The Future of Green Hydrogen in the UK: Meeting Net-Zero Goals

by | Sep 30, 2024

The UK is on an ambitious path to reach net-zero emissions by 2050, with green hydrogen set to play a central role in this transition. As demand for clean energy solutions grows, green hydrogen is emerging as a crucial player, offering a sustainable alternative to fossil fuels. Haush explores the role of green hydrogen in the UK’s net-zero targets, and the current production landscape, highlighting Haush’s contributions to the green hydrogen economy.

UK Hydrogen Strategies: Paving the Way to Net Zero

The UK government’s Hydrogen Strategy, published in 2021, marked its commitment to hydrogen as a key pillar of its decarbonisation agenda. The strategy targets 5 GW of low-carbon hydrogen production capacity by 2030, with a strong emphasis on both green and blue/grey hydrogen as transitional technologies. Key goals include:

  • Scaling hydrogen production to support industries like transport, heating, and power generation.
  • Developing hydrogen infrastructure, including production plants, storage facilities, and refuelling stations.
  • Facilitating innovation in hydrogen technologies to reduce costs and improve efficiency.

Green vs. Grey Hydrogen: Why Green is the Future

Hydrogen production can be categorised into two major types:

  • Green Hydrogen: Produced using renewable energy (e.g., wind or solar) to split water into hydrogen and oxygen through electrolysis. This process emits zero carbon and aligns perfectly with long-term decarbonisation goals.
  • Blue/Grey Hydrogen: While blue hydrogen involves capturing and storing carbon emissions from natural gas-based hydrogen production, grey hydrogen is produced using natural gas without any carbon capture, making it a less sustainable option. Despite this, blue/grey hydrogen is seen as a bridge to help scale hydrogen infrastructure before green hydrogen becomes more economically viable.

Current Hydrogen Demand in the UK (2023):

1. Transport:

Currently, hydrogen use in UK transport is quite limited, accounting for around 0.02% of the national demand (around 20,000 tonnes annually). This is primarily due to the lack of refuelling infrastructure and the reliance on fossil-fuel-based hydrogen (grey hydrogen). However, Element 2 is expanding the UK’s first scaled hydrogen refuelling station network and infrastructure. 

  • Heavy Goods Vehicles (HGVs):
    Hydrogen offers strong potential for HGVs due to their energy needs. Hydrogen fuel cell electric vehicles (FCEVs) are a viable alternative to battery electric vehicles (BEVs) for long-distance logistics. Major projects, such as Wrightbus’ hydrogen buses and fleet-focused hydrogen refuelling hubs, are advancing, but wider adoption is still limited.
  • Light Goods Vehicles (LGVs): 
    LGVs are starting to explore hydrogen, but adoption is minimal, as BEVs dominate. For example, UK fleet operators with centralised hubs could use hydrogen for back-to-base refueling in the future​.
  • Public Transport (Buses):
    The hydrogen bus sector is gaining momentum, especially in urban areas. Projects like Go-Ahead’s hydrogen buses in Crawley show how hydrogen can decarbonize high-frequency bus routes​.
  • Cars:
    Hydrogen cars are not yet widely adopted due to the lack of infrastructure and competition from electric vehicles. The focus for hydrogen is more on larger, commercial vehicles.
  • Back-to-base Vehicles:
    Hydrogen refuelling is more practical for fleet-based vehicles returning to a central hub, making it ideal for logistics​.

