According to a new analysis from Cornwall, the UK sector might have a low carbon hydrogen demand of 10 TWh in 2030, rising to up to 37 TWh by 2050. The insight paper looks at businesses that use hydrogen now or have the potential to utilize low-carbon hydrogen in the future.
High-temperature industrial operations are predicted to have the highest demand (36TWh), and hydrogen will be used to replace natural Gas and other fossil fuels.
Cornwall Insight estimates electrolyser and offshore wind CAPEX using data from the Department for Business, Energy & Industrial Strategy (BEIS) and the International Energy Agency (IEA).
“While UK industry contributes £331 billion to GDP (17%), it also produces 18 percent of carbon emissions, which may be lowered through a variety of decarbonization paths,” stated Deva Devaraj, Modelling Analyst at Cornwall Insight.
“For example, industrial operations that rely on fossil fuels for electricity and heat generation may be converted to renewables, and processes that rely on fossil fuels for heat generation can be electrified.” Hydrogen, on the other hand, plays an important part in industrial decarbonization.
Hydrogen is a flexible substance that may be utilized as a feedstock, a reducing agent, or a heat source. The use of low-carbon hydrogen in industry would act as a catalyst for increasing output and promoting hydrogen adoption in other end-use sectors.
It’s worth noting that the low carbon hydrogen intake would be determined by the rate of decarbonization and the capacity of their generation. Chemical industries are so unambiguous offtakers with extremely low fluctuation, although accounting for less than 1% of overall hydrogen demand.
The industrial heat process has the highest hydrogen demand potential (98%) and is heavily impacted by the low carbon hydrogen penetration rate, making it very variable.”