Octopus calls out hydrogen champion’s ‘misleading’ claims

Published 11 April 2023

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A coalition of 20 organisations including Octopus Energy, E3G and the UK Green Building Council have called on the government to reject recommendations made by hydrogen champion Jane Toogood.

In a letter addressed to energy security and net zero secretary Grant Shapps, the coalition (named in full below) labels Toogood’s report on hydrogen and heat electrification as “misleading”. It warns that accepting Toogood’s recommendations risks driving up consumer bills and could undermine government’s targets on heat pumps.

Within her report, published last month, Toogood called for ministers to allow hydrogen to be blended into the gas transmission network by the end of this year.

The report by Toogood, who is also chief executive of Johnson Matthey’s Catalyst Technologies arm, says blending could support the government’s goal of 5GW hydrogen production by 2030.

However, in response the coalition says that doing so would lead to a £192 average increase in bills for consumers.

“This puts the early costs of building the hydrogen economy on the shoulders of consumers, who will bear the costs of higher energy bills and costs of conversion – on top of the proposed ‘hydrogen levy’ set out in the Energy Bill,” the coalition’s letter states. “As hydrogen is more expensive than the gas currently used to heat most UK homes, a 20% blend can only raise consumer prices. Raising energy bills during a cost of living crisis is the wrong way to develop industrial demand for hydrogen.”

The coalition adds that blending could “create greenwash as the public are told that ‘gas has gone green’, when in fact ‘hydrogen-ready boilers’ will continue to burn fossil fuels for decades to come”.

It adds: “This could delay investment into genuinely zero carbon heating technologies.”

Shapps has previously said there is a “very strong case” for blending hydrogen and gas, which its proponents say would help the UK to capitalise on its extensive, existing gas grid.

Toogood’s report also calls for ministers to consider an early mandate for hydrogen-ready boilers, like that being proposed for heat pumps, and for greater clarity surrounding the government’s decision-making on the role that hydrogen will play in the home heating mix.

However, the coalition claims that her recommendations are made on the back of “potentially misleading” claims that heat pumps are not a viable solution for all types of property.

The letter adds: “We encourage the government to reject the report’s recommendation to create a loophole under the proposed market-based mechanism for low carbon heating, with ‘hydrogen ready boilers excluded from these market share calculations… since they will produce zero carbon emissions when running on hydrogen.’

“Since the report itself recognises that hydrogen ready boilers are unlikely to run fully on hydrogen for decades to come, this recommendation will enable ‘greenwashing’ for fossil fuel boilers and prolong the impacts of heating on carbon emissions and air quality. This undermines the government’s aim with the market-based mechanism in the Energy Bill.”

A Department for Energy Security and Net Zero spokesperson said: “Protecting consumers is a top priority for the government, which is why we have been covering around half of the typical household’s energy bill. Value for money will be a key factor in determining whether to enable the wider rollout of blending on to the gas network.

“The government is working closely with Ofgem and industry to explore how hydrogen could be fairly incorporated in bills and any final decision on blending will be made alongside a decision on how best to protect consumers.”

Full list of signatories: