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maximise the climate value of injecting FIGURE 2 ILLUSTRATION OF ADDITIONAL REVENUE STREAM FROM GOOS TO LOW CARBON HYDROGEN PRODUCERS
low carbon hydrogen molecules into the
UK’s existing natural gas networks.

Benefits to hydrogen consumers:
Hydrogen GoOs could enable gas
consumers to demonstrate their
commitment to decarbonisation and
make conscious choices on their energy
products. Hydrogen GoOs could act
as a key market mechanism to enable
consumers to generate market pull
forces for hydrogen products, essential
to the growth of a UK hydrogen market.
For example, consumers who could
and wanted to pay for hydrogen GoOs
would in turn provide an additional
revenue stream to low carbon
hydrogen producers. This would help standard eligibility and enable cross- The latest National Grid Gas
to grow a nascent hydrogen industry by border GoO trade, as well as the option Transmission Hydrogen Gas Market
supporting hydrogen producers as well to include supplementary information Plan project explored how a hydrogen
as contribute to economies of scale and that consumers may associate GoO scheme could benefit the
price reductions for hydrogen over time. additional value to. development and acceleration of a UK
It is key to note that there is currently hydrogen economy through gaining
no legal basis for gas GoOs in the UK 3 Role within wider market frameworks: an understanding of industry views
and no regulatory framework for gas UK hydrogen GoOs should aim to on hydrogen GoOs and developing an
tariffs, however there is a legal basis become a statutory mechanism, with output to inform policy makers.
for REGOs operating within a regulated legal basis to support their function
electricity tariff framework. Electricity within wider market frameworks. For The final Hydrogen Gas Market Plan
suppliers in the UK use REGOs to back example, hydrogen GoOs could be used report on this project exploring a UK
up ‘green’ electricity tariffs offered to as evidence to back up green gas tariffs hydrogen Guarantee of Origin scheme
consumers. Through offering green offered to gas consumers, within a will be published on the National Grid
tariffs, electricity suppliers engage their regulated gas tariff framework. Gas Transmission Hydrogen Focus Area
green-conscious consumers which webpage in Q1 2022.
helps drive awareness, interest and 4 Interoperability: A UK hydrogen GoO
appetite in green electricity products. scheme should seek interoperability To view all the presentations from the
As part of this project, we explored the across existing GoO schemes. For YPPC Final, login to IGEMtv
benefits from hydrogen GoOs being example, a renewable electricity GoO
used as evidence to support green gas should be able to transfer the renewable References
tariffs offered to gas consumers within a attributes of the electricity GoO to a
regulated gas tariff framework. hydrogen GoO in the case of power-to- 1. Hydrogen Gas Market Plan, 2022. Hydrogen
Ultimately, GoOs could be a key tool gas, and vice versa. Focus Area. Available at: www.nationalgrid.com/
uk/gas-transmission/future-of-gas/hydrogen
to empower consumers to engage in
and accelerate the development of a UK 5 Trade: A UK hydrogen GoO scheme 2. National Grid Future Energy Scenarios, 2021.
Future Energy Scenarios. Available at: www.
hydrogen market, through the purchase should seek compatibility with nationalgrideso.com/future-energy/future-energy-
of GoOs enabling consumers to indicate EU hydrogen GoO schemes as a scenarios/fes-2021
their preference for specific hydrogen priority, due to locality and shared 3. Climate Change Committee, 2020. Sixth
energy products. infrastructure, and seek compatibility Carbon Budget. Available at: www.theccc.org.uk/
with the global hydrogen GoO market as publication/sixth-carbon-budget
Recommendations to implement a UK global trade emerges. 4. UK Hydrogen Strategy, 2021. UK Hydrogen
hydrogen GoO scheme: Strategy. Available at: www.gov.uk/government/
Finally, as part of this Hydrogen 6 Pilot scheme: A pilot UK hydrogen publications/uk-hydrogen-strategy
GMaP project we developed a set of GoO scheme should be developed as a 5. CertifHy, 2022. Designing the first EU-wide
recommendations for industry to priority to trial the process of a hydrogen hydrogen Guarantee of Origin for a new hydrogen
consider for implementation of a UK GoO scheme and gain learnings on market. Available at: www.certifhy.eu
hydrogen GoO scheme. These included: what information consumers may find 6. Ofgem, 2022. Renewable Energy Guarantees of
1 Timeline: A UK hydrogen GoO scheme valuable within GoOs. Origin (REGO). Available at: www.ofgem.gov.uk/
environmental-and-social-schemes/renewable-
should be developed to align with energy-guarantees-origin-rego
physical hydrogen production. Conclusion 7. Department for Business, Energy and
A future UK hydrogen economy will Industrial Strategy, 2022. Participating in the
2 Information to include: A UK hydrogen need a mechanism to track, account for UK ETS. Available at: www.gov.uk/government/
GoO scheme should be designed with and associate a premium for low carbon publications/participating-in-the-uk-ets/
the capacity to include a variety of hydrogen products. A hydrogen GoO participating-in-the-uk-ets
information on hydrogen products, scheme could perform this role and act 8. Green Gas Certification Scheme, 2022. The
including mandatory information as a key mechanism for consumers to Green Gas Certification Scheme. Available at:
www.greengas.org.uk
necessary to verify low carbon hydrogen engage in a future hydrogen market.

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