Unlocking the Potential of Hydrogen in the UK's Net Zero Transition
Key Ideas
  • Low-carbon hydrogen can complement electrification in the UK's transition to net zero by providing an energy source where alternatives are limited.
  • Centrica and FTI Consulting have developed an analytical approach focusing on whole-systems analysis to assess energy markets alongside hydrogen.
  • Hydrogen's value lies in its ability to balance the electricity system by being produced from surplus wind energy and converted back during low wind periods.
  • Policy priorities should focus on building sufficient hydrogen transport and storage capacity to support a functional hydrogen market.
The article discusses the uncertain yet promising role of hydrogen in the United Kingdom's journey towards achieving net zero emissions. Low-carbon hydrogen is seen as a complement to electrification, especially in circumstances where other low-carbon alternatives are limited. To facilitate critical discussions and decision-making across various sectors, Centrica and FTI Consulting have collaborated to develop a unique analytical approach that assesses the energy system as a whole. This approach integrates detailed market models for electricity, gas, and hydrogen, enabling a comprehensive evaluation of interactions such as electricity prices, hydrogen production, and gas prices. The study emphasizes the significance of hydrogen in the electricity sector, particularly in utilizing surplus wind power to produce hydrogen during windy periods and converting it back to electricity to balance the system during low wind periods. However, to realize this potential, there is a need for sufficient hydrogen transport and storage infrastructure to ensure the smooth functioning of the hydrogen market. The report underscores the importance of addressing these infrastructure needs as key policy priorities for the successful integration of hydrogen into the energy transition towards net zero emissions.
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