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The Future of Hydrogen Chapter 6: Policies to boost momentum in key value chains R&D, strategic demonstration projects and knowledge sharing. There is a rationale for public-sector involvement in improving technologies associated with hydrogen production – electrolysers and CCUS – as well as in helping provide the safety case for hydrogen blending and conversion throughout the supply chain. Public co-funding could also accelerate the development of appliances that use 100% hydrogen, especially if the future size of their markets is uncertain. R&D for underground storage of hydrogen in depleted oil and gas fields and aquifers is likely to be necessary to prove their suitability for use with hydrogen. Higher-risk demonstration projects for localised grid conversions are also likely to need public support. Knowledge sharing could be facilitated by international forums, such as IEA Technology Collaboration Programmes, the Clean Energy Ministerial Hydrogen Initiative and IPHE. Harmonising standards, removing barriers. As hydrogen in the gas grid, whether blended or 100% hydrogen, will be used in people’s homes, ensuring safety is of paramount importance. Public safety concerns or adverse events could seriously impair the speed of deployment or prevent it altogether. Standards will also be important for new appliances and equipment. A key barrier to be addressed is the current low level of blending permitted in many jurisdictions, including where cross-border pipelines exist. Standards, such as those for the tolerance of appliances and equipment to different blending levels, clearly have a role to play here too (Chapter3). Some energy tax regimes were designed without consideration of an energy product (e.g. electricity) being purchased for conversion to another retail energy product (e.g. gas), potentially leading to “double” consumer taxation; governments should ensure that tax regimes remain appropriate. 3. Fleets, freight and corridors: Make fuel cell vehicles more competitive The transport sector is overwhelmingly dependent on oil today (92% of the sector’s energy use). As the world transitions to alternative transport fuels, low-carbon hydrogen has a role to play in contributing to fuel security and diversification while reducing pollution, although the highly dispersed infrastructure and broad range of suppliers, investors and consumers in the transport sector makes it challenging to bring about a rapid shift to low-carbon fuels. Hydrogen can be an effective alternative to BEVs in long-distance, higher-weight applications (Chapter 5). While there are several impressive commercial enterprises for hydrogen and fuel cell vehicles today, the next stage will be critical to creating a platform for widespread deployment. It will need to include scaling up production of components and vehicles, attracting more market players, bringing down production costs and ensuring refuelling infrastructure is adequate and strategically located. Various national governments have ambitious 2030 targets for vehicles and infrastructure that would put the sector on a firm foundation and reduce vehicle costs (Box 19). These government targets are generally underpinned by air quality and climate change commitments, which also support parallel, higher targets for BEVs.59 59 If some countries import or store low-carbon electricity in the form of hydrogen or hydrogen carriers it will be more efficient in all cases to use this hydrogen directly in vehicles rather than converting it back to electricity for BEVs. PAGE | 185 IEA. All rights reserved.PDF Image | The Future of Hydrogen 2019
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