The UK must accelerate the creation of a regulatory framework for hydrogen transportation and storage via gas networks, according to trade association Hydrogen UK.

The government is consulting on a potential support scheme for hydrogen transportation and storage, which is likely to mimic the framework that exists for UK gas networks.

Gas infrastructure is supported by a regulated asset base (RAB) model, which provides a fixed return during construction rather than operation. Hydrogen UK has come out in favour of this model for both growth and steady-state phases of infrastructure development.

“However, RAB would have to be supplemented with an additional external funding mechanism due to the insufficient demand in the growth period. This is not only to reduce volume risks but also to protect the low number of initial consumers from bearing disproportionately high costs in the infancy period,” the association says in a recent report. This could take the form of capacity payments, increasing allowed return on investment, or a combination of the two.

284,000km – Existing gas pipeline network in UK

Hydrogen UK also supports an extension of the existing RAB model for natural gas to hydrogen networks as an interim measure until a support scheme is published.

The association calls for the formation of a strategic planning body and greater political commitment to hydrogen infrastructure. It urges an accelerated decision on hydrogen’s role in decarbonising UK domestic heating—due to be made in 2026—as well as “increasing the number of hydrogen heating trials in order to successfully demonstrate hydrogen heating in practice across a spectrum of users”.

The case for pipelines

The UK already has 284,000km of gas network infrastructure, delivering 900TWh/yr of energy, or 40pc of primary energy demand, according to Hydrogen UK. And with the rollout of the £28bn ($33.59bn) Iron Mains Risk Replacement Programme, nearly 75pc of low-pressure gas distribution pipelines are already ‘hydrogen-ready’ as of 2022, with full completion expected in 2032.

The UK is expected to ramp up offshore wind production, with a 50GW target by 2050 and a separate Scottish target of 20GW by 2030. Hydrogen UK notes that, at times of peak generation, offshore wind power will exceed the capacity of the electricity grid, necessitating curtailment, expansion of transmission lines and long-duration storage. The last of these is particularly important for managing variation in seasonal energy demand.

Pipelines will also be necessary to connect industrial clusters. Electrolytic projects operational before 2030 “are likely to have their maximum production capacity matched to the demand of their intended end-use” with little excess production owing to the small scale of capacity and lack of pipeline network.

“Therefore, the decarbonisation effect generated through these dispersed electrolytic projects will only be felt at the point of their intended end-use and the benefits in terms of emissions reduction will not extend to nearby industrial emitters” which are unable to justify the cost of installing their own electrolyser, says Hydrogen UK. It adds that these nearby industrial emitters will have to otherwise transport hydrogen in via tankers, which are limited in capacity, emissions-intensive and less cost-effective over long distances compared to pipelines.

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Author: Polly Martin