1、BRITAINS HYDROGEN BLENDING DELIVERY PLAN2 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLAN About ENA 3 1 Executive Summary 4 2 Case for Blending 8 Gas Goes Green 8 Decarbonisation Policy and Low-carbon Gas 10 The Case for Blending 1 1 Blending at Industrial Clusters 12 Blending Upstream N

2、on-Clusters 12 Blending for Non-Cluster Consumers 12 Efficient Deployment of Hydrogen Production and Consumption Technology 12 Location of Blending 12 Current Progress of Blending 13 3 The Role of Market Frameworks 14 Project Rationale and Design 14 4 Physical Roll-Out Model Exploration 16 High Leve

3、l Assessment 17 Strategic Approach 17 Free Market Approach 19 Assessment Conclusions 20 Next Steps 205 Target 2023 Timeline:Meeting the Governments Ambition 22 Detailed Target 2023 Timeline 25 6 Target 2023 Timeline:Key Change Activities 26 Primary Legislation Pillar 26 Overview 26 Change Activities

4、 27 Challenges 28 Regulation Pillar 29 Overview 29 Change Activities 30 Challenges 31 Licence Pillar 32 Overview 32 Change Activities 33 Challenges 34 Code Pillar 35 Overview 35 Change Activities 36 Challenges 37 Safety Pillar 38 Overview 38 Change Activities 39 Challenges 417 Sustained Progress Tim

5、eline:2025 Framework Delivery 42 The Differences Between Target 2023 and the Sustained Progress Timelines 44 8 Recommendations 45 Recommendations Categorisation 45 Gas Network Actions 46 Critical Work Required 46 Overarching Industry Actions 47 Key Conclusions 48 Acknowledgements 49Contents3 ENA|GAS

6、 GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLANWere the voice of the networks.Were the industry body for the companies which run the UK&Irelands energy networks,keeping the lights on and gas flowing.Our members own and operate the wires and pipes which carry electricity and gas into your commun

7、ity,supporting our economy.The wires and pipes are the arteries of our economy,delivering energy to over 30 million homes and businesses across the UK and Ireland.To do this safely and reliably,the businesses which run the networks employ 45,000 people and have spent and invested over 60 billion in

8、the last eight years.Were creating the worlds first zero-carbon gas grid by speeding up the switch from natural gas to hydrogen for the 85%of UK households connected to the gas grid.Gas Goes Green,an ENA programme,is our plan to deliver net zero emissions in the most cost-effective and least disrupt

9、ive way possible.It is a blueprint for our gas networks to meet the challenges and opportunities of climate change.About ENAOur Members and Associates Membership of Energy Networks Association is open to all owners and operators of energy networks in the UK.Companies which operate smaller networks o

10、r are licence holders in the islands around the UK and Ireland can be associates of ENA too.This gives them access to the expertise and knowledge available through ENA.Companies and organisations with an interest in the UK transmission and distribution market are now able to directly benefit from th

11、e work of ENA through associate status.4 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLANThe process of mixing natural gas with up to 20%hydrogen could lead to significant carbon savings.If 20%hydrogen is blended into the gas grid together with existing natural gas,this could save up to 6

12、 million tonnes of carbon dioxide equivalent every year,the equivalent of taking 2.5 million cars off the road1.As hydrogen blending would be an intermediate step towards a 100%decarbonised gas future,it is vital that blending delivers the maximum benefit for the minimum outlay.It needs to be delive

13、red quickly,simply,and efficiently to give momentum to the transition towards 100%decarbonised gas.Ongoing trials and projects are examining the physical,operational,safety and cost-benefit cases for blending hydrogen into the gas networks.In addition to this evidence,the market frameworks governing

14、 the duties,rights,and incentives of gas market participants across the value chain must also be compatible with blending.The existing market frameworks assume the conveyance and trading of a relatively homogeneous natural gas.Therefore,existing market frameworks must be reviewed,with any necessary

15、changes made as a matter of urgency in order to ensure that blending can commence once operational trials have demonstrated that it is technically safe and economically efficient to do so.The United Kingdom government has set-out ambitious legally binding obligations to reach net-zero by 2050.If thi

16、s target is to be met,it will require wide-ranging industry collaboration and a mosaic of innovative solutions to deliver the carbon reduction required.Low-carbon gases such as biomethane and hydrogen are expected to play a vital role in transitioning to a low carbon future.Recent policy documents h

17、ave begun to define the role of hydrogen,and in particular how blending hydrogen with natural gas in the existing gas infrastructure can support the transition to a net zero future.Executive summary1.www.energynetworks.org/newsroom/hydrogen-blending-what-is-it-and-why-does-it-matterThe equivalent to

18、5 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLANThe project undertook a high-level assessment of the roll-out models and found benefits and challenges for each approach.Further work is required in this area to define the most suitable approach,to deliver the highest potential carbon red

19、uction savings,whilst taking into consideration the key principles of efficiency,speed,and simplicity.The project has created two timelines to map out how the existing gas market frameworks could be changed to enable blending.For the purposes of this project,the gas market frameworks have been broke

20、n down into five market pillars.The market pillars are primary legislation,regulation,licence,code,and safety changeRoll-Out ModelsFirst,the project explored a number of potential physical roll-out models for blending.In order to support the market and regulatory changes required to facilitate hydro

21、gen blending,it was deemed important to understand at a high-level what regime the market rules would be creating.The project investigated a range of potential options for the roll out of hydrogen blending onto the network,two indicative routes were chosen to be explored further based on their diffe

22、ring underlying principles.These were called the Strategic Approach and the Free Market Approach.BEIS is committed to working with the Health and Safety Executive“to enable up to 20 per cent hydrogen blending on the Distribution Networks by 2023.”BEIS Energy White PaperExecutive summaryStrategic App

23、roach The Strategic Approach would designate connection locations based on the most suitable parts of the network,considering a number of potential factors,including where would maximise hydrogen blending volumes and where on the network would allow efficient control and operation of blends.Free Mar

24、ket Approach The Free Market Approach mimics the existing arrangements for connections to the gas networks and would let the market decide where to inject hydrogen into the network,with the hydrogen capacity being made available on a“first come,first served”basis.Engagement and collaboration are nee

25、ded from the wider gas industry to develop a detailed roll-out model that can deliver the benefits of blending.The project has highlighted the potential development of a methodology to set-out the practicalities and incentives required to deliver an appropriate roll-out model.6 ENA|GAS GOES GREEN|BR

26、ITAINS HYDROGEN BLENDING DELIVERY PLANIn contrast to the target driven nature of the target 2023 timeline,the project also created a second timeline called Sustained Progress.This timeline shows steady progress with pre-work still being undertaken but highlights how the uncertainties related to cert

27、ain change activities could extend timelines.The Sustained Progress timeline still results in all the market frameworks being updated by the end of 2024 to enable blending,with residual system change being completed in 2025.This timeline still showcases Executive summaryTimelines The first timeline

28、the project created was a target driven timeline related to the date set-out in the 2020 BEIS Energy White Paper to enable hydrogen blending by 2023.The Target 2023 timeline showcases that whilst there are uncertainties and unknowns,with the right level of collaboration,engagement,and coordination i

29、t would be possible to enact gas market change at an accelerated pace to meet the 2023 target.It is important to highlight that this timeline is driven by the government target and there is uncertainty regarding the volume of physical hydrogen production that will be available to be connected to the

30、 networks in 2023.A key reason why the 2023 target could be met was the concept of undertaking informal pre-work before a final policy decision is taken on whether to go forward with network blending.This final policy decision is expected from BEIS in 2023.The Market Pillar timeline below shows how

31、the interaction between the informal and formal processes could deliver accelerated change to meet the government target.The pre-work would need to be undertaken in a collaborative way to build industry consensus to expedite formal process timescales.It should also be noted that the pre-work shown w

32、ould have to be completed at risk(i.e.before the formal policy decision is taken).This risk could reduce the willingness of industry parties to engage.industry engagement and collaboration taking place throughout 2022 and 2023 to deliver the change required.Both timelines and the details related to

33、each change activity can be found within the full report.Pillar202120222023Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Primary LegislationRegulation(Billing)LicenceCode(UNC)Safety(GS(M)R)Legislative Position(inc.CBA)InformalInformalInformal FormalFormal FormalTarget 2023 Market Pillar TimelineFormal7 ENA|GAS GOES GREEN|BRI

34、TAINS HYDROGEN BLENDING DELIVERY PLANExecutive summaryConclusions The key project conclusions are summed up below and the complete suite of recommendations can be found within the full report.2023 is an ambitious yet achievable target.The target 2023 timeline showcases how the 2023 date for market f

35、ramework change can be met,through a route of minimum viable change to deliver blending.Early policy clarity can accelerate change.With minimal infrastructure changes required to enable blending,the earlier policy clarity can be provided;the more it de-risks industry parties,the more it will drive u

36、p engagement and collaboration and the quicker formal change processes can commence.Need for industry collaboration and engagement before final policy decision is made.If the industry waits until a formal policy decision is made before starting to try and answer some of the outstanding questions rel

37、ated to blending,it will delay the implementation of network blending.It is vital that those parties who are responsible for leading market change activities undertake collaborative pre-work to ensure the relevant market changes are completed in a clear and ordered way.Stakeholders views are very im

