Information about the hydrogen village trial and proposals received from Gas Distribution Network (GDN) operators.



Documents

Launch of Stage 2: open letter to gas distribution networks, 6 May 2022

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Details

Update: 14 December 2023

The proposed hydrogen heating village trial in Redcar cannot go ahead as designed, as the main source of hydrogen supply will not be available. As such, the government is not in a position to provide support for the trial.

The government believes that low carbon hydrogen may have a role to play in heat decarbonisation, alongside heat pumps and heat networks, in slower time in some locations. The government therefore still plans to take a decision in 2026 on whether, and if so how, hydrogen will contribute to heating decarbonisation.

Decisions in 2026 will be informed by evidence from our wider research, development and testing programme and the neighbourhood trial in Fife (“H100”), as well as similar trials across Europe. Northern Gas Network’s (NGN) early planning work for a trial in Redcar has also provided valuable evidence to support policy decisions, in particular, building survey data, grid conversion plans, and consumer research.

Proposals received

BEIS and Ofgem issued an open letter to the 4 Gas Distribution Networks (GDNs) on 6 May 2022 (initially published on Ofgem’s site), setting out the expected requirements for GDN applications for funding for the next stages of the village trial.

In March 2023, Cadent and NGN submitted detailed design proposals for hydrogen heating village trial projects in Whitby, Ellesmere Port and Redcar, Teesside, respectively. The proposals submitted by Cadent and NGN were applications for funding to convert a large village to hydrogen or alternative heating solution instead of natural gas.

The proposals were assessed against the requirements for funding applications set out in an annex of the open letter issued to the gas networks, as well as overarching criteria such as the value for money and deliverability of the project.

In July 2023, it was announced that Whitby, Ellesmere Port was no longer being considered as a location for the trial. The proposed hydrogen heating village trial in Redcar, Teesside also cannot go ahead as designed, as the main source of hydrogen supply will not be available.