This report compares the cost of low-carbon or GHG-neutral residential heating technologies in the year 2050 in the European Union. The options include hydrogen boilers, hydrogen fuel cells with an auxiliary hydrogen boiler for cold spells, air-source heat pumps using renewable electricity, and heat pumps with an auxiliary hydrogen boiler for cold spells. The study includes low-carbon hydrogen from steam-methane reforming (SMR) using natural gas combined with carbon capture and storage (CCS), or SMR + CCS, and zero-carbon hydrogen from electrolysis. The report suggests that hydrogen boilers and heat pumps with an auxiliary hydrogen boiler for cold spells are the most cost-effective options, while air-source heat pumps using renewable electricity are the least cost-effective. The report also notes that the cost of low-carbon hydrogen from SMR + CCS is expected to decrease significantly in the future, making it a more viable option for decarbonizing the energy system in Europe.
