The Green Hydrogen call for evidence To be submitted by email. Deadline 29th March. The Renewable Energy Association (REA) is pleased to submit this brief response to the above consultation. The REA represents a wide variety of organisations, including generators, project developers, fuel and power suppliers, investors, equipment producers and service providers. Members range in size from major multinationals to sole traders. There are over 800 corporate members of the REA, making it the largest renewable energy trade association in the UK and the only body to cover all forms of energy. The REA has a keen interest in energy storage, and its role in the integration of intermittent renewables. This response is submitted jointly by the REA’s UK Storage and UK Solar Groups. Q1 Should the Standard cover heat, power, transport and other hydrogen applications? What sectors should it cover beyond these? Yes. If the standard covers the carbon emissions embodied in the production and transport to point of use of hydrogen as we advise, then all potential end use sectors would be covered. Q2 What is your view on the usefulness of the standard making assessments at Point of Use (PoU) or Point of Production (PoP)? Does this vary by end use? For example, might we require a different approach for hydrogen used in transport? The carbon content of the hydrogen should be measured at the point of use , i.e. taking into account the carbon involved in compression and transportation. There is no logic to having different standards for different end uses. There are two ways in which green hydrogen can be distributed; via injection into the natural gas distribution network (in which case it contributes to the decarbonisation of grid gas) or, transported, e.g. by truck, in the form of H2. In the case of H2 that is injected into the grid we propose that emissions involved in transportation beyond the point when it is added to the grid are assumed to be zero. It could be argued that H2 having a lower calorific value than methane will entail more energy input in pumping through the network, but because of the equivalence principle, explained below, in reality it will be used at the point of closest demand rather than transported any particular distance. 25 Eccleston Place Victoria, London SW1 9NF Tel: 020 7925 3570 http://www.r-e-a.net/ Changes to biomass grandfathering RO policy consultation – REA response Unlike renewable energy which is primary energy source hydrogen is a carrier of energy or energy vector. As such it does not make sense to reward its production by subsidising it. However, if hydrogen is produced from low carbon energy sources, then the end user of that hydrogen should benefit from the fact that it is using a low carbon energy fuel. E.g. it should be beneficial in companies’ greenhouse gas reporting and exempt from levies that apply to carbon-containing fuels. It is therefore important, that end users of green hydrogen can demonstrate that they are using a green fuel and that green hydrogen is not double-counted. In the case of green hydrogen injected into the natural gas grid, the only way that end users can claim to be using green hydrogen is on the equivalence principle i.e. 1KWh of green hydrogen put in the grid at location X should be equivalent to 1kWh-worth of gas taken out of the network at location Y. The link between production and end use should be via certification. Renewable Energy Assurance Limited runs a Green Gas Certification Scheme which could be adapted to that purpose. (The GGCS has submitted a response to this call for evidence, which we are fully supportive of.) Q3 Assuming that regardless of whatever carbon intensity threshold is set by the Standard, some production will involve blending ‘brown’ hydrogen with ‘green’ in such a way as to meet the Standard, how should we account for this when defining the system to be assessed? If hydrogen is blended such that the end product achieves the standard, then the full volume of gas should be regarded as green. For example, if the standard is 150gCO2/kWh H2 then1kWh of “brown” hydrogen at say 300gCO2/kWh was blended with 2 kWh of 75g CO2/kWh green hydrogen then the resulting 3kWh would have an intensity of 150gCO2/kWh and so it would qualify as green. Q4 How should grid electricity used to produce hydrogen be treated within the Standard, given its temporal variation? If hydrogen produced from grid electricity is being blended with green hydrogen to achieve certain carbon intensity, then for the sake of pragmatism, the grid electricity should be regarded as having the yearly average grid carbon content. This carbon content changes year on year, as the grid carbon intensity falls. Therefore greater use of grid electricity can be made as time passes. Greater average utilisation across life helps plant economics. This should replicate the approach taken in the Renewable Energy Directive for electric transport. However, more importantly, one of the major values of green hydrogen as its role in assisting with the integration of greater amounts of renewables. Renewable electricity cannot be accommodated onto the network at certain times and generation has to be curtailed. This (along with periods where negative pricing might be expected to occur) will increase as the proportion of intermittent renewables on the network increases. Put another way, high penetrations of renewables will not be achieved unless new demand (such as green hydrogen production) is created to ensure renewable power can be usefully employed no matter when the generation occurs. When the production of H2 is timed to coincide with periods when extra demand is required on the network, this electricity should be regarded as zero carbon. The 2 Changes to biomass grandfathering RO policy consultation – REA response generation of hydrogen (or synthetic natural gas derived from this hydrogen and waste CO2) and its injection into the grid can be seen as a form of electricity storage. The inertia of the gas network is vastly greater than that of the electricity network. In other words matching supply and demand is far more forgiving. H2 injected onto the gas network does not require a simultaneous increase in gas demand in order to stay in balance. Instead it enables less natural gas to be released from