Despite being seen by many as a potential substitute to fill the gap that will be left as fossil gas is phased out, a new report commissioned by international NGO, Global Witness has predicted that hydrogen could double energy bills.
Produced by Element Energy, the report suggests that even by 2050, based off an average home with consumption of 12,700kWh per year, it would cost an average of €1,580 for a medium-sized house to be heated by hydrogen, double the average price of heating the same sized property with gas at the end of 2021.
© Element Energy / Global Witness
Global Witness has suggested the sharp increase can be blamed largely on the new infrastructure required for it. According to the report, the building of components such as electrolysers, storage facilities, household meters, as well as pipeline infrastructure holds the price tag of €240bn over the 40 years it says it could be used.
Based off the report’s findings, Global Witness has made a call to the European Parliament and Council to reject the use of hydrogen to heat homes and prevent gas companies from passing on the costs of hydrogen infrastructure to consumers in the draft legislation, currently being debated, known as the Gas Package.
The NGO has recommended that the European Parliament and Council should amend the proposed Gas Package:
Hydrogen should be used only where it is the only viable alternative to fossil gas, such as heavy industries and transportation. The fuel should only be produced using renewable electricity and companies should be barred from transporting a blend of hydrogen and natural gas.
Companies should be barred from requiring households to share the costs of building hydrogen infrastructure from which they do not directly benefit.
Gas distribution service operator (DSO) network planning should be more transparent and open to participation from other stakeholders, including communities, civil society groups, and local governments. DSO planning should be in line with EU and national climate and energy targets, be based on local heating and cooling plans, and identify those parts of the network that require decommissioning.
Market rules should ensure the rapid phase out of fossil gas use across all sectors, including households and industry by 2035.
Global Witness said, “Europe does need to stop using gas, but there is a better alternative to hydrogen: energy savings and home heating sources such as heat pumps and district heating using renewable electricity. Multiple studies have shown that renewables are far cheaper for households, and they are a better way of meeting Europe’s climate goals than relying on a fuel that is currently generated using fossil gas.”
Unveiled in December 2021, the draft legislation proposed by the European Commission offered new framework that would enable the promotion of hydrogen and accelerate its adoption across Europe.
The legislation received support from the Hydrogen Europe, which stated it would help develop the ‘world’s first’ internal market for hydrogen.
Heating with hydrogen has been a long debated topic as the world looks to decarbonise its economies. Supporters of the pathway believe that hydrogen-ready boilers will offer little disruption to consumer’s way of life, while the more sceptical believe the economics do not make the route feasible.
Speaking to H2 View, Jeff House, Head of External Affairs at Worcester Bosch, explained that the company believes a mix of electrification, hydrogen and other low carbon heat networks will be required to address the decarbonisation of heating in the UK.
House explained, “There is no single solution to Net Zero home heating. We firmly believe that a mix of electrification, hydrogen and deployment of low carbon heat networks will be necessary to address the challenges presented by the UK’s varied housing stock and customer needs.
“Hydrogen, in the case of existing gas grid connected properties, can offer a low disruption option which allows consumers to enjoy the same thermal comfort as today without significant alterations to their heating system or building fabric.”
Read more: Fuel for thought: Is hydrogen the solution to net-zero home heating?
Similarly, at the FT Live Hydrogen Summit in London, UK, in June (2021), Philip Caldwell, CEO of Ceres Power stated that despite the tenuous economic prospects of heating with hydrogen, he believes there is a place for hydrogen in our heating systems.
He said, “Where it could make sense is if you have hydrogen available in areas clusters, then you could use hydrogen to start to decarbonise. Where you can’t electrify, hydrogen should only really be considered if the business model favoured.”
Read more: Is hydrogen for heating dead? Questions raised at the FT Live Hydrogen Summit