Energy Transition Report 2018

Hydrogen There are also strong reasons to believe that hydrogen could provide a solution to meet the needs of sectors where renewable and electricity-based technologies are unable to effectively meet UK energy needs such as heavy goods transport, aviation and domestic and industrial heat. One advantage of hydrogen, in common with natural gas, is likely to be in terms of energy density and flexibility. The recently published H21 feasibility study has shown the wide-reaching decarbonisation potential for using hydrogen for heat and industrial processes. 10 In many ways development of the Hydrogen sector would build on the skills and expertise of the UK oil and gas industry. A further policy advantage to this argument will be the synergies with the development of CCUS, eventually to achieve negative emissions if atmospheric capture of carbon dioxide can be achieved either through artificial methods or through reforestation and the use of sustainable biomass. Wider energy systems In relation to energy systems, there was until recently a strong expectation that renewable technology would drive a more decentralised energy system. This was created by rapid uptake of small-scale wind and solar installations. Localised investment led on to the possibility of individual consumers being active participants on both sides of the energy market, so called 'prosumers', whereby technology integrates small and individual users into the management of a network. This is still reflected in a number of forecasts and scenarios. However, some of these expectations are now being superseded as a result of economies of scale in the renewable sector and the limited appetite for individual consumers to become active energy market participants. Subsidy levels for smaller installations have been reduced as it has become apparent that larger scale wind and solar facilities are more likely to operate effectively at close to commercial conditions.

10 https://northerngasnetworks.co.uk/h21-noe/H21-NoE-23Nov18-v1.0.pdf

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