National Grid has been awarded £20 million for innovative energy projects.
The operator will use £11 million of the funding, provided by Ofgem, for two projects which will explore lower carbon alternatives to natural gas.
It will carry out a green heating project by injecting hydrogen into Keele University’s gas network to cut carbon emissions.
The second project will look into updating the way gas bills are calculated, to take into account more green, lower carbon alternatives to natural gas which are likely to be powering homes and businesses in the future.
It aims to cut the use of propane, which is currently being added to biomethane and other lower carbon gases.
In addition, the operator alongside UK Power Networks have received £9.5 million funding to help connect additional renewable energy and storage technology in the South East.
The project will reduce the need to build additional electricity infrastructure in the area, expected to save consumers in the region up to £1 million by 2020 and £29 million by 2050.