The UK relies predominantly on three energy vectors; electricity, gas and oil, for the decarbonisation of the power, heat and transport sectors. Progress is being made in reducing the carbon intensity of power generation but, as stressed by the Committee for Climate Change (CCC) in its 2018 review of the Government’s Clean Growth Strategy, very little progress has been made in reducing the carbon intensity of heat or transport. Very deep emissions cuts are required across sectors with the urgency for progress made more acute by the decision to change the emissions reduction target from 80% to Net Zero by 2050 and for legislation has been passed in July 2019.

The body of work on the use of hydrogen for combustion and other applications is growing.  It is clear that low carbon hydrogen may be able to substitute cost effectively for natural gas in several markets, including contributing to the provision of flexible power, high and low grade industrial heat, transport fuels and the reduction in emissions from consumers connected to the gas distribution network.    Technical feasibility has been demonstrated in each of these markets

Beyond a small number of hydrogen pipeline systems connecting commercial users there is little experience of designing, creating, operating and then expanding a multi-user hydrogen distribution system.  Such networks will initially be constructed at a relatively modest scale and will subsequently expand in terms of geography and in terms of consumer types.  For example, the HyNet NW project plans to have a relatively contained network initially connecting a small number of industrial (and possibly small-scale power) users together with hydrogen injection into the LTS at a small number of points. The initial network will be extended in geographical extent and expanded incrementally to include further users with varying demand profiles, with hydrogen storage and other demand management approaches added to the system. 

As anticipated by CCC, hydrogen networks will ultimately be created in several locations across the country and in different Network Operator regions, emanating from areas where low cost access to Carbon Capture Utilisation and Storage (CCuS) infrastructure is available.  Creation of such networks is unique and there is very limited, if any, experience of the system design and issues involved in designing a multi-user hydrogen network for expansion or in operating the growing network.         

Benefits

The potential benefits of this project remain the same as the previous phase. The HyDeploy project suggests that if a 20% H2 blend is rolled out throughout the UK this will enable 29TWh of low carbon heat to be injected onto the GB network and this has the potential to save the consumer £8Bn compared to other methods/routes to decarbonisation such as heat pumps. On a wider scale, the 2050 energy scenario report by KPMG, produced on behalf of the Network Licensees as part of (NIA_SGN_00064) Energy Map and Plan (2016) suggest the conversion of the gas network to hydrogen compared to electrification could save the consumer £7,000 to £9,500 each or £152bn to £214bn for GB.

 

The work will also guide the GD2 business plans for Cadent and other network licensees. This will reduce costs for all customers during GD2.

 

We would also expect the potential CO2 and air quality benefits from solving the problem to be significant. Such environmental and health benefits can be converted to financial benefits (using ‘damage’ costs).