Report highlights hydrogen infrastructure needed in a hydrogen economy
A new report released through the Department for Business, Energy and Industrial Strategy (BEIS) on requirements for hydrogen transportation and storage infrastructure up to 2035 has found that large-scale storage, such as salt caverns, will be required to provide security of demand for hydrogen producers and security of supply for consumers.
Delivered by systems and engineering technology consultancy Frazer-Nash Consultancy, in partnership with independent energy research and analytics firm Cornwall Insight, the report identifies the need for new large-scale hydrogen production centres and says most hydrogen produced in large centres will need to be distributed via pipeline, rather than by road.
The report was commissioned in support of the government’s UK Hydrogen Strategy, with the aim of creating a foundation for future policy development to help meet the government’s hydrogen production targets and enable the hydrogen economy to deliver its potentially substantial carbon and economic benefits.
The research also recommends a review of the current rules for the transport of hydrogen by road, as well as the storage of hydrogen in surface storage tanks, to assess their suitability for more widespread use.
The report is structured around five main areas:
Identifying key components of the hydrogen economy (production, transportation and storage, and demand), combining them to identify a series of archetypes where the different technologies work together
Providing predictions for hydrogen demand up to 2035
Combining the archetypes and demand predictions to provide estimated hydrogen transportation and storage infrastructure requirements. These are then used to predict costs
Exploring commercial arrangements that apply to hydrogen transportation and storage infrastructure
Outlining potential barriers to investment in hydrogen transportation and storage infrastructure
A key recommendation of the report is to consider a funding model for salt cavern storage projects.
Frazer-Nash Government Energy Business Manager, Felix Ritchie, said, “Delivering this crucial piece of research relating to hydrogen transport and storage requirements will provide important insights for how we develop policy to support the UK’s ambitions for a hydrogen economy.”
Frazer-Nash Project Manager, David Munn, added, “It was great to deliver this important future-focused piece of work for the UK government, highlighting areas where there is significant uncertainty for future costs for UK infrastructure. We are grateful to the numerous stakeholders who engaged with us in developing the framework for estimating future costs and understanding potential commercial arrangements.”
Jitendra Patel from Cornwall Insight said, “Developing a fit for purpose, operationally and commercially viable hydrogen economy is crucial for decarbonisation, helping to unlock investment. Understanding how other similar industries have developed their rules and governance structures is a vital step in ensuring lessons learnt are carried forward.”
Read the report in full here