2. Transport Use Case

Hydrogen Buses in Aberdeen:

  • Aberdeen’s Hydrogen Bus Fleet:
    • Aberdeen is a leader in the UK when it comes to using hydrogen for public transport, particularly hydrogen-powered buses. The city has been running one of Europe’s most advanced hydrogen bus projects and is home to a growing fleet of hydrogen-powered public service vehicles (PSVs).In 2015, Aberdeen launched Europe’s largest fleet of hydrogen buses with the introduction of 10 hydrogen fuel cell buses. These buses produce zero emissions, with water as their only byproduct, and they are powered by hydrogen produced locally.
    • In 2020, Aberdeen expanded this initiative with the introduction of double-decker hydrogen buses, making it the first city in the world to deploy such buses. Manufactured by Wrightbus, these buses serve busy routes, showcasing the city’s commitment to hydrogen.
  • Infrastructure and Refueling:
    • Aberdeen has built significant hydrogen infrastructure, including two refuelling stations at Kittybrewster and a production facility at Aberdeen City Hydrogen Energy Storage (ACHES), which generates hydrogen via electrolysis using renewable energy sources.
    • The city plans to further expand its hydrogen production and refuelling capabilities as part of the Hydrogen Transport Hub initiative​.
  • Public Transport and Hydrogen Strategy:
    • Aberdeen’s hydrogen strategy is closely aligned with Scotland’s wider ambitions to lead the UK in hydrogen use. As part of the Aberdeen Hydrogen Hub, the city aims to scale hydrogen use not only in buses but also in other types of vehicles like refuse trucks and heavy goods vehicles (HGVs).
    • The Aberdeen City Council plans to expand the fleet to more than 50 hydrogen vehicles by 2030, including public service vehicles.

3. Industry:

Industrial demand for hydrogen in the UK is still dominated by grey hydrogen, especially in sectors like chemicals and refining. Most of this hydrogen is produced on-site. However, projects like the Bradford Low Carbon Hydrogen facility and investments in green hydrogen production aim to meet industrial decarbonisation needs.

Forecasted UK Demand Through 2030:

  • Transport: The demand for hydrogen in the transport sector is expected to increase significantly by 2030, driven by government targets to decarbonise heavy transport and public transit. Projects such as hydrogen refuelling networks and fuel cell HGVs are expected to expand​.
  • The UK government’s Hydrogen Strategy predicts demand from HGVs could reach tens of thousands of tonnes of hydrogen annually by 2030.
  • Industry: Industrial demand for green hydrogen is expected to rise as companies shift from grey hydrogen to meet net-zero goals. Hydrogen demand in industries like steel, chemicals, and refining is projected to grow significantly.​
  • By 2030, industrial hydrogen demand could reach hundreds of thousands of tonnes annually as more companies invest in green hydrogen production.

Companies and Initiatives Leading Hydrogen Production in the UK

A number of companies and initiatives are spearheading hydrogen production in the UK, aiming to meet the growing demand for clean energy. These efforts are backed by both government incentives and private investments, positioning the UK as a global leader in hydrogen technology.

1. BP and Equinor – H2Teesside and Hydrogen to Humber

BP and Equinor are key players in the UK’s hydrogen economy. BP’s H2Teesside project aims to produce up to 1 GW of blue hydrogen by 2030, making it one of the largest hydrogen production facilities in the country. The project will leverage carbon capture and storage (CCS) to significantly reduce emissions from the production process. This initiative is part of the wider East Coast Cluster, which aims to develop the UK’s first decarbonized industrial cluster by the mid-2020s.

Similarly, Equinor’s Hydrogen to Humber (H2H Saltend) project aims to produce 600 MW of low-carbon hydrogen by 2026. This project focuses on supplying hydrogen to industrial users in the Humber region, reducing their carbon footprint.

2. ITM Power – Gigastack

ITM Power, a UK-based hydrogen specialist, is leading the Gigastack project in collaboration with Ørsted. This green hydrogen initiative aims to build a 100 MW electrolyser facility by 2025, using offshore wind power to produce clean hydrogen. Gigastack is considered a key component of the UK’s green hydrogen strategy and has the potential to scale up significantly as part of the country’s broader renewable energy plans.

3. Shell – Acorn Hydrogen

Shell is partnering with Acorn Hydrogen in Scotland to develop blue hydrogen production as part of the Acorn CCS project. The initiative, based at St. Fergus gas terminal, could produce up to 1.6 million tonnes of blue hydrogen per year by the mid-2020s. This project will play a vital role in decarbonising Scotland’s industrial clusters.

