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Cadent and Equinor have agreed to work together to develop plans for a “hydrogen town” in the Humber region in which the gas network would be converted to run on 100% hydrogen.

The two companies have signed a memorandum of understanding to produce technical assessments and concepts for hydrogen production, storage, demand and distribution.

They said the Humber – sometimes described as the UK’s “energy estuary” – is the ideal location for a such pilot due to the other low-carbon hydrogen production projects proposed in the area, including Equinor’s H2H Saltend blue hydrogen plant, which will act as an anchor for the wider Zero Carbon Humber scheme.

As the gas distribution network operator for Lincolnshire, Cadent would assess which parts of its infrastructure could be used to carry hydrogen instead of natural gas and develop any new infrastructure required.

Dan Sadler, vice president of UK low-carbon solution at Equinor, said: “This is a fantastic opportunity for the Humber to target yet another ‘world first’ in the low carbon energy agenda, making it a beacon for global investment, innovation and economic growth.

“Hydrogen offers one of the few options to reduce domestic heating emissions and we see great value in these UK trials happening here. We can continue to build on the multiple exciting hydrogen proposals in the Humber, including the flagship Equinor project at Saltend, to make this region a real focus of expertise in this growing sector.”

Cadent head of regional development Sally Brewis said: “Northern Lincolnshire is primed to play a major role in the UK hydrogen for heat revolution. With a hydrogen transmission pipeline already at detailed design stage, potential for large-scale hydrogen production and storage nearby and a gas distribution network that is ready to be re-purposed, it’s clearly an ideal location for a hydrogen town pilot. We look forward to developing our plans with Equinor.”

SGN is leading a project to install a hydrogen network serving 300 homes in Fife that is set to become the UK’s first “hydrogen neighbourhood” planned by the government by 2023.

The government is also planning to create to the first “hydrogen village” by 2025 and then potentially the first “hydrogen town” by the end of the current decade.