Octopus Energy has called on the government to hold off blending hydrogen into the UK’s natural gas pipelines, arguing the move could add hundreds to household bills.
Proposals to add a 20% hydrogen blend into the gas supply as early as 2025 would “only raise consumer prices,” a letter signed by 23 climate groups, think tanks and energy companies said, adding up to £192 to bills.
Hydrogen is less energy efficient than natural gas, so 16% more of the blended fuel would have to be burned to create the same amount of energy, they explained, with the effects likely being worse for industry.
Octopus, one of the UK’s largest suppliers, said it would invest £10mln into a new hydrogen production firm through two of its funds just last week.
However, through the letter it warned the rollout of hydrogen-ready boilers could affect investment into “genuinely zero carbon heating technologies”.
“Blending could create greenwash as the public are told that ‘gas has gone green,’ when in fact ‘hydrogen-ready boilers’ will continue to burn fossil fuels for decades to come,” it said.
The letter also warned adding hydrogen to mains could hinder the government’s already struggling heat pump rollout, as it looks to replace gas boilers on mass by installing up to 600,000 units a year by 2028.
Just 7,600 out of the initial 30,000 £5,000 vouchers to help households switch were redeemed by late January.
Groups had been responding to a report by government advisor Jane Toogood, which recommended blending the fuel in a bid to kickstart the UK’s hydrogen economy.
A government spokesperson responded to the calls reassuring “value for money will be a key factor in determining whether to enable the wider rollout of blending on to the gas network”.