The future of Great Britain's hydrogen infrastructure

NESO recently published its National Hydrogen Backbone Study [1], providing one of the clearest assessments yet of the role hydrogen infrastructure could play in Great Britain's future energy system. The study’s conclusions are nuanced, but several key findings stand out:

National hydrogen backbone vs. a targeted, smaller network

The NESO study shows that a full GB-wide hydrogen backbone delivers only modest economic benefits when viewed purely through a system cost lens. Under base case modelling, a hydrogen backbone reduces overall system costs by around 1% (around £6bn) over 2025 - 2060. It could therefore be concluded there is not a compelling justification for an immediate nationwide build-out.

However, the study also points out that there are wider societal and commercial drivers that would make a smaller, phased network build-out a stronger business case. It shows that a reduced network of approximately 884km and 26GW, delayed until 2040, would deliver broadly the same modelled benefits as a full hydrogen backbone across the whole of the UK.

The tipping point

Across the various scenarios tested in the study, the strongest and most resilient business case consistently emerges around a corridor linking Scotland to Northeast England. This would involve developing more wind farms in Scotland and using this renewable energy to produce hydrogen, which would then feed industrial demand in northern England, with salt caverns used for storage.

However, the deciding factor for this scenario is ensuring there is sustained industrial demand for hydrogen. If demand develops, the case for connecting Scottish renewable hydrogen to northern English industry and salt-cavern storage creates system savings. If industrial demand does not materialise, the backbone has virtually no commercial value.

Ultimately, the study supports a ‘least-regrets’ approach to UK hydrogen infrastructure that favours protecting and developing the Scotland – Northeast England corridor first over an immediate nation-wide network, but this is only provided there is guaranteed hydrogen demand from Northeast England industry. If the hydrogen network is given the green light, the study suggests that Southern England route options should be preserved without having to prematurely construct infrastructure that would have low utilisation. Authorisation of these later southern branches of the network would then be dependent on demand commitments and utilisation thresholds.

How SLR can help

SLR is at the forefront of providing advisory, technical, and professional services to the energy sector around the world, supporting regulators, producers, generators, and consumers. We have a reputation for delivering expert knowledge and support an extensive range of energy technologies and infrastructure, particularly sustainable sources and renewables. If you need support with your hydrogen project, contact our team to find out more about our services.