38、portant to the Gas Goes Green programme as they can help shape and enhance future deliverables.If you would like to discuss any aspect of this project or find out how you can get involved in the wider Gas Goes Green programme,please contact ENA at GasGoesGreenenergynetworks.org.12435Delivery of the

39、timeline requires centralised coordination of change plans.Robust coordination from a centralised body of change plans from across the blending value stream would remove the risk of piecemeal change and ensure the change is delivered in a coherent and structured way.It is vital that change is undert

40、aken in parallel and there is clear communication across the different work streams.Implement quick-win system solutions first.Central IT systems cannot be a barrier to innovation and change.Engaging with service providers at the earliest opportunity and implementing the quick wins in the first inst

41、ance would reduce the potential risk of IT system change delaying the rollout of hydrogen network blending.The impacts on third party systems also need to be considered when developing quick-win system solutions to ensure the industry has time to complete their necessary changes.8 ENA|GAS GOES GREEN

42、|BRITAINS HYDROGEN BLENDING DELIVERY PLANGas goes greenGas Goes Green(GGG)is an Energy Networks Association programme within which all five of Great Britains gas network companies collaborate on meeting the challenges of climate change.The programme will research,coordinate and implement the changes

43、 that are needed to convert Britains world-leading 284,000km of gas network infrastructure to transport hydrogen and biomethane,providing consumers with the energy they need.To do this,the Gas Goes Green Pathway to Net Zero has been developed,this sets out the actions that need to be taken to delive

44、r the worlds first zero carbon gas grid by 2050.The Planning and Research step is the first on the Gas Goes Green Pathway to Net Zero.This stage will undertake preparatory activities to manage the transition away from natural gas.This step has six related workstreams:1.Investing in Net Zero 2.Gas Qu

45、ality and Safety 3.Consumer Options 4.System Enhancement 5.Hydrogen Transformation 6.External Affairs and Stakeholder Engagement Gas Markets Plan In collaboration with gas industry stakeholders and policymakers,the Gas Market Plan(GMaP)programme has been initiated to help prepare the gas markets for

46、 potential future transformations.The GMaP programme is currently undertaking a range of market-based research projects in specific areas of industry interest,such as gas quality,hydrogen,and gas balancing.Case for blending29 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLAN Undertaken a h

47、igh-level assessment on a range of potential physical roll-out models to deliver hydrogen blending into the gas systems and provided next step recommendations.It has included primary legislation,regulation,and safety change in the timeline alongside more traditional areas of market change like licen

48、ce and code change.It has highlighted a number of key recommendations to provide a future pathway of work to enable the market frameworks to be ready to meet the government 2023 target.Included the secondary impacts that will need to be addressed from potential market framework changes like central

49、IT system change and connected downstream system change.GGG2.1 Blending Timeline Pathway This report concludes phase 1 of the GGG gas quality and safety workstream 2.1 deliverable,the Blending Timeline Pathway project,in collaboration with the GMaP programme.The project has mapped out possible timel

50、ines of legislative and regulatory changes,to allow blending of low-carbon and renewable gases into the gas networks as part of the targets outlined in the Prime Ministers Ten Point Plan(5GW of installed hydrogen production capacity,or 42TWh of hydrogen,per year by 2030).It has also:A key aspect of

51、the project has been the identification of the market framework change activities and the challenges and risks associated with those activities.The project has been co-led by National Grid Gas Transmission and SGN delivering the research,engagement,and outputs,with the support of ENA and Britains ot

52、her gas network companies.The project has also engaged with a wide range of industry stakeholders and experts throughout its life cycle.Case for blending210 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLANThe UK Hydrogen Strategy reaffirmed these targets and set out a roadmap for the deve

53、lopment of a UK hydrogen economy over the 2020s.It restated the intention to conduct Hydrogen Neighbourhood(2023),Village(2025)and Town(2030)trials and confirmed an indicative value-for-money case for blending by Q3 2022,with a final policy decision on blending likely to take place in 2023.It also d

54、etailed several consultations and calls for evidence on areas such as hydrogen-ready appliances,hydrogen production subsidies and a UK-wide low-carbon hydrogen standard.It showcased projects such as HyDeploy2,FutureGrid3 and LTS Futures4 that are already underway to test the compatibility of hydroge

55、n with existing gas network assets and appliances.Decarbonisation Policy and Low-carbon Gas If the UKs ambitious legal obligation to reach net-zero is to be met,it will require wide-ranging industry collaboration and a mosaic of innovative solutions to deliver the carbon reduction required.Low-carbo

56、n gases such as biomethane and hydrogen are expected to play a vital role in supporting the UKs drive to achieve net zero.Recent policy documents have defined the role of hydrogen,in particular how blending hydrogen with natural gas in the existing gas infrastructure could support the transition to

57、a net zero future.The governments November 2020 Ten Point Plan set a national target of 5GW of low-carbon hydrogen production capacity by 2030 and an indicative target of 1GW by 2025.It noted that blending offers“lower carbon heating and cooking with no change in experience for domestic consumers re

58、ducing the emissions of gas used by up to 7%”.The subsequent Energy White Paper announced several hydrogen heating trials planned to take place in the 2020s.BEIS committed to working with the Health and Safety Executive“to enable up to 20 per cent hydrogen blending on the Distribution Networks by 20

59、23.”Case for blending22 hydeploy.co.uk 3 4 www.sgn.co.uk/about-us/future-of-gas/hydrogen/lts-futures blending offers“lower carbon heating and cooking with no change in experience for domestic consumersreducing the emissions of gas used by up to 7%”The Prime Ministers Ten Point Plan11 ENA|GAS GOES GR

60、EEN|BRITAINS HYDROGEN BLENDING DELIVERY PLANproduction capacity will be a profitable enterprise.The foundation of a favourable market environment is therefore certainty of demand for hydrogen.Meeting national targets and nurturing a mature low-carbon gas economy will require different parts of the v

61、alue chain to move in parallel.Where renewable electricity sources produce the same product as legacy generators and can readily compete for existing electricity demand,hydrogen(and,to a lesser extent,biomethane)is a different physical commodity and can only compete with methane to a limited extent

62、under current market frameworks.The Case for Blending Front-loading emission reductions leaves more time and resources to solve the more difficult decarbonisation problems ahead.Blending,the process of mixing natural gas with up to 20%hydrogen,could lead to significant carbon savings.If 20%hydrogen

63、is blended into the gas grid together with existing natural gas,this could save up to 6 million tonnes of carbon dioxide equivalent every year,the equivalent of taking 2.5 million cars off the road5;or a total of around 41 million tonnes of carbon dioxide equivalent between 2023 and 20326.Blending i

64、s a transitional step from the current natural gas economy to a future hydrogen economy.Its purpose is to kickstart the UKs hydrogen economy.As blending is an intermediate step,it is vital that it delivers the maximum benefit for the minimum outlay.It needs to be delivered quickly,simply,and efficie

65、ntly to give momentum to the transition towards 100%decarbonised gas.Meeting the existing hydrogen production targets of the Ten-Point Plan and Energy White Paper means creating a favourable market environment to give investors and producers the confidence that installing hydrogen Case for blending2

66、5 www.energynetworks.org/newsroom/hydrogen-blending-what-is-it-and-why-does-it-matter 6 assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/936567/10_POINT_PLAN_BOOKLET.pdfBlending,the process of mixing natural gas with up to 20%hydrogen,could lead to significant

67、carbon savings.Tonnes of carbon dioxide saved between 2023 and 2032 41M20The equivalent to12 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLANBlending for Non-Cluster Consumers Beyond the promising but finite potential of industrial clusters as sources of hydrogen demand,blending is the ne

68、xt step to unlocking greater demand for hydrogen.Ongoing projects are exploring the potential for existing consumer appliances to function safely with no user behaviour change with up to 20%hydrogen in Gas Distribution Networks and up to 2%in the National Transmission Network(NTS).Unlocking this dem

69、and would create a sizable market for hydrogen,and projects such as HyDeploy are well along the path to proving that hydrogen is safe in these appliances.From a production perspective,it is assumed the work BEIS are undertaking on hydrogen business models will provide the right incentives,which woul

70、d likely bring significant production capacity online.Efficient Deployment of Hydrogen Production and Consumption Technology Hydrogen gas production technologies are not yet fully mature.Blending would phase them in gradually,fostering the learning of early lessons and cost reductions before larger

71、capacity additions are made.The majority of planned production capacity would therefore be installed when technology is more mature,and costs are consequently lower.Blending at Industrial Clusters Blending improves the investment case for hydrogen production at industrial clusters7 by adding a new s

72、ource of demand.Hydrogen producers at clusters can sell excess hydrogen into the grid,giving more demand certainty,reducing production curtailment,raising load factors,and reducing production costs,ultimately encouraging more investment in hydrogen production capacity,and yielding cheaper hydrogen.B

73、lending Upstream Non-Clusters The potential to install electrolysers associated with renewable electricity generation could enable higher load factors for renewable electricity generation which would otherwise have to be constrained.The potential to store hydrogen and utilise the existing gas networ

74、k could reduce the need to build additional electricity infrastructure.This could deliver an economically efficient outcome which should reduce electricity network congestion,curtailment of renewables and electricity network reinforcement costs.This could also improve hydrogen production economics a

75、nd ultimately lower hydrogen cost to consumers by minimising the impact on the electricity grid and making the most efficient use of existing gas and electricity infrastructure.Case for blending2 7 Please see Chapter 5“Industrial Energy”of the BEIS EWP for more information on“Clusters”Likewise,hydro

