Approval granted for Scots' offshore wind to green hydrogen project

The green hydrogen produced in the project will be used for home heating and cooking. The project was approved by UK energy regulator Ofgem. Approval to proceed with the project was sought by SGN in May 2020.

The energy regulator will award up to £18M (US$24M) from its annual Network Innovation Competition to support development of a hydrogen network, triggering a further investment of £6.9M from the Scottish Government. SGN shareholders and Britain’s three other gas distribution networks are also providing funding for the project.

Work will now begin on delivering the demonstration network in Levenmouth, Fife. It all goes according to plan, the demonstration project should bring carbon-free heating and cooking to around 300 homes from the end of 2022.

The clean gas will be produced locally, by a dedicated electrolysis plant powered by the Offshore Renewable Energy Catapult’s offshore wind turbine at Levenmouth in Scotland.

SGN director of energy futures Angus McIntosh said, “We are delighted that stakeholders have recognised the critical importance of H100 Fife.

“H100 Fife is the UK’s priority project in this area and is designed to demonstrate hydrogen distribution and in-home performance in a real-world setting.

“It’s an exciting opportunity to revolutionise the way millions of people heat their homes. The hydrogen appliances will connect to the existing pipes in the home for zero carbon heating and cooking with minimal disruption and with no need to replace existing radiators or plumbing.”

Replacing natural gas with hydrogen and other low-carbon alternatives will be key if the UK and Scottish Governments are to meet legally binding net-zero emissions targets.

H100 Fife is a first step as the UK aims to develop 5 GW of hydrogen production capacity and a first ‘Hydrogen Town’ by 2030. The project was singled out by the Prime Minister during the launch of the UK Government’s Ten Point Plan for a Green Industrial Revolution.

Ofgem chief executive Jonathan Brearley said, “The high level of ambition shown by bidders in this year’s Network Innovation Competition is hugely encouraging and shows the energy industry getting behind the challenge of net zero.

“The winning projects were those which showed the most potential to make the game-changing leaps in technology we need to build a greener, fairer energy system at the lowest cost to consumers.”