Report

International engagements on low-carbon Hydrogen

Think tank: RUSI

Author(s): Dan Marks; Cinzia Bianco; Dr Carlos Solar

October 24, 2024

This report from UK think tank RUSI examines whether the UK could or should do more to ensure security of critical supply chains involving hydrogen.

While hydrogen may play a role in the energy transition as a fuel, its main role is likely to be as an input for industrial processes and the production of other fuels across various applications. Handling hydrogen is difficult and hazardous; it is prone to leaks and costly to transport. Uncertainty abounds over the cost, applications and even the definition of low-carbon hydrogen.

This paper adopts the UK government definition. However, low-carbon hydrogen can be used to displace hydrogen currently produced from fossil fuels, serve as a reactant in decarbonised industrial processes, and be combined with nitrogen or low-emission carbon sources to produce synthetic fuels that are easier and cheaper to transport. Hydrogen could become central to the decarbonisation of fertilisers, chemicals, aviation and maritime fuels, and steel, among other applications.

From a security of supply perspective, this shifts the focus from the source of hydrogen used in the UK to sources of critical materials, fuels and technologies produced using hydrogen. These may become essential to the UK economy and national security in the coming decades. Reliable and low-cost global supply chains will be an essential component of UK critical industries, infrastructure, and, ultimately, defence.

This paper examines whether the UK could or should do more to ensure security of critical supply chains involving hydrogen, by examining the activities of peer countries in three regions – Africa, the states of the Gulf Cooperation Council and Latin America – with the potential to produce low-carbon hydrogen cheaply