NGN launches green bond

Northern Gas Networks (NGN) is to crowdfund investment for the next phase of its gas mains replacement programme.

NGN is aiming to raise £1 million through a green bond launched through the Abundance Investment platform, with people able to commit as little as £5.

The funds will go towards switching a further 2,900km of pipes from metallic mains to polyethylene by 2026, to allow them to transport hydrogen. NGN has already upgraded three quarters of its network.

The bond offers returns of 1.6 per cent per annum over a 10-year period.

NGN chief executive Mark Horsley said: “The UK energy sector is facing an exciting transition. Whilst focus is often placed on how energy production must change, the networks that distribute our energy must change too.

“At NGN, we’re delivering on a clear plan for a net zero carbon network by 2050. Working in collaboration with our regulator, Ofgem, central government and the energy industry across the UK, our research is proving that hydrogen offers a safe, affordable and deliverable net zero solution, and with this investment we want our customers to be involved in this important transition.”

Bruce Davis, co-founder and managing director of Abundance, said: “Abundance’s customers want to back a range of solutions to deliver a net zero future, and this is the first time we’ve been able to offer them something that directly tackles heating in the home. It’s also the first time we’ve worked with a major utility which has chosen crowdfunding to enable their customers to participate directly in the net zero transition.”

NGN will begin supplying a blend of hydrogen and natural gas to 670 homes in Winlaton near Gateshead for 10 months from late spring 2021, subject to approval from the Health and Safety Executive. Later in the year, the company is planning its first live trials of 100 per cent hydrogen in an unoccupied section of their network.