Transitioning UK Industry to Hydrogen and Carbon Capture

by | Nov 27, 2024

Current Trends and Future Goals

The United Kingdom is at the forefront of integrating hydrogen and carbon capture technologies into its industrial framework. This transformation is pivotal in achieving the UK’s net-zero carbon emissions target by 2050. Industries including energy production, manufacturing, and transportation are exploring or actively implementing the use of hydrogen in its various forms, green, blue, and grey, alongside carbon capture, utilisation, and storage (CCUS) systems.

Hydrogen Applications in UK Industries

Power Generation:

  • Transition:

    Hydrogen is being integrated into power generation to provide a cleaner energy source, replacing natural gas in turbines and power plants.

  • Examples:

    Equinor’s Keadby Hydrogen Power Station in Lincolnshire is developing the world’s first large-scale 100% hydrogen-fired power plant, aiming to produce 1.8 GW of power by 2030.

Steel Production:

  • Transition:

    The steel industry is transitioning to green hydrogen to reduce reliance on coking coal in blast furnaces.

  • Examples:

    UK Steel producers are exploring hydrogen-based steel production following Tata Steel’s closure at its Port Talbot site.

Chemical Industry:

  • Transition:

    Ammonia and fertiliser production are key areas for hydrogen use. Grey hydrogen, traditionally used, is being replaced by green hydrogen for sustainability.

  • Examples:

    INEOS, a major chemicals manufacturer, plans to build a green hydrogen plant in Grangemouth.

Transportation:

  • Transition:

    Hydrogen fuel cells are being utilised for buses, trucks, and trains.

  • Examples:

    Wrightbus produces hydrogen-powered buses; Alstom’s hydrogen trains are being trialled on UK rail networks.

Types of Hydrogen and Their Roles

Green Hydrogen:

    • Produced using renewable energy and water electrolysis.
    • Key for decarbonising industries without emissions.
    • Suppliers: Ørsted, bp, and ITM Power are among the leaders in green hydrogen projects.

Blue Hydrogen:

    • Generated from natural gas with carbon capture.
    • Serves as a transition technology while green hydrogen scales up.
    • Suppliers: Equinor and Shell are active in developing blue hydrogen alongside CCUS.

Grey Hydrogen:

    • Produced from natural gas without capturing emissions.
    • Currently dominant in UK industry but being phased out for greener alternatives.

Carbon Capture Utilisation and Storage (CCUS)

CCUS plays a critical role in the UK’s hydrogen economy, particularly for blue hydrogen. Projects like the Acorn Projectin Scotland and the HyNet North West cluster integrate CCUS with hydrogen production to manage emissions. The UK government has pledged nearly £22bn for projects to capture and store carbon emissions from energy, industry and hydrogen production. The two “carbon capture clusters” on Merseyside and Teesside, have been promised over the next 25 years. These systems also benefit industries like cement and glass manufacturing, which are harder to decarbonise.

Infrastructure and the Role of the Gas Network

The transition to hydrogen heavily relies on the existing gas infrastructure:

  • Current Network:

    The UK’s gas network, managed by companies like National Grid and Cadent, is being upgraded to transport hydrogen blends (up to 20% by 2025) and pure hydrogen by 2035.

  • Planned Expansion:

    The UK Hydrogen Backbone aims to create a dedicated hydrogen pipeline network, connecting industrial clusters and renewable energy sources.

Current Demand, Supply, and Future Goals

  • 1. Demand:

    • Current: Around 27 TWh annually, primarily from grey hydrogen for industrial use.
    • 2030 Goal: Increase to 50 TWh, driven by power generation and industry decarbonisation.
    • 2035 Goal: 80 TWh, including significant adoption in transport and residential heating.

  • 2. Supply:

    • Current: Predominantly grey hydrogen; green and blue hydrogen are in pilot stages.
    • Planned: The UK aims to produce 10 GW of low-carbon hydrogen (5 GW green and 5 GW blue) by 2030, as per the government’s Hydrogen Strategy.

  • 3. Suppliers:

    • Current: Companies like INEOS (grey hydrogen), ITM Power, and Ørsted (green hydrogen).
    • Planned: Major projects include bp’s Teesside hydrogen hub and Equinor’s hydrogen production at Humber.

Challenges and Outlook

  • Meeting Demand:

    By 2030, UK production capacity for green and blue hydrogen may meet much of the industrial demand, but scaling up will require significant investment and policy support.

  • Cost and Competitiveness:

    The cost of green hydrogen remains higher than grey and blue hydrogen, necessitating subsidies or carbon pricing to drive adoption.

  • Infrastructure Readiness:

    The pace of gas network upgrades and the rollout of hydrogen pipelines will determine the feasibility of large-scale hydrogen use.

The UK’s transition to a hydrogen economy is ambitious but essential for achieving decarbonisation targets. Success will depend on synchronising industrial adoption, infrastructure development, and policy support. With planned projects and strategic investments, the UK is poised to become a global leader in hydrogen and carbon capture technologies.

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