H₂ Equipment and Services

C. MCWHIRR, Xodus, Aberdeen, Scotland, UK

Renewable hydrogen (H₂) is set to play an essential role in displacing carbon emissions to support net-zero ambitions, particularly for hard-to-abate sectors such as heavy industry, shipping, heavy-goods vehicles and heating (where direct electrification is difficult). 

Earlier this year, the UK’s Climate Change Committee (CCC), which advises the UK and devolved governments on emissions targets, produced the report, “Delivering a reliable decarbonised power system.” The research highlighted the need for the electricity network to adopt energy storage more swiftly and discussed the increasingly pivotal role of H₂ on the route to net-zero. It concluded that the best current solution is H₂. 

The CCC has added a caveat, however: there is likely to be a shortfall of H₂ production by 2035. The report went as far as discussing the potential import to the UK of gas for blue H₂ production or of green H₂.  

The author believes this indicates that industry is not on track to produce enough domestic H₂ to support the power systems needed to meet greenhouse gas (GHG) reduction targets, and that there is a risk of missing out on huge export, skills and jobs opportunities by not moving fast enough. 

The rapidly changing energy landscape has seen many governments firmly place H₂ at the heart of their energy transition strategies. H₂’s adaptability makes it a suitable power source for industries such as shipping and heavy land-based transportation, as well as a vital component of electrical power systems with deep penetration of renewables.  

The UK and Scottish governments have a twin-track approach to H₂, both electrolytic green H₂ and blue H₂ enabled by carbon capture, utilization and storage (CCUS). Both green and blue H₂ are low carbon, as most emissions are not dispersed to the atmosphere. It is envisaged that green H₂ production from renewables, especially wind power, will lead to the eventual phasing out of blue H₂. 

This leaves Scotland in an advantageous position. The country’s leading place in the offshore wind sector has given it a significant jumpstart in initiating major green H₂ production schemes. 

Enabling infrastructure. A significant challenge remains—how to translate Scotland’s strengths in leading-edge technology into commercially viable, investable projects. The potential is there, but results must be delivered, and evidence is needed to convince many developers that they can get their energy to market. These developers may have to decide whether that means electricity or H₂, and presently Scotland cannot export enough green electrons from a North Sea hub to the rest of the UK and Europe.  

Scaling up the infrastructure and technology necessary to store and transport H₂ for mainstream usage will require huge financial investment and stronger incentives are needed, like those available in the U.S. This is where a lot of electrolyzer manufacturing has been seen, and industry must become more competitive in Scotland if it wants to develop those jobs. 

Opening the export market will be tricky, as transport infrastructure will involve not one but several individual projects. However, industry collaboration is addressing these challenges, with the Net Zero Technology Centre’s (NZTC’s) industry-funded Hydrogen Backbone and Energy Hubs projects being leading examples. 

A government body is needed to enable that infrastructure, while—in terms of people and employment—skills are needed where there is a huge amount of directly transferable knowledge in the oil and gas sector. While the materials and processes used are different, the design and installation of pipelines will be the same as in the offshore oil and gas segment.   

New skills to enable the energy transition. Manufacturing electrolyzers, however, is a new and different type of skill. It makes sense to have that capability relatively close to where companies are going to install or build. While equipment can be imported, to be truly competitive, support is vital to enable industry to capture those jobs. 

Accomplishing this during an economic downturn, when many companies are increasingly looking to cut costs, is an added challenge. However, it is vital for the H₂ sector to scale up to gigawatt (GW) levels to exploit the major export opportunities that exist. As this happens, costs will come down, but the market has not yet reached that point yet. These large-scale H₂ production facilities are like offshore wind facilities—there is a significant learning curve to overcome. 

The author’s company works across many segments of the H₂ industry in every geographic area and is involved with projects ranging from managing a database containing details of more than 1,000 H₂ projects around the world, to helping with the development of the vital supply chains that integrate production systems with their end users. 

The company is now developing the commercial strategy for MercurHy, a green H₂ project based in Western Australia that will scale up to 1,000 megawatts (MW) of electrolyzer capacity. This project is providing a strong economic development opportunity for the region by helping to unlock and decarbonize new industries. 

Takeaway. H₂ is just part of the energy mix necessary to address a global crisis, and one of the many solutions—not the single “silver bullet”—that will be a part of the energy transition. As other markets have no better alternative, there is an urgent imperative to move faster to service that need.H₂T

About the author

CARAGH MCWHIRR is Head of H₂ strategy at Xodus, a global consultancy with offices across the UK, Australia, Japan, Qatar, the UAE and the U.S., and leads its H₂ Xcellence Hub. McWhirr is no stranger to identifying solutions to challenges. A process development engineer, she was previously Xodus’ first Innovation Manager, developing strategy, identifying opportunities, and generating and screening ideas while managing their development until they could deliver returns. McWhirr is now seconded part-time at the Net Zero Technology Centre (NZTC), supporting the development of future impact projects that target step changes in energy system transformation.