Hydrogen blending will have only 'limited and temporary' role in gas grid: UK government
H2 mixed into fossil gas can usefully absorb excess supply, but is likely to hit infrastructure constraints as gas grids to be reduced amid decarbonisation, British ministry says
Released as part of a consultation on hydrogen business models by the UK’s Department of Business, Enterprise and Industrial Strategy (BEIS) last week, the statement is supportive of hydrogen blending on the condition that it “demonstrates economic and strategic value” — and warned that even that would be short-lived.
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“Blending can only be a transitional option,” BEIS said in the consultation. “It relies on an extensive natural gas network being available to blend into, which will reduce as we progress to net zero. For this reason it may only have a limited and temporary role in gas decarbonisation as we move away from the use of natural gas.”
Several UK gas distributors are undertaking hydrogen heating, blending and distribution pilots, with Northern Gas Networks completing the first phase of its HyDeploy blending project at Keele University just over a year ago. A larger trial was completed in Winlaton, northwest England in June, in which houses and business were supplied with a 20% hydrogen blend.
BEIS is due to make a decision on whether to sanction hydrogen blending by 2023, with commercial blending unlikely to occur before 2025.
Increased costs
Advocates of hydrogen blending note that it creates market demand for hydrogen that can underpin investment in production, while cutting carbon emissions and requiring minimal upgrades to pipes and domestic boilers.
The BEIS document acknowledges that hydrogen is likely to be of most value to industrial customers who will find it hardest to decarbonise, but notes that hydrogen blending might play a useful short-term role as a reserve offtaker for excess hydrogen supply — i.e. quantities not required by hydrogen’s regular industrial customers.
“Blending could absorb excess volumes of hydrogen for which there are no alternative routes to market,” BEIS continued, noting that these opportunities could occur as part of natural demand cycles among hydrogen customers, or in the event of demand volatility due to commercial pressures or technical issues.