76、gen-ready end-user appliances are in the early stages of roll-out.It is clearly more economically viable to replace appliances at the end of their natural life cycle to avoid scrappage.Blending would allow user appliances to be replaced with 100%-hydrogen-capable appliances gradually,while establish

77、ing a hydrogen economy capable of providing the volumes required for a later switch to 100%hydrogen.Bringing significant hydrogen production capacity online before demand has materialised would likewise be challenging.Location of Blending There are still unanswered questions about the most suitable

78、place on the networks for hydrogen blends to be injected.Blending into the Gas Distribution Networks may bring some extra complexity with regard to customer billing which would not exist if there were a consistent hydrogen blend in the NTS.This is due to the existing billing arrangements,where diffe

79、rent compositions of gas (blended and non-blended)entering a Gas Distribution Network could lead to increase volumes of shrinkage.Existing projects,such as the Future Billing Methodology project are exploring solutions to this complexity.Blending in the transmission network could avoid this issue if

80、 the NTS contained a consistent homogenous hydrogen blend.A careful choice of blending location,in both the NTS and Gas Distribution Networks,may also reduce the need for adding propane at biomethane entry points.13 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLANCurrent Progress of Blend

81、ing The existing gas market frameworks do not currently allow hydrogen above 0.1%by volume to enter the UKs gas networks.However,there is an existing process where the HSE may provide exemptions to the 0.1%limit(and other gas quality parameters)if it is satisfied that the health and safety of person

82、s likely to be affected by the exemption will not be impacted as a consequence of any change.Several key projects that are underway to identify and address changes needed to facilitate blending have utilised this exemption process.Case for blending28 h21.green/projects 9 futurebillingmethodology.co.

83、ukWhile the HSE examines evidence on the safety case for hydrogen blending,BEIS plans to launch a blending cost-benefit analysis study in autumn 2021 to explore the economic and distributional effects of blending.This is planned to conclude in 2023 to align with the end of phase 2 of the HyDeploy pr

84、oject.While these key policy and safety questions are answered,there is a need to assess the current gas market frameworks to identify the changes that could be required to facilitate blending.It is vital the existing gas market frameworks do not become a blocker to the potential implementation of b

85、lending,allowing the full benefits to be realised at the earliest opportunity.The HyDeploy project successfully trialled a blend of up to 20%into a representative gas network at Keele University and is currently embarking on a larger trial of blending into NGNs network in Winlaton,Gateshead.Prior to

86、 the start of HyDeploy Phase 3 in 2023 and using the body of evidence gathered in phases 1 and 2,the project is also seeking a class exemption from the HSE which would support individual applications for exemptions from the Gas Safety(Management)Regulation(GS(M)R)for hydrogen blending into Gas Distr

87、ibution Networks up to 20%.The first phase of the National Grid FutureGrid project is trialling hydrogen blending of NTS assets at 2%,20%and 100%concentration levels.This will be followed by further phases looking at impacts on compressors and testing de-blending technologies.SGNs LTS Futures projec

88、t will also complete a variety of off-site and live tests to understand the viability of Local Transmission System(LTS)infrastructure for both 100%hydrogen and natural gas and hydrogen blends.The H218 suite of projects addresses further technical and operational challenges.The Future Billing Methodo

89、logy9 project is examining a range of different future options for the gas billing framework.Wales&West Utilities has received approval from the HSE to allow 1%hydrogen into the network from late 2021.14 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLANProject Rationale and DesignOngoing t

90、rials and projects are examining the physical,operational,safety and cost-benefit cases for blending hydrogen gases into the gas networks.In addition to this evidence,the market frameworks governing the duties,rights,and incentives of gas market participants across the value chain must also be compa

91、tible with blending.The existing market frameworks assume the conveyance and trading of a relatively homogeneous natural gas.Therefore,market frameworks must be reviewed,with any necessary changes made as a matter of urgency in order to ensure that blending can commence once operational trials have

92、demonstrated that it is technically safe and economically efficient to do so.It is essential to the success and value proposition of blending that market frameworks do not delay the roll-out of blending once the technical,safety and cost-benefit cases are clear.This project builds on existing work o

93、n potential changes needed to market frameworks,such as the Network Innovation Allowance study commissioned by Cadent on gas commercial frameworks and blending by Frontier Economics10.The purpose of this project was to assess current work,identify the potential gaps in planned work and present high-

94、level timelines based on various possible change scenarios.For the purposes of this project,the gas market frameworks have been broken down into five market pillars.The market pillars are primary legislation,regulations,licence,code,and safety.Breaking down the market frameworks into these pillars f

95、acilitates an output which provides maximum value.The Role of Market Frameworks310 Economics,F.(2020).HYDROGEN BLENDING AND THE GAS COMMERCIAL FRAMEWORK.Report on conclusions of NIA study.15 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLANWithin each market pillar,a number of high-level c

96、hange activities have been defined.These change activities have been researched and mapped onto timelines before being validated.The Role of Market Frameworks3Primary LegislationRegulationsLicenceCode(UNC)Safety (Inc.GS(M)R)The project has created two potential timelines,which show how the market fr

97、ameworks could be changed.The project has then developed a range of recommendations and key conclusions.It is important to reiterate that the project is showcasing how change could be enacted under certain circumstances.The project recognises that there are many different routes for how future marke

98、t change could be delivered as well as numerous uncertainties to manage.16 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLANThe key underlying principles when connecting to the existing gas network is ensuring that all parties have efficient,fair,and transparent access to the gas system.Th

99、ese principles should continue to be adhered to in a potential future blending world whilst also recognising that a different methodology may be required if government targets are to be met.The current connections process is operated on a first-come,first-served approach.However,as hydrogen is a dif

100、ferent compound compared to natural gas,it is important to understand how blending could actually work in practice,especially considering its transitional nature and where it needs to differ from the existing connections regime.The introduction of hydrogen into the GB gas networks will lead to new c

101、hallenges,and the existing market structures and connection frameworks will need to change and evolve.Therefore,a key pre-requisite to enable hydrogen blending is understanding how blending could be physically implemented and managed.The project undertook an exploration of potential physical roll-ou

102、t models in order to support the market and regulatory changes required to facilitate hydrogen blending.The project investigated a range of potential options for the roll out of hydrogen blending onto the network;two indicative routes were chosen to be explored further based on their differing under

103、lying principles.These were called:Physical Roll-Out Model Exploration417 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLANFree Market Approach This approach mimics the existing arrangements for connections to the gas networks and would let the market decide where to inject hydrogen into t

104、he network,with the hydrogen capacity being made available on a “first-come,first-served”basis.Blending would therefore occur wherever producers apply to connect,wherever hydrogen production is most likely to be profitable for them,irrespective of the wider decarbonisation picture.In a Free Market A

105、pproach the network may develop in such a way as to make achieving government targets prohibitively expensive and the network overly complex to operate.The project completed a high-level assessment of the opportunities and challenges for the two approaches.Strategic Approach The Strategic Approach w

106、ould designate connection locations based on the most suitable parts of the network,considering a number of potential factors.For example:the ability to maximise volumes of hydrogen blend and other green gasses,where it links into the broader hydrogen strategy and where on the network would allow ef

107、ficient control and operation of blends whilst remaining reflective of market forces.In a Strategic Approach,potential producers may have their connections rejected or relocated if they contradict the overarching hydrogen strategy.Physical Roll-Out Model Exploration4High Level Assessment Strategic A

108、pproachFigure 1 illustrates a strategic blending network configuration with blending at industrial clusters,in addition to potential blending points that could be at both NTS and Gas Distribution Network level.The overarching aim of the model is to maximise the capacity of hydrogen in the network,pr

109、oviding the largest abatement in carbon emissions.The Strategic Approach for the injection of hydrogen onto the network offers a number of benefits,one of the main being the ability to ensure the most efficient release of injection capacity.A strategic location would be selected due to its zone of i

110、nfluence.The example in Figure 1 shows a strategic blending location positioned on the LTS after the Pressure Reduction Station.The LTS networks are largely volume controlled meaning they can accept a constant volume of gas throughout the day.In comparison,the below 7 bar Gas Distribution Network is

111、 predominantly pressure controlled,with flows in and out of the network triggered by diurnal change in consumer demand.As there is a limit on the acceptable percentage of hydrogen blend for domestic appliances(expected to be up to 20%),the maximum hydrogen injection into below 7 bar networks would b

112、e constrained so it does not breach the 20%limit.This may occur when flows within the network are at their lowest due to low demand 18 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLANPhysical Roll-Out Model Exploration4such as overnight or in the summer months.The Strategic Approach to bl

113、ending,connecting higher up the network pressure tiers allows an efficient management of the network providing a greater hydrogen capacity due to larger zones of influence with the lowest network management implications.The strategic blending approach could mitigate the risk of network sterilisation

114、.Network sterilisation could occur if multiple hydrogen blend facilities connected within the same zone of influence.This would require more complex and costly solutions to be developed to ensure sites could inject into the network,whilst ensuring the blend limit is not Figure 1:Strategic ApproachPr

115、oductionTerminalNTS large end usersNetwork offtakeStorageStorageAbove ground installationPressure reduction stationIndustrial clusterGovernorGovernorGovernorCompressor stationStorageOff shoreNational Transmission SystemLocalTransmission SystemDistribution networkSSSStrategic blend locationbreached.D

