Ofgem has approved a package of temporary changes to the Uniform Network Code (UNC) to enable SGN to carry out its proposed trial of a hydrogen network in Fife.
The H100 Fife project will see a new pipe network installed alongside the existing gas grid to supply 100% hydrogen to 270 homes in Buckhaven and Denbeath. The hydrogen will be produced using electrolysers installed at Energy Park Fife, where it will also be stored.
To facilitate the project, SGN proposed a series of minor changes to the UNC in January through a code modification designated UNC799. The changes include widening the definition of “gas” to include hydrogen and altering the definition of “metered volume” to reflect the conversion of recorded hydrogen volumes to equivalent natural gas volumes by applying a multiplication factor.
The latter is necessary due to the lower calorific value of hydrogen per unit of volume, which means around three times more hydrogen than natural gas will need to be supplied to consumers to deliver the same amount of energy to consumers.
In its proposal document, SGN noted that the project will seek to ensure that end consumers, which will receive a £1,000 payment for taking part in the trial, are not charged more for energy than they would be if they were using natural gas to heat their homes.
The gas distribution network said participants will also be able to change their gas supplier as normal.
Based on information requested from suppliers, Ofgem said it does not believe it will be necessary for them to make costly system upgrades to these customers: “Given the small number of customers participating in the trial, we expect that any changes to normal business processes that are required by suppliers could be done as manual workarounds for the duration of the trial to avoid any unnecessary costs to consumers.”
The proposed changes to the UNC will be limited to the supply points associated with the project and will be included as transitional text that only covers the period in which it is taking place. The trial is currently scheduled to begin in 2024 and run until 2027.
The government is planning to facilitate a series of three hydrogen trials of increasing scale to inform its decision on whether to rollout hydrogen networks across the country. The H100 Fife project will represent the UK’s first “hydrogen neighbourhood,” which will be followed a “hydrogen village” and then a “hydrogen town”.
In May, the government and Ofgem shortlisted projects in Redcar and Ellesmere Port to become the first hydrogen village, and last month, the government invited gas distribution networks to submit proposals for the first hydrogen town.