Hydrogen UK’s findings support the UK’s twin-track approach developing both electrolytic, which splits water into hydrogen and oxygen using renewable and nuclear energy; and CCUS-enabled hydrogen production, which uses natural gas and captures the CO2 for use or storage.
Commenting on the reports, Clare Jackson, CEO of Hydrogen UK said: “The UK has astutely recognised the distinct benefits of both electrolytic and CCUS enabled production. By developing both in tandem, we have an opportunity to deliver faster, deeper decarbonisation and capture the economic value associated with both pathways. The UK must now follow through on our ambitions, getting projects off the ground and targeting investment at areas of the value chain which will deliver cost reductions and where we can develop global leadership.”
With electrolytic hydrogen production having low or zero associated emissions, the Hydrogen UK Electrolytic Production Report noted how the electrolytic supply chain is made up of many components, and capturing as much of this supply chain domestically will provide local economic growth and opportunities for electrolytic efficiency improvements through group effects, innovation and domestic skills.
In Hydrogen UK’s CCUS-enabled Production Report, a key finding is that the production method can readily meet the definition of ‘low-carbon’. Secondly, CCUS can deliver hydrogen at scale and pace, and when multiple projects are delivered concurrently, this will allow the UK to go further and faster in its efforts to decarbonise. Furthermore, there are significant economic benefits to the UK pursuing CCUS-enabled hydrogen including job creation, GVA and transitioning the jobs in the oil and gas industry.
Hydrogen UK will be discussing these production report findings and its recommendations to attendees of the Conservative and Labour Party conferences in October 2023, to ascertain the commitment and clarity from the government and opposition.