Hydrogen Blending and the Gas Commercial Framework - Report on Conclusions of NIA study

Blending hydrogen into the gas grid could be an important stepping stone during the transition to a sustainable, net zero system. In particular, it may: provide a significant and reliable source of demand for hydrogen producers, supporting the investment case for hydrogen; provide learnings and incremental change towards what could potentially become a 100% hydrogen grid; and immediately decarbonise a portion of the gas flowing through the grid. Technical questions relating to hydrogen blending are being taken forward by the industry (e.g. through the HyDeploy project in relation to the maximum potential blend of hydrogen that can be accommodated without end user appliances needing to be altered or replaced). But if blending is to take place, changes to commercial arrangements will be necessary, as today these assume a relatively uniform gas quality. In particular, the commercial framework will need to ensure that limits on the percentage of hydrogen that can safely be blended (currently expected to be around 20% by volume) are not exceeded. We have been commissioned by Cadent to undertake a Network Innovation Allowance (NIA) project to identify the changes required to the gas commercial framework that will enable hydrogen blending in the GB gas grid, and to set out a roadmap for how these can be delivered. This report sets out our recommendations.