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The Future of Hydrogen Chapter 5: Opportunities for hydrogen in transport, buildings and power How does the buildings sector use hydrogen today? Hydrogen is very little used as a source of energy in the global buildings sector today, although various potential uses are now being trialled. There are currently 37 demonstration projects examining hydrogen blending in the gas grid (see Chapter 3 for more information). In the United Kingdom, where high heating demands have focused attention on heating solutions, H21 North of England is the largest project and is proposing to supply 100% hydrogen by pipeline to buildings. This project targets hydrogen supply of 180 ktH2/yr by 2025 and 2 MtH2/yr by 2035, following studies in 2016 confirming the feasibility of reusing the existing pipeline network (Northern Gas Networks, 2018). There are in addition micro co-generation and fuel cell hydrogen demonstration projects in Europe and Asia, notably the ENE-FARM project in Japan (Box 14). In Europe, the ene.field demonstration was launched in 2012 and has installed more than 1 000 small stationary fuel cell systems for residential and commercial buildings in 11 countries, with plans to increase this to 2 800 units (Ravn Nielsen and Prag, 2017). In Germany, consumers can access government funding to offset the extra cost for fuel cell appliances in buildings (KfW, 2018). Projects are also being prepared for the demonstration of digital systems to facilitate renewables integration with the storage and supply of electricity and heat in one or multiple buildings, for example in the United Kingdom. Box 14. The ENE-FARM programme in Japan ENE-FARM is a large-scale fuel cell demonstration and commercialisation programme aiming to deliver efficient and affordable fuel cell technologies for building applications. The first system was introduced in a residential building in 2009 and close to 300 000 units are expected to be in operation by 2020. The programme aims to install 5.3 million units by 2050. At present ENE-FARM units reform natural gas or liquefied petroleum gas in situ to feed a fuel cell with hydrogen. The use of fossil fuels leads to limited CO2 reduction benefits, but aids delivery of cost reductions that will help to pave the way for low-carbon hydrogen distribution once it becomes economically attractive. The initial cost per unit has come down by 75% in almost 10 years (from more than USD 35 000 to around USD 9 000 in 2018 (Nagashima, 2018). Source: Nagashima (2018), Japan’s Hydrogen Strategy and Its Economic and Geopolitical Implications. Potential for future hydrogen demand in buildings Hydrogen will not make sense for all building applications, and numerous factors will influence eventual hydrogen demand in buildings, including existing natural gas infrastructure, heat densities, other building energy needs and safety considerations. There are barriers related to cost and consumer acceptance, and a variety of policy design challenges, which is why hydrogen use is currently limited to localised operations and larger-scale demonstrators such as those programmes described above. But there are lots of opportunities as well, which are centred around two main options. The first is hydrogen blending in existing natural gas networks. The second is direct use of hydrogen for heat production in buildings. Hydrogen could also be used indirectly to heat or cool local district energy networks that then supply buildings. PAGE | 145 IEA. All rights reserved.PDF Image | The Future of Hydrogen 2019
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