Page 17 - Gi February 2022
P. 17
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
17
27/01/2022 11:57
HydrogenBlendingReport.indd 2
HydrogenBlendingReport.indd 2 27/01/2022 11:57