Achieving Future Hydrogen Demand Study

Motivation: 

In order to meet net zero targets set by the UK and Scottish Governments, an increasing proportion of fossil fuels will be replaced by lower carbon alternatives. Using low-carbon hydrogen to decarbonise hard-to-abate sectors will play a key part in credible pathways to achieve net zero targets.

Goal7's client, a gas network operator, wanted to identify locations where hydrogen demand could exist in future and locations where hydrogen production will likely take place, in relation to its existing gas distribution network.

Our Approach: 

Goal7 conducted an initial review of the client's previous work and studies into hydrogen. This review identified gaps in understanding, knowledge and where existing information could be used and applied in the study.

Goal7 developed a model to identify potential locations and the estimated size of both production and demand for hydrogen across the client's operating regions. GIS maps were developed to highlight potential hotspots where the client could repurpose or invest in its distribution network.

The model based on the following:

• Identifying areas of hydrogen production based on: renewable power availability, water supply, existing and planned projects, land availability
• Segmenting the offtake market by industry for potential hydrogen use and the estimated capacity for each industry segment
• Analysing factors that will influence hydrogen demand, such as alternative fuel options and regulatory support
• Analysing factors which will influence hydrogen import and export
• Assessing the seasonal impact on both production and demand for hydrogen in the UK

The model provided aggregated supply and demand profiles for each operating region, identifying potential net flows of hydrogen. A seasonality analysis was also performed, enabling identification of potential hydrogen storage opportunities.

Alongside the supply and demand model and maps, a comprehensive  review was undertaken of the UK and international hydrogen market development, including hydrogen production costs and key drivers,  public opinion, hydrogen safety, UK export strategy and EU import strategy.

Benefit and Impact: 

Goal7 prepared a comprehensive report identifying hotspot geographic areas. In addition, an accompanying presentation was prepared to help disseminate the results of the study, together with an infographic for social media use.

Related Services