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Network Innovation Competition: Full Submission Application (NGGTGN04)

1. Project Summary

1.1 Project Title HyNTS FutureGrid Phase 1 – Transmission Test Facility

1.2 Project

Explanation

FutureGrid aims to demonstrate that the Gas National Transmission

System (NTS) can be repurposed to transport hydrogen. The initial

phase involves building an offline hydrogen test facility, to assess the

impact that blends of hydrogen will have on NTS assets.

1.3 Funding

LicenseeNational Grid Gas Transmission (NGGT)

1.4 Project

Description

1.4.1. The Problem(s) it is exploring

Achieving the UK’s Net Zero targets will require decarbonisation

across the whole energy system. Sectors such as heat are difficult to

decarbonise, and the importance of the NTS to the UK’s current

energy supply means we need to consider how to reliably and safely

deliver low carbon energy to consumers. Existing research suggests

hydrogen could be an alternative to natural gas, but there are

several knowledge gaps that need addressing and a lack of physical

trials.

1.4.2. The Method(s) that it will use to solve the Problem(s)

The project will involve building a hydrogen test facility from a

representative range of decommissioned NTS assets. Flows of

hydrogen and natural gas blends (up to 100% hydrogen) will then be

tested at NTS pressures, to better understand how hydrogen

interacts with the assets. The data gathered will be used to assess

the impact that a hydrogen conversion of NTS assets will have.

1.4.3. The Solution(s) it is looking to reach by apply the Method(s)

The project will build on existing work under the HyNTS programme

and increase understanding of the characteristics of hydrogen in the

NTS, demonstrating what is required for hydrogen to be safely

transported within the high-pressure gas transmission system. This

learning will set the foundation for our longer-term goal to accelerate

the decarbonisation of power, industry and heat and deliver a safe

supply of low-carbon energy to all our customers.

1.4.4. The Benefit(s) of the project

Hydrogen has the potential to play a role in the decarbonisation of

heat, power, and industry. Repurposing the NTS will minimise

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disruption, and potentially cost, for customers and consumers when

developing a hydrogen NTS. Using a hydrogen test facility that

remains separate from the NTS will allow for testing to be undertaken

in a controlled environment, with no risk to the safety and reliability

of the existing NTS. FutureGrid provides a significant opportunity to

increase collaboration across the gas networks, help share learning

and increase hydrogen knowledge within the gas industry.

1.5. Funding

1.5.1. NIC Funding

Request (£k)£9,073,785.97

1.5.2. Network

Licensee Compulsory

Contribution (£k)

£1,024,109.40

1.5.3. Network

Licensee Extra

Contribution (£k)

£257,313.94

1.5.4. External

Funding – excluding

from NICs (£k)

£2,304,000.00

1.5.5. Total Project

Costs (£k)£12,699,997.00

1.6. List of Project

Partners, External

Funders and Project

Supporters (and

value of

contribution)

Project Partners & Contractors: DNV GL (£380k), NGN (£205k), HSE,

Fluxys (£1.8m), Durham University (£100k)

Project Supporters: Cadent, WWU, SGN, ENA, Gas Networks Ireland,

GasUnie, Scottish Government, IGEM, GTC, GERG, Edinburgh

University

1.7. Timescale

1.7.1. Project

Start DateApril 2021

1.7.2. Project

End DateMarch 2023

1.8. Project Manager Contact Details

1.8.1. Contact

Name and Job

Title

Tom Neal,

Innovation Delivery

Manager

1.8.2. Email and

Telephone

Number

tom.neal1@nationalgrid.com

07785451353

1.8.3. Contact

Address

National Grid, National Grid House, Gallows Hill, Warwick Technology

Park, Warwick, CV34 6DA.

1.9. Cross Sector Projects (only complete this section if your project is a Cross Sector

Project, i.e. involves both the Gas and Electricity NICs).

1.9.1. Funding requested from the

[Gas/Electricity] NIC (£k, please state which

other competition)

N/A

1.9.2. Please confirm whether this

[Gas/Electricity] NIC Project could proceed in

the absence of funding being awarded for the

other Project.

N/A

1.10. Technology Readiness Level (TRL)

1.10.1. TRL at

Project Start Date4

1.10.2. TRL at

Project End Date6

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2. Project Description

2.1. Aims and objectives

2.1.1 Problem

The NTS is a critical national infrastructure that transports natural gas, in bulk, away from the

import terminals (such as St Fergus, Bacton, Isle of Grain and South Hook) to large-scale

customers such as gas fired power stations and Gas Distribution Network (GDN) offtakes. The

most efficient way to move any gas is at high pressure and in large diameter pipelines, using

compressors at strategic locations to maintain the flows. There are directly connected

customers, such as the industrial and power generation sectors, and customers connected to

the GDNs further downstream. The NTS currently transports over 97% of the natural gas that

flows through the GDNs, much of which is delivered to 23 million domestic consumers for

heat1.

Research is urgently needed to address the UK net zero ‘heat challenge’ to establish whether,

and how, the NTS could be converted to 100% hydrogen. This is on the critical path for a UK

Government policy decision on the futures of both heat and the gas industry. The NTS is also

vital for daily storage to maintain security of supply; the need for storage would increase as

the energy content of hydrogen is approximately a third of that of natural gas2. In parallel to

live hydrogen consumer trials proposed by the GDNs, work is also needed to establish whether

the NTS could maintain current levels of safety and security of supply if it were converted to

hydrogen. To address this challenge, NGGT set up the HyNTS programme of works to cover all

hydrogen related projects for the NTS. The FutureGrid project falls within the HyNTS

programme and has its own roadmap of three phases, the first of which forms the scope of

this proposal. Phases 2 and 3 focus on key areas such as compression, deblending and in-line

inspection and are detailed further in Section 3.3. The Hydrogen Programme Development

Group (HPDG) set up by Business Energy and Industrial Strategy (BEIS) has identified

potential end states for a decarbonised gas industry. The FutureGrid programme of work will

provide the evidence for these and understand whether it is possible and safe to:

Flow high-pressure hydrogen through existing NTS assets (pipelines, valves etc) - this

forms the scope of this proposal

Deblend hydrogen3 from natural gas during the system transition (outside scope of this

proposal – to be developed in FutureGrid Phase 2)

We have undertaken several desktop studies through the HyNTS programme of work which

have confirmed, in principal, the suitability of hydrogen in the NTS. However, there are gaps

1 The remaining 3% of gas in the GDNs is biomethane which is injected directly into the lowerpressure tiers.2 The calorific value of hydrogen is about 12 MJ/m3 which compares with a typical range of 38to 40 MJ/m3 for natural gas.3 It is possible that the NTS would need to transport both hydrogen and natural gas during anenergy transition. It would need to supply customers who have converted to hydrogen andthose waiting to convert whilst continuing to be safe, secure, affordable and low carbon.

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in knowledge that are fundamental to, and underpin, the safe and reliable operation of

hydrogen conversion. The Health and Safety Executive – Science Division (HSE-SD) carried

out an initial study and highlighted impacts such as leakage, venting and the effects of

hydrogen on the mechanical properties of some NTS materials. The main outcome of the

research was that physical testing is required on a variety of NTS assets to understand the

risks and mitigations required before more advanced operational studies such as deblending

can be undertaken.

In Europe, gas network transporters; GasUnie and SNAM have already trialled hydrogen

injection into a section of pipeline to test the impact on some assets. NGGT has not been able

to identify a similar suitable section of pipeline for testing as the NTS is highly interconnected.

We would not be able to meet the need for flexibility in testing, trialling and developing a

range of technologies alongside ensuring supply to our customers at this early stage. In the

case of online testing (the day-to-day functioning NTS), there would be the risk of hydrogen

penetrating into the downstream GDNs and being delivered to consumers in an uncontrolled

manner. To add to this, our current Safety Case does not allow transportation of gases other

than Methane and the Gas Safety (Management) Regulations 1996 clearly states that the limit

for hydrogen is less than or equal to 0.2% molar. Both documents sit under the Gas Act 1986

and to allow transportation of the proposed hydrogen blends in methane at this stage, will be

a direct breach of our Gas Transporters Licence. Therefore, an off-line test facility constructed

from decommissioned NTS assets will be the safest, most time-effective and cost-efficient way

to understand the risks and demonstrate the capabilities of the NTS.

