Cost proving barrier to adopting likes of wind and green hydrogen


Cost has been identified as the main barrier to the adoption of clean energy technologies.

Over the course of the All Energy Conference in Glasgow in May 2022, the Net Zero Technology Centre (NZTC) carried out an industry survey, before publishing the findings in early June. Wind (35%), green hydrogen (18%) and electrification (13%) were considered as being the most important for an optimum energy mix, with respondents ranking solar and carbon capture, utilisation and storage (CCUS) as least important. Cost (35%), meanwhile, was cited as the main barrier to the adoption of clean energy technologies, ahead of legislation and regulation (26%).

Focusing on hydrogen, respondents selected transitioning the UK’s oil and gas supply chain as the biggest opportunity it presents. It was also highlighted as offering the potential to build the UK’s manufacturing capabilities. Once more, cost was ranked as the biggest challenge facing the delivery of Scotland’s hydrogen economy – 37% – ahead of policy framework and the market (29%).

It also dug deeper into wind, following the Crown Estate Scotland issuing seabed licenses to 17 projects, totalling 25GW, back in January. In terms of delivering Scotwind, grid connection (33%) and investment (26%) were considered the biggest challenges. In terms of delivering Scotwind projects, outdated infrastructure (38%) was the main obstacle given by respondents impacting the pace of the energy transition, ahead of a lack of a delivery plan (22%) and cost (20%).

Mary Thorogood, NZTC Government Relations, External Affairs and Communications Director, said: “We need to drive technology down the cost reduction curve and provide an actionable roadmap to ensure floating offshore wind powered green hydrogen is a cost-effective solution in the energy transition. We have seen this happen with fixed wind and oil and gas. Floating wind and green hydrogen are no different.”