Green hydrogen production in the UK

Kevin Kinsella, head of ERM’s Energy Transition business for Northern Europe, is known for advising clients on low-carbon energy transition strategies and de-risking technological solutions, particularly for hydrogen. He states:

“We’re in the best position in Europe, having by far the best wind resources. We have a leading offshore oil and gas industry and offshore wind industry, supported by the best supply chain in Europe, along with all the technical resources and know-how to deliver it.

With Net Zero by 2050 written into UK law, this is a fantastic opportunity for the oil and gas industry to transition smoothly from fossil fuels to green energy, using the same skills and resources, and at the same time become a net exporter of green energy to Europe.”

The development of green hydrogen production has been actively supported by the UK government. In December 2023, 11 new green hydrogen projects were announced across England, Scotland, and Wales.

These projects have a cumulative capacity of 125 MW and are among the first commercial-scale green hydrogen projects in the world. The government has allocated a substantial GBP 3.9 billion ($5 billion) for green hydrogen production and carbon capture, utilization, and storage (CCUS) projects for the 2025–2026 period.

Technological Advancements

The growth of green hydrogen production is driven by several technological advancements in the UK. One notable innovation comes from a UK startup called Drift, which has developed AI-powered sailboats equipped with underwater turbines and onboard electrolyzers to produce green hydrogen while in motion.

This innovative approach supports wind power and maritime technology for producing clean hydrogen at sea.

Economic Impact

The government’s support for green hydrogen projects is projected to create over 700 jobs and unlock more than GBP 11 billion in investment by 2030. This investment aims to position the UK as a world leader in the hydrogen industry, providing cleaner fuel for energy-intensive industries and transportation.

Environmental Benefits

A major benefit of green hydrogen is the reliance on renewable energy sources. This process supports carbon emission reduction and facilitates the transition to a low-carbon economy. The UK’s commitment to green hydrogen production also aligns with its net zero ambitions and contributes to global efforts to combat climate change.

Challenges

However, there are challenges, such as the high cost of production, which is being addressed through technological advancements and economies of scale. Additionally, the intermittent nature of renewable energy sources requires efficient energy storage solutions to ensure a steady supply of green hydrogen.

The future looks promising for green hydrogen expansion in the UK. The country aims to reach up to 10 GW of low-carbon hydrogen production capacity by 2030, including up to 1 GW of electrolytic hydrogen and up to 1 GW of carbon capture, utilization, and storage (CCUS) capacity by 2025. These projects are allocated for alternative technology implementation between 2025 and 2030.

Sources:- UK Gov, pv magazine, IDR, Green Hydrogen organization, Hydrogen Association Map, S&P Global, Hydrogen UK