Hydrogen: The status quo in Europe

Hydrogen is considered to be a promising alternative to traditional fossil fuels, as it has the potential to be a clean and sustainable source of energy. The UK government has set out ambitious plans to achieve net-zero carbon emissions by 2050, and to achieve this, has pledged £4billion in funding to support the development of low-carbon hydrogen as it is expected to play a key role in achieving this goal. For logistics professionals, hydrogen represents an alternative CO2-free energy source with many advantages for the transportation industry such as relatively short refuelling times, long ranges, and tanks that weigh less than the batteries in comparable electric lorries. In other words, hydrogen could certainly offer advantages when covering long distances and especially when transporting heavy loads.

The commercial implications of this move towards hydrogen are significant. The shift from fossil fuels towards hydrogen will impact the infrastructure required to support this change, creating new business opportunities across sectors such as energy and transportation. In this article, we will explore the UK's readiness for hydrogen, with a focus on the commercial implications of the move.

Hydrogen sources

Hydrogen can be produced from a variety of sources including natural gas, coal and water. The most common method of producing hydrogen is through the process of steam methane reforming (SMR). This process involves the reaction of methane with steam to produce hydrogen and carbon dioxide and, as it uses fossil fuels, it is not sustainable in the long term and produces significant carbon emissions, which does not help achieve the UK’s net-zero goals. Therefore, the fuel and energy industries, in partnership with the UK government, need to explore alternative methods of producing hydrogen that are more sustainable, including the use of renewable energy sources like wind, water and solar power.

Another method called Electrolysis produces hydrogen by splitting water molecules into hydrogen and oxygen using an electric current. This method can be powered by renewable energy sources, resulting in a zero-carbon source of hydrogen. Once these sustainable sources become a reality and more widely used, the number of hydrogen sources will drastically increase, allowing for this fuel to become more widely used. Until this happens, it’s not commercially viable to introduce hydrogen as a main fuel and therefore the UK is not ready.

Hydrogen refuelling and commercial vehicles

One of the main challenges facing the growth of hydrogen in the UK is the lack of refueling infrastructure. Currently, there is only a handful of refueling stations in the UK and this is not enough to support the growth of hydrogen fuel. It is also not enough to support the commercial supply chain and distribution networks that run throughout the UK.

Although refuelling isn’t currently widespread, neither is the availability of commercial vehicles that are powered by hydrogen, though there has been some development in this area. Hydrogen-powered HGVs either use fuel cells which convert hydrogen gas into electricity that can power the vehicle's electric motor or the more traditional approach which still uses the combustion engine. Both of these vehicles are already being introduced and are expected to become more prevalent as the technology develops and costs reduce.As the commercial demand grows, this is likely to help increase investment in the much-needed infrastructure.

Hydrogen tankers are also being developed but as they are still a very new technology, the rollout of this type of vehicle is likely to be slow. One of the main challenges that come with slow development is the availability and infrastructure for producing, storing, and transporting hydrogen fuel. Nevertheless, as the demand for sustainable shipping solutions grows, more investment will likely be made into developing the necessary infrastructure to support hydrogen-powered shipping.

Although there are promising steps and movements towards hydrogen, the UK is not currently ready for a large rollout of hydrogen-powered commercial vehicles.

Industrial heating

Hydrogen can also be used as a fuel for industrial heating, providing an alternative to traditional fossil fuels like natural gas. It can simply be burned in a furnace or boiler with the heat generated pumped around a heating system. As an alternative fuel, it’s growing in popularity as not only does it hit the government’s net-zero targets, but hydrogen also helps businesses achieve their own sustainability targets by reducing their carbon footprint. However, as it’s still in its early stages, more research and development are needed to understand the technical and economic feasibility, as well as develop the workforce.

As hydrogen production becomes more efficient and cost-effective, there will likely be more widespread adoption of hydrogen-powered heating systems in industrial settings.

What impacts the readiness of the UK oil & gas sector for hydrogen?