The physical and chemical properties of hydrogen differ substantially from those of natural

gas. We need to further investigate how these properties may affect the NTS pipelines, assets,

materials, operational procedures and energy delivery. We need evidence from testing that

demonstrates that a hydrogen NTS system can be operated safely with hydrogen and

hydrogen blended with natural gas. Repurposing the NTS for hydrogen could be fundamental

to the Great Britain (GB) Gas Networks’ transition to 100% hydrogen4 and would reduce

reliance on costly, localised production of hydrogen from natural gas reforming with carbon

capture. There would be benefits in producing blue hydrogen5 at existing gas terminals, which

are already industrial chemical processing sites. This would negate the need for a new on-

shore carbon dioxide transmission system that connects smaller reforming plants with offshore

carbon capture and storage. Additionally, it is widely believed that blue hydrogen is an interim

measure that is likely be replaced by green hydrogen6 generated from renewables. A fully

converted NTS would be ready to support that transition. Maintaining the connection between

the NTS and the GDNs will also support security of supply to customers by connecting

hydrogen producers and providing line pack and connections to hydrogen storage facilities.

4 Please note that 100% hydrogen could vary in composition due to impurities in the gasintroduced in production or from the NTS itself.5 Blue hydrogen is produced by converting natural gas using a process called methanereformation.6 Green hydrogen is produced by a process called electrolysis, using renewable power sources.

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2.1.2 Overview of Method & Demonstration Activities

The FutureGrid project detailed in this submission is Phase 1 of the HyNTS Programme and will

test flows of hydrogen/natural gas blends and, for the first time in GB, 100% hydrogen at NTS

pressures. The HyNTS FutureGrid programme consists of 3 key phases (see Appendix C figure

10) and will culminate in an online trial on the NTS. The first phase is the basis for future

validation work on hydrogen technologies that will enable the use of hydrogen in our current

NTS system and will allow collaboration of many key stakeholders. The transmission test

facility will connect upstream of the H21 gas distribution system currently under construction.

By doing this, we will create a complete beach-to-meter gas network test system for

hydrogen. This supports the HPDG ambition for a comprehensive programme of evidence

ahead of a UK policy decision about converting the UK gas networks to hydrogen. Phases 2

and 3 will focus on deblending, compression and in-line inspection.

This NIC proposal is Phase 1 of NGGT’s HyNTS FutureGrid Programme. The programme seeks

to demonstrate how the NTS can be repurposed for hydrogen.

Phase 1 will be divided into:

Phase 1a to build a hydrogen test facility at DNV GL Spadeadam.

Phase 1b to test the compatibility and integrity of NTS assets with hydrogen blends up

to 100% hydrogen.

Phase 1c to update the NTS Quantitative Risk Assessment (QRA), prepare a

commented version of the safety case and carry out a high-level review of the NGGT

procedures and standards – this will highlight the procedures and standards affected by

a change from natural gas to hydrogen / a hydrogen blend.

2.1.3 Solutions enabled by FutureGrid

Through the FutureGrid programme, NGGT will provide a robust plan for hydrogen in the NTS.

The programme will enable:

The provision of a collaborative research centre at Spadeadam for engagement of

stakeholders, suppliers, customers and academic bodies, providing confidence on the

feasibility of repurposing the existing NTS to transport hydrogen

A test facility that can be used to identify gaps in knowledge and to deliver a strategy

for the NTS to be hydrogen ready, validating that the NTS operations can be

undertaken safely with hydrogen and that that the societal and individual risks are

comparable to those of natural gas by supplying new data for Quantitative Risk

Assessment (QRA)

A vital competence and training facility for the gas networks and the wider industry

The progression to FutureGrid Phase 2/3 and live trials to begin safely on the current

NTS

The development of key technologies that contribute to Net Zero Carbon by 2050

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2.2. Technical description of Project

2.2.1 Phase 1a Technical Description

Phase 1a will deliver an off-line NTS test facility constructed mainly from decommissioned NTS

assets, to demonstrate if hydrogen and hydrogen blends can be transported effectively,

flexibly and safely in the existing NTS. Figure 1 demonstrates the assets and Figure 2 shows

the proposed facility layout in infographic formats. A technical drawing of the site can be

found in the Technical Appendix J (Figure 16).

Figure 1 - Phase 1 Facility Infographic

This will substantially mitigate risks when the time comes to inject hydrogen into the live NTS.

The key steps for Phase 1a are:

Relocating a representative range of decommissioned NTS assets to DNV GL

Spadeadam, where they can be assessed for repurposing for hydrogen service

Building, testing and commissioning of the NTS facility including hydrogen storage,

hydrogen/natural gas blending and the link to the H21 gas distribution facility

Developing safe operating procedures and risk assessments for the test programme

Engagement with our Capital Delivery teams to share learning

The majority of current NTS assets have been in service for more than 30 years. Therefore, to

enable hydrogen to be safely transported through the NTS, we need to carry out research to

provide safety evidence. We need to confirm that we can operate and maintain the system

safely for the future. Research studies have been undertaken to review the viability of

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hydrogen in the NTS7. However, very little physical testing has been possible to confirm the

findings on the full the range of assets and components used today.

The FutureGrid facility will enable us to carry out detailed and comprehensive hydrogen

testing, to demonstrate whether the NTS can be safely converted to hydrogen. Detail of the

types of assets is included in Appendix B. These assets will also be chosen, considering known

issues with hydrogen from previous studies. The facility will be used more widely by gas

industry suppliers and other industries for testing new and existing components with

hydrogen. An infographic showing the function of the test facility is shown below.

Figure 2 – DNV GL Spadeadam layout

7 Refer to section 6.1 for further detail

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The detailed design of the test facility is underway as part of the Roadmap to FutureGrid

(NIA_NGGT0166) project. At the point of the project being awarded funding later this year,

construction of the FutureGrid facility – by a joint team of technical experts from NGGT and

DNV GL – will begin promptly in April 2021. The design is based on the use of assets that are

planned or already being decommissioned to ensure the facility is representative of the current

NTS.

The selection of components would be based on the recommendations in the HSE-SD report

commissioned by NGGT – a more detailed list and the reasons for the selection of each

component is shown in Appendix B. It is also important for the facility design to include a

representative cross-section of the types of materials in the NTS, including many components

which are safety critical. A control room will be included as part of the design and

construction, which will include systems for controlling pressures and flows and gathering test

data, such as velocity, temperature, pressure and gas composition. Longer term, it is

envisaged that end users, academia and other suppliers will also be able to use the facility for

testing and validation of their equipment.

2.2.2 Phase 1b Technical Description

Phase 1b will deliver the master testing plan which will have been developed as part of the

Roadmap to FutureGrid NIA project. We will inject and blend hydrogen with natural gas to

provide a range of compositions up to 100% hydrogen. We will study strategic hydrogen

concentrations including 2%, 20% and 100% hydrogen, with intermediate concentrations

studied as necessary. The main steps for Phase 1b are:

Operate the NTS hydrogen facility for 6-12 months according to the testing plan

Review and evaluate the test results to assess the safe operation of the assets we are

testing, extrapolating to the NTS and suggesting mitigations where possible

Validating flow parameters such as gas velocities, pressures, energy delivery and other

operating parameters for hydrogen blends up to 100% hydrogen, assumed as:

o Velocity = up to 40m/s to reflect the change in hydrogen and capacity

o Pressure = 50bar(g) up to 94bar(g)

o Temperature = -20deg C to +50deg C

o Flow to be determined as part of the design process and measured using

ultrasonic / orifice plate flow meters

Dissemination of results to enable international collaboration and accelerate Hydrogen

development

Our detailed test plan (Appendix B) is under development in the NIA project ‘Roadmap to

FutureGrid’ and focuses primarily on the functionality of key assets in a hydrogen

environment. The aims of the tests are to:

Validate critical operational parameters like pressure, temperature, velocity and flow

Provide new knowledge and understanding of the characteristics of hydrogen

Gain new knowledge about the operability of some important NTS assets, such as

valves, slam shut valves and pressure regulators

Determine any impacts to existing asset lives and maintenance frequencies of

operating and maintaining assets in a hydrogen environment

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The test plans will be developed in consultation with NGGT, HSE-SD and experts from DNV GL

in the areas of integrity, safety, process and operational backgrounds. The test plan will also

include inputs from key project collaborators such as Fluxys (gas transporter in Belgium as

detailed in section 4.4.3) and the academic teams from Durham and Edinburgh. As this is a

research programme, the test plan will include flexibility to allow specific focus on certain

areas as required. The test plans will be continuously reviewed to ensure that they are

meeting the project objectives and any changes to the test plan will be approved by the

project management team. Using DNV GL’s QRA methodology for NGGT’s Hazard Assessment

of the Transmission System (HATS), the data gathered from FutureGrid Phase 1b will be used

to understand the risks associated with introduction of hydrogen into the NTS.