116、eveloping a methodology for the selection of a number of strategic locations to blend onto the network would ensure the maximum hydrogen blending potential and minimise sterilisation risk.The Strategic Approach differs from the existing arrangements for connecting onto the network.One of the main ch

117、allenges identified with this blending roll-out model is the associated regime change that would be required to control future connections onto the network in an effort to optimise capacity in the most efficient way possible.This will involve new processes to be developed with differing arrangements

118、 required to the existing regime;for example,there would need to be a new process for granting or rejecting future connections to maintain efficiency and network operability.Another potential challenge with a Strategic Approach to blending is the transport of hydrogen from a production facility to a

119、 strategic point on the network.For small-scale producers of hydrogen located large distances from strategic points,the transportation of hydrogen via pipeline or road tanker may not be the most efficient option.19 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLANPhysical Roll-Out Model Ex

120、ploration4Free Market ApproachA Free Market Approach to blending is illustrated in Figure 2,which shows the ability for developers to connect to any part of the network.It also shows blending at industrial clusters.The model mirrors the process for existing biomethane connections that have been embe

121、dded into the network currently both on the NTS and Gas Distribution Network.There are a number of potential benefits to the Free Market Approach,if incorporated with the right market-based regime.One potential advantage of a Free Market Approach could be in the speed for sites Figure 2:Free Market

122、Approachto connect to the network.Smaller connections within lower pressure tiers of the network would require less financing and may be able to be streamlined from a planning perspective in comparison to larger strategic blending locations with higher risk on the final investment decision.The Free

123、Market Approach could also take any learnings from the introduction of biomethane,recognising these arent completely like for like.A similar regulatory regime could translate potential injection constraints into economic signals to market participants,identifying where the most optimal injection poi

124、nts are located on the network,with maximising hydrogen injection considered.There are also challenges with a Free Market Approach for blending.The main challenge relates to overall network efficiency and the potential for investment and network sterilisation.Operationally,implementing a true Free M

125、arket Approach would be very difficult as the requirement to maintain a blend within predefined limits,the risks of new production curtailing existing production and the expected volumes that could be delivered would place a significant burden of risk on investors and gas networks.To mitigate these

126、risks,considerable metering,monitoring and overall control would be required,therefore reducing the overall efficiency of the approach.ProductionTerminalNTS large end usersNetwork offtakeStorageStorageAbove ground installationPressure reduction stationIndustrial clusterGovernorGovernorGovernorCompre

127、ssor stationStorageOff shoreNational Transmission SystemLocalTransmission SystemDistribution networkFMFMICFM Free market blend locationICIndustrial clusters blendFMFM20 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLANPhysical Roll-Out Model Exploration4Assessment Conclusions The above ass

128、essment of both physical roll-out model approaches show that they exhibit a range of contrasting benefits and challenges.Further engagement and collaboration is needed from the wider gas industry to develop a detailed roll-out model that can deliver the benefits of blending.Ultimately the decision l

129、ies with BEIS on how to proceed,but industry collaboration and engagement can support that decision-making process.Next Steps As highlighted in the assessment,one of the main complications that exists with hydrogen blending but not with biomethane is how multiple injection locations within the same

130、sphere of influence interact with each other.Hydrogen may not exceed a set limit(expected to be 20%)of the blend by volume at any point at any time as breaching this limit would have implications for downstream appliances.Therefore,any hydrogen already in the gas arriving at a blending location will

131、 reduce the amount that can be injected at this location.The interaction between these injection points will bring increased complexity and cost to the operation of the networks to maintain this 20%instantaneous blend and any investment in hydrogen production will be at risk of another producer conn

132、ecting upstream of them.The risk of investment sterilisation needs to be managed to support the continued development of Acorn,Cavendish,HyDeploy and HyNET blending schemes.It is likely that investors will require confidence that long-term returns can be made,without a risk of sterilisation.Whilst t

133、here will be new challenges and risks that need mitigating,it should also be clear that any final solution on the locations of blending points will need to take into consideration market enquiries and signals.Therefore,in order to determine the most optimal solution for the roll out of hydrogen blen

134、ding onto the network,the project recommends an industry-wide consultation is completed on the creation of a connection methodology for blending.The methodology needs to work in practice and not be overengineered from a conceptual perspective.It is better to create a process that works taking into c

135、onsideration those key principles of simplicity,effectiveness,and speed.There also needs to be a balance between actual hydrogen production projects that want to connect to the network versus theoretical“better”options that dont exist.The methodology should also align with the outputs from the BEIS

136、Hydrogen Business Model work to ensure both concepts work together in practice.Further engagement and collaboration is needed from the wider gas industry to develop a detailed roll-out model that can deliver the benefits of blending21 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLANPhysic

137、al Roll-Out Model Exploration4We recommend:That a new Gas Goes Green programme is undertaken to define the optimal blending operating model.We recommend that the project:Develops a blending connection methodology which considers long and short-term market signals.Explores network topology to maximis

138、e efficient use whilst also focussing on exploiting the release of injection capacity in the locations where it is most likely to be needed.Should include an industry consultation developed jointly by the gas networks on the production of a methodology.The aim of the methodology is to define how to

139、control future hydrogen blend connections,taking into consideration market and economic signals.Align closely with the work being carried out on a future market framework to ensure the roll-out model can be implemented efficiently,minimising impacts on the central system as well as IT systems for tr

140、ansporters,shippers,and suppliers.22 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLANTarget 2023 Timeline Meeting the Governments Ambition 5The government has set-out ambitious targets in relation to when they expect to see network blending enabled,as referenced in the UK Hydrogen Strateg

141、y.The existing gas market frameworks do not currently allow any hydrogen above 0.1%to enter the UKs gas networks.Along with this the commercial rules and systems are not yet in place to deliver a seamless transition from a homogeneous natural gas product to a blended product.Therefore,the existing g

142、as market frameworks need to be updated in a coordinated and collaborative way to ensure they facilitate network blending and do not become a blocker to realising the environmental and economic benefits of blending.The project has created two timelines to show at a high level how the gas market fram

143、eworks could change to enable hydrogen network blending.The Target 2023 timeline is a target driven timeline that meets the governments 2023 target for enabling network blending.It is important to highlight that this timeline is driven by the government target and there is uncertainty regarding the

144、volume of hydrogen production that will be available to be connected to the networks in 2023.The second timeline created,the Sustained Progress timeline shows steady and sustained market framework change progress.The uncertainties related to certain key change activities result in the completion of

145、market and system change by 2025.It is recognised that there are areas of high uncertainty which could impact delivery timescales.Far from trying to predict the future,the timelines show different pathways to change and the interdependencies of key change activities.The Ten Point Plan set commitment

146、s to complete necessary testing of blending up to 20 per cent hydrogen into the gas grid by 2023.Similarly,the Energy White Paper notes ambitious intentions to enable up to 20 per cent hydrogen blending on the networks by 2023(subject to trials and testing).23 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BL

147、ENDING DELIVERY PLANThere are different strands of the gas market that need to be considered to ensure a fully joined-up approach is taken.The project has categorised the existing gas market frameworks into five pillars:The main laws passed by the UK Parliament and subject to Parliamentary review.Th

148、is pillar pertains to any laws that impact the gas industry and would subsequently require a full Parliamentary change process(e.g.the Gas Act 1986).Primary LegislationThis market pillar is focused on secondary parliamentary legislation,like Statutory Instruments.These types of legislation can be al

149、tered without Parliament having to pass a new Act.This pillar is focused on the secondary legislation change linked to the billing regime(e.g.the Calculation of Thermal Energy Regulations).RegulationOfgem regulates the UK gas industry by granting licences to parties to undertake specific activities.

150、This market pillar explores changes required to update these industry-wide licences (e.g.transporter licence).Licence ChangeThe Uniform Network Code UNC defines the rights and responsibilities for users of gas transportation systems,ensuring all users have equal access to transportation services.Com

151、pliance with the UNC is a licence condition(e.g.UNC&IGT UNC).Code Change UNCTo ensure safe operation,the delivery of gas to networks must be within certain pre-determined limits as set out in legislation.The current gas quality limits are set out in the GS(M)R.Therefore,this market pillar is focused

152、 on safety related change,predominantly in relation to how GS(M)R could change to expand the allowable hydrogen range up to a 20%limit.Safety Change G(S)MRTarget 2023 Timeline Meeting the Governments Ambition524 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLANThe following high-level time

153、line shows each market pillar and when the informal and formal processes could begin and end.Informal processes in this instance are processes undertaken before the defined change process for each market pillar(i.e.pre-work).Such processes would determine the draft solutions to be taken forward with

154、 the aim to expedite the formal process timelines by having robust and valid solutions ready to go.The informal pre-work processes are of the utmost importance to deliver shorter formal process timescales.There are a number of formal processes that cannot begin until there is policy and safety certa

155、inty.However,the pre-work can accelerate the normal timelines if completed in collaboration with the wider industry.The individual change activities are discussed in greater detail in the next chapter.Pillar202120222023Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Primary LegislationRegulation(Billing)LicenceCode(UNC)Safety(

156、GS(M)R)Legislative Position(inc.CBA)InformalInformalInformal FormalFormal FormalTarget 2023 Market Pillar TimelineFormalBy taking a broad approach,highlighting areas on the timeline which fall outside the remit of gas networks,the project aims to show the full breadth of potential market change requ

