At some point between now and 2050, we will need to turn off natural gas to the roughly 22mn homes across the UK that currently use it to provide their heat and hot water. This significant undertaking is necessary if the UK is to hit net zero emissions by 2050 and requires the largest change in how we heat our homes in over two generations. 

Heat represents around 14% of UK carbon emissions today and although overall progress in reducing this has been slow to date, the UK government has outlined a strategy to address this. The strategy involves improving buildings’ energy efficiency, as well as replacing the natural gas boilers many people use in their homes with a combination of heat pumps, heat networks and potentially hydrogen boilers.

Plans have been set out to make a final decision on the role hydrogen might play in the UK’s heat policy in 2026. To develop the evidence base necessary to support this decision, the Hydrogen Strategy sets out a plan to convert an entire place to run on hydrogen for at least two years, starting in 2025.  

The logic is clear, building on a series of more focussed projects that have taken place in recent years involving gas network companies working with the UK government, the Health & Safety Executive and others, more work is now needed on how a large conversion could work in practice – from roll-out to operation, ahead of larger town-scale projects proposed for the end of the decade.  

'Plans have been set out to make a final decision on the role hydrogen might be able to play in the UK’s heat policy in 2026. To develop the evidence base necessary to support this decision, the Hydrogen Strategy set out a plan to convert a small location to run on hydrogen for at least two years, from 2025.'

Why hydrogen?
Hydrogen has a potential role in providing low-carbon heat for several reasons.  The UK has an extensive and modern gas network, and the vast majority of homes already use natural gas meaning that conversion could be easier than in other countries. And the nature of the UK’s housing stock means that other low-carbon alternatives may not always be straightforward for some customers because of both cost and technical performance issues. 

The UK hydrogen village project is important, but it is not unique. A similar, albeit smaller, project has recently been announced in the Netherlands where they have similar levels of natural gas use for heat and hot water.  

Here in the UK, there are two proposals on the table, one based in Whitby, Ellesmere Port, from Cadent and partner British Gas, and the other in Redcar from Northern Gas Networks.

Cadent has proposed Whitby for several reasons. There are around 2,000 homes in the project area, just the size the government is aiming for. There is a range of different housing and business types in the village, reflecting what hydrogen developers could face in any future wider roll-out across the country. 

Whitby is located near existing hydrogen infrastructure, making it easier to provide homes and businesses with a reliable supply of clean hydrogen for the duration of the project. This gas network is capable of safely distributing the hydrogen and can be isolated easily from surrounding parts of the network that will continue to deliver natural gas to neighbouring homes.

Important steps to take
Running a hydrogen village project is a significant undertaking. There are several questions that Cadent needs to demonstrate it can answer before the proposal can proceed. 

Whilst the production of low-carbon hydrogen is starting to ‘ramp up’ across the country following the announcement of the UK’s new hydrogen business models, the market is still fairly immature. There will also be demands on supplies from other parts of the economy, in particular energy-intensive industries, for some of whom electrification may not be an option. 

Therefore, Cadent needs to demonstrate how it would secure sufficient quantities of low-carbon hydrogen to guarantee supplies for around 2,000 homes over a two-year period. Cadent is committed to a low carbon project and intend to use green hydrogen. Ensuring a resilient supply of hydrogen means the company is looking at several sources today – none of which are blue hydrogen (ie produced from natural gas supported by carbon capture and storage).

Cadent will also need to isolate the gas network in the project area from the network serving the neighbouring area to ensure that homes nearby can continue to use natural gas safely. The Whitby location has been chosen in part because of the ability to do this. However, it will still require careful planning and execution.

Gas appliance replacement
The hydrogen village project will require Cadent to identify and ultimately replace the gas appliances and meters within the project area. The first step is to visit every home and complete an in-home assessment. Over 1,300 of these assessments have already been completed and identified a huge variety of appliances – including range cookers and gas fires that some consumers are keen to ensure are replaced with attractive like-for-like hydrogen equivalents.  

Cadent is therefore working with manufacturers to ensure consumers have a choice over replacement appliances. It has also used this opportunity to provide free safety checks of existing appliances and has already repaired and replaced several natural gas appliances.

Given the different characteristics hydrogen has to natural gas, Cadent will need to work with others across the industry to finalise the new billing and commercial frameworks needed to underpin the guarantee made to consumers that they will ‘pay no more’ for their hydrogen than they would have paid for their natural gas. This is important as, although green hydrogen is expected to fall in cost over time, it is currently more expensive than the natural gas these customers use today. 

Cadent will also need to invest in training of its engineers in the area to ensure they can safely operate and maintain what will be a 100% hydrogen network for a period of at least two years.

Implications nationwide – hydrogen and electric heat pumps
Although this is ostensibly a hydrogen project, it is designed to simulate what will ultimately happen to all consumers who are still using natural gas when the UK ends supply of this fossil fuel. 

To that end, all consumers are being given the choice between a range of free replacements for their existing natural gas appliances, including hydrogen boilers and electric alternatives such as heat pumps. A key challenge for this project is, therefore, for Cadent to co-ordinate its work with a range of different energy companies, including the local electricity network to ensure there is the electricity network capacity to handle the increased load.

Customer engagement
Finally, and most important of all, this is a project about the customer. It is the first time that an entire location has been engaged about the end of their natural gas supply. In the next 27 years, many customers will choose to decarbonise their heat and hot water by switching to a low-carbon appliance such as a heat pump. Many customers will not, however, and that means that transition ‘events’ will likely be needed at some point where those still using natural gas are asked to change en masse to low-carbon alternatives.

This has meant an extensive programme of engagement across the community through a variety of channels, including work with the local council and elected representatives, schools, local services and a range of third-party organisations which support the area. Cadent has also built a centre in the village so anyone can come and discuss what the project would mean for them and any issues of concern, as well as see hydrogen appliances for themselves.

This engagement has already given valuable insights and, on the whole, is genuinely positive. Some concerns have been raised, for example with questions over safety and cost, as well as the reasons behind the need to move away from natural gas. Cadent’s focus is to ensure that it can answer any questions with factual, evidence-based responses that are both straightforward and clear, through an ongoing and constructive dialogue with all members of the community - something we are doing right now.

Still on the drawing board
Right now, the hydrogen village project is just a proposal. A decision will be made later next year on which proposal will be taken forward, giving either Cadent or Northern Gas Networks around 18 months to make the final preparations for a 2025 launch. 

 
These are therefore still early days for this project. But important and early steps are being taken in the UK today that will ultimately go some way to helping the UK government get the evidence it needs on hydrogen’s potential to help decarbonise heat and hot water in UK homes in the not-so-distant future.