Participants

Anesh Tahir

  • Assessing the Cost of Hydrogen Import vs Local Production in the UK
  • MEng Hons Chemical Engineering

Hydrogen will play a key role in helping the UK cut emissions and reach net zero by 2050, especially in industries and transport. In the Humber region, one of the country’s largest industrial hubs, different supply options have been compared. Producing hydrogen locally from natural gas with carbon capture (“blue hydrogen”) is currently the most affordable, costing about £2.5 - 3 per kilogram. Importing hydrogen from East Africa in the form of ammonia and converting it back costs slightly more at £3.5 - 4 per kilogram. Producing it with renewable electricity (“green hydrogen”) is the most expensive for now at £4.9 - 6.2 per kilogram. Costs could shift in future: higher gas and carbon prices would make imports or green hydrogen more competitive, while falling renewable electricity prices could bring down the cost of green hydrogen. For now, blue hydrogen is the most cost-effective, but a