Projects & Initiatives

This document provides guidance on the commercial and strategic elements of a heat network project to support completion of a project business case.

The guidance is intended for local authorities and heat network developers to support their investigations and enable progression from feasibility stage through to business case delivery. The guidance has been drafted with reference to policy legislation and regulation in England and Wales; however much of the guidance is likely also to be relevant to projects in Scotland and Northern Ireland.

The guidance specifically supports the HMT Green Book Five Cases Business Model (the Five Cases Model) and the derived DBEIS Business Case Template (DBEIS BCT) that follows this structure but will also be applicable in other instances. The Five Cases Model (and similarly the DBEIS BCT) considers the viability of the project from five perspectives:

• Strategic
• Economic
• Commercial
• Financial
• Management

Although all five elements are relevant this guide particularly focuses on the Strategic and Commercial cases.

Related Document Heat Networks 2020

HyDeploy is a pioneering hydrogen energy project designed to help reduce UK CO2 emissions and reach the Government’s net zero target for 2050.

As the first ever live demonstration of hydrogen in homes HyDeploy aims to prove that blending up to 20% volume of hydrogen with natural gas is a safe and greener alternative to the gas we use now.  It is  providing evidence on how customers don’t have to change their cooking or heating appliances to take the blend which means less disruption and cost for them.  It is also confirming initial findings that customers don’t notice any difference when using the hydrogen blend.

The HyDeploy Project seeks to address a key issue for UK customers: how to reduce the carbon they emit in heating their homes. The UK has a world class gas grid delivering heat conveniently and safely to over 83% of homes. Emissions could be reduced by lowering the carbon content of gas through blending with hydrogen. Compared with solutions such as heat pumps this means that customers would not need disruptive and expensive changes in their homes. This Network Innovation Competition (NIC) funded project seeks to establish the level of hydrogen that can be safely blended with natural gas for transport and use in a UK network.

Under its Smart Energy Network Demonstration innovation programme Keele University is establishing its electricity and gas networks as facilities to drive forward innovation in the energy sector. The objective of HyDeploy is to trial natural gas blended with potentially up to 20% volume of hydrogen in a part of the Keele gas network. Before any hydrogen can be blended with natural gas in the network the percentage of hydrogen to be delivered must be approved by the Health and Safety Executive (HSE). It must be satisfied that the approved blended gas will be as safe to use as normal gas. Any approval will be given as an exemption to the Gas Safety (Management) Regulations. These regulations ensure the safe use and management of gas through the gas network in the UK. The evidence presented to the HSE comprises critically appraised literature combined with the results from a specifically commissioned experimental and testing programme. Based on engagement with all local customers this includes detailed safety checks on the network appliances and installations at Keele. Subject to approval by the HSE the hydrogen production and grid injection units will be installed and an extensive trial programme of blending will be undertaken. If hydrogen were blended at 20% volume with natural gas across the UK it would save around 6 million tonnes of carbon dioxide emissions every year the equivalent of taking 2.5 million cars off the road.

This report and any attachment is freely available on the ENA Smarter Networks Portal here. IGEM Members can download the report and any attachment directly by clicking on the pdf icon above.

The HyDeploy project seeks to address a key issue for UK customers: how to reduce the carbon they emit in heating their homes. The UK has a world class gas grid delivering heat conveniently and safely to over 83% of homes. Emissions can be reduced by lowering the carbon content of gas through blending with hydrogen. This delivers carbon savings without customers requiring disruptive and expensive changes in their homes. It also provides the platform for deeper carbon savings by enabling wider adoption of hydrogen across the energy system.

