Learnings

Outcomes

Acknowledging that the project has only completed three of four stage gates at the time of drafting this report, the following outcomes have been achieved: 

·       Under the market frameworks workstream, the GTs have drafted, tested and agreed ToRs, SOs, and DPs that will help govern the project and promote objective and consistent decision-making. Examples include “Uphold the safety and security of supply of the gas network” and “Fair and transparent processes for connecting hydrogen production to the gas network” as SOs, and “Transparent processes for all gas transporters with consistency across GDNs” and “Utilise existing gas market arrangements where possible” as DPs. 

·       As part of the market frameworks second stage gate, the GTs created shortlists of principle-based, viable options for each key area of the UNC (connections and capacity, trading, balancing, settlement and nominations, network charging and shrinkage, and network communications). As an example, the project developed a shortlist of three viable options under the connections and capacity allocation sub-workstream: 1) utilise existing arrangements to the fullest extent possible (e.g. first come, first serve), 2) a network-led hybrid application window, or 3) a third party-led (e.g. Government or NESO) hybrid application window. Similar shortlists have been produced for the other sub-workstreams. 

·       Under the Detailed Design stage gate, the GTs undertook a ‘sprint’ between mid-June and late-July to design the end to end processes for each shortlisted connections and capacity allocation option. This work is yet to be finalised at the time of drafting this report, but the GTs have identified the process changes that would be required to make a connection offer to a hydrogen blend connectee (verses other entry gas applicants). For example, GTs will need to consider the influence of prevailing gas conditions and not just downstream demand’s impact on physical capacity when conducting hydrogen blending network analysis. 

·       As a result of delivering the project (versus the status quo), the GTs have mostly developed a common and collaborative hydrogen blending market framework. This collaborative work will promote consistency and ease of engagement with the framework across network boundaries, in turn supporting competition between shippers/producers. 

·       A comprehensive set of operational changes has been identified across APSP, including specific requirements such as the deployment of hydrogen-ready gas detectors and associated training for operatives.

·       Over 240 operational impacts have been assessed and documented, with critical and high-cost items flagged. These assessments have been peer-reviewed across all networks to ensure accuracy, consistency, and completeness.

·       Methodologies for Systems and People assessments have been finalised, a detailed LDZ case study has been scoped, and a draft Operational Implementation Plan is in development, laying the groundwork for final implementation planning.

Lessons Learnt

Although only partially way through the project, several interesting and value learning points have been captured:

·       The project has helped progress the blending debate from being conceptual to practical, in that the market framework and operational readiness workstreams are designing detailed processes for how networks would blend in practice. This added practical detail has helped hydrogen producers and other stakeholders to meaningfully engage with GTs, providing networks with insights on what third parties value. As an example, the project has provided valuable learning to GTs on how entering hydrogen (rather than natural gas) into the network presents a different level of risk to gas shippers through imbalance charges. This change to other stakeholders’ risk profiles, depending upon the type of gas being entered into the Total System, provides a useful perspective for future decarbonisation projects.

·       The GB gas industry market framework has been fairly stable for the past several decades, with security of supply, a ‘beach to meter’ flow of gas, and network growth the driving forces behind its design. The changes to accommodate hydrogen blending is a microcosm of the wider work required to reflect the increased pace that the industry is changing at. This project provides the opportunity to further test the Impact Assessment > Mobilisation > Shortlisting > Detailed Design > Finalisation > Delivery structure for implementing change. A key lesson learnt across all of the stages completed to date is the importance of effectively engaging third parties. It is important that stakeholders see evidence of GTs carefully considering and acting upon feedback, rather than GTs’ efforts being perceived as a ‘tick box exercise’. 

·       As outlined in the PEA, one of the main market framework areas that requires modification is the rules that govern connections and entry capacity. The GDNs currently provide entry capacity to connectees (such as biomethane producers) and are able to design and deliver reinforcement solutions in scenarios where there is not sufficient capacity. The project has highlighted that hydrogen blending entry connections and capacity allocation presents unique challenges linked to gas quality and CV capping restrictions – i.e. reinforcements to artificially create physical capacity may not fully solve hydrogen blending entry constraints. Furthermore, and unlike biomethane which is propanated to conform with the network’s Flow Weighted Average Calorific Value (FWACV), there is a risk that one hydrogen connectee’s flow could sterilise another hydrogen connectee’s entry capacity. The project is looking to develop an equitable approach to this scenario (e.g. offering all connectees the same terms RE: capacity protection) – something that could be applied to future innovation projects linked to green gas entry. 

·       Collaborative Engagement Drives Quality. Early and sustained involvement of network SMEs ensured assessments were grounded in operational reality. The peer review process added significant value, not just in validating technical accuracy, but in surfacing alternative interpretations and network-specific considerations. This collaborative approach strengthened the credibility and completeness of the implementation plan.

·       Structured Methodologies Enable Consistency and Scalability. The use of the APSP framework provided a consistent lens for assessing impacts across diverse categories. Tailored methodologies for Systems and People, such as capability mapping and value stream alignment were essential for capturing IT system upgrades and workforce implications. 

·       Flexibility Supports Timely and Targeted Delivery. Allowing networks to conduct cross-checks outside the critical path helped maintain programme momentum while enabling tailored assessments. The LDZ case study approach  will add practical insights by modelling how hydrogen blends would propagate through the network, helping translate abstract impacts into actionable plans.