In 2023, the Government took a positive step towards unlocking the hydrogen economy and accelerating the energy transition by publishing a “minded to” position in support of hydrogen blending across Britain’s gas distribution networks (GDNs). Since this point, the Gas Distribution Networks (GDNs) and National Gas (operators of the National Transmission System) have been working hard to turn this position into an operational reality, including by submitting evidence to the Health and Safety Executive (HSE) to support with their assessment of the use of hydrogen in existing gas assets.
Now, the Government is about to launch a further consultation, this time on blending hydrogen directly into the National Transmission System (NTS), up to a volume of 20%. FEN and the wider gas industry are fully behind this proposal, and I wanted to use this – the latest instalment of the FEN blog series – to explain why.
What is hydrogen blending and why do it?
First, it’s worth briefly exploring what hydrogen blending is and why it matters.
In a nutshell, blending is the process of mixing hydrogen with natural gas before using our energy networks to distribute this blend to customers. Blending has been successfully tested up to a 20% volume in the gas distribution networks, through a project called HyDeploy, and up to a 20% volume in the gas transmission network, at National Gas’ FutureGrid facility.
It's important to consider blending in the wider context of Clean Power 2030 and Net Zero 2050. In all the Department for Energy Security and Net Zero’s (DESNZ) Future Energy Scenarios (FES), there is a clear requirement for gas – and specifically hydrogen – up until 2050 and beyond. To achieve a future where hydrogen is routinely used as a green alternative to natural gas, the market needs to be developed and established today.
Blending is a critical tool in breaking the ‘chicken and egg’ conundrum which the hydrogen sector faces. While there is significant demand out there for hydrogen to decarbonise industrial operations, and there is no shortage of producers developing production projects, the challenge is to match these up together. At the same time, we need to ensure we have pipelines in place to move that hydrogen from producer to consumer and storage facilities to set the hydrogen aside for when it is needed.
Blending helps to overcome this challenge, as it makes use of the world class gas network we already have to distribute and store hydrogen (blended gas can be transported through our existing infrastructure straight to customers). It also provides another option for producers to blend hydrogen into the network at times when it can’t be supplied to the end customer.
This gives everyone in the chain the confidence to move forward, and in turn unlocks the real magic of blending: it lowers the risk of these pioneering projects for all involved. And in projects like these, risk = cost. With blending as an alternative offtaker (or ‘reserve offtaker’, as government is defining it), the risk for hydrogen production projects is significantly reduced, enabling them to attract investment at lower cost and produce at greater scale.
This is the primary attraction of blending as a tool, but blending has been routinely mis-characterised as something with direct decarbonisation as a primary objective. Hydrogen has different chemical properties to natural gas, which means a 20% blend of hydrogen by volume represents a 7% blend in terms of energy content, and therefore a 7% reduction in carbon emissions. While a 7% reduction in the emissions intensity of the gas network would be a good step forward, it is only going to move us a small way along the pathway to Net Zero.
Blending is all about using the infrastructure assets we have to help de-risk early projects and stimulate a market. Blending on the NTS at 5% has the potential to de-risk up to 40% of forecasted hydrogen production. That de-risked market can then scale, production costs will come down and hydrogen can become a major contributor to the green gases our energy system will need in 2050.
The case for blending at transmission level
The value of blending into the distribution network has been clearly recognised by government in their 2023 decision, but the strategic and economic case for blending at transmission level is still under assessment by Government.
In many ways, the case for blending into the transmission network is even stronger than at distribution level. Using our larger transmission infrastructure unlocks the potential to move significant volumes of energy; blending up to 5% could hold 280 tonnes per hour of hydrogen in 2028 (FES methane forecasts). The level of blending has the real potential to create an alternative demand for hydrogen production, de-risking the hydrogen economy in key industrial areas, hastening the transition to a decarbonised future and growing local economies.
Conclusion
Ultimately, blending represents a vital step in the journey towards building a thriving hydrogen sector, not the ultimate destination. By embracing this tried and tested process, we can lay a strong foundation for the energy networks of the future.