The need for a transition to enable Net Zero
The UK Government’s adoption of the Climate Change Committee’s (CCC) recommendations in 2019 led to a revised target of achieving net zero emissions by 2050. This decision required a roadmap to eliminate carbon emissions, especially in the heating sector. As a result, fossil fuels will no longer be used in the future energy system.
The strategic importance of low carbon hydrogen cannot be overstated in the UK’s steadfast commitment to achieving net zero emissions by 2050 and reaching the Sixth Carbon Budget’s recommended pathway’s 78% reduction targets by the mid-2030s. Hydrogen is likely to act as a transformative agent, facilitating significant decarbonisation across various challenging sectors of the UK economy that are inherently difficult to electrify, such as power, heating and transportation.
Aligning with this ambitious vision, the UK Government aspires for hydrogen to contribute between 20% and 35% of the country’s total energy demand. This strategic objective underscores the significance of hydrogen as a key component in the sustainable energy portfolio of the nation.
The rest of this article focusses on the Energy Transition from transporting Natural Gas to Hydrogen, through the lens of a UK Gas Transmission or Distribution company, including references to external constraints, dependencies and ongoing challenges.
Impacts on Gas Transmission and Distribution Networks
Gas Transmission and Distribution companies in the UK are increasingly focussed on a range of activities to make the Energy Transition happen and to ensure that Hydrogen remains a viable option to meet the future heat requirements in a Net Zero UK.
Hydrogen has different properties than natural gas, requiring modifications to pipelines, compressors, meters, and other equipment. For instance, hydrogen can cause embrittlement in specific pipeline materials, such as steel. However, a significant proportion of the current network, which is composed of iron or steel, is being substituted with Polyethylene (PE) pipes as part of the Mains Replacement Programme. Once the Mains Replacement Programme is finished (currently scheduled for 2032), the gas networks in England, Wales, and Scotland will consist of 90-95% PE pipes.
Because of such inherent differences between natural gas and hydrogen, there are a variety of activities, policy decisions and external dependencies to enable the Networks to move towards a transition to transporting Hydrogen. These include:
- Addressing (current and future) Security of Supply constraints
- Robust network capacity and resilience to meet peak demand adequately
- Integration with sufficient hydrogen production and storage capabilities
- Increased flexibility to facilitate new connections (i.e. new sources at multiple entry points)
- Developing new skills and additional Labour capacity
- Skill development and training programs to enhance workforce capabilities
- Recruitment strategies to attract new labour
- Policy, Regulation, Commercial Models and Funding Mechanisms
- Key policy decisions – e.g. potentially mandating installation of Hydrogen-ready boilers (maybe in 2026 or beyond?)
- Incentives and other commercial mechanisms to enable early Technology support (similar to the government’s past infrastructure funding policy, which kickstarted offshore wind power generation in the UK)
- A future Heat Decarbonisation Strategy from the government/OFGEM which articulates a potential cost sharing approach
The rest of this article focusses on two additional key areas where Networks have already taken initial steps in the RIIO-2 period to enable a transition to transporting Hydrogen.
- Infrastructure modifications and Safety considerations:
Gas transmission and distribution companies are initiating investments in safety technologies and protocols to ensure the secure transmission of a hydrogen blend (currently assumed to be 20% hydrogen and 80% natural gas) and subsequently transition to 100% hydrogen. The network operators are aware that they need to establish an evidence base to meet the requirements of the Health and Safety Executive (HSE), ensuring that their network operates within the necessary parameters while transporting a fundamentally different gas compared to natural gas, for which it was originally designed.
Three key differences between Hydrogen and Natural Gas, and the likely impacts/actions required to mitigate each characteristic:
- Hydrogen has a smaller molecule size compared to natural gas, which means it can more easily escape through small gaps or cracks in the infrastructure. Because of this Companies will also probably need to invest in advanced safety technologies, such as enhanced monitoring systems, improved gas sensors, and real-time data analytics, to detect and mitigate any potential risks associated with hydrogen transportation. The Networks are also exploring the development of effective ventilation and containment strategies.
- Hydrogen is highly flammable and has a wide flammability range, so handling and transportation require additional safety measures. This would include robust detection systems referenced earlier, enhanced emergency shutdown procedures, and greater ventilation requirements in enclosed spaces.
- Because Hydrogen has a lower energy density and higher flame speed, compressors and metering equipment along the transmission and distribution network may require modifications or replacement to accommodate the different characteristics of hydrogen.
