James Mawson, editor-in-chief of Global Corporate Venturing, interviewed Lord Adair Turner, chair of the Energy Transitions Commission of the UK government.
Turner explained: “We know the key elements need to build a zero-carbon economy and I do think we need to build a zero-carbon economy and need it in place by 2050.
“The absolute core of a zero-carbon economy is to electrify the economy as much as possible and make sure that all of that electricity comes from zero-carbon sources. And we can do that.”
He also pointed out that hydrogen appears to be the answer for some of the setbacks along the way to mass electrification: “But then there are some sectors of the economy which you cannot just say: I am going to electrify it.
“We cannot make long-distance aviation work on battery-based electricity nor long-distance shipping. You cannot at the moment electrify the process of making steel. One important technology to deal with those bits you cannot seem to electrify is hydrogen.”
The cost of both producing and using green electricity has been transformed over the past decade, according to Turner, citing that the cost of production of solar photovoltaics has come down 80% to 90%. He believes the cost of electrolysers will also come down due to economies of scale and a significant rise in demand in the near future.
Turner admitted, however, that steel produced with green hydrogen may be more expensive than steel produced with electricity coming from fossil fuels. He suggested that there would either have to be a global carbon tax or regulations that make it economical to use greener energy sources.
He noted that, while aviation and shipping have international regulating bodies that may impose a specific mandate, there are other industries that do not, in which case the way to impose such regulations would be through the carbon border adjustments for uniform carbon pricing and green procurements from governments, among other methods.
“Although there are some on the cost reductions – with the Chinese probably hitting the lowers costs, I think you will see electrolytes capacity being built across the world.” While accepting there may be international trade of hydrogen, Turner concluded: “I think most places will have local production of hydrogen.”