This Network Innovation Competition (NIC) funded project seeks to establish the level of hydrogen that can be safely blended with natural gas for transport and use in a UK network. Under its smart energy network innovation demonstration programme Keele University is establishing its electricity and gas networks as facilities to drive forward innovation in the energy sector. The objective of HyDeploy is to trial natural gas blended with 20%mol of hydrogen in a part of the Keele gas network. Before any hydrogen can be blended with natural gas in the network the percentage of hydrogen to be delivered must be approved by the Health and Safety Executive (HSE). It must be satisfied that the approved blended gas will be as safe to use as normal gas. Such approval is provided as an Exemption to the Gas Safety (Management) Regulations. These regulations ensure the safe use and management of gas through the gas network in the UK. Following such approval hydrogen production and grid injection units are to be installed and an extensive trial programme undertaken. Blending hydrogen at 20%mol with natural gas across the UK would save around 6 million tonnes of carbon dioxide emissions every year the equivalent of removing 2.5 million cars from the road.

This report and any attachment is freely available on the ENA Smarter Networks Portal here. IGEM Members can download the report and any attachment directly by clicking on the pdf icon above.

Hydrogen boilers have been developed by Worcester Bosch and Baxi and are being trialled in demonstration houses. They look and feel just like the boilers we use today. Hydrogen produces no carbon when used and a hydrogen gas network could provide the least disruptive route to a net zero carbon future.

The Fuel Cells and Hydrogen Joint Undertaking (FCH JU) has the ambitious objective to place Europe at the forefront of the development commercialization and deployment of fuel cells and hydrogen technologies as of 2015. About €470 million over a six year period have been granted by the European Union to achieve this and private funds are being attracted to support the same ambition as part of the global European effort embedded in the multi-annual implementation plan MAIP (2008-2013).

This work programme was focused on identifying a suitable odorant for use in a 100% hydrogen gas grid (domestic use such as boilers and cookers). The research involved a review of existing odorants (used primarily for natural gas) and the selection of five suitable odorants based on available literature. One odorant was selected based on possible suitability with a Polymer Electrolyte Membrane (PEM) based fuel cell vehicle which could in future be a possible end-user of grid hydrogen. NPL prepared Primary Reference Materials containing the five odorants in hydrogen at the relevant amount fraction levels (as would be found in the grid) including ones provided by Robinson Brothers (the supplier of odorants for natural gas in the UK). These mixtures were used by NPL to perform tests to understand the effects of the mixtures on pipeline (metal and plastic) appliances (a hydrogen boiler provided by Worcester Bosch) and PEM fuel cells. HSE investigated the health and environmental impact of these odorants in hydrogen. Olfactory testing was performed by Air Spectrum to characterise the ‘smell’ of each odorant. Finally an economic analysis was performed by E4tech. The results confirm that Odorant NB would be a suitable odorant for use in a 100% hydrogen gas grid for combustion applications but further research would be required if the intention is to supply grid hydrogen to stationery fuel cells or fuel cell vehicles. In this case further testing would need to be performed to measure the extent of fuel cell degradation caused by the non-sulphur odorant obtained as part of this work programme and also other UK projects such as the Hydrogen Grid to Vehicle (HG2V) project would provide important information about whether a purification step would be required regardless of the odorant before the hydrogen purity would be suitable for a PEM fuel cell vehicle. If purification was required it would be fine to use Odorant NB as this would be removed during the purification step.

This report and any attachment is freely available on the ENA Smarter Networks Portal here. IGEM Members can download the report and any attachment directly by clicking on the pdf icon above.

This publication by the Department for Business Energy and Industrial Strategy (BEIS) brings together heat networks investment opportunities in England and Wales. The opportunities present a wide range of projects supported through the development stages by the Heat Networks Delivery Unit (HNDU) and projects seeking capital support from the Heat Networks Investment Project (HNIP).

The publication includes a list of one-page summaries for each of the heat network projects supported by BEIS which set out details of HNDU and HNIP projects where projects have provided enough detail in time for publication.

For HNIP this represents projects which have submitted at least a pre-application to the Delivery Partner Triple Point Heat Networks Investment Management since the scheme opened in February 2019. As a number of the projects are at different stages of development some of the costs aren’t currently available or will be subject to project consent and change as they progress through the project lifecycle.

