Page 4 - EurOil Week 34 2021

EurOil COMMENTARY EurOil

UK publishes long-awaited

hydrogen strategy

Not everyone is happy with the green and blue approach

WHAT: THE UK has unveiled its greatly anticipated order to replicate the UK’s success in developing
The UK estimates it strategy for deploying hydrogen as a key offshore wind farms. It has therefore launched
can estalish a $1.2bn low-carbon energy source, aspiring to create an a public consultation on a preferred hydrogen
economy for hydrogen economy for the fuel worth GBP900mn ($1.2bn) business model, influenced by the existing con-
by 2030. by 2030, expanding to as much as GBP13bn tract for difference (CfD) scheme.
($18bn) by 2050. The government is also weighing up whether
WHY: At the centre of the strategy released on to create a GBP240mn ($327mn) Net Zero
The government wants August 17 is an effort to decarbonise energy-in- Hydrogen Fund. It has launched a GBP105mn
to harness both blue and tensive and highly polluting industries such as funding package through its Net Zero Innova-
green potential. chemicals, oil refining, power and heavy trans- tion Portfolio, designed to “act as a first step’ to
port. The goal is to get these sectors to use hydro- establish the country’s hydrogen economy.
WHAT NEXT: gen rather than oil and gas, with the government The UK’s decision to embrace both blue and
Between 20% and 35% of estimating that between 20% and 35% of UK green hydrogen has by and large won praise from
UK energy consumption energy consumption could be hydrogen-based industry. A recent report by global energy con-
could be hydrogen-based by the middle of the century. sultancy Xodus argued that such an approach
by the middle of the “Today marks the start of the UK’s hydrogen would be necessary for the country to realise its
century. revolution” UK Business and Energy Secretary potential of becoming a world leader in the fuel.
Kwasi Kwarteng said in a statement. “This home- “The recognised need for the development of
grown clean energy source has the potential to green and blue hydrogen is a sentiment we echo
transform the way we power our lives and will be – all options should be made viable if we are to
essential to tackling climate change and reaching transform the UK’s energy system into a sustain-
net zero. With the potential to provide a third of able one,” oil and gas lobby group OGUK’s sus-
the UK’s energy in the future, our strategy posi- tainability director, Mike Tholen, commented in
tions the UK as first in the global race to ramp up a statement. “We look forward to working with
hydrogen technology and seize the thousands of the UK government to consult on this and help
jobs and private investment that come with it.” develop hydrogen, as well as the other necessary
Critically, the strategy calls for a “twin track” low-carbon solutions we know will be needed to
approach favouring the use of both green hydro- reach net zero.”
gen, produced from water using electrolysers The North West Hydrogen Alliance added
powered by renewable energy, and blue hydro- that the strategy sent “a strong message to indus-
gen, derived from natural gas via steam meth- try and investors that hydrogen is an integral
ane reforming, with the resulting CO2 captured part of our low-carbon future ... Now’s the time
and stored in structures under the North Sea. to start raising public awareness of hydrogen and
The government envisages producing 5 GW of how it can help us reduce our carbon emissions
hydrogen by 2030. and protect our planet.
Westminster said it would work with indus-
try to develop a “UK standard for low-carbon Green criticism
hydrogen” in order to provide producers with Much of the criticism levelled against the strat-
needed certainty. The government will under- egy came from the renewable energy indus-
take a review to judge how much network and try, which urged the government to prioritise
storage infrastructure is needed to support pro- the development of green over blue hydrogen.
duction, and will also analyse the “safety, techni- There is a lot of debate globally over whether
cal feasibility and cost effectiveness” of mixing blue hydrogen should be considered sufficiently
20% of hydrogen into existing gas supply. low-carbon, but it is estimated to be up to three
The aim is to wed early government action times cheaper than green hydrogen, and sup-
with private sector backing, Westminster said, in porters say it will play a vital role in establishing

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