HyNet is a well-advanced, integrated Hydrogen and Carbon Capture Utilisation and Storage (CCUS) project located in the North West of the UK. It has been developed in order to materially reduce regional CO2 emissions from ‘hard to reach’ sectors of the economy, including industry, heat and transport. HyNet will provide low carbon hydrogen for fuel switching of industrial users and dispatchable power generators, together with injection into the local transmission system (LTS) for blending with NG at key points. Transport fuelling locations can also be served. The initial network will be developed incrementally over the coming decade to serve users with varying demand profiles and connect with hydrogen storage to provide balancing and system resilience.

Cadent intends to participate in HyNet by joining the consortium seeking partial funding for engineering design and consenting of the hydrogen distribution assets from the IDC Deployment fund competition organised by UKRI. If successful, Cadent will complete Front End Engineering Design (FEED) and Consenting of Phase 2 of the Hydrogen Distribution network. Cadent is seeking to prepare the Basis of Design (BoD) for the Hydrogen Distribution Network Phase 2 before the IDC Deployment funding is awarded, so that work can commence on the FEED as soon as the main funding is available.

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).