1. Technology readiness: The technology for hydrogen production, storage, and use is still developing, and it will take time to reach a level of maturity that can support large-scale deployment. In addition, the costs of hydrogen technology will need to come down significantly to be competitive with traditional fossil fuels.
2. Policy support: Government policy can play a critical role in accelerating the transition to hydrogen. Supportive policies such as incentives for the production and use of hydrogen, regulations to reduce carbon emissions, and funding for research and development can help to create a more favourable environment for the adoption of hydrogen in the oil and gas sector.
3. Industry demand: The oil and gas sector is under increasing pressure to reduce its carbon footprint, and this is creating a demand for alternative fuels such as hydrogen. However, the rate of adoption will depend on the industry's willingness to invest in new technology and infrastructure.
4. Infrastructure readiness: The transition to hydrogen will require significant investment in new infrastructure, such as hydrogen production facilities, pipelines, and refuelling stations. The availability of this infrastructure will be a key factor in determining the speed of the transition.

What is the situation in the rest of Europe?

Germany is an obvious choice for a direct comparison due to it's similar demographics. Volvo Trucks has just announced the launch of hydrogen-powered trucks. Corresponding road tests are scheduled to begin in 2026. The launch is planned for the end of this decade. As early as September 2023, Daimler Truck reported that a prototype of the Mercedes-Benz GenH2 Truck has been approved for use on public roads and covered a distance of 1,047 kilometres on a single tank of liquid hydrogen as part of Daimler Truck's #HydrogenRecordRun.

Back in 2020, Daimler Truck announced its intention to invest heavily in hydrogen technology and that it is focusing on renewable liquid hydrogen. According to the company, the test drive of the Mercedes-Benz GenH2 Truck involved filling two 40 kg tanks mounted on each side of the chassis with liquid hydrogen that had been cooled to minus 253 degrees Celsius. Vehicle tests with customers are planned from the middle of this year.

Despite this optimistic news, Germany's hydrogen plans and the development of hydrogen mobility have stalled. The only two car models currently available in Germany are the Toyota Mirai and Hyundai Nexo. According to the statistics, the number of new car registrations is correspondingly low with just 39 between January and April. In the road freight transport sector, the situation does not seem any better. Fewer than 100 fuel-cell-powered lorries were on the road in Germany at the beginning of the year. The main reason is probably the price. After all, a hydrogen-powered lorry would cost a logistics company three to four times more than a conventional diesel truck. In addition, the operating costs are currently about twice as high as the charging costs for an equivalent battery-powered vehicle.

Progress is similarly slow when it comes to fuelling stations. Germany currently has 90 public hydrogen fuelling stations for cars and 20 stations for heavy commercial vehicles. Some pumps have already been removed because they are unprofitable. According to experts, municipalities that want to switch to hydrogen buses are now experiencing problems in building the filling stations they need. The reason is a lack of funding.

Overall, the issue of hydrogen mobility seems to be losing political support, even though the German government has confirmed that it is meeting its obligations under the EU's Alternative Fuels Infrastructure Regulation (AFIR). The AFIR stipulates that hydrogen filling stations are to be built every 200 kilometres along the trans-European transport network (TEN-T) and at all major urban interchanges beginning in 2030. This cannot be achieved without massive state subsidies which are becoming increasingly scarce. At the same time, Division 25 (Hydrogen and Fuel Cells in Mobility) within the Federal Ministry of Transport (BMDV) will be effectively closed down and its duties redistributed among other divisions. Due to irregularities in how funding decisions had been made, the BMDV stopped awarding funding for H2 projects in February 2024. In addition, the majority of the members of the Council of Experts, which advises the German Federal Government, voted in favour of electrifying heavy freight transport.

Expansion of Germany's planned core hydrogen network is likewise behind schedule. As reported by Deutschlandfunk in early April, the ten-thousand-kilometre network will be completed by 2037 at the latest. It was originally planned for 2032 by the Federal Minister for Economic Affairs and Climate Action Robert Habeck. There is also still the question of how to secure future hydrogen demand Germany. In other words, there are still a number of hurdles to overcome before hydrogen can play a significant role as an energy source for transportation. So the overall situation in Germany, and indeed the rest of Europe, is similar to that of the UK.

 Conclusion

The UK has made significant progress in preparing for the use of hydrogen as a fuel, with ambitious plans to produce hydrogen through sustainable methods and increase the availability of hydrogen refuelling stations. The government is also exploring the use of hydrogen as a fuel for industrial heating, which has the potential to significantly reduce greenhouse gas emissions. However, there are still significant challenges to overcome, including the cost of producing hydrogen and the need for further investment in infrastructure. Overall, the UK's readiness for hydrogen as a fuel is promising, but further action is needed to achieve the country's net-zero goals.