The report discusses the current reliance on conventionally sourced hydrogen from fossil fuels, which results in significant carbon emissions.
The shift towards low or zero carbon hydrogen production, such as 'green' hydrogen from renewables, is seen as crucial for national decarbonisation strategies. However, challenges such as the high cost and scalability of producing green hydrogen on a large scale are highlighted. The option of 'blue' hydrogen produced from natural gas or coal with carbon capture and storage (CCS) technology is also considered, but faces obstacles such as high implementation costs and limited CCS initiatives. The competition with other decarbonisation options and the social acceptance of hydrogen technologies are additional challenges discussed. The opposition to technologies like CCS and concerns about the cost-effectiveness of hydrogen alternatives further complicate the transition towards cleaner hydrogen production methods.