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Introduction
There is no doubt the gas sector is nursing deep wounds following a series of blows to the hydrogen lobby in 2023. But despite these headwinds, there remains a dogged determination, not only from gas networks but also invested energy retailers and generators, to continue fighting for hydrogen’s place in a net-zero future, and more specifically, to retain it as an option for low-carbon domestic heat.
Throughout 2023, advocates of hydrogen for home heating met with a series of disappointing developments. Most notably, two keenly anticipated hydrogen village demonstrator projects were culled by government and a report from the National Infrastructure Commission issues a plain message that it saw no role for hydrogen in the decarbonation of domestic heat – although it did acknowledge its importance for industrial and transport purposes.
“The Redcar decision will be remembered as a blip in the history of our energy transition.”
Gas network chief executive.
But firm believers in the potential of hydrogen remain uncowed. In a bullish response to the axing of the Redcar hydrogen village trial in December 2023, one gas network chief executive told Utility Week the decision will be remembered merely as “a blip in the history of our energy transition”.
While they acknowledged that the potential role of hydrogen as a source of home heating had been “oversold” in recent years, they insisted that it remains a viable option for well-located communities. A concerted and targeted communication campaign for consumers living in these communities about their potential relationship with a future hydrogen economy should now be a priority for all stakeholders in the hydrogen lobby, they added.
An industry united
The views of this chief executive chime closely with those of a group of gas network and energy retail leaders who met in late 2023, hosted by Utility Week in association with Wipro, to discuss the necessary conditions for creating consumer confidence in hydrogen.
Speaking to Utility Week in the wake of the Redcar announcement, one debate participant – a net zero transition leader at another gas distribution network – commented. “The need to get smarter on communications is now more important than ever.
“As an industry, we must realise this demands a gear shift up in communications – not a stand down.”
Gas network net zero transition leader
“What has come out of [the withdrawal of support for the Redcar trial] is that consumers as a whole are really not there yet with understanding the need for change – for any change – to their heating. They are asking ‘why us, why here’. As an industry, we must realise this demands a gear shift up in communications – not a stand down.”
Adding weight to this view another debate participant – a zero carbon heat leader from a major energy supplier – said: “The Redcar decision doesn’t change our view at all. In the right situation, hydrogen is a good solution [for home heating]. It won't perhaps be a mainstream solution, but it has a future as an adjacent use case to transport and heavy industry.”
Advocating for sophisticated and targeted engagement campaigns for those communities where hydrogen has the strongest potential for transport and industrial use cases, this heat decarbonisation expert commented: “Look at attitudes to nuclear. Across the country as a whole, there are plenty of people who don’t like it. But when you look at the communities around plants, there tends to be a much warmer view because it becomes interwoven with the local economy.”
This report captures more detail from the discussion between industry leaders at our event, which was hosted under the Chatham House rule to encourage frank expressions of opinion and sharing of experience.
Discussion insights have been grouped under three main headings:
- Time to be targeted: why smart, segmented messaging matters
- The role of data: why smart comms will require new information
- Whole system planning: high expectations for the NESO and RESPs
in association with
