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The government has asked gas distribution networks (GDNs) to submit their proposals to create a hydrogen town by the end of this decade.
The Department for Business, Energy and Industrial Strategy (BEIS) says it wants to deliver plans for a hydrogen town by 2025 but has stressed that the development of any project would be subject to its decision on the strategic role of hydrogen for heating, expected in 2026.
A letter to GDN chief executives from David Capper, the department’s director of net zero buildings and clean heat, requests proposals covering at least 10,000 meter points. It says the scale and character of the projects should enable learnings for any future conversions. The proposals should also take into account conversion of surrounding networks in the early stages of any rollout of hydrogen heating
BEIS has pledged to contribute up to £6 million to support these outline planning projects, which must be submitted by 20 January 2023.
The letter says that GDNs must submit a single application but that multiple projects in different areas can be put forward for consideration. The scheme is also open to collaboration between GDNs on cross-patch projects.
Proposals should set out what engagement has already been carried out in target areas and how this has been incorporated into the plans.
Capper said: “The government believes that low-carbon hydrogen could potentially be an important option for decarbonising heat in buildings. However, unlike other technologies, such as heat pumps and heat networks, 100% hydrogen for heat is not yet an established option.
“Further work is required to assess the feasibility, costs and benefits. That is why we are working with industry, regulators and others to deliver a range of research, development and trials projects to provide the necessary evidence.”
He added: “Essentially, we are looking to support outline plans identifying the main energy system and supply chain requirements involved in deployment of hydrogen for heating at scale in specific parts of your networks, and a high-level assessment of the range of potential technical solutions. We envisage that these outline plans will provide an informed basis for further stakeholder discussion, and for more detailed design and planning work which government may subsequently wish to support.”
In June, two hydrogen village proposals from Cadent and Northern Gas Networks were chosen to proceed with further development.
A final project from this shortlist will be chosen next year, with a projected start date of 2025.
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