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the case for blue hydrogen


                 dispatchable power and energy storage.  What is critical is that there are
                   In the near-term, blue hydrogen   synergies between blue and green   KEY MESSAGES
                 will be the fastest way to deploy large   hydrogen, with applications and
                 volumes of low carbon hydrogen and   markets differentiated both temporally
                 will pave the way for the ramp up of   and geographically. Both blue and green      Blue hydrogen is essential to the UK
                 green hydrogen production in the   hydrogen enable the decarbonisation   government’s net zero ambitions.
                 longer term – including opening up   of hard-to-abate sectors, whilst creating
                 new distribution systems that can be   skilled jobs, new products and services      The UK can deploy 10GW of blue
                 utilised for all types of hydrogen across   - and commercialising technologies that   hydrogen by 2030 and reach up
                 the range of applications.       the UK can export internationally.   to 80GW by 2050 with the right
                                                                                     policy support.
                                                  A RELIABLE ENERGY SYSTEM
                 The UK is well placed to take    One element that is often taken for      The UK oil and gas industry has
                 advantage of the opportunities   granted, particularly in the UK, is the   contributed greatly to the UK’s
                 from low carbon blue             stability and availability of our energy   economy, both in terms of tax
                 hydrogen given the existing,     system. A major contributor to this is our   revenues and employment – blue
                                                                                     hydrogen provides a route to
                                                  extensive gas infrastructure. We have
                 historic large-scale production   an energy system that can deal with the   ensure similar levels of support
                 of natural gas, and the          extremes of demand, particularly driven   for communities as we transition
                 government’s commitment          by rapid changes in weather.       towards net zero.
                                                    Not only does the existing gas network
                                                  cover the entire country and supply      Investing in blue hydrogen today
                   The UK HFCA supports the UK    energy to both industrial and domestic   will create significant long-term
                 government’s strategy of a twin-track   customers, but it also connects storage   economic opportunities for UK
                 or technology agnostic approach,   facilities that can store gas over long   Plc – the UK has the infrastructure,
                 recognising that both blue and green   timeframes and in quantities far in   natural resources, geology, skills
                 hydrogen will play a key role in achieving   excess of anything that batteries can   and experience to be a world leader
                 our ambitious decarbonisation goals.   currently economically achieve.   in blue hydrogen.
                   Today, the majority of hydrogen   Whether we are talking about the
                 manufactured globally is from the   high pressure transmission system,      The UK can become a significant
                 conversion of natural gas to hydrogen,   the backbone of our gas infrastructure,   blue hydrogen producer, as
                 with the resulting CO₂ – amounting   or the local gas distribution systems   well as an importer of CO₂ from
                 to around three per cent of global   that connect over 85 per cent of UK   other countries, thus supporting
                 industrial sector CO₂ emissions – being   dwellings, the system is extensive,   decarbonisation of other markets
                 emitted into atmosphere; this is known   reliable and an asset that we have   and generating income for the
                 as grey hydrogen.                invested in extensively for many years.  UK economy.
                   Most current hydrogen production
                 is either integrated into a large process,   Blue hydrogen can help to      Short term thinking must be
                 for example in the manufacture of                                   avoided to prevent the errors
                 ammonia or methanol, or is supplied to   decarbonise the gas network   that encouraged offshoring of
                 refineries to improve the quality    and, thus, prolong the         manufacturing opportunities for
                 of liquid fuels.                 economic life of our existing      the wind industry.
                   There is therefore not currently a   gas infrastructure
                 large merchant market for hydrogen.                                    With ambition, the UK can become
                 The key role for low carbon hydrogen                                an exporter of key skills, services
                 going forward, as an energy vector,   There are over 28,000km of pipeline   and materials.
                 brings with it not only many     in the UK and we are fortunate that,
                 opportunities – particularly in our   due to the iron gas main replacement      A UK Hydrogen Strategy must
                 transition to net zero – but also   work, much of this has now been   have low carbon hydrogen,
                 challenges that need to be overcome    converted to polyethylene piping that   irrespective of whether it is blue
                 if it is to reach its potential.   can carry hydrogen without the risk of   or green, at its core.
                   As mentioned earlier, there    metal embrittlement.
                 are multiple sectors where low     Blue hydrogen can help to decarbonise
                 carbon hydrogen will be vital for   the gas network and, thus, prolong
                 decarbonisation. Many of the initial   the economic life of our existing gas   existing assets we have and maintain a
                 projects are focused around industrial   infrastructure. This has benefits both   stable energy system with contributions
                 clusters, where blue hydrogen can be   from a financial perspective, as it   from both decarbonised electricity and
                 produced and service multiple sectors.   delays the costs of decommissioning   decarbonised gas.
                   This cluster approach allows the critical   the existing gas infrastructure, and also
                 CCUS infrastructure to be shared with   from an environmental perspective, as    The UK Hydrogen & Fuel Cell
                 other industrial producers and users    it can reduce and/or avoid the emissions   Association is the oldest and largest pan
                 of CO₂, thereby driving decarbonisation   associated with constructing new   UK association, dedicated to supporting
                 of surrounding industries, generating   infrastructure (e.g., a massive expansion   stakeholders across the entire value chain
                 new CO₂ exploitation opportunities and   of the electricity distribution network   of both the hydrogen sector and the fuel
                 lowering the unit cost of such CCUS   as a result of increasing electrification).   cell industry. Read the full position paper
                 infrastructure.                  We should look at how to optimise the   at www.ukhfca.co.uk



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        CaseForBlueHydrogen.indd   3                                                                              11/08/2021   09:18
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