The government plans to blend up to 20 per cent hydrogen into the natural gas grid and will take a final decision by the end of next year, according to the British Energy Security Strategy published in April 20221. The strategy sets out the ambition alongside a doubling of the target for low carbon hydrogen production capacity to up to 10GW by 2030, subject to affordability and value for money1.
"we plan to blend up to 20 per cent hydrogen into the natural gas grid and will take a final decision by the end of next year"
The strategy frames hydrogen as part of a wider move away from imported oil and gas. It states that investing in the North Sea, expanding renewable capacity and leading in nuclear power will also enable the UK to produce more hydrogen, and that the aim is not to be wholly dependent on other countries for the fuel1. The document describes hydrogen as easy to store and a low carbon superfuel of the future1.
On production support, the strategy records the launch of a £240 million Net Zero Hydrogen Fund later in April 2022, and says the government was preparing to allocate up to £100 million of revenue support to initial electrolytic projects1. It also notes £7.5 million awarded to ITM's Gigastack Project, described as an early mover in the market with potential to support up to 2,000 jobs over time1.
The strategy does not set out which appliances or boilers would be affected by a 20 per cent blend, nor does it give a date for any blending to begin. It gives no detail on how the final decision will be taken or by which body. Those points have not been reported in the strategy1.
| Measure | Figure given |
|---|---|
| Hydrogen blend into gas grid | Up to 20 per cent, final decision by end of next year1 |
| Low carbon hydrogen production capacity by 2030 | Up to 10GW, subject to affordability and value for money1 |
| Net Zero Hydrogen Fund | £240 million, launching later in April 20221 |
| Revenue support for initial electrolytic projects | Up to £100 million1 |
Why it matters for households
Most UK homes use gas for heating and hot water, and the strategy notes that gas heats the majority of the country's 28 million homes1. A 20 per cent hydrogen blend would change what flows through the existing gas network rather than requiring a different fuel to be delivered, which is why the decision matters to any household on a gas supply. The strategy does not say whether a blend would change bills, and no cost figures for blending are given1.
For a home's energy independence, the significance lies in where the gas comes from. The strategy's stated aim is to reduce dependence on imported oil and gas, and domestic hydrogen production is presented as one route to that1. A blend would not remove a household's reliance on the gas network, but it would change the composition of what the network carries. The strategy also sets a 2035 date by which the government intends to phase out the sale of new and replacement gas boilers1, which sits alongside the hydrogen blending ambition as part of the same policy direction. Whether a 20 per cent blend is compatible with existing boilers and water heaters is not addressed in the strategy1.
What happens next
The strategy commits to a final decision on blending up to 20 per cent hydrogen into the natural gas grid by the end of next year, meaning the end of 20231. No further milestones for the blending decision are given in the document.
Sources1 cited
- British Energy Security Strategy, data.parliament.uk