Emissions from Scottish hydrogen: International standards and export competitiveness

The Scottish Government has set ambitions in its Hydrogen Action Plan to install at least 5 gigawatts of renewable and low-carbon hydrogen production capacity by 2030, and 25 gigawatts by 2045. Given Scotland’s hydrogen export ambitions, it is critical to understand any barriers to compliance with standards in potential markets, as well as Scotland’s international competitiveness as a hydrogen exporter.

This study aimed to compare existing and developing hydrogen sustainability standards globally; and to compare the greenhouse gas (GHG) emissions of hydrogen and derivatives exported from Scotland to the EU market with those from other regions in meeting EU requirements.

Summary findings

• Key hydrogen standards globally already set out different GHG calculation methodologies and compliance requirements for producers.
• With regard to GHG emissions, electrolytic hydrogen produced in Scotland and exported to the EU market could be one of the most competitive from the countries studied.
• When transported over short distances as compressed hydrogen via pipelines or ships, electrolytic hydrogen produced using low-carbon electricity is expected to meet the EU GHG threshold.
• Transporting hydrogen as ammonia leads to significantly higher GHG emissions.
• Only countries with a high share of low-carbon electricity on their grid can meet the EU GHG emission threshold for hydrogen produced from grid electricity.
• Many natural gas pathways modelled will not comply with the EU Gas Directive threshold. These pathways are highly sensitive to the GHG intensity of upstream natural gas production, which is uncertain and can be highly variable depending on the source (e.g. imported LNG with high intensities).
• GB’s electricity grid as a whole has a significantly higher GHG intensity than Scotland, so further clarity on the definition of bidding zones in the EU RED Delegated Act is critical.
• This GHG emission analysis could be combined with the previous ClimateXChange cost analysis to evaluate the overall competitiveness of these hydrogen pathways.

For further information on the findings please download the report.

If you require the report in an alternative format, such as a Word document, please contact info@climatexchange.org.uk or 0131 651 4783.