Hydrogen project pipeline tops $300bn, UK installs first hydrogen homes,

The pipeline of investment in projects focused on developing hydrogen production, distribution or applications by 2030 current exceeds US$300bn, according to the latest report from the Hydrogen Council and McKinsey.

With the acceleration in hydrogen project developments last year and into 2021, leading to renewable hydrogen production costs falling rapidly, one of the main conclusions of the report was that a major hurdle for governments and industry now is to improve transmission and distribution costs.

New green renewable and grey hydrogen costs are expected to reach parity with fossil-fuel energy sources by 2028 in some countries, reaching $1.4 per kg in regions with optimal conditions to $2.3 per kg in average regions between 2032 and 2034, the report said, making hydrogen cost competitive in 20 different applications.

“Longer-term, a hydrogen pipeline network offers the most cost-efficient means of distribution,” the report said, noting that pipelines can transmit 10 times the energy at one-eighth the costs associated with electricity transmission lines and have capex costs similar to those for natural gas.

“The industry can partially reuse existing gas infrastructure, but even newly constructed pipelines would not be cost prohibitive (assuming leakage and other safety risks are properly addressed).”

It was estimated, as an example, that the cost to transport hydrogen from North Africa to central Germany via pipeline could amount to about USD 0.5 per kg of H2 – less than the cost difference of domestic renewable hydrogen production in these two regions.

With the momentum in the hydrogen market in the past year, more than 30 countries now have hydrogen roadmaps, with governments around the world have committed over US$70bn of funding and 228 large scale hydrogen projects having been announced across the value chain.

The US$300bn figure comes from all the planned hydrogen projects around the world through to 2030, based on government production targets, project announcements and spending projections.

“Given the industry’s early stage, the vast majority (75%) of these investments involve announcements but not committed funding,” the report said, of which to date there are an estimated US$80bn in the late stage of planning or being/already realised.

It is worth noting, said analyst Adam Collins at City broker Liberum, that the US$300bn of hydrogen projects still represent only 1.4% of global energy funding, so there is “more to go for” and that many of the projects are still in planning stage.

“That said it’s worth highlighting that in 2019 the Hydrogen Council estimated that between 2020 and 2030 $100bn of funding would reduce green hydrogen costs by 70%.”

Hydrogen Council members include , BMW, Microsoft Corp and Sinopec.

Hydrogen homes

Giving a glimpse of what the world could be like once the abovementioned hydrogen distribution network is in plan, the first hydrogen-powered boilers and cooking hobs are being installed in a UK pilot scheme.

Two semi-detached houses in Gateshead will from April use only hydrogen for their boilers, hobs, ovens and heaters under the government’s new Hy4Heat innovation programme.

The government said the aim is to create “hydrogen neighbourhoods” and even a “hydrogen town” by 2030 as part of the UK’s net-zero carbon plans.

Gas companies Northern Gas Networks and Cadent have both put in £250,000 of funding each to run the two-home pilot scheme, with £250,000 coming from the government.

The homes will not be occupied but will be available for the public to visit, to showcase the use of hydrogen in a real-world setting.

Hydrogen, which produces no carbon at the point of use, is one of several solutions being sought to reduce household carbon emissions, with natural…