Hydrogen revolution promises jobs bonanza for first movers
There are a host of compelling reasons for nations to move quickly on developing a clean hydrogen strategy: net zero goals, cleaner air, and energy security are among the most cited.
First movers are also likely to reap broad economic benefits that come from decarbonising industry, whether it be steel, chemicals, manufacturing or food production. And that means job creation.
A report this week out of Dublin City University said developing a clean hydrogen industry could create 50,000 jobs in Ireland, coupled with a warning that the Republic could miss the opportunity if their government doesn’t publish its hydrogen strategy promptly.
The report pointed to the €150 billion of financial support pledged by the EU for hydrogen projects over the coming decades. Ireland’s wind resources would allow it to produce enough hydrogen to replace €5 billion of annual fuel imports, it said.
The UK government estimated in its Hydrogen Strategy released last August the hydrogen economy could create 9,000 high-quality jobs by 2030, potentially rising to 100,000 jobs by 2050.
The hydrogen economy could create 9,000 high-quality jobs by 2030, potentially rising to 100,000 jobs by 2050.
But those jobs are contingent on the UK taking advantage of the opportunity that lays before it. Other nations are also making a play for the future of energy with major investments in clean hydrogen.
Just this week, France announced €4.5 billion of support for “innovative technologies” such as hydrogen and carbon capture to help decarbonisation of heavy industry, while on the same day ArcelorMittal said it would spend €1.7 billion replacing two of three coal-fired blast furnaces with direct-reduced iron units powered by hydrogen.
There are thousands of British jobs that are indirectly reliant on the UK getting its hydrogen strategy right.
The steel industry employs about 33,000 people in the UK and a further 42,000 in related supply chains. Cost-competitive clean hydrogen can help keep those jobs in the UK.
The steel industry employs about 33,000 people in the UK and a further 42,000 in related supply chains. Cost-competitive clean hydrogen can help keep those jobs in the UK.
The industry has been under pressure in recent years as it struggled to compete with lower cost competition. One of the key challenges it has faced has been uncompetitive energy costs. A report last year by trade body UK Steel said UK steel producers pay about £50 million a year in excess energy cost compared with foreign competitors. Domestic firms spend a whopping 86% more on electricity than German mills and 62% more than French competitors.
Further afield, petrostates including Saudi Arabia, the UAE and Russia are investing billions of dollars in clean and low-carbon hydrogen production with the aim of exporting excess output to countries like the UK.
In India, Mukesh Ambani, the billionaire chairman of Reliance Industries, is planning to invest $75 billion in renewable energy infrastructure, including electrolysers for the production of green hydrogen, and plans to become the world’s biggest producer of blue hydrogen this decade as it looks to dominate the global clean hydrogen market.
A fleet of the world’s first zero-emission hydrogen powered double deck buses hit the streets of London, Aberdeen, Birmingham, Dublin and Belfast with manufacturer Wrightbus announcing that 2022 will see them double production thanks to massive demand for their Zero-emission transport technology.
The global energy map is being redrawn by the emergence of green hydrogen, which can be produced locally by any country with a source of renewable energy and an electrolyser. The UK has an opportunity to end its dependence on imported energy and even become a net exporter if it makes the right moves during this period of unprecedented change.
Britain is a hot bed of clean hydrogen innovation with world-leading companies in electrolysis, such as INEOS, CPH2, ITM Power, and Johnson Matthey, while companies such as Ryze Hydrogen are building transport and distribution infrastructure while Wrightbus and JCB are building vehicles, plant machinery and an award-winning hydrogen combustion engine that runs on clean hydrogen fuel.
The UK is also emerging as a global centre for hydrogen-powered aviation with companies such as ZeroAvia and ZeroPetroleum pushing the boundaries of what is possible with hydrogen fuels.
The UK has enviable offshore wind resources to create green hydrogen and has started to build hydrogen hubs around industrial clusters such as H2Teesside, Zero Carbon Humber and HyNet North West, with the announcement this week of two “green freeports” in Scotland where hydrogen is also expected to become a key area of focus.
The only piece of the puzzle missing is the shape of government support for the UK’s clean hydrogen industry. Get that right and there is no reason the UK’s hydrogen economy cannot reach its potential and secure thousands of jobs in the process.
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