The North West of England could see demand surge for low-carbon hydrogen to around 2GW by 2030, a new study has found.
Conducted by the North West Hydrogen Alliance (NWHA), an association looking to promote hydrogen’s role in the decarbonisation of the North West, the North West Hydrogen Demand Side study concludes there is a strong belief that both industry and power generators will be the first movers to adopt hydrogen.
Although the study narrows this down to the North West, the same can be said about the rest of the UK. Hydrogen, albeit in its carbon-intensive form, “grey”, is often used in industrial practices already. As such, there is already demand to transition to green hydrogen to reduce its carbon footprint.
This is a thought shared by energy regulator Ofgem’s CEO Jonathan Brearley who recently emphasised green hydrogen’s key role in driving “growth and generating jobs on Humberside”, one of the UK’s largest industrial zones.
However, due to the North West’s prowess in industrial practices, this could mean that demand could soar in the region. By 2050, NWHA expects demand to reach around 7.5GW with a significant portion to be taken up by the transportation sector and heating buildings.
It is worth noting that the UK government has supported hydrogen’s development in the North West through various funding initiatives over the years. In 2021, the UK government allocated £171 million to the Industrial Decarbonisation Fund which predominantly focused on hydrogen and carbon capture and storage (CCUS).
In this package, it was confirmed that HyNet North West would receive almost £33 million in funding for two projects looking at capturing and storing carbon emissions from the operations of a low-carbon industrial cluster and the creation of a hydrogen economy in the North West. This will include repurposing old oil and gas facilities in the area for the transport and storage of carbon.
Helen Boyle, head of regional development (North West and Midlands) at Cadent on behalf of the NWHA said: “For the first time we have a complete understanding of the expected hydrogen demand in the region. The North West is set to become the UK’s home of hydrogen with industrial businesses already signed up to switch to this low carbon fuel and decarbonise their operations.
“Hydrogen can also revolutionise how we balance the energy system, travel around the country and heat our homes and businesses. This study comes as we celebrate the UK’s second national Hydrogen Week – which brings together stakeholders from across the UK to celebrate and promote the role of hydrogen in reaching net zero.”