The UK and Scottish authorities are funding the world's first trial of a 100 percent green hydrogen generation, storage, and distribution network to heat 300 homes in Scotland as part of the UK and Scottish ambitions to achieve net-zero emissions within three decades.
The UK's energy regulator Ofgem on Monday said it is awarding US$24 million (18 million British pounds) to a project in the city of Fife, Scotland, which will see 300 homes heated with and cooking with green hydrogen made from electrolysis from offshore wind power.
The project also receives a further investment of US$9.2 million (6.9 million pounds) from the Scottish Government. The H100 Fife project of the company SGN is set to begin construction next year, while the hydrogen network is expected to go live in 2022. The project will be operational for four and a half years until March 2027 and will aim to show if green hydrogen is a viable solution to reducing emissions and heating homes in the UK.
"I see this project as a critical step towards understanding our decarbonization options for heat and will deliver a purpose-built end-to-end hydrogen system, so I warmly welcome Ofgem's investment in the project," Paul Wheelhouse, Scotland's energy minister, said in a statement.
Currently, central heating is responsible for up to a third of the UK's greenhouse gas output, according to SGN.
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The initial 300 customers in the project in Fife will receive a free hydrogen connection, free replacement hydrogen appliances, and free maintenance over the length of the project. They will pay the same amount for hydrogen gas as they would pay for natural gas, SGN says.
Exploring the options for hydrogen production and ways to cut hydrogen costs is one of the key pillars in the UK's The Ten Point Plan for a Green Industrial Revolution, which the government unveiled earlier this month.
"Working with industry the UK is aiming for 5GW of low carbon hydrogen production capacity by 2030. Hubs where renewable energy, CCUS, and hydrogen congregate will put our industrial 'SuperPlaces' at the forefront of technological development," the UK said in its plan.
By Josh Owens for Oilprice.com
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Josh Owens is the Content Director at Oilprice.com. An International Relations and Politics graduate from the University of Edinburgh, Josh specialized in Middle East and… More
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