© Shutterstock East Coast Hydrogen has confirmed it will receive £96m of funding from Ofgem to support its next phase of development.
The programme entails repurposing and building new pipelines for hydrogen service across Northeast England, the Humber region, Yorkshire and the East Midlands.
The funding will be used to carry out engineering, planning and public consultation on proposals, East Coast Hydrogen said. It also noted that the award follows over £500m of funding announced by the UK government for regional hydrogen transport and storage networks as part of its Spending Review earlier in June.
East Coast Hydrogen – a partnership led by National Gas, Cadent and Northern Gas Networks – anticipates that the Ofgem funding will help pave the way for delivery of a hydrogen-ready pipeline network that is expected to be built over the next decade in an effort to boost the UK’s decarbonisation.
In particular, the programme is aiming to help power generation and heavy industry across the East Coast transition from natural gas, replacing it with low-carbon hydrogen while also rolling out infrastructure to support a future hydrogen economy.
East Coast Hydrogen said this latest funding would ensure work can continue “at pace” on the required infrastructure.
“Project Union, our plan to create a 1,500-mile core hydrogen network across Great Britain, will start in the East Coast and this funding will support that ambition,” stated National Gas’ CEO, Jon Butterworth.
“By repurposing existing infrastructure, we will connect hydrogen production, storage, and demand, helping to deliver flexible electricity, decarbonise industry, and protect jobs in some of the UK’s most energy-intensive regions.”
Cadent CEO Steve Fraser described the funding as very welcome news, “not just in terms of this specific project, but for the UK’s entire energy transition”. Ofgem’s support, he continued, will “allow our partnership to forge ahead with the vital planning and engagement work that is needed to fully realise this important project”.
Fraser went on to describe East Coast Hydrogen as being “exactly the type of pioneering partnership” that is needed to help the UK achieve net zero emissions in the longer term.
Meanwhile, Northern Gas Networks chief executive Mark Horsley described the partnership as offering “a clear route to driving growth for regional economies, job creation and decarbonisation support for industries that otherwise would find it difficult to meet net zero targets”.
Horsley said the funding was “essential” to determining the technical work needed to build hydrogen infrastructure, in order to understand how a hydrogen network can be operational in time to meet national net zero targets.
“Ofgem’s decision signals confidence in the region’s ability to help lead the UK’s hydrogen transition and opens the door to thousands of jobs and future investment in key industrial heartlands,” he said.
Horsley went on to say that East Coast Hydrogen was expected to move into the delivery phase of the programme later this decade, with the aim of starting hydrogen flows from the early 2030s. The initiative brings together over 120 organisations across sectors including hydrogen producers, power generators, industry, energy networks, airports and hospitals, he added.
