Minister warns ‘hydrogen bubble has burst’

The future of hydrogen as a credible source of energy and a key plank of the North West’s future green industrial strategy is under scrutiny in a new University of Manchester study.

It has just published ‘On Hydrogen’, which provides expert analysis, evidence and policy recommendations to tackle the UK’s key hydrogen policy challenges.

In a foreword, Baroness Brown of Cambridge, Chair of the House of Lords Science and Technology Select Committee, warns that “the hydrogen bubble has burst.”

The North West region is at the forefront of hydrogen technology. In October this year the Government announced that HyNet, in the North West, had been given the green light to unlock the decarbonisation of industry and growth across the North West and North Wales industrial heartlands.

It was part of a £22bn pledge, over the next 25 years, for projects to capture and store carbon emissions from energy, industry and hydrogen production, focused on two ‘carbon capture clusters’ on Merseyside and Teesside, which are forecast to create thousands of jobs, attract private investment and help the UK meet climate goals.

The milestone was officially announced by the Prime Minister, Chancellor and Secretary of State for Net Zero and Energy, at Encirc, an international glass production plant and partner of HyNet, and part of the Spanish-based glass manufacturer, the Vidrala Group.

Bottle manufacturer, Encirc, is situated at Elton, in Cheshire, which will create the world’s first net zero glass bottles at scale, by 2030.

Prime Minister, Sir Keir Starmer, said on the day that the move would “reignite our industrial heartlands” and “kickstart growth”.

However, Baroness Brown writes in the 21-page ‘On Hydrogen’ report: “In the last 10 years, hydrogen has been hyped as the silver bullet that can decarbonise almost everything: heating, cars, trains, buses, planes, shipping, industry, electricity generation: all transformed by use of the magic molecule.

“The trouble with bubbles is that once they have burst, it takes time for industry, governments and investors to regain confidence and take the subjects seriously again.”

Despite this, she warns that hydrogen must be taken seriously with a series of pressing industry tasks – such as the decarbonisation of steel making and the production of sustainable synthetic fuels – dependent on the use of green hydrogen.

Baroness Brown acknowledges that numerous challenges lie ahead in developing a low carbon hydrogen industry.

But she adds: “Until both potential users and potential producers are convinced that there will be a market for hydrogen at an affordable price, everyone is waiting for someone else to take the first step.”

In her piece, the crossbench peer – who also serves as Chair of the Carbon Trust, and the Adaptation Committee of the Climate Change Committee – argues that “low carbon hydrogen, especially green hydrogen, can be a green growth opportunity for the UK.”

She writes: “We have many of the ingredients to make it work – ambitious net zero commitments and policies; an excellent wind resource and a fast-growing renewables industry, especially for offshore wind; geology such as salt caverns, suitable for storing hydrogen; expertise in electrochemistry in our universities; some serious oil industry players who need an alternative to fossil fuels; innovative fuel cell and electrolyser companies.”

She continues: “The UK Government can take some bold steps to ensure we grow this industry in the UK – it could start by committing to a no regrets investment in a strategic reserve of hydrogen to support our electricity system.”

‘On Hydrogen’, from Manchester University’s policy engagement unit, Policy@Manchester, features seven articles from academics including research-led advice on areas such as the production of hydrogen, storage of hydrogen, decarbonisation of industry and transport, and the future role of hydrogen interconnectors.