Report

Low-carbon hydrogen supply

Hydrogen could play a significant role in tackling climate change. Using it does not produce carbon dioxide, so it could replace fossil fuels in a range of applications. It may also provide valuable energy storage. However, almost all hydrogen production currently results in greenhouse gas emissions. Methods of producing it that do not emit greenhouse gases would need to increase for it to contribute to climate change mitigation. Governments and industry in the UK and abroad are aiming to increase low-carbon hydrogen supply. The UK Government will publish a Hydrogen Strategy in 2021.

Key messages include:

  • Blue and green hydrogen production are the low-carbon approaches most often considered at large scale. The hydrogen molecules are the same in each case.
  • Blue hydrogen is produced from natural gas and is fitted with carbon capture and storage (CCS) technology. It is closer to large-scale use, but still results in some greenhouse gas emissions. This is because CCS technology is not able to capture all CO2 from production, and natural gas extraction and transportation results in methane leaks.
  • Green hydrogen is produced by splitting water using renewable electricity. It is currently more expensive than blue hydrogen to produce, but is expected to become cheaper in the 2030s. The UK’s offshore wind potential could be used to produce it at scale.
  • Nuclear power or biomass could also be used to produce low-carbon hydrogen, but these approaches are less developed. The latter can help to remove greenhouse gases from the atmosphere.
  • Some stakeholders advocate using the existing gas network to transport hydrogen. Doing so would require upgrades to network infrastructure. It could also be transported by road, rail or ship.
  • If produced in large quantities, hydrogen would need to be stored. There are several ways to do this, but depleted oil and gas fields may have the greatest potential.
  • The UK and Scottish governments have targets to increase low-carbon hydrogen production. The UK Government is expected to publish a Hydrogen Strategy before autumn 2021. It funds several demonstration projects for low-carbon production. It will develop a business model for producing and selling low-carbon hydrogen in 2021.