In what has been called a “world first project”, called H100, around 300 homes in Methil and neighboring Buckhaven in Levenmouth are planned to be powered by “green hydrogen” gas from next year. Customers are being offered free hydrogen-ready boilers and stoves under the scheme, which is scheduled to last at least four years. The £32m project will see the National Grid use something other than natural gas in its distribution network for the first time in what is claimed to be the world’s first 100% hydrogen network for consumers. The H100 hopes to address the need for alternative energy sources to natural gas, as heating accounts for around 37% of all UK carbon emissions. However, the project has been plagued by delays – including the construction of a flagship ‘demonstration facility’. Some are now openly questioning whether it is a worthwhile venture and whether hydrogen will play a significant role in powering the homes of the future. Green hydrogen is produced by splitting water using electricity from renewable sources, with minimal emissions. Under the plans, an existing 7MW, 200m tall offshore wind turbine will be used to power an electrolyser at the nearby Fife Energy Park before the hydrogen is stored and transported to homes via a newly laid network of pipes. Graphic showing difference between gray, blue and green hydrogen. Households were to be connected during 2023 with the project ending by the end of March 2027, theoretically saving over 2,650 tonnes of CO2 in the process. It is envisaged that a second phase could expand to 1,000 homes. Six huge tanks will store five tonnes of hydrogen – enough for about five peak days. The project is being led by gas distributor SGN and funded by a group of parties including regulator Ofgem, the Scottish Government and distribution companies Cadent, Northern Gas Networks and Wales and West Utilities. Ofgem is the biggest funder, contributing £18m after H100 won funds through its annual network innovation competition, with the Scottish Government investing almost £7m. Appliance suppliers including Baxi and Bosch are also involved. Households, who will stay with their existing energy supplier, receive free appliances and maintenance and pay no more than the corresponding gas price. The pilot is intended to test the public interest and acceptance of hydrogen devices, safety and logistics issues of residential supply. A gleaming show building was designed as the centerpiece of the project – a mock-up similar to a show house in a newly built residence. It was supposed to be completed by early February, but remains in its infancy, local sources say. Recruitment for the program was set to begin in late 2021 with the move starting in earnest in March. However, it is understood that brochures were only distributed to the public in May and properties are supposed to be signed for by September 22. It is estimated that around a third of local households would need to participate to reach the target of 300 homes, although Ofgem states between 180 and 250 homes would represent an adequate sample size. The first hydrogen production and storage system is expected to be operational by Christmas. SGN declines to comment on exact timetables and sign-ups, but H100 project manager Craig McCafferty says: “Working through global supply chain constraints, SGN is committed to providing hydrogen to customers at the earliest opportunity. Construction will continue through 2022 and 2023 with commissioning of operations and hydrogen to the first customers to follow thereafter.” Sources close to the project insist that hiring is on track. Ofgem has warned that “a delay in starting this project would materially affect the evidence base for transitioning the energy system to hydrogen as a means of decarbonising heat and industry”. There are also concerns that the choice of location could give unrepresentative results nationally, as the community is one of the most deprived areas in Scotland. Professor Alastair Lewis, of the National Center for Atmospheric Science at the University of York, says: “There is an unaddressed issue that we could end up with wealthier people with homes powered by heat pumps and solar panels, as they have the space, while in low-income areas with less space are heated with fuels such as hydrogen that have the potential to create pollution.” Subscribe to Business Today Get ready for the business day – we’ll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. In the longer term, UK distribution companies are looking at blending small amounts of hydrogen with natural gas. However, Lewis says the potential for nitrogen oxide emissions should be considered before boilers using a mixture of hydrogen and natural gas are widely adopted in the UK. Reviews of the project provide a microcosm for the long-running debate about hydrogen’s place in the energy transition. Proponents argue that hydrogen is a vital piece of the puzzle, particularly in helping to green heavy industry. Critics claim it is too expensive and the focus should be on boosting production in other forms of energy, such as wind and solar. Short-term cost concerns have been partially offset by the fact that wholesale natural gas prices have risen this year. This week, specialist ITM Power said the price increases underlined the benefits of switching to green hydrogen production. Alex Lee, a climate campaigner at Friends of the Earth, says: “Keeping our homes and buildings warm is a major contributor to climate pollution, but people need real financial help and know-how to make the necessary changes.” . He adds: “Rather than wasting millions supporting these pet industrial projects like H100, which are inefficient and costly, the Scottish Government should be investing in electrifying heat and ensuring homes are built or retrofitted to the highest standards. “By embracing heat pumps and building heat networks, ministers can help reduce fuel poverty as well as reduce climate emissions from our homes.” Mark Ruskell, the MSP for mid-Scotland and Fife, says: “I’m really sceptical. It is very difficult to get enough hydrogen to heat a large number of homes – this is much more the case in industrial sectors, which are difficult to decarbonise. It is an interesting project, but it should not determine the direction of energy policy.” In November 2020, the prime minister set a target of achieving five gigawatts of hydrogen capacity and creating a “hydrogen city” by 2030. Last year, in the government’s hydrogen strategy, this target was increased to 10 gigawatts by the same date, but did not important role of hydrogen in domestic heating was detailed. The UK government is due to decide in 2026 whether to plan to use hydrogen to heat homes. Those working on the Fife pilot project will need to move quickly if this plan is to make a significant contribution to this debate.
