The Future of Hydrogen 2019

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The Future of Hydrogen Chapter 3: Storage, transmission and distribution of hydrogen groups (e.g. HyReady and HIPS-Net) are examining standards for hydrogen blending, while the European Commission is also examining standards and the role of renewable gases and hydrogen in the natural gas network (Eurogas, 2018). Figure 26. Current limits on hydrogen blending in natural gas networks Germany* France Spain Austria Switzerland Lithuania* Finland Netherlands* Japan United Kingdom Belgium California 0 2 4 6 8 10 % hydrogen (volume) * Higher limit for Germany applies if there are no CNG filling stations connected to the network; higher limit for the Netherlands applies to high-calorific gas; higher limit for Lithuania applies when pipeline pressure is greater than 16 bar pressure. Sources: Dolci et al. (2019), “Incentives and legal barriers for Power-to-Hydrogen pathways: An international snapshot”, International Journal of Hydrogen; HyLaw (n.d.), Online Database; Staffell et al. (2019) “The role of hydrogen and fuel cells in the global energy system”, Energy and Environmental Science. Today most countries limit hydrogen concentrations in the natural gas network; modifying these regulations will be necessary to stimulate meaningful levels of hydrogen blending. Keeping track of how much hydrogen has been injected into the grid and its carbon intensity is also important. Such an accounting method – sometimes called a “guarantee of origin” – is essential if operators are to be paid a premium for supplying lower-carbon gas. An example is the system in California whereby some customers can purchase certificates for renewable methane blended into the grid despite the gas molecules themselves being untraceable after injection. In Europe the CertifHy project has designed an operational framework for guarantees of origin and issued more than 75 000 digital certificates. In addition to issues relating to the grid itself, policies to bring about higher blending levels need to incorporate strategies for replacing equipment in homes, offices and factories. The conversion could be done progressively region by region. Implementing policies of this kind would be time-consuming and costly, but not unprecedented: the United Kingdom, Austria, Germany and the United States switched from town gas (with 50% hydrogen) to natural gas in the 1960s and 1970s. The United Kingdom replaced 40million appliances at a cost of USD 12 billion over 10 years (Dodds and Ekins, 2013). There are currently 37 demonstration projects examining hydrogen blending in the gas grid. The Ameland project in the Netherlands did not find that blending hydrogen up to 30% posed any difficulties for household devices, including boilers, gas hobs and cooking appliances (Kippers, De Laat and Hermkens, 2011). Injection has also been tested at both the transmission and distribution level. Other European projects are testing the technical and monitoring requirements of underground storage (Hypos, 2017). Allowable under certain circumstances PAGE | 73 IEA. All rights reserved.

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