- People involved in NGN’s Redcar hydrogen project will receive a generous customer offer for taking part in the government-led demonstration
- Package will include free new appliances and energy efficiency improvements, and payments in return for participation and feedback
- The project is currently with government for approval
Homes and businesses currently using gas will receive brand new, energy efficient appliances and free energy efficiency improvements, such as insulation, as part of Northern Gas Networks’ (NGN) offer to participants in the Redcar Hydrogen Community project, NGN has announced today, Thursday 7th December 2023.
The government-led project, which will demonstrate how we can heat homes and businesses using locally produced, low-carbon hydrogen through our gas pipes, will mean people switching their current natural gas supply to hydrogen or an electric alternative.
The project will produce vital data that will help the country understand how it can reach net zero carbon emissions and tackle climate change, as well as improve our energy security in the longer term.
The offer package will be rolled out to all those who will be taking part in the trial, and includes:
- Free, brand-new appliances to replace existing gas appliances. For those who opt for hydrogen, this will include a hydrogen boiler, meter, and appliances such as a cooker hob; for those who opt for electricity, this will include a heat pump or an electric boiler, and electric appliances.
- Energy efficiency measures, such as smart thermostats and loft and cavity wall insulation for homes that don’t already have them.
- Participation payments in exchange for sharing feedback – with up to £3,000 for residents and £2,000 for landlords.
- Servicing and maintenance of appliances free of charge.
- A guarantee that customers won’t pay any more for their bill during the trial than what they would have paid if they’d stayed using natural gas.
The aim is to ensure that participants get the most out of the project and provide invaluable data to the government to inform future decisions on the use of hydrogen. Some of these will be legacy benefits too – for example, energy efficiency measures will increase the energy performance certificate (EPC) for many homes in the area and will reduce energy use, and with it bills, in the long term.
Mark Horsley, CEO of Northern Gas Networks, said:
“At NGN, we’ve been safely and reliably delivering gas to people’s homes in the North-East of England – including Redcar – for decades. We’ve spent that time getting to know our customers, what they want and what they need – including through a citizens panel with Redcar residents last year which informed our offer.
“It’s important to us that people in the area feel like they’re gaining from taking part in this project – and we’re pleased to be able to offer these lasting benefits to all those participating.
“This government-led project will be an opportunity for the area to lead the country in the path to net zero and in tackling the energy crisis – just as Lochem has led the first hydrogen community over in the Netherlands.”
The hydrogen investment is expected to bring significant benefits to the local area, totalling £300 million and at least 300 new, high-quality jobs, including customer service representatives, engineers and surveyors.
NGN is now waiting for the government to approve the project and will provide further details on next steps following a decision.
Notes to editors:
- We expect to hear before Christmas whether Redcar will be progressed to the next stage by the government for the hydrogen project. The conversion is due to start from around 2026.
- Nothing will ever be installed in people’s homes or businesses that risks their safety or the safety of their home, and the project will not go ahead without the independent health and safety regulator, the HSE, being satisfied.
- Redcar Hydrogen Community is a proposal by Northern Gas Networks, to supply around 1,800 homes and businesses in parts of Redcar with hydrogen from 2026.
- NGN was invited to submit plans to create a hydrogen village by the UK government.
- You can find out more about why a hydrogen conversion is being explored on the Government website.
