Hydrogen Focus Area

The Hydrogen Focus Area will consider market change activities needed to integrate hydrogen into the energy mix with minimal impact on gas market participants.

Hydrogen, alongside other technologies, is expected to play a significant role in the decarbonisation of UK heat, industry, power generation and transport.

Multiple policy papers have been recently released that explore the potential role hydrogen could play within the UK’s future energy landscape. For example, key policy papers include the Prime Minister’s 10 Point Plan and the Energy White Paper that include details on target milestones of Government hydrogen ambitions.

Clearly, there is a significant pipeline of policy signals to direct short-term ambitions for hydrogen development. However, uncertainty remains on the market impacts of a hydrogen transition.

National Grid Gas Transmission, in collaboration with industry, decision makers and stakeholders, is working on the Hydrogen Gas Markets Plan (GMaP). We want to make sure the gas system and markets continue to deliver consumer value throughout the UK’s potential transition to a full (100%) hydrogen future.

Hydrogen GMaP completed projects

Hydrogen GMaP Scenarios

The first Hydrogen GMaP project outlined hydrogen scenarios to explore the potential role of various hydrogen production and storage technologies, hydrogen transportation options and user conversion routes to full (100%) hydrogen. The scenarios were based on completed or ongoing hydrogen projects in Great Britain. The purpose of generating the Hydrogen GMaP scenarios was to explore the hydrogen events or triggers that could lead to market change. For market participants, this will indicate how to plan for future market change, based on specific triggers that could come to fruition.

Hydrogen GMaP Market considerations to support a hydrogen town

Although a lot of uncertainty surrounds the market impacts of a hydrogen transition (as we explored in the Hydrogen GMaP Scenarios), we know hydrogen will likely have a significant impact on the existing gas market. Based on Government ambition set out in the Prime Minister’s 10 Point Plan to potentially support industry to develop a plan for a hydrogen town before the end of the decade (an ambition based on successful evidence from hydrogen trials), we set out to explore the potential market arrangements to enable a hydrogen town. 

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