Recommendations & Conclusions
27 items
1
Recommendation
Fourth report - The role of hydrogen in…
Deferred
To meet the 2050 Net Zero target, decisions need to be urgently taken by the Government, which will help define hydrogen’s place in the UK’s overall decarbonisation strategy. These decisions should be integrated across Government, in policy areas such as those identified in the Ten Point Plan for a Green …
Government response. The Government acknowledges the need for clarity on hydrogen's role but says it's challenging to be overly prescriptive ahead of insights from pathfinder projects throughout the 2020s, as the hydrogen economy is at an early stage of development. The government …
Department for Science, Innovation and Technology
2
Conclusion
Fourth report - The role of hydrogen in…
Acknowledged
Hydrogen has several distinctive features as a low-carbon gaseous fuel and could contribute to the UK’s energy system, including through improving resilience and energy security. Whilst in some applications hydrogen is less efficient compared to alternative low-carbon technologies, the wider energy system benefits of deploying hydrogen must be acknowledged, and …
Government response. The government acknowledges that system level thinking has been a key element of its approach to developing hydrogen in the UK, and that the potential impacts on system resilience and energy security are reflected in the increased ambition brought forward …
Department for Science, Innovation and Technology
3
Conclusion
Fourth report - The role of hydrogen in…
Acknowledged
The Government has chosen at this stage to support the development of both green and blue hydrogen. We heard that the initial adoption of blue hydrogen will be cheaper than green hydrogen, and ready to use in certain niche industrial settings sooner. However, several analysts have argued that green hydrogen …
Government response. Government has been clear in the UK Hydrogen Strategy and subsequent publications that it considers support for multiple production routes the most appropriate approach while building the hydrogen economy.
Department for Science, Innovation and Technology
4
Recommendation
Fourth report - The role of hydrogen in…
Accepted in Part
There is uncertainty about the extent to which blue hydrogen can play a role in a Net Zero economy in the mid to long term, even if it may be cheaper and ready to deploy in certain industrial settings sooner than green hydrogen, as some industrial users already possess the …
Government response. The government supports multiple hydrogen production technologies, including both electrolytic and CCUS-enabled hydrogen, as set out in 2021’s UK Hydrogen Strategy and capture rate of at least 85% would be achieved in order for CCUS-enabled technologies to comply with the …
Department for Science, Innovation and Technology
5
Recommendation
Fourth report - The role of hydrogen in…
Accepted
Carbon capture, utilisation and storage (CCUS) technology should be an area of priority research interest for the Department for Business, Energy and Industrial Strategy, and a strategic priority for UK Research and Innovation. (Paragraph 56) 72 The role of hydrogen in achieving Net Zero
Government response. The government states that it has already invested over £346 million into CCUS Research, Development and Deployment (RD&D) between 2004 and 2021, and that Advanced CCUS and Greenhouse Gas Removal (GGR) innovation would be two of the ten priority areas …
Department for Science, Innovation and Technology
6
Recommendation
Fourth report - The role of hydrogen in…
Accepted
Several countries are prioritising green hydrogen in their hydrogen strategies, and it seems likely that international interest in demonstrably low-carbon hydrogen, including green hydrogen, will continue to grow. This offers an opportunity for the UK to become a leader in green hydrogen production and development. The Government needs to provide …
Government response. The government states its ambition to up to 10GW of low carbon hydrogen production capacity by 2030, with at least half of this coming from electrolytic hydrogen, and an aim to run annual Hydrogen Production Business Model (HPBM) allocation rounds …
Department for Science, Innovation and Technology
7
Recommendation
Fourth report - The role of hydrogen in…
Accepted
The Government should set a 2030 target for green hydrogen production to ensure that full-scale development of green hydrogen is incentivised to take place in the short- term and to make it more likely that the UK develops a green hydrogen production capacity. The Government should be clear whether any …
Government response. The government doubled the UK’s ambition to up to 10GW of low carbon hydrogen production capacity by 2030, subject to affordability and value for money, with at least half of this coming from electrolytic hydrogen.
Department for Science, Innovation and Technology
8
Recommendation
Fourth report - The role of hydrogen in…
Accepted
Energy storage for electricity generation is widely recognised as an important component of the Net Zero economy, and there are several potential technologies available for energy storage. Hydrogen has unique features as a means of energy storage, since as a clean-burning gas it can be transported through existing infrastructure and …
Government response. The government recognised hydrogen storage (along with transport) infrastructure as an important enabler of the hydrogen economy and committed to designing a hydrogen storage infrastructure business model by 2025, with a consultation on hydrogen transport and storage business models published …
Department for Science, Innovation and Technology
9
Recommendation
Fourth report - The role of hydrogen in…
Acknowledged
Hydrogen can undoubtedly help key UK industrial sectors decarbonise. There is a widespread recognition of the importance of regulatory reform and an effective business model in incentivising a switch to low-carbon hydrogen use. We welcome the Government’s use of industrial clusters to trial the use of hydrogen. The Government must …
Government response. DESNZ is monitoring and evaluating the processes and impacts of its policies in the low-carbon hydrogen space in industrial clusters and beyond to incorporate lessons learnt into future policy design, and has commissioned a study to capture feedback about the …
Department for Science, Innovation and Technology
10
Conclusion
Fourth report - The role of hydrogen in…
Deferred
Passenger battery electric vehicles for road transport have established a seemingly unassailable lead over other green alternatives, meaning that it looks likely that hydrogen will play in the near future, at most, a small part in decarbonising passenger cars.
