Hydrogen is beginning to play a greater role in the global transition to clean, safe and sustainable energy systems by providing an alternative source of energy storage and transport fuels.
We at SREIL understand the benefits and challenges of developing a “hydrogen economy”. Hydrogen, generated from electrolysis, is regarded as the cleanest form of dispatchable energy. However, whilst the efficiency of hydrogen from electrolysis has improved, it remains challenging for it to be developed under current carbon pricing.
Conversely, hydrogen developed from natural gas is more efficient, but must be coupled with Carbon Capture Use and Storage (CCUS) in order to achieve a low emission outcome. Consequently the establishment of hydrogen economies are in their infancy. Japan and South Korea are known to be fast movers in this space, supported by gas from Australia and the Middle East. The UK is trialling the rollout of a hydrogen city in Leeds, underpinned by North Sea Gas. A collaboration of oil and gas companies, Shell, OMV, Total, are sponsoring the rollout of hydrogen fuelling stations in Germany.
SREIL can advise clients and regulators in respect to the financial and regulatory models that will incentivise the development of a hydrogen economy servicing both transport, process heat and electricity generation.