Solving the green hydrogen puzzle

As an avid lover of jigsaws, the evolution of the green hydrogen sector in Scotland feels like one big puzzle, albeit much more complicated than bickering with your siblings as you put 1,000 pieces together to form a complete picture. 

My time at Scottish Renewables coincides with the UK Government’s announcement that 11 projects had been successful in the first Hydrogen Allocation Round (HAR). Eighteen months later with the HAR2 shortlist now under our collective belt, a picture of what our green hydrogen sector will look like is beginning to take shape.  

Full Picture  

The most important part of a jigsaw is knowing what you’re building (unless you’re a fan of a Wasgij or Mystery Puzzle). Developing green hydrogen projects in Scotland and across the UK is a similar challenge. What do we want the sector to look like? Where does hydrogen fit in with the broader energy system? What steps do we need to take now to ensure we’re well-positioned for the future?  

We recognise the niche roles that green hydrogen will play in hard-to-decarbonise sectors as we move forward but we need to ensure that UK and Scottish government support allows for the production of green hydrogen to meet those needs as we move to a clean energy system.  

So, how do we get started?  

Border  

Like any sensible person, I start a jigsaw by building out the border to form the parameters. This is where we’re at in the UK hydrogen sector right now – we’re identifying the most important pieces:  

• Where hydrogen demand is already developing and where demand will grow in the future. 
• Where government support is needed to incentivise production and demand.
• How to establish Scotland and the UK as a world leader in green hydrogen.

The border is the most important part. It provides us with the outline of the actions we need to take to enable green hydrogen production. We’re seeing evidence of this in policy frameworks outlined by both governments including Clean Power 2030 and methodologies for the Centralised Strategic Network Plan (CSNP), as well as updates to the UK Hydrogen Strategy and Scottish Hydrogen Action Plan.  

We’ve got the corner pieces in place, but further clarity is needed on what ties the green hydrogen sector together. Industry needs a better understanding of how these plans interact, how both governments work together and where industry can collaborate to reach the common goal.  

The amount of green hydrogen we need, the optimal location of production and a general timeline of development are all crucial to getting a clear outline of how hydrogen will integrate with the energy system now and in the future.  

Middle Pieces 

The bulk of the challenge is in the space with the most potential. With a rough idea of what we need and where we’re headed, what do Scotland and the UK need to do to make it happen? What changes to regulations do we need to see from both governments to enable green hydrogen development? How can this sector support government as we move to a clean energy system? 

With an eye toward the hydrogen strategies currently being developed and coordinated, the sector is working to identify opportunities that can be leveraged immediately.  

Based on the Climate Change Committee’s Seventh Carbon Budget, routes to demand in e-methanol, low-carbon ammonia, heavy transport and industry can lay the groundwork for a hydrogen network which is developed with the long-term needs of the energy system in mind.  

There are still barriers to utilising the earlier demand routes; electricity costs are too high, developers aren’t able yet to produce green hydrogen and it is too expensive for offtakers. 

Considering the long-term potential for green hydrogen in the UK and Scotland, the jigsaw border becomes particularly crucial. Green hydrogen has the potential to help balance the energy system by interacting with the electricity network and supplying power during periods of low generation. 

It also holds an enormous economic potential by creating new demand opportunities for electricity. But we need to start now. Green hydrogen that is produced in Scotland now will ensure system resilience in the future.  

It is essential that this does not negate or alleviate the UK’s need for as much grid buildout as possible. If we don’t build a grid fit for the future that delivers significant clean energy generation like offshore wind, the benefits of producing green hydrogen will not be realised.  

By coordinating a strategic vision that allows us to develop production-led green hydrogen in Scotland, this complex jigsaw will come together piece by piece and our diverse green energy system of the future will be one step closer. 

Scottish Renewables’ Green Hydrogen Seminar on August 27 in Glasgow will gather industry leaders, government and stakeholders to address one the key challenges facing hydrogen deployment: demand.

Ends

• Blog by Maggie Olson-Jow, Policy Manager – Offshore & New Technologies