Government response. The government acknowledges the need for clarity but states it's too early to be prescriptive, preferring to gain insights from pathfinder projects throughout the 2020s before making firm decisions on the role of hydrogen.
Department for Science, Innovation and Technology
11
Conclusion
Fourth report - The role of hydrogen in…
Accepted
Whilst there is lower round-trip efficiency compared to electrification, hydrogen vehicles have the advantage of shorter refuelling times and longer ranges. This therefore makes hydrogen a potentially viable alternative to electrification for HGVs, but widespread adoption of hydrogen in HGVs can only be achieved with an The role of hydrogen …
Government response. The government states the Zero Emission Road Freight Demonstrator (ZERFD) programme intends to put hundreds of zero emission heavy good vehicles into operation with supporting refuelling infrastructure and that a Freight Energy Forum will assess the freight sector's future energy …
Department for Science, Innovation and Technology
12
Recommendation
Fourth report - The role of hydrogen in…
Accepted
We welcome the trials of hydrogen buses which are taking place in the UK. The Government should continue to support such trials and come to a rapid view of the contribution that hydrogen-fuelled buses can make. Trials should consider the implications for other applications such as HGVs, and the decisions …
Government response. The Department for Transport (DfT) continues to support the introduction of Zero Emission Buses (ZEBs) across the UK, which includes both electric and hydrogen vehicles through green bus funding schemes, and has seen that, in the vast majority of cases, …
Department for Science, Innovation and Technology
13
Recommendation
Fourth report - The role of hydrogen in…
Acknowledged
Hydrogen has a modest but potentially critical role to play in decarbonising the rail network, where electrification is not suitable or cannot be delivered in time to contribute towards meeting Net Zero. Whilst trials and demonstration projects are underway in hydrogen trains, there is no clear plan to develop the …
Government response. DfT officials will continue to liaise with international colleagues to understand their approaches to hydrogen trains and the lessons they have learned from deploying them and will use learnings from international colleagues to shape any future hydrogen train trials supported …
Department for Science, Innovation and Technology
14
Recommendation
Fourth report - The role of hydrogen in…
Not Addressed
The Government must identify, with industry, the train lines where it is unlikely that electrification will be viable before 2050 and start trials of hydrogen trains on these lines in the next five years.
Government response. The government's response discusses requiring hydrogen-ready natural gas boilers from 2026, which is unrelated to the recommendation about hydrogen trains and electrification.
Department for Science, Innovation and Technology
15
Recommendation
Fourth report - The role of hydrogen in…
Deferred
Hydrogen has an important role to play in decarbonising shipping and aviation, but parts of the transport industry want more clarity from Government about the intended role of hydrogen since there are significant infrastructure requirements and substantial costs that need to be met. There are also significant infrastructure requirements associated …
Government response. The government acknowledges the need for clarity but states it's too early to be prescriptive, preferring to gain insights from pathfinder projects throughout the 2020s before making firm decisions on the role of hydrogen.
Department for Science, Innovation and Technology
16
Recommendation
Fourth report - The role of hydrogen in…
Acknowledged
The Government should use its influence internationally, following its leadership of COP26 and involvement in Mission Innovation, to set standards and timelines for decisions on the role of alternative fuels and hydrogen within aviation and shipping. In these areas the Government should seek to lead the development of standards that …
Government response. The government acknowledges the important role of hydrogen and alternative fuels and states it is committed to supporting their development and deployment through international platforms such as the International Aviation Climate Ambition Coalition and the Zero Emission Shipping Mission.
Department for Science, Innovation and Technology
17
Conclusion
Fourth report - The role of hydrogen in…
Acknowledged
Hydrogen could play a role in domestic heating, but the extent of its potential is still uncertain and looks likely to be limited rather than widespread. We are unconvinced its deployment will prove to be economically viable by the time the Government has said it will determine the role of …
Government response. Government is proposing to require that from 2026 all newly installed domestic-scale natural gas boilers be hydrogen-ready, and is awaiting a response to the consultation on boiler standards before publishing its updated thinking.
Department for Science, Innovation and Technology
18
Recommendation
Fourth report - The role of hydrogen in…
Acknowledged
Overall, whilst there are a variety of possible applications of hydrogen technology across every sector of the UK economy, we agree with the Government that on the basis of present knowledge and the technology available it seems that the role of hydrogen will be to decarbonise specific, limited areas where …
Government response. The government states that the UK Hydrogen Strategy sets out a holistic approach to growing the hydrogen economy, and that it continues to be guided by the principles set out in the strategy.