2.2.3 Phase 1c Technical Description

Phase 1c will use the data from Phase 1b for a high-level assessment of the results. This will

consider how converting NTS pipelines to transport up to 20% hydrogen blends and 100%

hydrogen will affect public safety. Since NTS pipelines are defined as Major Accident Hazard

Pipelines (MAHP)s under the Pipeline Safety Regulations (PSR), NGGT is required to develop

and maintain a Major Accident Prevention Document (MAPD) that demonstrates that all

hazards have been identified, the risks have been evaluated and that an appropriate safety

management system is in place and kept under review. If the results from Phase 1b indicate

that the failure frequencies of NTS components are different to those of natural gas, the new

data will be used for the risk analysis.

Hazard Assessment of the Transmission System (HATS) covers pipelines only, not compressor

sites or other installations. Therefore, we will use this as the basis for the comparison and

high-level assessment of risk, reflecting the actual pipelines and operating conditions of the

NTS, combined with generic population assumptions. DNV GL undertake this periodically for

NGGT, so the overall level of risk posed to the public by the NTS pipelines (not including

installations) is monitored. We will present risk as societal risk for the entire system, with

comparisons of the variation in individual risk with distance for selected typical pipelines. We

will make the comparison on a like-for-like basis, in that all other parameters (pipeline

properties, operating pressures, etc.) remain the same, other than the composition of the gas

being transported. It is well known that releases of hydrogen into confined or congested

regions have the potential for more significant explosion hazards than natural gas. This should

be addressed subsequently in a separate study that considers the details of these sites and

any research carried out to date, such as within the H21 programme of works.

The Quantitative Risk Assessment (QRA) methodology adopted by NGGT for NTS assets

transporting natural gas (defined in NGGT’s Hazard Assessment Methodology Manual – HAMM)

is not fully applicable to hydrogen. Therefore, it will need to be adapted where appropriate.

Where deviations are required, these will be recorded and will form a basis for updating HAMM

at a later stage (outside the scope of this FutureGrid Phase 1). We will also modify software

tools, e.g. PIPESAFE, for hydrogen and hydrogen blends to complete the QRA calculations

required in FutureGrid.

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Overpressure Risk (OR) - To check whether the existing natural gas methodology can be

adapted for 100% hydrogen based on thermal radiation hazards alone, we need to obtain

relevant evidence. This would need to support the assumption that overpressure hazards can

be negated or, if not, to provide the data we need to develop an additional modelling approach

to take overpressures into account. This evidence will be collected from large-scale testing of

NTS pipework during the FutureGrid Phase 1. This will be based at a dedicated overpressure

test area at the same Spadeadam site to prevent any impact to the larger NTS test facility. It

will involve the deliberate rupture and delayed ignition of a 100% NTS hydrogen pipeline

under controlled conditions, capturing essential data on hydrogen gas outflow, fire

characteristics and overpressure levels. This will allow us to develop an appropriate

methodology for risk analysis and emergency planning purposes. If the levels of risk are

higher for hydrogen/natural gas mixtures or 100% hydrogen, we will consider possible

mitigation options for live assets.

The NGGT Safety Case was reviewed in the ‘Hydrogen Injection into the NTS’ NIA project at a

high level. This included highlighting the revisions and gaps in knowledge we will need to

address before we introduce hydrogen to the NTS. However, the safety management system

involves many detailed policies, procedures and work instructions. We will triage the suite of

NGGT documents so we can prioritise each for detailed review, as either “High” (hydrogen

likely to have a significant impact), “Low” (hydrogen unlikely to have a significant impact) or

“Not required” (not affected by hydrogen).

A marked-up version of the Safety Case will identify where we will need to make updates,

including hydrogen or hydrogen blends. This will also highlight where we need further

evidence or testing to answer questions relating to safe operation not addressed in this

FutureGrid Phase 1. The main output from Phase 1c will be a high-level comparison of the risk

for 100% natural gas versus the various blends up to and including 100% hydrogen that we

studied during the master test plan. This work will continue in parallel with the collaborative

NIA ‘HyTechnical’ project being led by SGN. It will involve updating core policies as evidence

for the impact of hydrogen. All the operational parameters (such as pressure, temperature,

velocity and flow) for each of the NTS assets derived from Phase 1b will feed into a fast

screening methodology developed by Fluxys. This methodology will focus on the effect of

hydrogen on component parts and is detailed further in Section 4.4.3.

2.2.4 Innovation through Phase 1 and enabling Phase 2 & 3

The use of hydrogen in live trials of current NTS assets is innovative and is classed as high risk

due to gaps in knowledge. We can address these knowledge gaps by using a combination of

laboratory testing and off-line testing using the FutureGrid facility. Phase 1 will develop the

unique facility and deliver evidence about the compatibility of the NTS with hydrogen. Through

Phases 2 & 3 the facility will also enable the development of novel technologies that are

stunted by the lack of application-based demonstration capability in the UK. FutureGrid is the

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bridge across the technology development ‘Valley of Death’8 that will make sure the UK has

the means to move forward with hydrogen infrastructure for the future.

2.3 Description of design of trials

2.3.1 Facility Design & Build to ensure robust results

The facility design and build use decommissioned assets that are a representative sample of

assets from the NTS. By designing the facility using assets that are near their end of life, we

are making sure the test results show a worse-case situation. This will allow us to identify

asset health requirements before undertaking live applications.

2.3.2 Facility Test Plan to ensure robust results

We will formulate a test plan based on recommendations and evidence gaps identified from

the NIA report delivered to NGGT by HSE-SD. This sets out the necessary steps to prove that

the NTS and its assets can operate safely and efficiently with hydrogen. Further development

will be undertaken to ensure it is technically sound, fit for purpose and robust – in consultation

with experts from within NGGT (including Gas System Operation), DNV GL and HSE-SD – in

the areas of integrity, safety, process, balancing, metering and operation. In addition, the test

plan will include inputs from key project collaborators, such as Fluxys and our academic

partners. It will also use Design of Experiments (DoE) methodology to make sure the results

seen from the tests are statistically sound, taking all associated variables across the system

into account. This will ensure the validity of the results and their reliability as a basis for future

work.

2.3.3 Methods for capturing learning to ensure robust results

We will document the build and test phases in accordance with NGGT and DNV GL Quality

Management Systems (QMS). During project delivery, this will involve the project team

identifying, documenting, analysing, storing and retrieving any lessons learnt. The lessons

learnt will stem from both positive and negative impacts seen on the FutureGrid project. The

dissemination of these lessons will make sure that any learning we have recorded throughout

FutureGrid will benefit current or future projects. We will share lessons learnt with our

technical leads for specific asset types (noted as the Subject Matter Experts (SME)

community) within NGGT. Our aim will be to disseminate learning throughout the business and

to any external suppliers or stakeholders. Please refer to Section 5 – Dissemination for further

detail on the sharing.

2.3.4 Source of the hydrogen to be used in the trials

The hydrogen supply to this facility will be via road tanker trailer through a flow/control

system to the reservoir or straight to the pipeline facility. The industrial grade hydrogen

supplied by typical industrial supply companies e.g. Air Products, Air Liquide and BOC is

suitable for the hydrogen testing programme. At this moment in time, the hydrogen comes

from several production methods, including from by product, steam methane reforming and

8 Refer to section 6.4

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electrolysis. Further investigation will be made on the opportunity for green hydrogen for the

test programme, however at this stage there are limited organisations able to supply the large

quantities of hydrogen. On site hydrogen production is currently not an option due to planning

restriction and large investment, however this will be periodically reviewed.

2.3. Changes since the Initial Screening Process (ISP)

A summary of the headline changes is shown below

Modification to ISP Plan Description

Reduction in

decommissioning costs

The costs associated with sourcing and transporting the

decommissioned assets to the DNV GL Spadeadam facility have

been reduced.

Reduced requirement for

additional valve purchases

The requirement to purchase additional valves for the test facility

has been reduced, as these are now part of the decommissioning

programme.

Additional labour costAdditional labour cost to provide a greater range of technical

expert input, delivery review and broader project management.

Recompression and

Aftercooling additional cost

Additional funds to provide the recompression unit and required

aftercooling equipment for the recompression of the gas.

Northern Gas Networks

(NGN)

NGN have confirmed contribution of 2% (£204,821.88) funding

towards the total cost of the FutureGrid project.

Health & Safety Executive

– Science Division (HSE-

SD) Support

Additional costs associated with the HSE-SD providing

independent advice and assurance throughout the FutureGrid

Phase 1 project.

Fluxys Partnership

Fluxys owns and operates the transmission network in Belgium.

With a similar network composition, we have identified

opportunities to collaborate and share applied research to improve

efficiency and maximise the benefit of FutureGrid Phase 1.

