A hydrogen vision for the UK How the evolution of a UK-wide hydrogen network can unlock economic growth, provide consumer choice and bolster energy security April 2023 The voice of the networks ENA A hydrogen vision for the UK Contributing Partners The voice of the networks April 2023 Foreword Energy touches every part of our economy – and we are on the brink of a major transformation in how we both produce and use it. Over the next 27 years all homes, businesses and industries must move away from the unabated fossil fuels that currently meet most of our energy demands to clean alternatives like renewables, nuclear and hydrogen. This transition to clean energy will require significant change. Some of these changes, like building new offshore wind farms, may go unnoticed by consumers. Other changes will require us to adjust our behaviour; for example, shifting to electric vehicles, replacing industrial fossil fuel equipment and exchanging the natural gas boilers that heat our homes and businesses today for low carbon alternatives. The scale and pace of this change will eclipse anything seen in the sector before. We will need a range of low carbon technologies to decarbonise our energy system. Hydrogen could play a critical part of this story, projected to provide between 20-35% of our energy demand by 2050,1 delivering our climate and security goals in a way that ensures the energy we need is affordable. This means a need for renewables, nuclear, biofuels and energy efficiency, as well as other emerging technologies such as carbon capture and storage and batteries. But without hydrogen in the mix, there can be no Net Zero. Building our greener future will require innovation, investment and rapid infrastructure development. Yet against such challenge, there is opportunity. A clean energy system with energy security and affordability at its heart will benefit companies, communities and consumers alike. With the right commitment to change, and the right policy and regulatory framework in place, we can use this transformation to deliver economic growth, jobs and a cleaner, greener world that will be good for the UK today and for the generations that follow tomorrow. It will need new infrastructure. We will need to repurpose today’s pipes to safely and reliably move the hydrogen we need around. We will also need new facilities to store hydrogen between when it is produced in summer to when it is needed in winter. And we will also need new appliances in industry, business and homes to turn the hydrogen into useable energy. The gas networks in GB and Northern Ireland are committed to playing a leading role in delivering this. GB network operators stand ready to invest £6.8bn2 by the end of the decade in hydrogenfocused projects, whilst delivering on the core role of safely and reliably moving energy around the country from where it is produced to where it is used. Lawrence Slade FEI Chief Executive Energy Networks Association This report is a vision for how to do just that, showing how the infrastructure we have today can evolve from one based on the supply of fossil fuels to one providing the backbone of a clean hydrogen system. This decade is critical; we must move from talking about change to delivering it. The ambitious government hydrogen targets across the UK will only be met with clarity, focus and partnership. The gas networks are ready to play their part in the UK’s energy future. They have a plan, know what is needed to deliver it and are taking the necessary steps to do just that. Lawrence Slade FEI Chief Executive 1. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1011283/UK-Hydrogen-Strategy_web.pdf 2. https://www.energynetworks.org/industry-hub/resource-library/gas-goes-green-innovation-impacts.pdf 03 ENA A hydrogen vision for the UK Our five pledges 1. Play a lead role in delivering against the UK's hydrogen ambitions Steve Fraser Chief Executive Officer Cadent Gas 04 Paddy Larkin Chief Executive Officer Mutual Energy The voice of the networks 2. Conduct further research and testing in an open and transparent manner Jon Butterworth Chief Executive Officer National Gas 3. Engage consume across ou networks delivering Net Zero Mark Wild OBE Chief Executive Officer SGN April 2023 e with ers ur s on ng Mark Horsley Chief Executive Officer Northern Gas Networks 4. Work collaboratively with all stakeholders across the sector using