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  • Writer's pictureBy The Financial District

UK Urged To Approve Hydrogen Blending In Gas Supply To Avoid Costly Infra Investment

National Gas, responsible for the UK's high-pressure gas transmission network, has warned the government that unless plans to blend hydrogen into domestic gas supplies are approved, households could face an additional cost of £600 million per year on their energy bills.

National Gas will have to invest in expensive facilities to ensure continued gas imports from Europe via interconnections pending the approval of hydrogen blending.

This urgent call comes amid concerns about the need for costly infrastructure upgrades to maintain gas imports from Europe, Matt Oliver reported for The Telegraph.

The company has notified Downing Street and Energy Secretary Claire Coutinho that a decision on hydrogen blending must be made by July 2024. Without this decision, National Gas will have to invest in expensive facilities to ensure continued gas imports from Europe via interconnections.

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These investments are estimated to cost up to £600 million annually, a burden that would ultimately be passed on to consumers through their energy bills.

Jon Butterworth, Chief Executive of National Gas, emphasized the importance of swift approval for blending, highlighting its safety and cost-saving benefits. He stressed the need to be prepared to receive gas imports from Europe, particularly during cold days when demand spikes in the UK.

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In a related development, Western Europe, including the UK, has significantly reduced its dependence on direct Russian oil imports, marking a significant shift in energy supply dynamics.

Rystad, a European energy consultancy, revealed that the region has diversified its oil and gas sources away from Russia, opting for suppliers such as the US and Canada. This transition, accelerated by the Ukraine conflict, underscores the flexibility of the energy system and its ability to adapt to changing geopolitical circumstances.

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Previously, Russia supplied a significant portion of the gas, oil, and coal used in Western Europe.

However, recent data indicates a substantial reduction in Russian imports, with the UK, in particular, decreasing its reliance on Russian diesel, coal, and gas imports to virtually zero. These developments highlight the evolving energy landscape in Europe, with a growing emphasis on diversification and resilience in the face of geopolitical uncertainties.

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