Academia

Durham University and Edinburgh University have joined as

academic partners. Both universities will be key stakeholders to

the project, supporting the Phase 1 deliverables and identifying

opportunities for further work.

Table 1 - Modification to ISP Plan

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3. Project business case

Global interest in climate change and the drive to net zero emissions for Great Britain is seeing

a surge in interest from both policy makers and the public. Our journey to net zero is one of

the most important economic, technical and social challenges facing the country today and the

use of hydrogen offers a significant step towards reaching this goal. The current NTS and GB

GDNs have been operational for more than 30 years and in this time businesses and homes

have relied on its supply of energy for cooking, heating and power. These gas networks are

established, resilient and have been operated and maintained throughout, to ensure the

demand in energy has been met. Hydrogen could play a key role in enabling the transition to

net zero.

The NTS is at a pivotal point. We need to address the challenges that have been raised and

test whether the existing NTS can be repurposed to support a clean and affordable transition.

Our FutureGrid proposal is uniquely placed to be at the forefront of hydrogen research and is a

key enabler to accelerate the transition to hydrogen. The project business case can be

summarised in the following:

3.1 Collaborative Test Facility

In some areas, the NTS has been operated for over 50 years and the majority for between 30

and 40 years. This existing NTS is relied on by 80% of the UK’s 29 million homes and,

additionally, many large industrial and commercial consumers, to deliver the energy they need

daily. It is vitally important that this existing infrastructure is adapted and transitioned to help

facilitate the net zero target and the reduction of greenhouse gas emissions. Without it, new

pipeline corridors could be required to span the country to transport hydrogen from source to

large urban and remote areas of Great Britain. It has been estimated that this could cost over

£8bn9 and lead to significant disruption, cost and delay to any energy transition plans.

Conversely if it can be proved that the existing NTS is capable of transporting a blend of

hydrogen all the way up to 100% then the impact to consumers will be significantly reduced

9 Energy Networks Association, Pathways to Net Zero: Hydrogen: Cost to customer, May 2020

CollaborativeTest Facility

A representativehydrogen

transmission testfacility built fromdecommissioned

assets toaccelerate ourmove to zero

carbon

Validation ofNational

TransmissionSystem

Readiness

Demonstration &verification of theability to operate

the NTS with up to100% hydrogen

AcceleratingTechnology

Development

Improvedcollaboration

across industriesinternationally and

with otherindustries looking

to decarbonise

Skills andcompetenciesfor the future

World-classtraining facility toprovide employeeswith the skills they

need fortransmission

assets in hydrogen

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and costs saved. The FutureGrid proposal will lead the way for gas transmission in

understanding this. It will aim to show that our existing assets can continue to provide the UK

with the energy it needs as we transition to a low-carbon hydrogen future.

The key to providing this proof and a large part of our NIC submission is that the FutureGrid

test facility will be built using decommissioned assets from the NTS. This has a few important

benefits. Firstly, by exposing existing NTS assets which have seen more than 30 years of

active service to a hydrogen blend up to 100%, we can simulate how the large parts of the

NTS will respond. To do this, we will ensure that where possible the assets will be of a

representative type and grade of steel to the rest of our NTS. The result will be a small test

facility but a significant development in our understanding of how the wider NTS will operate

with hydrogen. Figure 3 illustrates the type and quantity of assets we can repurpose from

various decommissioned sites across the NTS.

Figure 3 - UK Assets

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A working example of this is the ball valves that we will install on the test facility. Ball valves

are installed throughout the NTS and carry out many significant roles including; enabling

effective isolation for sections of the NTS, limiting gas losses in an emergency and managing

flow direction. There are over 10,000 valves - with diameters ranging from 4" to 48” –

installed on the NTS. The test facility will comprise of multiple 36” ball valves, and to ensure

these are representative the most common types will be installed. When comparing the 36”

ball valves, over 75% are either Cameron T31 or Cort CB-5 type and as such these will be

installed at the facility following decommissioning.

In the case of ball valves, there will be multiples of each type of valve, so comparisons across

a fleet of them will be possible, to further strengthen the results of the master test plan.

Similar scenarios can be seen for other asset types, such as meters. We will represent as

many of the different types as we have on the NTS as possible, including ultrasonic, turbine

and orifice plate. For filters we currently have assets from Swinney, Plenty and GD

Engineering and we will bring these into the facility where possible. Additionally, we will cover

the two major types of door enclosure on our pig traps (band lock and the older ring lock

style). Finally, several pipe grades will be covered including the most prevalent steel grade on

the NTS; X60. We will also include X80 which is on newer sections of the NTS. Historic data on

the pipeline sections will be analysed before installation including any stress accumulation and

dents / gouges, this will provide valuable understanding into how aged assets will interact with

hydrogen.

Our RIIO-2 decommissioning strategy has highlighted these assets as no longer required but,

in most cases, they are fully operational. To ensure they are fully operational and to make

sure they are of a representative type and age, we will carry out studies in situ before

relocating the asset to the DNV GL Spadeadam test facility. Once confirmed and removed from

the NTS we will clear and store them following existing NGGT procedures, ready for transport.

If, during the early studies and investigations, the highlighted assets do not operate fully or do

not represent the wider NTS then we will not use them, and we will find alternative assets. By

re-using these parts, we have been able to reduce the overall cost of FutureGrid, compared to

buying a similar new asset. By completing the test on existing assets, we can prove that the

NTS can be used into the future and increase the return on investment for these assets.

3.2 Validate NTS Readiness

FutureGrid Phase 1 will allow NGGT to validate how a transmission network with 100%

hydrogen could operate in the future. It will also provide the foundation for future NIA

innovation projects and large-scale trials as part of the wider FutureGrid roadmap, focusing on

compression, deblending and testing in-line inspection tools in collaboration with Original

Equipment Manufacturers (OEM’s).

One of the significant benefits surrounding our decision to build an offline test facility at the

DNV GL Spadeadam site is that the H21 gas distribution array is also being built there in 2020

– NGGT is a contributing partner to the project, supplying several lengths of 48” pipework to

16

act as a High-Pressure storage reservoir. Designing and building FutureGrid at the same site

will allow the project to use this storage and connect to the gas distribution pipework, allowing

pressure reduction equipment that we currently operate at our offtake sites to be tested.

Further downstream at the same site is the HyStreet and H21 facility project, funded by H21

Phase 1 which built several terrace houses with full hydrogen connectivity. This means that

once FutureGrid Phase 1 is complete, there will be a complete gas network set up representing

NTS pressures down to GDN’s and home appliances. FutureGrid Phase 1 is very much building

the foundations for a much longer roadmap of projects for NGGT and hydrogen, under the

HyNTS programme banner.

Our HyNTS FutureGrid programme is looking to provide the required evidence and to do this,

our proposed offline test facility will rapidly increase and validate this understanding.

Previously completed innovation projects10 have started to develop a list of knowledge gaps

and questions to be answered for NTS assets in hydrogen. Such topics will make up the

master test plan and include:

How could hydrogen permeation and embrittlement affect NTS pressure pipework?

How could hazardous area distances change with hydrogen?

Will our inspection and maintenance techniques need to be updated with a hydrogen

blend in the pipework?

How can an NTS hydrogen pipeline be safely vented and purged?

How do failure modes for the pipework change with hydrogen?

Will the soft seals on our valves be adversely affected by hydrogen?

How will metering / gas quality sampling change with a blend of gas within the pipe?

There are studies on the topics listed above which go some way to alleviate concerns.

However, there is no way to be sure until a trial is completed using the unique setup of the

NTS. FutureGrid Phase 1 and the follow-on phases that are proposed will go a long way to

answer the concerns of the industry and show that there is another viable option before new

pipelines are required for hydrogen transmission. We will develop the master test plan we

have proposed for the project in close collaboration with Gas System Operation (who now sit

under NGGT), as there are key questions that need to be answered regarding how a hydrogen

NTS would be balanced, operated and, importantly, metered.

3.3 Accelerating Technology Development

Hydrogen research and understanding is gathering pace for the GB gas networks. However, to

allow policy makers to decide on the future of heat in the country, they will need empirical

data that shows the NTS can continue its role in providing energy to homes and businesses as

it does today. Projects such as H21, H100 and HyNet run by Northern Gas Networks, SGN and

Cadent respectively, alongside many others, are focusing on the challenges of hydrogen gas

distribution. FutureGrid Phase 1 and the wider ongoing HyNTS FutureGrid programme will look

to answer the key questions being asked of the NTS.