157、ired in a holistic yet simple way.Target 2023 Timeline Meeting the Governments Ambition525 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLANDetailed Target 2023 Timeline The following Target 2023 timeline breaks down each market pillar into the different change activities required to enabl

158、e blending,including recommendations for further work.From left to right,the columns of the timeline show the five market pillars(primary legislation,regulation,licence,code,and safety),their related change activities and the duration of those activities.The timeline also includes the key policy dec

159、ision activity in grey.The red arrows indicate the main interdependencies,that is the linkage between policy,safety decisions and the commencement of formal activities.Finally,the timeline has been colour coded to articulate who the proposed owners of the change activities are,highlighting the cross

160、-industry approach required to change the frameworks to deliver hydrogen blending.PillarChange Activity202120222023Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4In FlightBEIS Blending CBAPrimary LegislationBEIS Gas Act Call for EvidenceNetwork Operator Regime ReviewLegislative ReviewLegislative Review only(no change to Prima

161、ry Legislation)RegulationFBM/COTER Decision Making ProcessNo COTER Change(UNC Billing Change only)“Enabling”Billing System ChangeUpfront System FeasibilityLicenceNetwork Operator Licence ReviewOfgem Led Licence Change Pre-workFormal Licence Change ProcessCodeNetwork Operator Code ReviewUNC Modificat

162、ion Pre-workTargeted UNC Modifications“Enabling”System ChangeUpfront System FeasibilitySafety(GS(M)R)HyTechical ProgrammeReview of standards managed outside of IGEM HSE Approvals Process/IGEM standard processUpdating HSE Safety Case for Hydrogen BlendingUpdate Existing Contracts(Existing Connections

163、 Only)Development of Connection Agreements Target 2023 Market Pillar TimelineActivity KeyInflight/ProposedBEISOfgemBEIS&OfgemNetwork OperatorsIndustry/OthersTarget 2023 Timeline Meeting the Governments Ambition526 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLANPrimary Legislation Pillar

164、OverviewThe primary legislation referenced in this section relates to laws that impact the gas industry.Primary legislation is an important component to facilitate hydrogen blending primarily as it defines and limits the powers that Ofgem,BEIS,the HSE and other key actors have to create and modify t

165、he substantive rules of the GB gas market framework,such as licence conditions,safety regulations,and code.Depending on the nature of change required,primary legislation change may need to be completed before significant change can commence in other market pillars.It is not yet known if primary legi

166、slation will need to change to enable hydrogen blending to occur.As highlighted earlier in this report,there is still optionality on the different physical roll-out models that could be used to execute blending.These different roll-out models could require different changes to primary legislation.Pr

167、imary legislation has the greatest sensitivity on the blending delivery timeline.As the highest element in the UK legal order,all other market pillars are directly or indirectly subordinate to the primary legislation pillar.The timescales of changing UK primary legislation are lengthy compared to th

168、e other market pillars and also highly unpredictable,given the multitude of political and practical variables at play.A strategy which minimises change to primary legislation is advisable.Whilst the need to minimise primary legislation change is advisable,it should also be noted that if blending for

169、ms a key part of an investors business case then having explicit primary legislation rules could provide investors with additional confidence(e.g.removing risk of investment sterilisation).Target 2023 Timeline Key Change Activities627 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLANGas Ne

170、twork Regime Review (Primary Legislation Due Diligence)As part of the next stage of the Gas Goes Green programme,gas networks are planning to complete a market regime review,to assess the minimum viable change required to enable blending.It is important that this work includes a due diligence assess

171、ment on the impact on primary legislation from potential changes to code and licence arrangements.The scope of this work will include both the Gas Act and other legislation.Early visibility of this information could allow market proposals to be modified to reduce the impact on primary legislation an

172、d therefore deliver change without the need for legislative procedures.Change ActivitiesBEIS Gas Act Call for Evidence and Consultations The BEIS Energy White Paper published in December 2020 states that BEIS“will therefore review the overarching market framework set out in the Gas Act to ensure the

173、 appropriate powers and responsibilities are in place to facilitate a decarbonised gas future”.A BEIS Call for Evidence on the Future of Gas Systems is planned for 2021 which will inform the content and scope of any future consultation and is a chance to get industry feedback on a wide range of topi

174、cs including network blending.There is a high degree of confidence this will take place as planned.BEIS have also released the Hydrogen for heat:facilitating a grid conversion hydrogen heating trial consultation which seeks views on proposals to legislate in order to allow Gas Distribution Networks

175、Operators to carry out the activities needed to deliver a grid conversion hydrogen trial.Legislative Review Once the Call for Evidence(CfE)is complete,there is a need to determine the potential impact on primary legislation.BEIS will analyse the CfE responses and consider the potential impacts on al

176、l primary legislation(not just the Gas Act)required to enable hy-drogen blending.Gas network due diligence work could feed into this review process.An output of the review process could be a formal consultation.If primary legisla-tion change is deemed to be required,this review process could take lo

177、nger and could be undertaken in parallel with other framework change activities.BEIS will therefore review the overarching market framework set out in the Gas Act to ensure the appropriate powers and responsibilities are in place to facilitate a decarbonised gas futureTarget 2023 Timeline:Key Change

178、 Activities6PillarChange Activity202120222023Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Primary LegislationBEIS Gas Act Call for EvidenceGas network Regime ReviewLegislative ReviewLegislative review only(no change to Primary Legislation)28 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLANLegislative Review OnlyI

179、n the target 2023 timeline,no primary legislation change is needed to deliver hydrogen blending.This shows a potential timeline of change if blending is deemed to be compatible with the existing legislation.Due to outstanding questions that need answering in relation to how blending could be impleme

180、nted,it should be noted that there is a low degree of confidence that the existing legislative framework could enable blending.Challenges Preparing legislative amendments and parliamentary processes are highly variable,depending on the content,political sensitivity,and Parliamentary logistics.Changi

181、ng such a fundamental pillar of the GB energy market as the Gas Act,or at the worst multiple Acts,would require significant evidence-gathering,political debate,and scrutiny.Assuming that no legislation change is required is an optimistic but uncertain assumption.6Target 2023 Timeline:Key Change Acti

182、vities29 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLANRegulation Pillar Overview This market pillar covers secondary parliamentary legislation,such as Statutory Instruments(SI),that impact the GB gas market.This type of legislation can be altered without Parliament having to pass a new

183、 Act.The SI the Calculation of Thermal Energy Regulations(CoTER)is extremely important to the GB gas industry as it sets out how end users are billed via the rules it sets out for the calculation of a flow weighted average calorific value(CV).The shrinkage rules related to the calculation of a weigh

184、ted average CV also impact biomethane producers,directly resulting in increased production costs through a requirement to add propane in their production process.The gas industry has been investigating reforms to these rules for a number of years,primarily through the Future Billing Methodology proj

185、ect.6Target 2023 Timeline:Key Change Activities30 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLAN6Target 2023 Timeline:Key Change ActivitiesChange Activities Future Billing Methodology Project In Flight The Future Billing Methodology project is a project run by Cadent.It has looked at a

186、range of different future options for gas billing and will consult on options to allow alternative gases to be injected into the network without the need for pre-processing.It is expected that the Future Billing Methodology project will deliver a final report,which will then be consulted on with the

187、 industry.This will then be followed by the final project recommendations which is expected to be finished by the end of 2021.PillarChange Activity202120222023Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4In FlightBEIS Blending CBARegulationFBM/COTER Decision Making ProcessNo COTER Change(UNC Billing Change only)“Enabling”Bi

188、lling System ChangeUpfront System Feasibility FBM/CoTER Decision-making Process Once the final FBM recommendations have been shared,it is then anticipated that BEIS and Ofgem will collaborate to agree what and how any changes should be implemented.It is expected that this process will include an ind

189、ustry engagement phase,along with an assessment on impacts to CoTER and associated Ofgem regulations.It is expected that this process will take about a year to complete.Should none of the FBM solutions be deemed appropriate then there will remain scope to proceed with hydrogen blending if a Strategi

190、c Approach to connections can be adopted.No CoTER Change(UNC Billing Change only)This timeline assumes the existing CoTER rules allows sufficient flexibility to implement the FBM recommendations to allow hydrogen blending without change.There is a high degree of uncertainty as to whether formal CoTE

191、R change is required or not,however it is expected that in all scenarios that there would be some level of UNC change required to deliver updated billing rules.In order to facilitate the target driven aspect of the timeline,it is expected that this UNC process could be completed within a year,which

192、would be feasible if the proposed changes had industry acceptance.It is expected that the Future Billing Methodology project will deliver a final report,which will then be consulted on with the industry.31 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLAN6Target 2023 Timeline:Key Change Ac

193、tivitiesChallenges It is not yet known if CoTER will need to change,but if change is required then this could have a significant impact on the proposed timelines.Changing a Statutory Instrument like CoTER would require some level parliamentary of oversight.Whilst it is expected that this process wou

194、ld be quicker than amending a full piece of primary legislation,there would still be process time to account for.This would have knock-on impacts on when code change process and associated system change processes could begin.Assuming that only UNC change is required is a realistic assumption,with a