Building an Evidence Base:
The Gas Networks are already conducting comprehensive risk assessments, modelling and simulation studies, and experimental trials to understand the behaviour of hydrogen within the existing infrastructure and verify its safe transportation.
To satisfy the HSE, the Network Operators will need to demonstrate that their infrastructure modifications, safety systems, and operational practices are capable of safely managing the unique properties and challenges associated with hydrogen transport. This would involve conducting tests to evaluate the compatibility of pipeline materials, assessing the impact of hydrogen on equipment integrity, and establishing reliable leak detection and emergency response protocols specific to hydrogen.
- Understanding and fulfilling consumer needs:
There are various consumer concerns and requirements that the country must understand and address to facilitate an effective low-carbon transition. These concerns encompass a lack of awareness regarding available options and their associated benefits, costs, and impacts. Additionally, consumers have expectations regarding the funding of the transition and the potential temporary or permanent disruption and discomfort it may cause.
- Public Awareness:
Despite a substantial 80% of UK consumers expressing concerns about climate change, there exists a significant disparity in understanding the carbon emissions impact of domestic heating. This knowledge gap is further compounded by a lack of awareness and familiarity with alternative low-carbon heating solutions.
A fairly recent study commissioned by the previous government department responsible for Energy and Climate change, the Department for Business, Energy and Industrial Strategy (BEIS), unveiled a conspicuous lack of recognition among respondents regarding ground source heat pumps, air source heat pumps, and hydrogen boilers. This lack of awareness undermines consumer receptiveness to embracing these eco-friendly alternatives.
- Concerns on Costs:
The same study found that the matter of cost assumes a prominent role in decision-making, often overshadowing sustainability considerations. When the economics align with environmentally conscious choices, consumers exhibit greater propensity for adoption. Conversely, if the price differential is substantial or the sustainable option is perceived as less convenient, consumers tend to gravitate towards less eco-friendly alternatives. Unfortunately, low-carbon solutions typically entail higher operational costs in comparison to conventional alternatives. Effectively surmounting this challenge may necessitate ongoing subsidies (at least initially) to incentivise widespread adoption of low-carbon technologies.
- Adequate Heat and Hot Water (i.e. at least no worse than the current state)
Consumers attach considerable importance to control and comfort within their households, particularly in the wake of the COVID-19 pandemic. Access to reliable heating and hot water is deemed an essential right, especially for vulnerable individuals and those with specific medical requirements.
- Minimal Disruption
To effect a successful transition to low-carbon heating, it is paramount to address consumer expectations concerning potential disruptions. Individuals anticipate a seamless and minimally intrusive shift, preferably accomplished within a span of one to two days (!!). The prevailing lack of awareness pertaining to available low-carbon options contributes to this perception.
So how can we address the above listed consumer challenges?
As far as public awareness is concerned, the starting point to effectively captivate consumers, is to underscore the detrimental environmental impact of fossil gas, while presenting clear and evidence-based descriptions of low-carbon alternatives. Provision of impartial information from trusted sources, such as local tradespeople, the Energy Savings Trust, and Citizen’s Advice, can empower consumers to make well-informed decisions. Furthermore, active engagement of local governmental bodies and industry consortia can leverage their expertise to assist consumers in selecting the most suitable low-carbon heating solutions.
The cost, comfort and disruption challenges are more complicated and probably need a separate article to address. But a focus on localised energy plans and individual autonomy in the choice of heating options, would at least provide a practical framework to increase transparency and end consumer involvement in key policy choices and decisions.
Summary and Conclusion
During the RIIO-2 period, the UK gas sector has already taken significant steps to demonstrate the technical feasibility of transporting hydrogen or a 20% hydrogen blend in PE pipes, which are expected to constitute 90-95% of the transmission and distribution network in England, Wales, and Scotland. Timely government decisions and support remain vital to progress key policy, regulatory, and commercial considerations. As referenced in this article, gas network operators need to continue advancing key activities related to addressing supply reliability constraints and building an evidence base to demonstrate the safe transportation of gas, contingent upon various infrastructure modifications during the transition period. Last but certainly not least, it is crucial for all parties, from government departments to local authorities and the energy sector itself, to focus on understanding and addressing gaps in public awareness and meeting critical end-consumer needs for maintaining comfort and control while minimizing disruptions during the energy transition.
By Kaizad Ghadialy
Kaizad Ghadialy is Director of Transformation at Skewb. To speak with him about this topic in more detail, you can connect with him on LinkedIn.