10 NIA_NGGT0139 - Hydrogen in the NTS – foundation research and project roadmapNIA_NGGT0155: Hydrogen Injection into the NTS

17

Having the FutureGrid Test Facility operational and in place will mean that we can look to

FutureGrid Phase 2 and the introduction of compressor units (also decommissioned from the

NTS or supplied on trial from our suppliers). This will allow us to understand the impact on our

rotating machinery fleet, both for compressing the hydrogen blends as a process gas and

using hydrogen as a fuel gas. Phase 2 will also incorporate the latest thinking behind gas

separation and ‘deblending’, offering the opportunity to pilot the technology on the Phase 1

facility. A feasibility study led by NGGT has seen the concept of deblending researched further

to establish if the pressure drop between transmission and distribution can be used to power

the separation process. The findings were positive. We could deploy such technology across

our NTS to allow certain areas to receive a blend of hydrogen, while still protecting those that

are not ready to move from natural gas in the short term. Without the base foundation

provided by Phase 1, neither trialling deblending technologies nor compression in hydrogen

will be able to take place.

During the project we are also using the innovation techniques and products developed during

RIIO-1, such as the composite pipe supports on the build of the test facility. Additionally,

some of the repair techniques, such as Valve Care Toolbox can be trialled in a hydrogen

environment to assess if there are any impacts. We are also keen to use the Gas Robotic Agile

Inspection Device (GRAID) test loop, which was built at the same Spadeadam site for the

successful 2018 NIC project led by NGGT. Allowing access to part of the test facility for the

GRAID robot will allow the team to confirm its operation in a hydrogen blend. The team will be

able to show that the tool can still operate and provide integrity information on our above

ground installations during and following the transition to hydrogen.

We will carry out FutureGrid Phase 1 and potential future additions to the test facility in co-

operation with the suppliers themselves, so we can collaborate and innovate together. An

example of this will be to increase the overall length of the pipework and allow in-line

inspection companies to test their tools in a transmission-scale hydrogen environment.

Building this themselves would be cost prohibitive, so by working together we can accelerate

innovation for the whole industry, a key requirement for Ofgem funding. We will develop and

discuss this model initially in Phase 1, putting in place the framework for later phases and

opening the test facility to many smaller suppliers and third parties to use. The FutureGrid test

facility will also be the foundation for many other HyNTS programme hydrogen related

projects of the future, providing a base to innovate from. These projects will be driven from

the HPDG and help to answer the key questions raised from that forum.

Additionally, we can facilitate other GDN-led projects on the test site, such as the Local

Transmission System (LTS) Futures work, which is also a part of the HPDG delivery plan. LTS

pipework is similar to NTS pipework and in some cases is operated at NTS pressures of greater

than 50 bar(g), so studies on the LTS pipework can be carried out on the FutureGrid site.

18

3.4 Skills and competencies for the future

Once built, FutureGrid linked to H21 will become a unique training facility to upskill the gas

transmission and distribution workforce across the industry in the new ways of thinking and

working with hydrogen. The ambition will be for a Gas Goes Green (GGG) branded office on

site, which will house the telemetry and controls for the facility. This could be extended in

collaboration with the H21 team to provide training and learning facilities. Gas Goes Green

(GGG) is an Energy Networks Association (ENA) led programme. It brings together the

engineering expertise from GB’s five gas network operators, building on the foundations of our

existing grid infrastructure, innovation projects and the wider scientific community. This will

allow joint dissemination events, meetings and desktop training to take place close to both

facilities. It will bring the technology to life and allow physical demonstrations or on the job

training to also take place. We will encourage teams from across our Gas Transmission

business to be a part of the project, from Capital Delivery at the start with construction and

commissioning, through to Plant Operations and Pipelines Maintenance Centre (PMC),

understanding how to operate, maintain and repair assets with hydrogen in the NTS. This

facility will be made available to the wider gas industry to facilitate and accelerate

technological development and skills in order to drive the transition to a low carbon future for

the UK.

Converting the existing NTS to a hydrogen NTS will generate new opportunities for the

country, with the hydrogen for transport sector rapidly growing. As the technology improves,

vehicles, heavy haulage, trains and large vessels could all see a move towards hydrogen. A

hydrogen NTS will also accelerate and enable industries that could supply the nation’s

requirements for hydrogen including innovation to produce ‘green’ hydrogen from our wind

and solar sources around the country. The introduction of hydrogen will also see a closer

connection between gas and electricity. A ‘whole energy system’ as ‘green’ electricity can be

produced on or offshore and converted to hydrogen for storage, or for transporting across the

country. This would drive an increase in capacity for more renewable technology and

importantly, greater network resilience and flexibility.

The requirement, not just to understand the physical impacts of hydrogen, but also the

workforce impact, has been a challenge raised by many in the industry. FutureGrid will provide

this platform and help to lead the way in this area. It has recently been suggested to

Government that a hydrogen network could help stimulate the economy and lead to the

creation of more than 200,000 new jobs 11in the wider gas industry by 2050. This facility could

help start to shape what these roles could entail.

11 As described in the letter to the chancellor from the collective gas networks

19

4. Benefits, timelines, and partner

4.1 Accelerates the development of a low carbon energy sector and/or delivers

environmental benefits whilst having the potential to deliver net financial benefits to

future and/or existing Customers

FutureGrid will build on the learning from several desktop-based studies. It will provide a

comprehensive off-line test facility to generate the critical evidence we need to operate the

NTS with hydrogen. We will define the evidence we need to gather in the master test plan.

This sets out the steps required to prove that the NTS and its assets can operate safely and

efficiently with hydrogen.

It is widely reported that the most feasible way the UK can meet its Net Zero 2050 target is

through a balanced energy mix, where one energy form e.g. electricity is not the answer. The

ENA’s ‘Pathways to Net Zero’ report12 found that that the balanced scenario, using

decarbonised gas, is lower in cost than the electrified scenario by £13bn/yr, equivalent to 12%

of total energy system cost in 2050. This creates a huge cost saving for end consumers in the

run up to 2050 and avoids costly capital investment in a new NTS, which would ultimately be

funded through consumer bills. Furthermore, Element Energy’s ‘Hy-Impact’ report13 states

that decarbonising the UK economy is expected to lead to a four-fold increase in UK Gross

Value Added (GVA), which would benefit customers and consumers; this decarbonised

economy involves ‘large scale hydrogen usage’ and a hydrogen-carrying NTS would enable

this. This view is echoed in the ‘Energy Innovation Needs Assessment’14 by BEIS, which

identifies ‘low cost hydrogen delivery infrastructure’ as a key investment area to meet

decarbonisation targets.

Referring to the desire for a balanced energy mix, the National Infrastructure Commission’s

Net Zero report15 states that hydrogen supports the development of a highly renewable

electricity supply and is therefore beneficial to decarbonising beyond the gas component of the

energy mix. It was also found that using hydrogen in hydrogen-powered turbines could reduce

renewable electricity costs by up to 30% by 2050. 16 will enable the NTS to supply power

stations with hydrogen, therefore enabling this cost reduction. Hydrogen also compliments the

electricity system through the potential to convert excess renewable electricity to hydrogen

via electrolysis. This hydrogen can be used for transport, for example. It is also reported to be

at least a tenth the cost to store than battery technology17 with this margin being improved if

12 Energy Networks Association, Pathways to Net Zero: Decarbonising the Gas Networks in

Great Britain, 201913 Element Energy, Hy-Impact Series Study 1: Hydrogen for economic growth, 201914 BEIS, Energy Innovation Needs Assessment, 201915 National Infrastructure Commission, Net Zero – Opportunities for the power sector, 202016 Sustainable Gas Institute, The flexibility of gas: what is it worth? 202017 Linepack is the gas stored within the pipelines of the NTS

20

the NTS could be used as a storage mechanism (line pack). Hydrogen is beneficial to a

whole energy system transformation, and FutureGrid is a key enabler for this transformation.

In the RIIO-1 period, NGGT gas turbines used methane, taken from the NTS, and produced a

total of CO218 CO2 was also vented19. Transporting 100%

hydrogen through the NTS could have avoided over CO2 during the RIIO-1 period.

The NTS delivers nearly 900 TWh of energy to Great Britain (including GDNs, industry, power

generation and exports) each year, which equates to tonnes of carbon dioxide. If

this natural gas were replaced with green hydrogen, generated from renewable energy, all

carbon dioxide emissions would be avoided. Similarly, if the natural gas were replaced with

blue hydrogen (produced via steam reforming) tonnes of carbon dioxide

emissions would be avoided. This assumes a current 92.5% capture, although plants such as

Cadent’s Low Carbon Hydrogen (LCH) plant are expecting capture rates of 97%20, which would

improve carbon savings further. Even as the earlier-referenced ENA’s ‘Pathways to Net Zero’

report1 predicts 2050 gas demand to drop to 440 TWh, this still equates to tonnes

carbon dioxide for 2050. The earlier we can replace natural gas in the NTS with hydrogen, the

earlier we can start to make carbon savings; therefore, it is imperative that FutureGrid is not

delayed. There are further details about potential carbon savings in Appendix A.

