New proposals to introduce hydrogen into the gas network in North West England has been unveiled.
Its study explains how hydrogen could be used in place of natural gas to power industry in the region.
Excess hydrogen could then be blended with natural gas to heat homes and businesses across the Liverpool and Manchester areas, without the need to change appliances such as boilers.
The region is said to be home to 11% of Britain’s existing industrial gas users as well as four million domestic consumers of gas, for heating and cooking.
It also has offshore gas fields in Liverpool Bay that are nearing the end of their operational lives, which Cadent believes could be the “perfect location” to store the carbon dioxide created during the production of hydrogen.
It expects the project to cost £600 million but believes it would be lower and “hold less development risk” if funded as an allowable expenditure within Ofgem’s price control mechanism, along with government input to underwrite certain carbon capture and storage risks and costs.
David Parkin, Director of Safety and Network Strategy at Cadent said: “While this is a study on paper, it’s a very real project. It has potential to transform the future of energy in the UK and be a long term solution to decarbonising heat.
“We’ve published our conceptual study in full today and now begin to process to engage with and take on the views of key stakeholders and potential partners. We’ll then be able to assess whether there is the appetite out there to take this ambitious concept forward.”