The funding received by SGN from Ofgem and gas distribution companies will determine whether the UK’s transmission networks can be repurposed for hydrogen gas.
SGN, a gas distribution company, has received £29.9 million in funding to test the use of high-pressure pipelines for hydrogen transmission and storage as a net-zero heating option.
The funding from the UK’s energy regulator, Ofgem, and gas distribution companies will aid in determining whether the UK’s transmission networks can be repurposed for hydrogen gas.
The project will be based in Grangemouth, Scotland, and will be carried out in collaboration with global chemical company INEOS, which has extensive manufacturing and infrastructure facilities in the area.
The LTS receives gas from the national transmission system at a lower pressure and transports it directly to industry. It is also fed into gas distribution networks after further pressure reductions, where it is used in homes and businesses.
The LTS serves an important function by storing gas when demand is low, ensuring a reliable supply of gas during peak times and cold weather.
The National Hydrogen Programme includes a goal to “define the role of the LTS in system transformation and industrial cluster facilitation.” With Scotland and the United Kingdom aiming for net zero emissions by 2045 and 2050, respectively, SGN is preparing the gas network for greener alternatives such as hydrogen.
“Our Local Transmission System is part of the national critical infrastructure that reaches millions of homes and businesses across the UK,” said SGN Director of Energy Futures, Gus Mcintosh. Repurposing it for hydrogen could support a low-cost and minimally disruptive hydrogen system transformation.
“Our Local Transmission System is part of the national critical infrastructure that reaches millions of homes and businesses across the UK. Repurposing it for hydrogen could support a hydrogen system transformation that is least cost and least disruptive to customers.
SGN Director of Energy Futures Gus Mcintosh
“The LTS serves as an essential storage buffer, ensuring that variations in demand across all sectors can be met reliably throughout the day and year.”
A decommissioned pipeline in Grangemouth has been chosen to test and demonstrate its ability to carry pure hydrogen.
“We believe that Grangemouth is the ideal location in Scotland to create a hub for hydrogen production, use, and export,” said Andrew Gardner, Chairman of INEOS Grangemouth. In January, we announced the next step in our plans to build a world-scale low-carbon hydrogen plant at Grangemouth as part of our commitment to being Net Zero by 2045. This trial, in collaboration with SGN, will be critical in bringing hydrogen networks to fruition, delivering cleaner fuels to both homes and businesses. “
Gus added that the project will provide critical evidence to help inform future heat policy decisions, as well as an understanding of the extensive LTS’s role in achieving net zero for Scotland and the UK.
He explained that it’s part of a national coordinated series of hydrogen industry projects and demonstrations that are currently underway, including our world-first hydrogen for home heating H100 Fife project, which will provide policymakers with the evidence they need to determine whether to accelerate and roll out hydrogen in the next decade. This is a common misunderstanding.
