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The Future of Hydrogen Chapter 6: Policies to boost momentum in key value chains would, for example, create hydrogen demand equivalent to 650 000 FCEVs or the heat demand of 2millionhomes (Chapter5). Hydrogen use could spread gradually from coastal hubs further inland by truck, barge or pipeline (since industrial clusters are often well-integrated with existing natural gas pipelines). There are already examples of plans that show the potential for costal hubs as hydrogen users. At the ports of Los Angeles and Long Beach, for example, the Zero and Near Zero Emissions Freight Facilities project is planning two heavy-duty hydrogen refuelling stations and ten hydrogen- fuelled trucks to distribute goods around the ports with the aim of improving air quality as well as addressing climate concerns. Potential exists for a variety of coastal industrial clusters to support the commercial-scale demand and supply of hydrogen, including by retrofitting CCUS to existing hydrogen plants. The North Sea is one candidate, but others include South East China, the US Gulf Coast, Australia and the Persian Gulf, where Saudi Arabia plans to explore hydrogen production for shipment to Japan. Some inland industrial clusters could also support hydrogen developments where this makes sense, for example for fertiliser production in inland China (Chapter 2) or for steel production in Austria. The production of hundreds of thousands of tonnes of hydrogen for industrial applications is a major opportunity for expanding electrolyser production and capacity, as well as for CCUS projects. Box 18. Focus on the North Sea region The North Sea region exhibits many of the features that can make coastal industrial hubs an attractive starting point for scaling-up (and cleaning up) hydrogen supply and demand: strongindustrialbasewithninekeyindustrialhubs strong driver for low-carbon investment in the shape of ambitious climate policies hydrogen pipelines proximity to CO2 storage potential high potential for offshore wind power political interest in hydrogen as fuel and feedstock in the context of maintaining a strong industrial base in the region. The nine industrial hubs around the North Sea currently consume a total of 1.7 MtH2 annually, nearly half of which is for ammonia (0.8 Mt), and most of the rest for refining (0.6 Mt) and chemicals (0.2 Mt). Production of this hydrogen is currently responsible for the emission of 15 MtCO2, equivalent to one-third of Germany’s CO2 emissions from the manufacturing and industrial sectors. The North Sea has some of the best-developed CO2 storage resources in the European Union. Since 1996 CO2 has been injected into the Norwegian continental shelf at a rate of 1 MtCO2/yr, more than twice the amount needed to abate emissions from a large-scale hydrogen production plant. While progress since then has been slow, North Sea projects to capture and store CO2 from natural gas- based hydrogen production are now among the leading candidates for CCUS in Europe. While no final investment decisions have yet been taken, projects at the feasibility study stage with ambitions to be operational by 2030 include: the H21 project in the North and North East of England, which would involve nine hydrogen production units of 0.2 MtH2/yr capacity each (H21, 2018); the Magnum Project in the Netherlands, which could create demand for 0.2 MtH2/yr for each of the three gas power plant units converted to hydrogen (NIB, 2018); the H-Vision project, which aims to retrofit CO2 PAGE | 179 IEA. All rights reserved.PDF Image | The Future of Hydrogen 2019
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