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operational trials have demonstrated
                                                                                   that it is technically safe and
                                                                                   economically efficient to do so.
                                                                                     The project has created two timelines
                                                                                   to map out how the existing gas market
                                                                                   frameworks could be changed to enable
                                                                                   blending. For the purposes of this
                                                                                   project, the gas market frameworks
                                                                                   have been broken down into five
                                                                                   market pillars. The market pillars are
                                                                                   primary legislation, regulation, licence,
                                                                                   code, and safety change.
                                                                                   As hydrogen blending would be
                                                                                   an intermediate step towards
                                                                                   a 100 per cent decarbonised
                                                                                   gas future, it is vital that
                                                                                   blending delivers the maximum
                                                                                   benefit for the minimum
                                                                                   outlay. It needs to be delivered
                                                                                   quickly, simply, and efficiently
                                                                                   to give momentum to the
                                                                                   transition towards 100 per cent
                                                                                   decarbonised gas

                                                                                   ROLL-OUT MODELS
                                                                                   First, the project explored a number
                                                                                   of potential physical roll-out models
                                                                                   for blending. In order to support
                                                                                   the market and regulatory changes
                                                                                   required to facilitate hydrogen
                                                                                   blending, it was deemed important to
                                                                                   understand at a high-level what regime
                                                                                   the market rules would be creating.
                                                                                   The project investigated a range of
                                                                                   potential options for the roll-out of
                                                                                   hydrogen blending onto the network,
                                                                                   two indicative routes were chosen to
                                                                                   be explored further based on their
                                                                                   differing underlying principles. These
                                                                                   were called the Strategic Approach and
                                                                                   the Free Market Approach.
                 role in transitioning to a low carbon   needs to be delivered quickly, simply,   The project undertook a high-level
                 future. Recent policy documents   and efficiently to give momentum to   assessment of the roll-out models and
                 have begun to define the role of   the transition towards 100 per cent   found benefits and challenges for each
                 hydrogen and how blending hydrogen   decarbonised gas. Ongoing trials and   approach. Further work is required in
                 with natural gas in the existing   projects are examining the physical,   this area to define the most suitable
                 gas infrastructure can support the   operational, safety and cost-benefit   approach, to deliver the highest potential
                 transition to a net zero future.   cases for blending hydrogen into the   carbon reduction savings, whilst taking
                   The process of mixing natural gas   gas networks.               into consideration the key principles of
                 with up to 20 per cent hydrogen could   In addition to this evidence, the   efficiency, speed, and simplicity.
                 lead to significant carbon savings. If 20   market frameworks governing the   Engagement and collaboration are
                 per cent hydrogen is blended into the   duties, rights, and incentives of   needed from the wider gas industry to
                 gas grid together with existing natural   gas market participants across the   develop a detailed roll-out model that
                 gas, this could save up to six million   value chain must also be compatible   can deliver the benefits of blending. The
                 tonnes of carbon dioxide equivalent   with blending. The existing market   project has highlighted the potential
                 every year, the equivalent of taking 2.5   frameworks assume the conveyance   development of a methodology to set out
                 million cars off the road.       and trading of a relatively homogeneous   the practicalities and incentives required
                   As hydrogen blending would be an   natural gas. Therefore, existing market   to deliver an appropriate roll-out model.
                 intermediate step towards a 100 per   frameworks must be reviewed, with
                 cent decarbonised gas future, it is vital   any necessary changes made as a    Strategic Approach
                 that blending delivers the maximum   matter of urgency in order to ensure   The Strategic Approach would
                 benefit for the minimum outlay. It   that blending can commence once   designate connection locations based



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        HydrogenBlendingReport.indd   2                                                                           27/01/2022   11:57
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