Department for Science, Innovation and Technology
19
Conclusion
Fourth report - The role of hydrogen in…
Acknowledged
Metering is an essential component of any use case for hydrogen in domestic settings. We have heard that the current generation of gas smart meters are designed to measure volume flows of natural gas which are much lower than hydrogen volume flows for the same energy delivery, so are unlikely …
Government response. The government acknowledges the need for meter accuracy, especially distinguishing between hydrogen blends and 100% hydrogen, and states that the OPSS and suppliers are working to ensure meter accuracy.
Department for Science, Innovation and Technology
20
Conclusion
Fourth report - The role of hydrogen in…
Accepted
The energy regulator Ofgem has not worked on understanding hydrogen domestic metering and has not been able to say whether the current roll-out of smart meters will prove ineffective if hydrogen is used in domestic metering. Ofgem was also unable to provide cost estimates for how expensive a hydrogen-ready smart …
Government response. The government claims that domestic metering has not been overlooked, stating that most gas smart meter manufacturers are actively developing hydrogen meter technology and that DESNZ regularly engages with meter manufacturers.
Department for Science, Innovation and Technology
21
Conclusion
Fourth report - The role of hydrogen in…
Acknowledged
An urgent project on metering domestic hydrogen use needs to be undertaken. This should include an assessment of: • whether and when the current generation of gas smart meters need to be (a) adapted, or (b) replaced; • what technology could and should be used in new meters to accommodate …
Government response. The government acknowledges that current smart meters could work on a 20-23% hydrogen blend, with ongoing assessment by the OPSS. They mention the Hy4Heat program and hydrogen heating trials that will inform strategic decisions in 2026.
Department for Science, Innovation and Technology
22
Recommendation
Fourth report - The role of hydrogen in…
Accepted
Several countries including Germany, Japan and Singapore have well developed hydrogen strategies with significant public funding to support the development of infrastructure, production and use of low-carbon hydrogen. Through public- private partnerships, Germany and Japan have structures intended to enable the development of a regulatory framework and provide confidence to …
Government response. The government states that DESNZ is accountable for net zero and works across departments, and ensures alignment through the Domestic and Economic Affairs Cabinet Committee, shared Outcome Delivery Plans and sector strategies.
Department for Science, Innovation and Technology
23
Recommendation
Fourth report - The role of hydrogen in…
Accepted
The Government’s hydrogen strategy and subsequent updates to the market provide a framework with an intention for further consultations rather than early or firm decisions. The Government’s understandable desire to keep its options open pending market and technological developments may not provide the clarity that investors require to proceed. The …
Government response. The government aims to be market-led and technology-neutral, funding research and studies across multiple end uses, such as the Industrial Hydrogen Accelerator and Industrial Fuel Switching competitions, to support market determination of the best technology mix.
Department for Science, Innovation and Technology
24
Conclusion
Fourth report - The role of hydrogen in…
Acknowledged
There appear to be opportunities and advantages in the UK accelerating its decarbonisation of the economy by focusing on hydrogen and becoming a leader in low- carbon hydrogen production, distribution, and deployment for multiple purposes. But, as discussed in this Report there are still uncertainties which entail the risk that …
Government response. The government states that the Sector Development Action Plan (SDAP) sets out actions to maximize the benefits to the UK from the development of the hydrogen economy, focusing on attracting investment, supporting supply chains, developing skills, and securing trade opportunities.
Department for Science, Innovation and Technology
25
Recommendation
Fourth report - The role of hydrogen in…
Acknowledged
The Government should identify its priorities for hydrogen in the economy and recognise the opportunity of hydrogen development in delivering Net Zero and developing a resilient energy system. In its response to this Report, the Government should set out what further work has been done and what more is planned …
Government response. The government states that hydrogen has a potential role in various sectors and that DESNZ is working to understand the capabilities and capacity of UK supply chains across the full value chain to maximize benefits to the UK.
Department for Science, Innovation and Technology
26
Conclusion
Fourth report - The role of hydrogen in…
Accepted
Whilst much of the technology needed for hydrogen exists and can be scaled up with sufficient policy incentives, innovation in low-carbon hydrogen technology remains important. This includes both the further development of techniques and technologies that are already proven, and the further development, and bringing- to-market, of projects that are …
Government response. Government agrees that innovation in low-carbon hydrogen technology is critical and continues to make significant investments in hydrogen research and innovation through a number of programmes, run by government departments and bodies like UKRI.
Department for Science, Innovation and Technology
27
Conclusion
Fourth report - The role of hydrogen in…
Acknowledged
As with other low-carbon systems, there are costs associated with the development of infrastructure and the uptake of hydrogen use within every use case. The relatively higher prospective cost of low-carbon hydrogen will increase overall costs of, for example, manufacturing, transportation, or heating. There is a risk that because of …
Government response. The government acknowledged the risk of non-competitiveness due to the higher costs of low-carbon hydrogen and outlined measures such as the Hydrogen Production Business Model (HPBM), transport and storage infrastructure, and exploring the need for market intervention on hydrogen power.
Department for Science, Innovation and Technology