storage onto the network. This simultaneous increase in electricity demand from electrolysis at times of excess electricity supply would ideally be distributed geographically, so that localised incapacity of networks is not an issue. (This applies both to electricity networks and gas networks which can only accommodate a certain percentage of H2 mixed with the CH4). Thus it is crucially important to consider the temporal aspects of grid electricity. In order to prevent curtailment, production over a certain contractually-set capacity limit will need to be absorbed by electrolysis. The capacity limit for renewables plants would be set according to their connection agreements with the DNO or grid operator. An electrolysis plant (or an aggregated group of electrolysers in a region) would need to be able to absorb the excess production from a number of local renewables projects at times when their output would otherwise be curtailed. The operation of the electrolysis plant can correspond to the needs of grid and network operators. Q5 How should hydrogen produced using a low carbon electricity source via private wire be treated? The actual carbon intensity of the power delivered by the private wire should be used. E.g. if the private wire is transporting electricity produced by a renewable energy source it will be zero carbon, if from a fossil fuel then it should be regarded as having the carbon intensity relating to that fuel source. Q6 Should hydrogen produced as a by-product of industrial processes be included within the standard? If yes, how should we define system boundaries for reasonable allocation of its carbon footprint? If this H2 would have been produced any way, then use of this H2 is to be encouraged. Industrial processes, such as the chlor-alkali process use the hydrogen within the process, thereby offsetting the use of an alternative (in this case natural gas). It makes more sense to use this hydrogen within the process than to export it to other markets. It could not be regarded as green if exported, because of the increased carbon emissions entailed in replacing its use within the industrial process. Q7 which industrial processes produce hydrogen as a by-product in useful quantities? No comment. 3 Changes to biomass grandfathering RO policy consultation – REA response Q8 How should biomass used to produce hydrogen be treated under the Standard? This should be treated as low carbon, provided it is from sustainable sources. The Renewable Energy Directive definition of sustainability should be used. Q9 Should one carbon intensity threshold apply to green hydrogen irrespective of its application? Yes. Q10 Is there a risk that a single threshold will exclude hydrogen produced from fossil fuels from the Standard, when that hydrogen may represent a CO2 saving compared to another fuel? Yes, but this is entirely reasonable. Why should an energy vector be regarded as green regardless of the carbon intensity of the energy used to produce it? In reality it is unlikely to deliver any carbon saving, as energy will be involved in converting it to hydrogen, and further energy lost in its conversion to electricity. Q11Should the Standard be set using an increasingly tighter trajectory of allowable emissions? In our opinion, no. Obviously the carbon value assigned to regular grid electricity will need to be adjusted as it is slowly decarbonised. Regular in this sense means electricity which is not low carbon on account of its special temporal nature – i.e. when used to help integrate additional renewable energy generation). Q12 If yes, how should this trajectory be set? With reference to just our 2050 target or with reference to intermediate Carbon Budgets too? N/A Q13 What is an appropriate emissions level to begin at? We are not qualified to suggest a number, but on principle it should be a value significantly lower than that of natural gas, but not so low as to stifle the development of the market. Q14 What is an appropriate emissions level to target, and when should the target be hit? In our view it would be premature to have a decreasing trajectory. It could be reviewed after, say, 10 years of operation of the standard. Q 14 Which technologies should the Standard cover in its first iteration? These should be the technologies that are currently most widespread or have the most significant potential in the very near term. Any technology that can produce hydrogen at embodied carbon levels below the standard should be covered. In other words the standard should be technology blind and not stifle innovation. 4 Changes to biomass grandfathering RO policy consultation – REA response We appreciate that there may be work entailed in developing a methodology against which to test hydrogen produced via different technologies, and for this reason suggest starting with the electrolysis of water. 15. Which developing technologies should the Standard look to include in its later iterations? Neither UK Storage nor UK Solar are qualified to comment on this. 16. Beyond carbon emission reduction, should the Standard look to include other benefits within its first iteration, such as a reduction in airborne particulate matter? No. Hydrogen may well emit fewer particulates, but as a principle, airborne pollution is regulated by the Environment Agency or local authorities. There is no merit in making the standard more complex by the inclusion of other parameters. 17. If yes, how should these benefits be factored in? N/A Q 23 Would it be an advantage to have a single EU standard, even if it was not technology neutral? Is international consistency important or could the UK develop a better Green Hydrogen standard? A single EU standard would be the ideal. The UK’s Green Gas Certification Scheme is a member of a group of European certification schemes which are developing the foundation for cross-border biomethane trade in Europe. In theory these other schemes could just as easily incorporate green hydrogen. Q 24 How should we treat imported H2 if there is not a common agreed EU or international standard?? “Import” of green hydrogen would best be done according to the equivalence principle, so avoiding the emissions associated with compression and transportation. The registries project referred to above would be the ideal place to explore this. 5