195、moderate probability but a high impact.“Enabling”Billing System Change The project has determined that two kinds of system change will be required to deliver the requisite system changes to enable hydrogen blending.It is vital that IT systems are not a blocker to delivering the benefits associated w

196、ith hydrogen blending.The project is therefore assuming that quick-win solutions will be implemented in the first instance;these have been termed as“enabling”system change.“Enabling”system change is defined as light touch system change to deliver solutions that enable hydrogen blending to be deliver

197、ed in the most appropriate fashion,building on industry experience from projects like HyDeploy.The project recognises that enduring system change could be required in the future to deliver full automated solutions.This type of change could be delivered to meet not just a hydrogen blending solution b

198、ut also using economics of scale system change to deliver solutions that meet the need of 100%hydrogen systems.In order to make the necessary changes to allow government targets to be met,the timeline has assumed that“enabling”system change could be delivered simultaneously with UNC code change for

199、an efficient delivery process.Upfront System Feasibility Once government and regulator views are understood (expected to be middle of 2022)on the framework approach recommended via the FBM project,then it will be imperative to be able to deliver the“enabling”system change in a speedy and efficient w

200、ay.It is therefore recommended that upfront system feasibility work is completed at the earliest viable stage to understand how quick-win system solutions could be delivered in preparation for the commencement of the formal change process.The upfront feasibility work should investigate options to de

201、liver the system changes required to meet the needs of the industry with a view to undertaking the minimum viable change.The feasibility study should also engage the wider industry to understand impacts on third party systems from any change proposals.32 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING

202、 DELIVERY PLAN6Target 2023 Timeline:Key Change ActivitiesLicence Pillar Overview The licence change process is formalised in the Gas Act 1986.The Ofgem website states that“The Gas Act(1986)prohibits certain activities unless the person carrying on that activity is licensed.There is a set of standard

203、 licence conditions for each licensable activity.Licensees are obliged to comply with the licence conditions for their type of licence from the day the licence is granted.Licensees must also become party to and/or comply with certain industry codes.”There are four types of gas licence:Transporter,In

204、terconnector,Shipper and Supplier.It is not known how many of or to what extent the conditions within these licences would need to change to enable hydrogen network blending.Material changes to licences generally takes about five months to complete as codified in Gas Act 1986 Part I Section 23.A CMA

205、 appeal could extend this process by up to six months,but stakeholders have validated that such appeals are uncommon.6Target 2023 Timeline:Key Change Activities33 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLAN6Target 2023 Timeline:Key Change ActivitiesChange Activities BEIS Blending CBA

206、(In Flight)The UK Hydrogen Strategy sets-out that BEIS will undertake a cost benefit analysis study to investigate the case for hydrogen blending.This work is a key dependency for when the formal licence change processes can begin,as it is deemed to determine the official policy position.“We will co

207、mplete an indicative assessment of the value for money case for blending up to 20 per cent hydrogen into the existing gas network by late 2022 and aim to make a final policy decision in late 2023”.PillarChange Activity202120222023Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4In FlightBEIS Blending CBALicenceGas Network Licen

208、ce ReviewOfgem Led Licence Change Pre-workFormal Licence Change ProcessGas Network Licence Review It is recommended that as part of the next phase of the GGG blending work,gas networks should review the licence change requirements needed to enable hydrogen blending.This work should lead to a greater

209、 understanding of what the minimum licence changes are to enable blending.The impacts on the different industry licences could vary,and therefore this work should not be limited to just transporter licence change.Ofgem Led Licence Change Pre-work Post the gas network Licence Review,there will be fur

210、ther clarity on which physical roll-out model is going to be taken forward along with initial thoughts on potential impacts on licences.This should then allow Ofgem to commence related licence change pre-work.In this period Ofgem could write modification proposals and undertake informal industry eng

211、agement to seek consensus prior to the formal licence change process beginning.BEIS will complete an indicative assessment of the value for money case for blending up to 20 per cent hydrogen into the existing gas network by late 2022 and aim to make a final policy decision in late 2023.34 ENA|GAS GO

212、ES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLAN6Target 2023 Timeline:Key Change ActivitiesChallenges If the formal change process will only commence once there is policy certainty through the CBA or through primary legislation change,then either of these dependencies could have a significant impac

213、t on the licence change timelines.The proposed indicative assessment from the CBA will be vital in providing guidance for how to proceed.Any advanced notice prior to the full completion of the CBA would help Ofgem start pre-work and give gas networks more certainty.The timeline also assumes that the

214、re is industry willingness to commence vital pre-work before there is policy certainty;if industry players are not willing to engage early in a collaborative way then this could extend timelines.Gas networks also need to have confidence to commit resources to blending work.Messaging highlighting tha

215、t work on blending will be deemed an efficient use of resources even in the event of an alternative approach being taken would be helpful.It is very important that there is clarity on how decarbonisation work is financed,especially in circumstances where a final policy decision is yet to be made.The

216、 risk of spend being deemed inefficient in retrospect could deter the collaboration and engagement required to deliver blending at speed.Formal Licence Change Process It is assumed that the formal licence change process can only commence once there is policy clarity on whether hydrogen blending is g

217、oing to be taken forward.The timeline expects policy certainty to be provided via the BEIS blending CBA in 2023.The timeline shows a fast-paced formal process change as it builds on the pre-work completed.The timeline therefore assumes a legal minimum of a 28-day consultation period,one-month consol

218、idation and digestion of responses and one month for Ofgem to decide.A 56-day period between decision publication and entry into force means change effective from Q3 2023.35 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLAN6Target 2023 Timeline:Key Change ActivitiesCode Pillar Overview The

219、 Uniform Network Code(UNC)comprises of a legal and contractual framework to supply and transport gas.The UNC governs processes including the balancing of the gas system,network planning and the allocation of network capacity.If hydrogen is to be injected into the gas networks in a transition to a ne

220、t zero future,a review of the UNC,including drafting potential amendments,will be required to ensure that hydrogen blending is allowed within the UNC framework.The timeline has illustrated the high-level change activities required,whilst subsequent phases of the GGG programme will then identify the

221、detail of change required in each section of UNC documentation to facilitate hydrogen blending.Is it worth noting that there is currently an inability for gas transporters and shippers to derogate from the UNC to enable full scale hydrogen blending1 1.The UNC modification process is a well-used and

222、well-defined process,which allows all signatories of the code to propose modifications and potential alternative modifications.The process also includes clear and transparent stakeholder engagement phases and can conclude with Ofgem making the final decision in certain circumstances.6Target 2023 Tim

223、eline:Key Change ActivitiesThere are alternatives to the UNC modification process,like a significant code review which with pro-active engagement from Ofgem could also be another option to deliver wide-ranging UNC change in an optimised way.There are several dependencies before the formal UNC modifi

224、cation could begin,and certainty around licence change and a formal policy position are deemed key dependencies.36 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLAN6Target 2023 Timeline:Key Change ActivitiesChange Activities BEIS Blending CBA The UK Hydrogen Strategy sets-out that BEIS wil

225、l undertake a cost benefit analysis study to investigate the case for hydrogen blending.This work is a key dependency for when the formal code change processes can begin,as it is deemed to determine the official policy position.“We will complete an indicative assessment of the value for money case f

226、or blending up to 20 per cent hydrogen into the existing gas network by late 2022 and aim to make a final policy decision in late 2023”.PillarChange Activity202120222023Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4In FlightBEIS Blending CBACodeGas Network Code ReviewUNC Modification Pre-workTargeted UNC Modifications“Enabli

227、ng”System ChangeUpfront System Feasibility Gas Network Code Review It is recommended that as part of the future phases of the Gas Goes Green programme,gas networks undertake pre-work to research potential UNC changes.This pre-work should look at the minimum viable changes to the code to facilitate b

228、lending.This work can feed into wider industry engagement to ensure industry alignment for a modification route to support hydrogen blending.UNC Modification Pre-work (Extended Industry Engagement)This is an expansion of the gas network pre-work,expanding the engagement and starting to utilise forma

229、l governance structures where appropriate.In order to meet the accelerated timelines,it is anticipated that this work will commence in Q1 2022 and runs until there is certainty from BEIS on a decision to develop hydrogen blending.The pre-work will be critical for gas networks and the wider industry

230、to understand the level of change required to feed into a targeted UNC modification process.It is expected that the Future Billing Methodology project will deliver a final report,which will then be consulted on with the industry.37 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLAN6Target 2

231、023 Timeline:Key Change ActivitiesChallenges The risks for the Code market pillar are similar to those highlighted in the Licence pillar with the added complexity of delivering the related system change to meet the government timelines.There must be an appetite for gas networks and the industry to u

232、ndertake pre-work for UNC change before there is policy certainty.Gas network and the wider industry should also begin to formulate thinking and develop groups for a wider strategic piece of work to encompass full system change for hydrogen blends and 100%hydrogen at the appropriate time.It is also

233、worth explicitly referencing that whilst gas network system change is very likely to be required,there will also be likely change required for downstream connected shipper systems.These will need to be updated in a coordinated way.Targeted UNC Modifications Building on the collaborative industry pre

234、-work,a targeted UNC modification process could commence in Q2 2023 after policy certainty is provided from the BEIS CBA.The proposed duration of the activity of nine months to provide the core changes to UNC is ambitious,but possible if there is strong industry-wide collaboration and coordination.“

