Blending hydrogen and gas can only have a “limited and temporary role” as the UK decarbonises, the government has said in a consultation on potential business models for the transport and storage of hydrogen.
However, the document said blending could provide a way of using excess volumes of hydrogen that may otherwise not find a commercial outlet.
The paper stated that blending hydrogen can only be a “transitional” option because it relies on the availability of an extensive natural gas network, which will be wound down as the UK cuts emissions to net zero.
And if hydrogen production facilities are located off the gas grid, any new pipelines developed for blending may become “obsolete” and the assets “stranded”, the paper warned.
The paper said the most appropriate strategic role for blending would be to support the growth of the hydrogen economy by acting as a reserve offtaker.
Blending could absorb “excess volumes” of hydrogen for which no alternative routes to market exist.
By de-risking investment in additional hydrogen production capacity, blending could accelerate the sector’s growth.
Ahead of the hydrogen market maturing, blending could help producers manage the risk of being unable to sell sufficient volumes to cover their costs by absorbing these excesses, it said: “Blending could have value in helping to manage demand volatility….particularly during the early years of the hydrogen economy.”
Blending could also support the growth of renewable power generation by using excess electricity to produce green hydrogen, which would otherwise have to be curtailed.
And it could “bridge” the gap while larger-scale infrastructure for storing and transporting hydrogen is developed, the paper said.
Eventually, the paper envisages hydrogen being stored in offshore reservoirs such as salt caverns or depleted oil and gas fields, connected by pipelines to an onshore network.
It also said pipelines are likely to be required to connect facilities to produce electrolytic or green production, co-located by offshore wind developments, with offshore storage and direct connections to a future onshore network.
The paper also stated that a decision on using 100% hydrogen for heat is not contingent on giving the go ahead to blending.
James Earl, director of gas at the Energy Networks Association, welcomed the publication of the government’s proposals and said blending is a “vital intermediate step to help the hydrogen market to develop on its way towards a 100% decarbonised gas future”.
“Hydrogen blending allows Britain to start using greener gas now whilst also facilitating the development of technologies and infrastructure that will enable low carbon hydrogen to play an important role in the future.”
Ruth Herbert, chief executive of the Carbon Capture and Storage Association, said hydrogen has a “key role” to play in the decarbonisation of UK industry, heating, power and transport.
She said: “In order to distribute this hydrogen to end-users and help balance the UK energy system, there is a critical role for hydrogen pipelines and storage, which will be needed by the middle of this decade.
“Progress must now be made quickly to bring the development of hydrogen infrastructure up to speed with the development of CO2 networks.”