Currently, some of the biggest questions to answer in building a hydrogen economy are

regarding blue and green hydrogen; where should each technology be implemented, and in

what timescale? Blue hydrogen could likely be the pathway to green hydrogen, since blue

offers the more scalable and cheaper option in the near future, while green hydrogen

technology is expected to mature and drop in cost in the mid-to-long term. The NTS can

facilitate this transition from blue to green.

Repurposing the NTS for hydrogen reduces the need for in-land steam methane reformers21 to

produce hydrogen around GB and the associated pipelines to remove carbon dioxide. The

installation of methane reformers at coastal locations such as St Fergus and Grain LNG

terminals is more likely to be achieved under planning regulations. This is due to the existing

land use, proximity to Carbon Capture Utilisation & Storage (CCUS) and a local skilled

workforce. Conversely, more populated areas of GB will not be able to have such hydrogen

production facilities nearby, so transportation of hydrogen in the NTS to the GDNs will be vital.

Transitioning to green hydrogen at these terminal locations can also be an ideal solution due

to similar reasons, as well as the proximity to renewable offshore wind energy. However, in

addition to this coastal green hydrogen, smaller scale electrolysers could possibly connect to

the NTS further in-land because CCUS infrastructure is not needed.

19 Internal NG data via the Safety, Health & Sustainability Team20 BEIS Low Carbon Hydrogen Supply Programme, HyNet Low Carbon Hydrogen Plant21 A process that converts methane into hydrogen, also producing CO2

21

Decarbonising the gas in the NTS can help to tackle the harder-to-reach sectors such as heat

(domestic, commercial and industrial), which contributes to a third of the UK’s current carbon

emissions. While this is true, the UK government has prioritised decarbonising industry and

transport before heat (as heat is more difficult). However, as stated in the BEIS ‘Innovation

Needs Assessment’3 report:” proving the ability of the existing NTS to be repurposed to

hydrogen is essential to enabling widespread hydrogen to use in heat and could also reduce

deployment barriers to use in industry and transport”. The FutureGrid project achieves exactly

that; it assesses the ability to repurpose the existing NTS and therefore aligns with the views

of BEIS. Since the NTS supplies industry and power, the ability to deliver hydrogen will

encourage fuel switching, accelerating the decarbonisation of industry and power. The NTS,

with its nationwide coverage, could also supply large amounts of hydrogen to enable large-

scale hydrogen transport, such as hydrogen bus depots, train depots, shipping depots and

HGV refuelling.

The HPDG, chaired by BEIS, aims to build an evidence base to inform heat policy. The HPDG

want evidence that hydrogen is technically and economically feasible, whilst maintaining

safety with minimal disruption to customers. FutureGrid directly aligns with the needs of the

HPDG, as the project will build an evidence base on the capabilities of the NTS to transport

hydrogen safely, with no direct disruption to customers since the FutureGrid Test Facility is

offline. Therefore, the outcomes of the FutureGrid project will inform heat policy that is

essential to the transformation of the energy sector. Moreover, the three workstreams run by

GB gas networks in the HPDG are Network safety and operational impacts, Integrated trials

and System transformation. The FutureGrid project satisfies all three of these workstreams.

Without FutureGrid, the learning and decarbonisation achievable from a UK wide approach to

hydrogen will be curtailed. The NTS is uniquely placed to roll out hydrogen delivery and

decarbonisation at scale across Great Britain.

4.2 Provides value for money to gas network customers

There are over 280,000 km of transmission and distribution pipelines delivering gas to over 20

million customers (domestic and non-domestic) in GB. This includes heating 80% of homes,

meeting over 40% of the UK’s industrial energy demand and providing around 40% of the

UK’s electricity generation. Although the electricity network supplies a steady load of power, it

cannot meet the seasonal or intraday demand for heat. Therefore, significant additional

infrastructure would be required to replace the NTS, which already provides this resilience.

The additional infrastructure would come at a financial cost to consumers and cause

considerable disruption, this is expanded on further, below.

A social carbon price can be applied to CO2 emissions, which relates to society ultimately

paying for emissions that cause climate change; NGGT currently sets this price at £ per

tonne CO2 equivalent. As stated earlier, the NTS emitted a total of over CO2 in RIIO-1

via its compressors and venting, equating to a social carbon price of over 22. Enabling

the NTS to transport up to 100% hydrogen could remove up to 100% of the social carbon

22 This figure is an underestimate, as the social carbon price is expected to rise in the future

22

price from this source. Acting now to introduce hydrogen into the NTS will minimise the social

carbon cost from transporting gas through the NTS.

As mentioned previously, the National Infrastructure Commission's report finds that using

hydrogen in hydrogen turbines can lower the cost of the electricity system by up to 30%.

Since the NTS delivers gas to many power turbines, enabling hydrogen transmission can lower

the cost of electricity for consumers in the future.

Repurposing the NTS will minimise disruption to customers in the road to net zero. This is

reflected in the Future Energy Scenarios (FES) 202023 report produced by National Grid ESO.

The report shows that a large-scale adoption of hydrogen allows the UK to meet net zero by

2050 with the least disruption to consumer behaviour. Following the conversion of home

boilers to hydrogen, consumers could continue to use gas in a very similar way to how they do

now. This would remove the need to switch over to heat pumps, which have high upfront costs

and would cause a lot of disruption in the process of installation. This also avoids creating a

fuel poverty issue, where vulnerable customers could be left behind because they cannot

afford to buy expensive heat pump technology. FutureGrid could also enable a future where

consumers could have a choice of energy (gas or electricity), as customers do today. Re-

purposing the NTS also ensures that the existing infrastructure that UK consumers have

already paid for continues to be utilised and avoids significant costs from decommissioning the

current NTS.

We will construct the proposed FutureGrid test facility from redundant assets. These are

planned to be decommissioned from the NTS during RIIO-2, providing a cost saving compared

to procuring new assets. It will also benefit the industry more widely, as learning could be

applied to the LTS operated by the GDNs, and to some directly connected transmission

customers, due to similar construction materials and processes. In addition, this facility can

support the testing needs of LTS based projects, such as the LTS Futures project currently

under development by SGN and the other GDNs. Their plans require offline testing and are

now planning on using this FutureGrid facility to deliver this work. Furthermore, transporting

hydrogen through the NTS will have benefits to transmission customers across the UK, by

allowing large industrial users and power stations to more easily fuel switch.

Creating a single test facility using as many NTS assets as possible, removes the need for

separate test projects to address each individual asset in isolation; this increases value for

money as all the learning can be attained from a single test facility, which will require less

land than several facilities and is more cost efficient. Also, several lengths of 48” NTS pipeline,

which are being used on the collaborative H21 NIC project for hydrogen storage will be further

used for FutureGrid, again reducing costs overall. Furthermore, FutureGrid will come in at just

over £10m in cost, whereas, as detailed in section 4.6, direct financial benefits from

FutureGrid are over £70m. These savings will trickle down to consumers bills, making the

scale of the project justifiable and beneficial to consumers.

23 National Grid ESO – Future Energy Scenarios, 2020

23

Our RIIO-1 Innovation portfolio has delivered a wide range of innovation projects, many of

which have a direct impact on developing, building and maintaining our NTS. Wherever

possible, these projects will support the development, building and testing of the FutureGrid

facility. For example, the Composite Pipe Supports NIA project will replace traditional concrete

pipe supports. The tools and techniques developed under the Valve Care Toolbox NIA project

can be utilised to inspect the valves used as part of the test facility, to identify the impact of

hydrogen. This approach will make sure the FutureGrid project is delivered in the most

innovative and efficient way. It will also allow us to validate tools and techniques designed for

natural gas in a hydrogen environment.

Phase 1a Phase 1b Phase 1c

9 months 9 months 6 months

Total costs for each stage

Labour NGGT

number of people - average

number of days

average cost per day

Total - from actual resourceprofile

Labour DNVGL

number of people - average

number of days

average cost per day

Total - from actual resourceprofile

Equipment Total

Travel

IT

Communications

Contractors HSE

Contingency

Table 2 - Cost per Phases (Please note averages have been used, for full details please see

Appendix G)

The base cost assumptions can be found in Appendix G and are based on the costs seen in

H21 and other large testing programmes undertaken by both NGGT and DNV GL. Further to

this, the project costs have been developed using base cost data from ongoing work at DNV

GL Spadeadam and a breakdown of the costs can be seen in table 2. For further detail on the

base cost assumptions and for more detailed resource profiles, please refer to Appendix G.

