Accelerating the growth of a hydrogen economy – and addressing the challenges head on

There is a hydrogen revolution at work. Or maybe we should say hydrogen evolution, as contrary to popular belief, the ability of hydrogen to effectively power vehicles was first proven over 100 years ago. Low-carbon hydrogen has a significant role to play in the race to net zero, alongside the use of battery-electric fuel cells, solar and wind energy, nuclear power, and innovations such as carbon capture, usage and storage. At Hydrogen South West, we are committed to unlocking the full potential of hydrogen to help the UK government hit its net zero target of 2050 and to turbocharge the new green skills economy. With this ambition, of course, comes responsibility,  and part of that includes highlighting challenges as and when they are identified.

Chair, Andy Clarke

We recognise that in the face of a challenge as complex as climate change, that there is simply no one size fits all solution. A variety of energy sources will each provide a vital piece of the puzzle. For example, while there have been great advances in the usage of battery-electric fuel cells to power road journeys, there are scenarios where other forms of low-carbon energy are better suited. Our view is that there are several use cases where, over time, hydrogen provides the most cost-effective and reliable solution. These include:

·       Fleets of light goods vehicles on the road network

·       Short haul consumer and goods flights.

·       Port and airport operations.

Our vision for the future

So, what is our vision and how do we bring it to life? We are committed to shaping an infrastructure ecosystem which brings the benefits of hydrogen to the South West. We recognise the once-in-a-generation opportunity to create a sustainable legacy of skilled jobs across the diverse region we represent, and for roles in the green economy to encourage a new wave of professionals to pursue local opportunities which positively contribute to their communities. We’ll achieve this by creating links between supply and demand centres in the region, and enabling cross-sector partnerships that will drive the development of hydrogen infrastructure and technology.

To realise this ambition, we must invest in the required infrastructure to produce, store, distribute and use hydrogen as a fuel source for aviation, maritime and road journeys. The flip side of this coin is the policy environment – we need the political will and regulatory framework in place to enable innovation.

Current challenges

However, like any emerging technology which hasn’t yet been adopted at scale, there are factors at play which act as enablers, and blockers, of our vision. Hydrogen South West has identified that around 20% of Light Goods Vehicles have heavy operational duty cycles, and even with future technological improvements, they are unlikely to be able to be powered by batteries. Yet with the deadline for the sale of diesel vans looming in 2035, vehicle manufacturers are almost exclusively focused on the transition to electric vehicles. They are simply not producing right-hand drive hydrogen vans, a move which threatens to undermine the efforts of UK plc to decarbonise at pace. This is a good example of where industry needs to articulate the problem clearly and assist policy makers in identifying interventions to address this market failure. 

For two of our members, Wessex Water and Wales & West Utilities, the issue is clear. Both organisations operate extensive fleets and are keen to invest in non-fossil-fuel-based energy systems. For fleet operators to achieve zero emissions by 2035, the only option currently available to them is to start the process of transitioning from diesel to Fuel Cell Electric Vehicles. However, suitable zero-emissions alternatives with the right power, payload and range are not widely available on the market.

Stephen Offley, Transport Manager for Wales & West Utilities, said: “Hydrogen Fuel Cell Electric Vehicles could offer the viable solution we need.  Around 95% of our current daily journeys could be met by this technology. In contrast, less than half of our current diesel van journeys could be completed by battery electric vehicles."

Next steps

It is only through collaboration and ongoing dialogue between industry and government that we will unlock the full potential of the hydrogen circular economy and overcome such challenges. Our recommendations include:

• Clear leadership from one government department on the future of hydrogen and a simplification of the policy environment.

• Agreement between the regional decarbonisation clusters and partnerships of the key asks of government.

• The establishment of a regular forum which allows the regional decarbonisation clusters and partnerships to speak to government with one voice.

• The appointment of a representative from one of these groups to the Net Zero Council.

• The co-creation by industry and government of a pipeline of hydrogen investment projects, building on August’s publication A Hydrogen Strategy Update to the Market and promoting investor confidence.

• Assurances that initiatives to progress hydrogen, and other low carbon energy sources, are given equal weighting to renewable electricity.

• The establishment of new financing models which allow the private sector to do what it does best; innovate.

• Provision of a hearts and minds campaign to educate the public about the benefits of hydrogen.

What might this look like in tangible terms? In the short term, specific challenges, such as that facing Light Goods Vehicles, need to be addressed as a matter of urgency. In the absence of a hydrogen alternative, critical infrastructure service providers, utility operators and others will not have a viable zero-emission option for significant elements of their fleets, leaving them with ageing, increasingly unreliable diesel vehicles.

In the next 10 years, we would like to see the private sector investing in a regional – and ultimately national – network of Hydrogen Refuelling Stations for commercial use, secure in the knowledge that hydrogen is a central plank of the government’s decarbonisation strategy. This certainty will drive forwards the advances in technology and consumer confidence which are required for the at-scale adoption of hydrogen in transport.