availability of hydrogen and the cost of hydrogen.”

More government support is needed for the UK to compete with other countries. Some governments around the world have already said hydrogen could be a key element in solving our current environmental challenges.

For example, Japan wants to increase the number of hydrogen cars on the road to more than 800,000 by 2030.

The UK’s automotive sector has an interesting opportunity to explore hydrogen-powered fuel cell vehicles as part of its broader commitment to sustainability. Embracing hydrogen as a fuel source will help to foster innovation and economic growth, driving further investments.

By positioning itself at the forefront of hydrogen-powered transportation, the UK could play a leading role in advancing sustainable mobility solutions and therefore, reduce its dependence on fossil fuels.

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Private Finance

Legislation

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