24

4.3 Is innovative (i.e. not business as usual) and has an unproven business case where the

innovation risk warrants a limited Development or Demonstration Project to demonstrate its

effectiveness

We have carried out extensive work into the early stage research and development of

hydrogen impacts on the UK gas networks, indicating a pathway for both NTS and GDNs.

While there are synergies, there are also significant challenges exclusive to transmission or

distribution. Progress through projects such as the H21, HyDeploy and HyNet have advanced

knowledge and understanding of hydrogen impacts. They tackle several important challenges

facing GDNs. However, a key challenge that remains for the NTS is to demonstrate that

transporting hydrogen will not affect its safe operation.

This requirement is set out in the HPDG transformation plan, which highlights the importance

of testing and trialling hydrogen within the NTS, as an enabler to transforming the UK gas

networks. There is currently no precedent for converting a gas transmission system to

hydrogen. This can only be achieved with comprehensive testing and trialling of the impacts

that hydrogen has on the NTS.

There is a clear and compelling need for an offline transmission test facility that provides this

capability and helps quicken the deployment of online trials of hydrogen injection on the NTS.

The transmission test facility must be able to replicate a range of conditions and be fully

representative of existing assets to provide compelling results. The test conditions must also

allow us to extrapolate data over a longer time period, so we can fully assess the longer-term

impacts of transitioning the NTS to hydrogen. Achieving this will allow for the next stage of the

transition to begin. It will allow us to identify opportunities for online test and trial facilities,

while providing a platform to develop larger-scale hydrogen transformation plans for the NTS.

This meets the needs of our customers who also have ambitious plans to transition their

operations to low-carbon gas alternatives, with hydrogen being a significant option.

Creating this high-pressure transmission test facility is the foundation of an ambitious

programme of work. We are looking to provide a platform for the UK gas industry to

accelerate innovation and develop expertise in hydrogen, test and trial solutions, and facilitate

a full transition of the NTS to hydrogen. All this will help achieve the UK’s Net Zero 2050

targets.

To date, no such facility exists within the UK, due to barriers such as technical complexities,

scale and cost involved in creating such a facility, and coordinating an industry-wide approach

to generating and disseminating the associated knowledge. There are complimentary regional

schemes that seek to develop solutions for the transition to low carbon alternatives. However,

none of these are focused on creating large-scale, high-pressure test facilities or focus on the

direct impact on the NTS. Instead, they are focusing on end consumers, industry and early

stage research and development into low carbon technologies.

25

Without NIC funding, achieving this significant milestone to provide a transmission test facility

for the UK gas industry will not be possible. This is due to the high risk, high cost and high

levels of uncertainty associated with a development of this kind, which would carry significant

commercial risk beyond acceptable parameters. If we do not provide a comprehensive testing

and trialling facility, the pathway to transitioning the NTS to hydrogen will not be achievable

against the ambitious plan currently set out by the HPDG and GGG programme.

4.4 Involvement of other partners and external funding

The FutureGrid project on conception concluded that the optimum facility location would be at

Spadeadam, alongside the H21 facility and therefore linking a transmission and distribution

demonstration system. As Northern Gas Network (NGN) and DNV GL already partners on H21

delivering the distribution facility, they became natural partners to enable the FutureGrid

project to maximise learning and utilise the capability already on site. Recognising the

strategic importance and opportunity of future testing and training with the GGG facility (joint

transmission and distribution facility). NGN have committed to 2% of the total project cost on

top of shared costs for facilities on the Spadeadam site; this will be a basis for our future

collaborative technology development and therefore driving down our total costs between H21

and FutureGrid. DNV GL a key partner to both projects, are ensuring the avoidance of

duplication and maximising efficiencies in the build and testing across the projects, this is

supplemented by their own in-kind contributions made to support the development and use of

the facility.

The GDNs have all provided letters of support and will be a key part of future work using the

facility to ensure that hydrogen development is not done in silo activities. The HSE are

contracted into the project to ensure that our build and testing is representative of the NTS

and give us assurance that the data produced can be extrapolated to allow our future online

activities. IGEM whom we and the GDNs are running collaborative projects with, are reviewing

the standards associated with hydrogen implementation will ensure that we do not cover

activities already resolved in other projects.

Internationally, transmission system operators (TSO) are also progressing hydrogen

technologies, with some more advanced than the UK. Therefore, key to the project was

securing an international collaborator that could accelerate our initial studies and provide a

partnership to further advance future research. Fluxys the Belgium TSO has committed to

providing in kind data and resource to the project. Fluxys have taken an academic route to

hydrogen development which marries well to the FutureGrid application-based approach.

GasUnie and SNAM, other TSOs, have also supported the project, however these discussions

are at an earlier stage and will be developed through the project period for future phases of

FutureGrid. Our engagement plan scope includes international communication to improve

collaborations into the future.

Although the facility is application focused and allows for testing of our assets, it is key that

we have academic partners that can provide technical insights and maximise the value of the

platform through research and teaching our future workforce. Durham and Edinburgh

26

universities are geographically well placed to make the most out of the facility and are

partners in the project; with an aim to develop NIAs and future phases of the project, aligned

to gaps and technologies required for online facilitation. Further information on the project

partners can be found in Appendix F.

4.5 Relevance and timing

There are challenges to overcome in implementing hydrogen to help meet the UK’s Net Zero

targets. The HPDG is set up to inform heat policy, which is required for widespread use of

hydrogen. To inform heat policy, the HPDG needs to build an evidence base that shows

hydrogen is safe, technically feasible and economically viable. The FutureGrid project satisfies

the needs of the HPDG by building an evidence base for these criteria. This helps inform heat

policy and is therefore entirely relevant.

In the earlier mentioned ‘Energy Innovation Needs Assessment’ published by BEIS, it is stated

that action is needed now if the UK is to be competitive in a hydrogen economy. Therefore, it

is imperative that the FutureGrid project, which assesses the UK’s ability to transmit hydrogen

on a national level, is completed now and is not delayed. BEIS will also be starting to make big

decisions on the future of hydrogen, around 2023. The current FutureGrid timeline will enable

NGGT to have built an evidence base and to start informing those BEIS decisions.

The Gas Goes Green (GGG) initiative, which was run by the ENA and UK gas network

operators, outlines a timeline24 of what action is required for the UK to reach net zero by 2050

by decarbonising gas. In this timeline, 2020-2025 is the ‘preparing for transition’ stage that

aims to test technology. This aligns with the FutureGrid project timeline. This stage also

involves developing the skills and labour capacity required for a hydrogen economy. The

FutureGrid project holds the potential to start up a training facility in Spadeadam, which will

help develop a skilled workforce for the future. Also, in the GGG timeline, 2025-2030 is the

period of ‘expanding supply’ – completing the FutureGrid project in the proposed timeline will

prepare the UK to expand hydrogen supply on a national level, aligning with the GGG timeline.

Table 3 shows the cumulative spend and benefits, to demonstrate the break-even point for the

project based on 2020/2021 figures and using the RRP benefits as described below. We

predict that the breakeven point will be in 2023. Please see Appendix A for more details about

the methods and assumptions. The base cost presented is the cheapest option available as the

site is already in construction phases for H21 and the resources and capabilities are already on

site.

24 Energy Networks Association – Gas Goes Green (GGG), Delivering the pathway to net zero

27

(m) Cost 2021 2022 2023 2024 2025 2026 2027 2028 2029

Phase 1a -£6.9 -£6.9

Phase 1b -£2.3 -£2.3

Phase 1c -£1.1 -£1.1

Method 1 £4.0 £4.0 £8.2 £4.2

Method 2 £7.8 £7.8 £7.8 £7.8 £7.8 £7.8

-£2.9 -£2.3 £5.9 £17.9 £25.7 £33.5 £41.3 £49.1 £56.9

Table 3- Break Even Point

4.6 Financial Benefits

Although hydrogen has not been fully proven in this country, the alternatives for supplying

energy in the future are of a higher cost in comparison. The ENA’s ‘Pathways to Net Zero’

report found that the balanced scenario, using decarbonised gas, is lower in cost than the

electrified scenario by £13bn/year, equivalent to 12% of total energy system cost in 2050.

