Hydrogen

Latest in Hydrogen

Replacing all of the UK’s 23 million gas boilers with heat pumps would cost nearly £300 billion, Cadent has estimated. By contrast, according to Cadent, the full installation costs of hydrogen boilers are expected to be the same as those using natural gas.
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The government has been warned that its tendency to implement complex short-term support mechanisms for progressing green technologies is putting the country’s overarching net zero ambitions at risk. In a damning 25-page report, the Public Accounts Committee (PAC) calls for the government to reform its funding mechanisms to provide certainty to businesses looking to invest.
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Northern Gas Networks is battling to prevent its proposed hydrogen trial in Redcar from suffering the same fate as Cadent’s Whitby project, which was the only other candidate to become the UK’s first ‘hydrogen village’ but was cancelled earlier this year due to local opposition. Also in the latest round-up of the weekend’s papers, the government is warned that heat pumps are currently ‘too noisy’ for millions of British homes and England sees no new applications for onshore wind farms.
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Energy secretary Claire Coutinho has revealed that she is interested in tackling bills affordability problems through the Warm Homes Discount (WHD) scheme. Coutinho, who was appointed as secretary of state for energy security and net zero in September, was quizzed about whether she supports the introduction of a social tariff when appearing before a House of Commons select committee.
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Wales & West Utilities (WWU) is devising plans for a hydrogen network in North Wales. A feasibility study – delivered in partnership with Apollo Engineering – will provide a detailed assessment of the infrastructure needed to advance opportunities for hydrogen in Wrexham and Deeside. In particular, the study will recommend how industrial and commercial customers can make use of existing infrastructure to adopt a hydrogen network.
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Suppliers have backed tax breaks for homeowners and landlords that carry out energy efficiency upgrades, as speculation mounts that such measures will feature in the chancellor’s Autumn Statement later this month. In its submission to the House of Commons energy security and net zero committee’s inquiry into heating for homes, Eon has backed the introduction of an Energy Saving Stamp Duty Incentive, while Good Energy calls for VAT cuts for low-carbon technologies and home energy efficiency improvements.
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The inertia resulting from uncertainty over the government’s plans for the decarbonisation of heating is driving up costs for consumers, Energy UK has warned. The trade body said delaying the rollout of heat pumps by just two years would see 2.9 million fewer heat pumps in operation by 2030, meaning the UK would have to import £3 billion of additional gas between 2026 and 2030.
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A decision on Northern Gas Networks’ (NGN) proposed hydrogen village trial in Redcar will be taken before Christmas, Lord Callanan has told Utility Week. A final decision on the trial is scheduled for the Autumn, but this is yet to materialise. Any delay would increase concerns that NGN would not be able to report back to government in time for its 2026 decision on the future of hydrogen in the UK’s heating mix.
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A leading advocate of heat pumps has suggested that the current funding pot which provides grants to the public “could be blown” before the end of March 2024. Bean Beanland, director for growth & external affairs at the Heat Pump Federation, told Utility Week that the combination of increased grants coupled with more competitive tariffs could see the remaining £113 million Boiler Upgrade Scheme (BUS) budget used up before the current funding round ends.  
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The government has told the public not to bank on the prospect of hydrogen for home heating. While recommitting to carrying out hydrogen heating trials, the government has said that heat pumps and heat networks “will be the primary means of decarbonisation for the foreseeable future”, in its official response to the Committee on Climate Change’s annual report. The response adds that “no one should hold back on installing a heat pump or connecting to a heat network on the basis that hydrogen may become an option later”.
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The “golden age of gas […] is nearing an end” and demand will begin to decline from the start of the 2030s, the International Energy Agency (IEA) has declared. A global shift to renewables and the “rise of heat pumps” will see gas use slow over the next decade before the market goes into decline in the 2030s, the IEA’s annual World Energy Outlook predicts. In another blow to global gas markets, the IEA states that the outlook for hydrogen “is clouded by cost inflation, uncertainty around policy details and supply chain bottlenecks”.
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The government has been urged to extend grants which cover the costs of buying and installing heat pumps to fund the upfront costs associated with heat networks. Specialist polymer manufacturer REHAU has called for the remit of the Boiler Upgrade Scheme (BUS) to be extended to give communities greater choice over their future heating method. Under REHAU’s proposal, BUS grants could be pooled together on a community level to set up a heat network.
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