235、Enabling”System Change Associated system change is required in conjunction with modifications to the UNC.It is desirable that this change activity will be completed in tandem with the modification change process to provide an accelerated and agile timeline and ensure blended gas can get onto the net

236、work at the earliest possible opportunity.It is suggested that an upfront system feasibility assessment is completed prior to the formal change process.System change for the timeline delivers quick wins and provides the skeleton for supporting blending.This approach would maximise efficiencies as fu

237、rther“enduring”system change could incorporate 100%hydrogen,provided there is a decision to develop hydrogen in the Future of Heat policy 2025/26.Upfront System Feasibility It is recommended that upfront system feasibility work is undertaken over a six-month period,prior to the commencement of the f

238、ormal UNC modification process.This early engagement would allow quick-win solutions to be developed to meet the accelerated UNC change process timelines.It could also include an engagement with connected third parties,highlighting potential impacts on their IT systems.It is also worth noting that t

239、here could be system change congestion with other industry priorities being delivered(e.g.faster switching),which could delay the implementation of required system change,again highlighting the need for early engagement and planning.38 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLAN6Targ

240、et 2023 Timeline:Key Change Activitiessafety Pillar Overview Safety is of paramount importance to the operation,delivery,and utilisation of gas due to its combustible nature and potential harm from flue gases,such as carbon monoxide,in appliances.To ensure safe operations the delivery of gas to netw

241、orks must be within certain pre-determined limits as set out in legislation.The current gas quality limits are set out in the GS(M)R.GS(M)R places limits on the type of gas entering the network.It also obligates transporters to only convey gas in their networks that conforms to these limits.Currentl

242、y GS(M)R only allows 0.1%of hydrogen within the gas mix(unless an exemption is granted from the Health and Safety Executive).The IGEM Gas Quality Working Group are preparing a case to the HSE to widen the Wobbe range of GS(M)R.The first proposed amendment to gas quality regulation does not include i

243、ncreasing the allowed limit of hydrogen in gas networks.6Target 2023 Timeline:Key Change Activities39 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLAN6Target 2023 Timeline:Key Change ActivitiesChange Activities PillarChange Activity202120222023Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4In FlightHyDeploy Project

244、FutureGrid Phase 1HSE Consultation and Parliamentary Clearance GS(M)R Phase 1 ChangeSafety(GS(M)R)HyTechical ProgrammeReview of standards managed outside of IGEM HSE Approvals Process/IGEM standard processUpdating HSE Safety Case for Hydrogen BlendingUpdate Existing Contracts(Existing Connections On

245、ly)Development of Connection Agreements HyDeploy1 and HyDeploy2 HyDeploy2 is gathering evidence to prove the safety case for blending up to 20%hydrogen into the Gas Distribution Networks.This work includes evidence gathering on the impact of hydrogen blend on industrial and commercial customers and

246、a live trial of a 700-home network in Winlaton.This follows on from HyDeploy1,which provided hydrogen blends to buildings on Keele University Campus.HyDeploy2 is scheduled to finish Q2 2023.The evidence provided by HyDeploy2 is a key input into the safety timeline.Ideally a decision on the HyDeploy2

247、 evidence outputs and the completion of the BEIS CBA would be coordinated.FutureGrid Phase 1 FutureGrid Phase 1 aims to demonstrate that the NTS currently used for transporting natural gas can be repurposed to transport hydrogen.The initial phase involves building an offline hydrogen test facility,t

248、o assess the impact that blends of hydrogen will have on NTS assets.The project involves building a hydrogen test facility from decommissioned NTS assets at Spadeadam.Flows of hydrogen blends with natural gas streams can then be tested at NTS pressures to understand the viability of NTS infrastructu

249、re for hydrogen blending.Outputs on the viability of blending are expected in Q2 2023.40 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLAN6Target 2023 Timeline:Key Change ActivitiesHSE Consultation and Parliamentary Clearance(GS(M)R)Phase 1 The IGEM Gas Quality Working Group was set up wit

250、h the principle aim of producing a new IGEM gas quality standard that includes the legal GB gas quality limits currently in GS(M)R Schedule 3.The completion of this process is estimated to be Q2 2022 and is an important feed into the timeline as it will provide the clarity on which change process is

251、 required to be completed.HyTechnical Programme The HyTechnical project has completed a desktop exercise to produce supplements related to the safe transmission and distribution of hydrogen.The revision of existing IGEM standards will enable the repurposing of existing natural gas networks and the d

252、esign and construction of new assets for the transportation of hydrogen and natural gas/hydrogen mixtures.Although the HyTechnical programme has completed supplements to existing documents such as IGEM TD standards,there are a range of other standards that must be assessed.Review of Standards manage

253、d outside IGEM The HyTechnical programme developed a number of new supplements through IGEM governance and committees and reviewed supplements to existing TD standards for the distribution of hydrogen in existing natural gas infrastructure.Although this work has been critical in providing a stepping

254、stone for industrial clusters and hydrogen trial projects to commence there are a variety of other standards that must be considered with the transition to hydrogen blends into the network.Discussions with stakeholders identified the requirement to review other standards outside of IGEM for their co

255、mpliance with hydrogen blends(e.g.BSI and International standards).HSE Approvals Process/IGEM Standard Change Process Whilst it is anticipated that the HyDeploy project will finish in Q2 2023,it is understood that evidence from the project will be available to the HSE throughout 2022 to support thei

256、r decision-making process,as shown by the red arrows on the timeline.The timeline has therefore assumed that the HSE approvals process would run between Q2 2022 to Q2 2023 to allow for HSE resourcing and review of HyDeploy evidence.There is still a lot of uncertainty as to whether a change will be n

257、eeded to an IGEM Standard or exemption required from the GS(M)R Schedule 3.The timeline has assumed a decision is going to be made Q2 2023,permitting up to 20%hydrogen blend into the Gas Distribution Networks subject to subsequent safety case and connection agreement change and thus meeting the 2023

258、 UK Government target.Updating HSE Safety Case for Blending Under the target driven timeline one solution could be the use of the GS(M)R class exemption.If this is granted or if the IGEM Gas Quality Standard is changed to allow an increased level of hydrogen into the GB gas networks,individual gas n

259、etworks would need to update their HSE safety case before being allowed to access the new hydrogen limits.The timeline has assumed this level of change would be classed as“material”and result in longer timescales.The timeline has allowed six months for this process to be fully completed.41 ENA|GAS G

260、OES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLAN6Target 2023 Timeline:Key Change ActivitiesUpdate Existing Contracts (existing connections only)Current Network Entry Agreements stipulate the gas quality ranges at a particular site of injection.For hydrogen this will be below 0.1%as stated in GS(M)

261、R.For blending of hydrogen onto the network,existing connections contracts will have to be amended.From a Gas Distribution Networks perspective this process can be agile with engagement between the gas network and connecting party.From an NTS perspective a modification of the UNC will need to be und

262、ertaken for changes to existing contracts on gas quality,and therefore nine months has been forecasted on the timeline.ENA are currently undertaking discussions to assess potential changes to existing contracts.It is suggested that further work should commence when there is clarity around the prefer

263、red roll-out model for blending onto the network.Development of Connection Agreements The timescales for development of connection agreements is based on previous experiences for amendments to agreements with biomethane connections.There are no significant barriers to the development of new connecti

264、on agreements templates for hydrogen injection points.The timeline has assumed that work can be completed through 2022,once there is further clarity on the physical roll-out models to be used.Challenges Key change activities must be conducted in a safe way.How the evidence case develops from project

265、s like HyDeploy will have a fundamental impact on whether the safety legislation and frameworks can be amended in-line with the timelines shown.Alongside this,there is a need for clarity over whether an IGEM gas quality standard will be created.Trying to assess potential change process timelines is

266、challenging when there are potentially two different frameworks,one of which is not currently mature which may lead to additional delays in delivery.It should be noted that if safety regulations are unable to be updated in a holistic way,then the expectation is that the existing GS(M)R exemption pro

267、cess will be adequate to be utilised in the short term to continue to safely bring on-line hydrogen production facilities subject to the necessary HSE approves.Creating clarity on how the gas quality limits and regulatory change will evolve over the decade ahead will help from a planning and engagem

268、ent perspective.A roadmap of how policy makers expect the legal gas quality parameters to change would be welcomed by the industry.42 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLANThe Target 2023 timeline has shown how market frameworks could be updated in an ambitious yet credible way

269、to meet the government targets.There are many different ways market frameworks could change over the years ahead,and the idea of developing a second timeline is to provide the industry with visibility of different alternatives as a starting point to undertake the changes.The second timeline created

270、is called the Sustained Progress timeline.It shows steady and continual progress of change across all market pillars over the next few years but showcases how with just a few minor alterations on key activities the timeline for updating the market frameworks and system could finish in 2025.Sustained

271、 Progress Timeline 2025 Framework Delivery 72025 2021 2022 2024 2023 2022 2024 2023 43 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLAN7PillarChange Activity20212022202320242025Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2In FlightBEIS Blending CBAHyDeploy ProjectFuture Billing MethodologyFutureGrid P

272、hase 1HSE Consultation and Parliamentary Clearance GS(M)R Phase 1 ChangePrimary LegislationBEIS Gas Act Call for EvidenceGas Network Regime ReviewLegislative Review(including consultation)Minimal Gas Act Change RequiredRegulationFBM/COTER Decision Making ProcessCOTER&UNC Change“Enabling”Billing Syst