As we described in Section 4, we have shown the wider benefits of proving the existing NTS

has a role to play in the energy system of the future. The NTS has been relied upon by 80 per

cent of the UK’s 29 million homes and, additionally, many large industrial and commercial

consumers to deliver the energy they need every day. With the right evidence, the NTS can

continue to serve the country. Studies have concluded that if a new NTS was required to be

built for hydrogen, it could cost over £8bn25. This would be alongside the route corridor

challenges currently faced by many utility projects. Benefits of using the existing NTS include:

An existing, flexible network transporting energy around Great Britain from source on

the coast to every part of the country,

The NTS connects all major industrial clusters, so they can be decarbonised and

transitioned to hydrogen together,

Our gas terminals receive natural gas from around the world that is used by the NTS or

traded with the rest of Europe via our interconnectors. Using the existing NTS, would

mean Great Britain could continue to trade supplies of hydrogen from exporting

countries with the rest of Europe.

Unlocking green hydrogen produced from offshore wind farms will be accelerated with

the existing NTS as the network can be used to transport the produced hydrogen from

coastal regions, to areas of high demand around the country.

The financial benefits of using the existing NTS are far reaching and would save many billions

of pounds. However, our FutureGrid Phase 1 submission could not directly unlock these

savings on its own. It can only do so as part of a larger roadmap of projects from all the gas

networks. Therefore, for the purpose of this submission, we have set out two methods that

produce direct savings following the completion of the FutureGrid Phase 1 project.

Method 1 – In order to gather the required understanding and knowledge of how a hydrogen

NTS would operate in this country, all the different types of assets and tests we would need to

25 Energy Networks Association, Pathways to Net Zero: Hydrogen: Cost to customer, May 2020

28

carry out could either be completed separately (base case cost) or combined on a single test

facility (method cost).

Method 2 – Currently the most likely scenario for hydrogen transition and adoption will be at

industrial clusters. The NTS will be used to join several clusters together by 2040. To facilitate

this, safety critical assets such as valves would all need to be replaced for hydrogen operation

(base case cost). Conversely, if the existing assets are proven to operate safely in hydrogen

blends up to 100%, then a proportion of these valves will not need replacing (method cost).

Gas NIC – financial benefits: Cumulative Financial Benefits (NPV terms; £m)

Method Base Cost Method Cost 2030 2040 2050

1 31.75 9.074 20.499 N/A N/A

2 55.672 0 46.548 N/A N/A

Table 4 - Benefits Table (See appendix A for detailed calculations)

Table 4 shows an overview of the financial benefits. As described above method 2 is an

example of one assets savings when looking to convert a connection between two clusters to

hydrogen. It is likely that as we prove assets capability with hydrogen, we will be able to

identify further savings by eliminating the need to replace assets in our NTS. Although this is

not in any current business plans it is assumed that this will occur in the period post RIIO-2

and is in consideration as part of our future planning. These savings will directly benefit

consumers in reducing the costs of transition to Hydrogen but can only be achieved through

validation of the assets.

4.7 Carbon/Environmental Benefits

We have split carbon benefits into two separate methods for the purpose of this submission:

one to cover the wider NTS impact of converting to 100% hydrogen by 2050; and the other

focusing on the specific valve replacement scenario. For the first scenario, we have assumed a

linear reduction in demand towards 2050 as previously quoted in the ENA Pathways Report

reducing from 880 TWh in 2020 to 440 TWh in 2050. Assuming 440 TWh and a CO2 emissions

per energy demand of 0.0549 kg/ft3 26 by converting the NTS to 100% hydrogen by 2050 we

will reduce carbon emissions by 81 million tonnes CO2 e. We expect the valve replacement

scenario to provide savings of over 100,000 tonnes of CO2 e. This is due to not requiring valve

replacement, as they will have been proven to work in a hydrogen environment. Table 5

shows an overview of the carbon benefits.

Gas NIC – carbon and/or environmental benefits: Cumulative Carbon Benefits

(million tonnes CO2e)

Method Base Cost Method Cost 2030 2040 2050

1 81 0 81 N/A N/A

2 0.1 0 0.1 N/A N/A

Table 5 - Benefits Table (See Appendix A for detailed calculations)

26 EPA – Greenhouse gases equivalences calculator

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5. Knowledge dissemination

5.1. Learning generated

Evidence for the conversion of the NTS to hydrogen is on the critical path for UK Government

policy decisions on the future of the gas industry. Although laboratory-scale testing capability

for hydrogen-materials interaction is being developed by several commercial and academic

entities in the UK, the FutureGrid test facility is the only advanced full-scale offline test facility

planned. The FutureGrid project provides a unique opportunity to accelerate knowledge on

capabilities of the NTS and will:

Provide certainty on the feasibility of repurposing the NTS to transport hydrogen

Confirm that NTS operations can be undertaken safely with hydrogen

Confirm that the societal and individual risks are comparable to those of natural gas by

supplying new data for quantitative risk assessment (QRA)

Provide a platform to engage with stakeholders, users and customers about the

transition to hydrogen

Evaluate and validate results to enable progression to FutureGrid Phase 2.

Contribute to the development of technologies that help the UK meet Net Zero 2050

5.1.1 Optimisation of knowledge by using the Roadmap to FutureGrid NIA project

The Roadmap to FutureGrid NIA project is developing the detailed design of the test facility

and the master testing plan to ensure that, the learning generated from FutureGrid Phase 1 is

optimised. Connections will be included for testing of safety critical pipeline equipment such

as valves, pressure safety and pressure regulation devices. Many components also contain

sub-components exposed to hydrogen; for example, elastomeric seals, susceptible high-

strength steel springs for valves operation and valve seat/stems. The modular design and the

space around the test facility will allow a range of equipment and alternative materials to be

tested. As hydrogen-ready equipment is developed by suppliers it can be qualified in the

FutureGrid test facility for use across the gas industry and other hydrogen users (e.g. power

generation and process industries).

5.1.2 Operations and procedures

The new evidence from the master testing plan would provide information on the technical

feasibility for operating the NTS based on the blends up to 100% hydrogen that were trialled

throughout the test plan. NGGT currently uses a library of operational and technical

procedures designed for natural gas operation. The output/data from FutureGrid Phase 1 will

provide information about which parts of these documents we may need to review and update

for hydrogen or hydrogen blends. It will also provide data on any additional measures and

mitigations that may be necessary for future operation with hydrogen. We will use some of the

information to inform and update the QRA for the NTS.

30

5.1.3 Selection of NTS assets

We will test a representative selection of NTS assets as part of the master testing plan which

will consider the availability of decommissioned and operational equipment. We will identify a

cross section of NTS assets with a range of pipeline diameters and grades of steel. The tests

generated as part of the Roadmap to FutureGrid project will cover a range of parameters to

verify safety, pressures, velocities, temperature, measurement and operational processes.

Extensive knowledge will be generated to support the wider assessment of the conversion of

the NTS for operation with hydrogen and hydrogen blends. Some of the new evidence may

also be applied to the Local Transmission Systems operated by the GDNs.

5.1.4 Input to the Quantitative Risk Assessment (QRA)

NTS pipelines are defined as Major Accident Hazard Pipelines (MAHP)s under the Pipeline

Safety Regulations (PSR). This means NGGT is required to develop and maintain a Major

Accident Prevention Document (MAPD) to demonstrate all hazards have been identified, risks

have been evaluated and that an appropriate safety management system is place and kept

under review. If results from FutureGrid indicate that failure frequencies of NTS components

are different to those of natural gas, this new data will be used for the risk analysis.

5.1.5 Gas Goes Green Training & Testing

Through partnering with the H21 project, the test site facility would provide a complete beach

to meter (end user) facility for the UK gas industry, including suppliers, to develop further

knowledge and to train the next generation of gas industry engineers and scientists.

The potential of the facility is significant for future learning, training and development of gas

engineers, stakeholder organisations and other pipeline and asset organisations. Technical

competence in the gas industry is very important, and this facility will provide real operational

activities. If the hydrogen programme goes ahead, specific training will be required on areas

of hydrogen and how these affect operational procedures.

5.2. Learning dissemination

FutureGrid is adopting a ‘digital first’ approach to engagement and dissemination, in order to

be as open and inclusive as possible for stakeholders across the UK, and to open the

collaborative opportunities internationally. In addition, given recent significant adaptations to

ways of working due to Covid-19, a ‘digital first’ approach ensures a resilience to engagement,

knowledge dissemination, and collaboration through virtual means rather than physically face-

to-face. It does not remove the opportunity for face-to-face engagement, but it does mean

that where physical events are planned, they will be supported digitally, such as with live

stream technology, so stakeholders can participate and engage with us in ways that suit their

personal circumstances through presentations, panel discussions and learning sessions.

5.2.1 Engageme