4. Centrica – HyNet

The HyNet North West project, supported by Centrica, aims to produce 80% of the UK’s hydrogen supply by 2030 using a mix of blue and green hydrogen. The project includes hydrogen production, distribution, and CCS technologies to serve industrial hubs in North West England and North Wales. The goal is to produce up to 10 GW of low-carbon hydrogen by 2030, positioning HyNet as a cornerstone of the UK’s hydrogen ambitions.

5. INEOS – Grangemouth Green Hydrogen Hub

INEOS, a global chemicals company, has announced plans to build a green hydrogen production facility at its Grangemouth site in Scotland. The plant will use renewable energy to produce hydrogen for industrial use, reducing the company’s carbon footprint. This initiative will contribute to the UK’s green hydrogen supply and support the decarbonisation of heavy industries.

6. ScottishPower – Whitelee Windfarm Hydrogen Project

ScottishPower is leading the development of the UK’s largest green hydrogen project at Whitelee Windfarm, the largest onshore wind farm in the UK. The project will use wind power to produce up to 40 tonnes of green hydrogen per day by 2025, primarily to decarbonise public transport and heavy-duty vehicles in the region.

7. National Grid and Cadent – HyDeploy

The HyDeploy project, led by National Grid and Cadent, is focused on blending hydrogen into the UK’s natural gas network to decarbonise domestic heating. HyDeploy’s pilot projects have already demonstrated the feasibility of blending up to 20% hydrogenwith natural gas, with plans to expand hydrogen blending in the future as part of the UK’s hydrogen heating strategy.

Green Hydrogen and the Future of Transport

Green hydrogen holds great promise for decarbonising the transport sector, especially for heavy-duty, long-range applications where battery-electric vehicles may not be viable. Hydrogen offers a higher energy density and faster refuelling times, making it ideal for use in:

  • Heavy Goods Vehicles (HGVs): Hydrogen fuel cells can power long-haul trucks, reducing emissions in the logistics sector.
  • Light Goods Vehicles (LGVs) and Back-to-Base Fleets: Hydrogen can provide clean energy for commercial fleets that require high uptime and efficiency.
  • Private Vehicles: While electric vehicles dominate the personal transport market, hydrogen fuel cell vehicles offer an alternative for those seeking longer-range and rapid refuelling.
  • Rail: Hydrogen trains are already being trialled in the UK, offering a zero-emission alternative to diesel on non-electrified routes.
  • Marine and Aviation: Hydrogen can play a critical role in decarbonising ships and aeroplanes, especially in the form of hydrogen-derived synthetic fuels.

Haush’s Role in the UK’s Green Hydrogen Economy

As part of the UK’s green energy transition, Haush is investing heavily in hydrogen production. By 2028, Haush will produce up to 360 MW of green hydrogen, equivalent to over 170,000 kg of hydrogen per day, at its facilities in Pembroke (Wales), Lanarkshire (Scotland), Inverclyde (Scotland), and the Midlands (England). With an off-taker already secured for 100,000 kg/day, Haush’s projects will significantly contribute to the decarbonisation of key industries and transport sectors.

To Conclude:

The UK is positioning itself as a global leader in hydrogen production, with companies like BP, Equinor, ITM Power, and Haush spearheading efforts to scale green and blue hydrogen. By 2030, these initiatives will collectively contribute to the UK’s ambitious net-zero targets, transforming energy, transport, and industry in the process. Green hydrogen, in particular, will play an essential role in decarbonising sectors that are difficult to electrify, offering a sustainable path toward a cleaner, greener future.

Stay tuned to Haush’s journey as we contribute to the UK’s hydrogen economy and help accelerate the shift to green energy. Follow us on LinkedIn and X for the latest updates.

SOURCES: ​(IEA), (RBS Intl Banking), ​(Smart Motorways Management Taskforce).

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