Hydrogen: The Essential Player in Decarbonising UK Industry

By Brett Ryan, Policy Lead Hydrogen UK

As the UK accelerates its journey towards net-zero emissions, the industrial sector faces unique challenges in decarbonisation. While electrification is a viable solution for many processes, there are significant barriers that make it impractical for certain high-heat, energy-intensive applications. This is where hydrogen steps in as an indispensable player in the decarbonisation landscape.

Government Findings on Electrification Barriers

The UK government's "Enabling Industrial Electrification " summary of responses that was released this month highlights several barriers to electrifying industry, including: grid connection delays; technology gaps, with electric alternatives not suitable for high-heat, high-power processes; electricity is significantly more expensive than gas; lack of confidence in novel technologies; site-specific barriers providing varying levels of difficulty to electrification; high capital expenditure and the cost of retiring existing technology; integrating new technologies and managing intermittent energy use; and uncertainty about the availability and support for hydrogen versus electrification.

Hydrogen: The Decarbonisation Catalyst

The Hydrogen UK Industry Working Group, made up of key industrial actors such as Phillips 66, Johnson Matthey, bp, Carlton Power, Honeywell and BOC, highlight hydrogen's critical role in overcoming these barriers and decarbonising UK industry.

Hydrogen is uniquely positioned to address the challenges faced by hard-to-abate industries. One of the primary reasons is its ability to provide high-temperature heat, which is essential for industrial processes such as steelmaking, cement production, and glass manufacturing. These processes often require temperatures exceeding 1000°C, which are difficult to achieve with electric alternatives. Additionally, in the steel industry, hydrogen can replace coking coal in the direct reduction of iron ore, significantly reducing CO2 emissions.

Hydrogen also serves as a crucial chemical feedstock, particularly in the production of ammonia via the Haber-Bosch process, which is vital for creating fertilisers. Furthermore, low-carbon hydrogen can be used as a substitute for natural gas and other fossil fuels for heating and power generation for industrial plants, thus reducing carbon emissions. When produced via electrolysis using renewable energy (green hydrogen), it offers a pathway to deeper decarbonisation of industrial processes that are currently reliant on carbon-intensive fuels.

Next steps for hydrogen in industry

To effectively harness hydrogen's potential in these hard-to-abate industries, several actions need to be taken. Continued research and development are essential to improve the efficiency, scalability, and cost-effectiveness of hydrogen technologies, particularly for high-heat applications. Large-scale demonstration projects can help prove the viability of hydrogen technologies in industrial settings and increase confidence among stakeholders.

Building the necessary infrastructure for hydrogen production, storage, transport, and distribution is crucial to ensure a reliable and low-cost supply of hydrogen for industrial use.

Policy support from the government can facilitate the transition by implementing supportive measures such as carbon pricing, grants for low-carbon technologies, and regulations that encourage or mandate the use of low carbon hydrogen in industry. Market mechanisms like Carbon Contracts for Difference (CCfDs) can provide a stable and predictable carbon price, incentivising industries to invest in low-carbon technologies like hydrogen. Governments can also use their purchasing power to preferentially buy goods produced with low-carbon processes, thus creating a market for hydrogen-based industrial products.

International collaboration, sharing best practices, technology transfer, and joint investments can all help accelerate the global adoption of hydrogen solutions in hard-to-abate sectors. Developing a skilled workforce capable of operating and maintaining hydrogen technologies is essential for the successful integration of hydrogen into industrial processes. This must also be supported by establishing clear safety protocols and industry standards for hydrogen use to ensure safe and consistent practices across different sectors and regions.

Hydrogen is poised to play a pivotal role in the UK's industrial decarbonisation efforts. By addressing the barriers to electrification and leveraging hydrogen's unique advantages, we can achieve significant emissions reductions in sectors that are otherwise difficult to decarbonise. As we continue to innovate and invest in hydrogen technologies, we pave the way for a cleaner, more sustainable industrial future.