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The Future of Hydrogen Chapter 5: Opportunities for hydrogen in transport, buildings and power Achieving these levels of hydrogen use in buildings, and potentially higher levels in the longer term, faces several barriers. These include higher upfront capital costs and higher energy prices for consumers, as well as any safety concerns that consumers may have. In the near term, demonstration projects with strong public and private participation can continue to help identify and find ways of overcoming these barriers, especially if they provide practical information based on: Urban development patterns. For example, most current demonstration projects are not located in the types of urban areas where most heat demand is and which are generally more challenging to supply with hydrogen. Similarly, demonstration buildings are often single-occupancy or low-density commercial or multifamily residential units that do not illustrate the practical application of hydrogen equipment in dense urban environments or in older buildings where electric or hybrid electric-natural gas heat pumps may be less appropriate, making them a key target opportunity for hydrogen. Building types. Large-scale co-generation, for instance, may be more cost-effective in terms of both CAPEX and OPEX for large commercial buildings than for small-scale residential ones. Large-scale fuel cell co-generation may also be well-suited to the supply of renewable electricity to buildings equipped with high-performance heat pumps and clean district heat (as a replacement for hard-to-convert gas-based systems), but less suited to other types of buildings. Realising the potential for hydrogen use in buildings and moving to the use of low-carbon hydrogen will require co-ordination between policy makers, industry and investors, as well as greater engagement with consumers and with the equipment service sector. Installers, for example, may require training or specific skills. Governments can help to facilitate dialogue and remove potential obstacles to the use of hydrogen by measures such as improving policy regulations; providing clear signals about their expectations for the future carbon intensity of heat (including ambitious targets to decarbonise natural gas networks); continuing to improve the evidence base on hydrogen applications for heat in buildings; and supporting innovation. Hydrogen for power generation and electricity storage Hydrogen plays a negligible role in the power sector today: it accounts for less than 0.2% of electricity generation. This is linked mostly to the use of gases from the steel industry, petrochemical plants and refineries. But there is potential for this to change in the future. Co- firing of ammonia could reduce the carbon intensity of existing conventional coal power plants, and hydrogen-fired gas turbines and combined-cycle gas turbines could be a source of flexibility in electricity systems with increasing shares of variable renewables. In the form of compressed gas, ammonia or synthetic methane, hydrogen could also become a long-term storage option to balance seasonal variations in electricity demand or generation from renewables (Table 9). PAGE | 150 IEA. All rights reserved.PDF Image | The Future of Hydrogen 2019
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