Hydrogen and net zero: Shooting the hydrogen breeze?

Guest blog post by Fraser Harper, co-author of the Green Edge

Hydrogen - especially ‘green’ hydrogen, produced by electrolysing water into hydrogen and oxygen using renewable electricity - is pretty much everywhere in the Net Zero conversation these days: from announcements in the recent budget; to industrial blueprints; to startups developing solutions all the way from novel hydrogen production and delivery to onboard ammonia cracking for transport.

But if you’re an SME in the engineering and manufacturing sectors, you may be wondering: How much does hydrogen actually matter to us? Will hydrogen become as commonplace as LPG, or is this just another big-energy fantasy?

These are good questions.

Hydrogen’s clean-burning appeal is straightforward enough. Burn it, and all you get is water. In the race to ditch fossil fuels, that sounds like a silver bullet. But the reality is more complicated. Hydrogen is costly, tricky to handle, and brings a whole new level of technical demands. So, how involved do SMEs need to get? That depends on a few factors.

First off, are you in a hydrogen-friendly sector? In heavy industries like steel, chemicals and cement, hydrogen might be coming sooner than you think. These energy-intensive sectors need alternatives to fossil fuels, and hydrogen can do what electricity can’t always manage. But even if your business doesn’t directly use hydrogen, you could still get pulled into the orbit. Component suppliers, engineering services, and material manufacturers might all see new demand to support hydrogen-powered operations for larger clients.

Next, are you part of a hydrogen value chain? You may be working for big clients working toward carbon-cutting targets and nudging their suppliers to get hydrogen-savvy. Maybe they’ll want hydrogen-compatible materials or fuel-cell-ready components. Or they could need parts that can handle hydrogen’s specific requirements for transport and storage. You may even be geographically close to one of the many hydrogen projects springing up over the UK (see map).

You may be eyeing hydrogen as a niche goldmine, one which needs innovation at every step. Niche expertise - in advanced materials, precision manufacturing, and engineering solutions - could put you in a strong position. There’s room here for small players who can solve specific hydrogen challenges.

But will hydrogen become the new LPG? For now at least, the answer seems to be not likely. LPG is everywhere: it’s a convenient, well-established fuel with an easy infrastructure. Hydrogen, on the other hand, faces a mountain of challenges.

First, there are the infrastructure roadblocks. Hydrogen molecules are tiny and prone to leaking from pipelines, and they can make metals brittle over time. Our existing gas infrastructure can’t handle hydrogen safely without major upgrades. So, no, we’re not getting a hydrogen pipeline down every street any time soon.

Then there are the production costs. Green hydrogen - the type we really need for Net Zero - is made by splitting water using renewable electricity, and right now, that’s far from cheap. Until green hydrogen prices come down, it’s unlikely to replace LPG in any widespread, affordable way.

Alongside that, there are the storage issues. Hydrogen doesn’t store as easily as LPG. It needs either ultra-high pressure tanks or cryogenic cooling to keep it in liquid form, and neither option is particularly cheap or simple. This is not the stuff we’ll be tossing into a standard fuel tank anytime soon.

So, hydrogen may not be the next LPG, but if you’re in engineering or manufacturing, you’d be wise to keep an eye on it. Here’s what to focus on:

Hydrogen projects are on the government’s radar, so look for funding opportunities for hydrogen-focused R&D. Signing up for e-mail alerts from Innovate UK and key hydrogen bodies like Hydrogen UK are good first steps.

If your major clients are going green, be ready to follow. Building hydrogen-friendly products or adapting processes could set you apart as a future-ready supplier.

Hydrogen may be niche now, but it’s moving fast in certain sectors. So, stay nimble - flexibility and readiness to adapt will be key as hydrogen applications evolve.

In the emerging modern world of hydrogen, the big players may be driving the adoption, but SMEs with the right skills and a finger on the pulse could find lucrative opportunities in this rapidly changing landscape. So, while you may not be filling your tanks with hydrogen any time soon, staying informed could make all the difference when the hydrogen economy properly takes off.

*Image: TGE. Source: HEA

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