Related Document: Heat Network Detailed Project Development Resource: Guidance on Strategic and Commercial Case

Climate change is one of today’s most pressing global challenges. Since the emission of greenhouse gases is often closely related to the use and supply of energy the goal to avoid emissions requires a fundamental restructuring of the energy system including all parts of the technology chains from production to end-use. Natural gas is today one of the most important primary energy sources in Europe with utilization ranging from power generation and industry to appliances in the residential and commercial sector as well as mobility. As natural gas is a fossil fuel gas utilization is thus responsible for significant emissions of carbon dioxide (CO₂ ) a greenhouse gas. However the transformation of the gas sector with its broad variety of technologies and end-use applications is a challenge as a fuel switch is related to changing physical properties. Today the residential and commercial sector is the biggest end user sector for natural gas in the EU both in terms of consumption and in the number of installed appliances. Natural gas is used to provide space heating as well as hot water and is used in cooking and catering appliances with in total about 200 million gas-fired residential and commercial end user appliances installed. More than 40 % of the EU gas consumption is accounted for by the residential and commercial sector. The most promising substitutes for natural gas are biogases and hydrogen. The carbon-free fuel gas hydrogen may be produced e.g. from water and renewable electricity; therefore it can be produced with a greatly lowered carbon footprint and on a very large scale. As a gaseous fuel it can be transported stored and utilised in all end-use sectors that are served by natural gas today: Power plants industry commercial appliances households and mobility. Technologies and materials however need to be suitable for the new fuel. The injection of hydrogen into existing gas distribution for example will impact all gas-using equipment in the grids since these devices are designed and optimized to operate safely efficiently and with low pollutant emissions with natural gas as fuel. The THyGA project1 focusses on all technical aspects and the regulatory framework concerning the potential operation of domestic and commercial end user appliances with hydrogen  / natural gas blends. The THyGA deliverables start with theoretical background from material science (D2.4) and combustion theory (this report) and extend to the project’s experimental campaign on hydrogen tolerance tests as well as reports on the status quo and potential future developments on rules and standards as well as mitigation strategies for coping with high levels of hydrogen admixture. By this approach the project aims at investigating which levels of hydrogen blending impact the various appliance technologies to which extent and to identify the regime in which a safe efficient and low-polluting operation is possible. As this is in many ways a question of combustion this report focuses on theoretical considerations about the impact of hydrogen admixture on combustion processes. The effects of hydrogen admixture on main gas quality properties as well as combustion temperatures laminar combustion velocities pollutant formation (CO NOx) safety-related aspects and the impact of combustion control are discussed. This overview provides a basis for subsequent steps of the project e.g. for establishing the testing program. A profound understanding of the impact on hydrogen on natural gas combustion is also essential for the development of mitigation strategies to reduce potential negative consequences of hydrogen admixture on appliances.

This is part one. Part two of this project can be found at this link

National Grid (NG) needs to understand the implications that a hydrogen rich gas mix may have on the existing pipeline network. The primary network consists extensively of X52 steel pipe sections welded together using girth welds. Different welding specifications that have been used in the past 40 years and girth welds with different specifications may behave differently when coming into contact with hydrogen gas.

The aim of the flow loop test programme is to begin to evaluate the durability of pipeline materials in the context of future proofing of gas grid service where the gas mix may include a significant proportion of hydrogen. One specific objective is to investigate the resistance to hydrogen embrittlement of a conventional steel (X52) with commonly used girth welds. The primary concern is that the phenomenon of hydrogen embrittlement may cause unexpected or early failure mechanisms especially in older pipe sections with less stringent girth weld specifications.

This report and any attachment is freely available on the ENA Smarter Networks Portal here. IGEM Members can download the report and any attachment directly by clicking on the pdf icon above.