273、em ChangeUpfront System FeasibilityLicenceGas Network Licence ReviewOfgem Led Licence Change Pre-workFormal Licence Change (Longer than legally prescribed minimum)CodeGas Network Code ReviewUNC Modification Pre-workMultiple UNC Modifications(and Alternatives)“Enabling”System ChangeUpfront System Fea

274、sibilitySafety(GS(M)R)HyTechical ProgrammeReview of standards managed outside of IGEM HSE Approvals Process/IGEM standard processUpdating HSE Safety Case for Hydrogen BlendingUpdate Existing Contracts(Existing Connections Only)Development of Connection Agreements 2025 Framework DeliveryActivity KeyI

275、nflight/ProposedBEISOfgemBEIS&OfgemGas NetworkIndustry/OthersSustained Progress Timeline44 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLANSustained Progress Timeline7The Differences Between Target 2023 and the Sustained Progress TimelinesThe Sustained Progress timeline still showcases in

276、dustry engagement and collaboration taking place throughout 2022 and 2023.It also results in all the market frameworks being updated by the end of the 2024 to enable blending,with residual system change being completed in 2025.It is important to highlight that even the sustained progress timeline ha

277、s ambitious aspects to it,and without the coordination and collaboration even the timeframes within this timeline could be challenging.Safety PillarThe key uncertainty from a safety perspective for the sustained progress timeline is the time required to approve the safety evidence to enable the gas

278、quality frameworks to be updated.Building on the experience from the existing GS(M)R change process,even the 21 months shown in the sustained progress timeline could be seen as ambitious.If more time and evidence is required to deliver the necessary approvals for the safety change to the allowable h

279、ydrogen gas quality limits,then this will result in a delay in the safety case change and contractual change process.Licence&Code PillarsIn the Sustained Progress timeline the longer lead time in getting a formal policy decision leads to piecemeal industry engagement.Coordinated industry collaborati

280、on efforts start later in Q2 2022 and last for 15 months.The Sustained Progress timeline assumes that an industry consensus on licence and code change couldnt be reached,resulting in extended formal processes,through additional consultations or alternative modifications.Regulation PillarThe Sustaine

281、d Progress timeline shows the decision-making process on the future billing framework beginning later and finishing at the end of 2022.As there is still uncertainty if changes to CoTER is required,the timeline then assumes both UNC and Regulation change is required.This process then takes 18 months

282、and leads to significantly more system and modification change than originally planned,resulting in the framework and systems being fully completed in mid-2025.Primary Legislation PillarThe difference between the timelines begins with the legislative review change activity;no primary legislation cha

283、nge is required in the target 2023 timeline.However,the sustained progress timeline showcases how the review could lead to a formal BEIS consultation and primary legislation change.Therefore,the key policy driver to enable the formal market change processes to begin moves from the completion of the

284、CBA to the finalisation of changes to the Gas Act.As such,the Sustained Progress timeline shows the potential impact that even a small change to primary legislation can have,resulting in formal licence and code change processes beginning later in 2023.In such a case if legislative change is needed t

285、hen the use of exemptions and derogations would need to be explored and considered in the short term in order to achieve the target drive timeline.45 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLANRecommendations 8Recommendations CategorisationBased on the analysis and research completed

286、 throughout the project,the recommendations have been structured into three categoriesgas network Actions:These recommendations highlight the next steps to be undertaken by the gas networks through the Gas Goes Green programme.Critical Work Required:These recommendations highlight potential gaps whe

287、re further work is required to be undertaken on key aspects of the market frameworks.Overarching Industry Actions:These recommendations are the principal activities that need to be undertaken by the industry to help deliver the market framework change required to facilitate hydrogen blending in the

288、near term.12346 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLANRecommendations8gas network actions The gas network companies through the Gas Goes Green programme will take forward four bespoke hydrogen blending projects throughout the remainder of 2021 and into 2022.Hydrogen Blending,Own

289、ership,Roles and Responsibilities Project:This project seeks to establish the basic fundamentals of how blending into the UK gas networks will actually work in practice,considering both the gas and hydrogen networks.This project will look to include an industry-wide consultation along with the metho

290、dology development recommended in Chapter 4.Hydrogen Blending,Practical Operating Principles and Equipment Requirements Project:This project will seek to establish at a high level the constraints for blending and the physical equipment and controls required to enable blending hydrogen into the gas n

291、etwork.Critical Work Required Review of Standards managed outside IGEM:It is recommended that there should be a review of the technical and safety standards which sit outside IGEMs remit to ensure they are aligned to enable blending.Discussions with stakeholders identified the requirement to review

292、other standards outside of IGEM for their compliance with hydrogen blends.Upfront System Feasibility:It is recommended that upfront system feasibility work should be completed at the earliest viable stage to understand potential quick-win system solutions,preparing the ground for the delivery of suc

293、h solutions at the appropriate time.It is important to highlight the potential impacts to third party systems from changes to central systems;any early signal of change required would support the third party development process.Wholesale Trading Rules:Stakeholders have highlighted that there will be

294、 a need for work to be done to ensure wholesale trading rules and systems are prepared for hydrogen blends.Hydrogen Blending,Market Regime Review Project:This project seeks to establish the minimum required changes to the existing UNC and license arrangements to enable initial and early hydrogen ble

295、nding projects to deliver a hydrogen blend into the UKs gas networks.It will also undertake any due diligence activities to minimise any primary legislation change.Hydrogen Blending,Economic Comparison Project:This project plans to undertake a cost-benefit analysis to appraise two methods of rolling

296、 out hydrogen blending.The new roll-out models to be included with the analysis will be consistent with those highlighted in Chapter 4.47 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLANOverarching Industry Actions Cross Stream Coordination:In order to mitigate the risk of uncoordinated p

297、iecemeal change which would threaten the 2023 target,it is recommend that the Target 2023 timeline is utilised as the basis for a live plan incorporating change plans from across the value chain(assets,operations etc)into a single plan,with robust coordination from a centralised body.It is vital tha

298、t parallel working is undertaken during the framework change process,as ensuring there is communication across change streams will be a key component to delivering the changes required in a structured and coherent way.Industry Collaboration:Even though there is still uncertainty in the policy and sa

299、fety space,it is vital that coordinated industry collaboration to prepare the market frameworks is driven forward,to ensure they become a facilitator to change and help deliver the benefits from blending.If the industry waits until there is formal policy and safety direction on blending before colla

300、borating,then the 2023 target will not be met.Therefore,the industry needs to be prepared to engage in facilitating hydrogen blending on the understanding that it is doing so“at risk”.It is also vital that those parties who are responsible for leading market changes activities(gas networks,regulator

301、s and policy makers),drive forward their activities,undertaking collaborative pre-work to ensure the relevant market changes are completed in a clear and ordered way.Recommendations848 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLANRecommendationsKey conclusions The key project conclusio

302、ns can be summed up as follows.82023 is an ambitious yet achievable target.The target 2023 timeline showcases how the 2023 date for market framework change can be met,through a route of minimum viable change to deliver blending.Early policy clarity can accelerate change.With minimal infrastructure c

303、hanges required to enable blending,the earlier policy clarity can be provided;the more it de-risks industry parties,the more it will drive up engagement and collaboration and the quicker formal change processes can commence.Need for industry collaboration and engagement before final policy decision

304、is made.If the industry waits until a formal policy decision is made before starting to try and answer some of the outstanding questions related to blending,it will delay the implementation of network blending.It is vital that those parties who are responsible for leading market change activities un

305、dertake collaborative pre-work to ensure the relevant market changes are completed in a clear and ordered way.Delivery of the timeline requires centralised coordination of change plans.Robust coordination from a centralised body of change plans from across the blending value stream would remove the

306、risk of piecemeal change and ensure the change is delivered in a coherent and structured way.It is vital that change is undertaken in parallel and there is clear communication across the different work streams.Implement quick-win system solutions first.Central IT systems cannot be a barrier to innov

307、ation and change.Engaging with service providers at the earliest opportunity and implementing the quick wins in the first instance would reduce the potential risk of IT system change delaying the rollout of hydrogen network blending.The impacts on third party systems also need to be considered when

308、developing quick-win system solutions to ensure the industry has time to complete their necessary changes.Stakeholders views are very important to the Gas Goes Green programme as they can help shape and enhance future deliverables.If you would like to discuss any aspect of this project or find out h

309、ow you can get involved in the wider Gas Goes Green programme,please contact ENA at GasGoesGreenenergynetworks.org.1243549 ENA|GAS GOES GREEN|BRITAINS HYDROGEN BLENDING DELIVERY PLANAcknowledgements Acknowledgements The project would like to thank the various stakeholders we spoke to throughout the

310、life cycle of the project for their time and for their insightful views,both during the workshops and in bi-lateral discussions.This includes members of the Gas Goes Green Advisory Group,the BEIS Blending Group and the Future of Gas Steering Group.Stakeholders views will be vital in building a conse

311、nsus on any future hydrogen blending regime.Stakeholders can provide feedback on this project or find out How to get involved by contacting ENA GasGoesGreenenergynetworks.org.Energy Networks Association 4 More London Riverside London SE1 2AUt.+44(0)20 7706 5100w.EnergyNetworks.org EnergyNetworks ENA 2021.Energy Networks Association Limited is a company registered in England&Wales No.04832301 Registered office:4 More London Riverside,London,SE1 2AU