Re: No on electrolysis, yes on green hydrocarbons
Remember when Covid stopped supply chains for a couple weeks? Nothing worked. Well this is Covid, forever, with the opposite 95% off/ 5% on duty-cycle. You want the entire global fossil fuel economy to hibernate for 330 days a year, and then on *random unpredictable days* fire up to run 98% of our current energy demand….well, no, it can’t be done.
Of course it can be done. Ed Milliband* says it can be done, and he's back in charge of energy policy. The problem is simple. Administrative Strike Prices for this year’s CfD auction were £100.27/MWh for offshore wind, £87.91/MWh for onshore wind and £83.79/MWh for solar power. There were no bids for offshore wind because the subsidies weren't high enough to cover costs, and the 'renewables' lobby wants more money. Gas costs around £54/MWh, so is a lot cheaper than 'renewables'.
The problem is the way the market is rigged. If CfDs were instead based on firm delivery of X MWh, bidders would have to include all the costs, so the costs of providing that stand-by capacity for when it's dark, or the wind isn't blowing. Which is this problem-
https://gridwatch.co.uk/Wind
minimum: 0.236 GW maximum: 13.886 GW average: 5.443 GW for the month to date. This is from an installed capacity of around 32GW (from memory) making an average capacity factor of 16%. So a fairer 'renewables' cost would include the cost of CCGT, or even batteries. Which then obviously makes it even less economic when compared to alternatives like coal, gas or nuclear that don't have the intermittency problem.
This is also hydrogen's problem. It assumes there will be enough 'renewable' energy to produce meaningful quantities at a reasonable price. If it costs > £80-100/MWh, it'll produce very expensive hydrogen. There's also competiton for energy, so there's an assumption that 'surplus' energy can be diverted to hydrogen production. But currently 'surplus' energy is rare given 'renewables' priority access. So basically only when there's too much wind. Then subsidy farmers get paid constraint payments to not despatch electricity to the grid. But assuming grid-scale batteries, electricity will also be needed to keep those charged, which means less electricity to make hydrogen.
But this is also where nuclear is better. They do baseload and are happiest running 24x7x365. Demand is variable, hence why the UK came up with ideas like Economy 7 tariffs to sink off-peak energy. So a more practical hydrogen production would be using nuclear electricity when supply exceeds demand... But thanks to 'decarbonisation', we're massively increasing demand, but not reliable supply..
*The combination of Ed Milliband and Ed Davey having set energy policy is pretty conclusive proof that two Eds aren't better than one..