Monthly briefing December 2024

Authored by Wales & West Utilities.

Big changes in the pipeline for energy

As the UK moves towards its ambition of achieving net zero carbon emissions by 2050, the way we produce, store, move and use energy is changing. Organisations committed to the delivery of greener energy are creating innovative solutions to decarbonise the system that homes and businesses rely on. Matt Hindle, Head of Net Zero & Sustainability at Wales & West Utilities (WWU), is spearheading change on the future of gas and shares with Members of the South West Business Council the net zero ambition of the gas distribution network and why it is important for the South West.

At WWU, we are responsible for transporting gas to industry, business and homes across Wales and the south west of England. We don’t sell gas, and we’re not a gas supplier, but we’re incredibly proud of the integral role we play in the UK’s energy system and delivering energy security across one-fifth of Britain. Gas remains a central part of the UK’s energy resilience with a key role in power generation, supporting renewable energy sources and keeping the lights on and homes warm. We are conscious however of our responsibility to move away from fossil fuels and, despite the monumental challenges, we are excited about our role in this.

We are preparing for a clean energy future which will help the South West reduce emissions and build an economy fit for the future. This includes working with existing partners and developing new relationships which can drive innovation and change. Alongside substantial investment in our infrastructure to reduce emissions and prepare it for the future, we are also committed to developing the skills and resources needed for the net zero transition and which will contribute to the regional economy.

Matt Hindle, Head of Net Zero & Sustainability at Wales & West Utilities (WWU)

Taking Action: Decarbonising energy in the South West

Our journey towards a decarbonised gas network is already underway in the South West, where we are working with farms to harness the power of biomethane through the anaerobic digestion of animal waste, crops and food . We now have 21 biomethane sites across our network, mostly in the South West, providing a green and renewable source of energy for use today. With its predominantly rural communities and rich agricultural heritage, the region is a hotspot for biomethane production. Plants already connected to our network have the capacity to produce enough biomethane to meet the average demand of over 160,000 homes, a substantial contribution to reducing emissions.

We know we need to support producers to be able to get more green gas into our network. Following a successful innovation project, we are rolling out plans for a smart pressure control system, which will automate the control of a large distribution network covering approximately 100 miles, from Swindon to Honiton. This cutting-edge development will offer a cost-effective way to manage biomethane injection entry into the gas network while maintaining security of supply. For this region, we anticipate this would release additional capacity to allow biomethane to be able to supply another 56,000 homes. That represents an equivalent carbon displacement of around 123,000 tonnes CO2e per year.

These are exciting developments for us as a business, but also for the communities across the South West. Using biomethane as a fuel source reduces waste and integrates with farming businesses to provide new revenues and low cost, low carbon energy.

Households who receive biomethane don’t pay any extra for the green gas, and they don’t need to make any changes to their appliances. The beauty of biomethane is that it requires minimal to no alterations to the current gas infrastructure, while many other low-carbon alternatives need a full retrofit – think boilers, cookers, radiators and heating systems – or additional energy efficiency measures to work in homes. Our network is in place and out of sight, meaning little disruption for households and businesses, and minimal changes across communities.

Expanding the hydrogen economy

Whilst biomethane can play a bigger role in future, with current technology it can only partly replace the gas we use for heating, industry and power generation today. We will need a mix of technologies to deliver net zero carbon emissions, including significantly more renewable generation and electrification of some demands. However, grid restraints and upfront costs mean this is not likely to be the right solution for all.

This is particularly the case in sectors with few options, such as parts of industry where high operational temperatures or resilience of supply are needed. Hydrogen could offer a solution due to its similarity to natural gas, where other low carbon technologies can’t fill the gap.

So, we are exploring how low carbon hydrogen could sit alongside biomethane, forming part of the future energy mix for the south west of England and beyond.

‘Green’ hydrogen is made from water and electricity from renewable sources like wind and solar. It can also be made from natural gas with the carbon captured at source, producing ‘blue’ hydrogen. Unlike direct use of natural gas, hydrogen doesn’t produce any carbon emissions when burnt.

At the South West Business Council’s Decarbonisation Conference in September, I announced two projects which aim to expand the hydrogen economy in the region and help achieve the collective vision of a net zero emissions energy mix.

Together, the South West Conceptual Plan (SWCP) and Decentralised Alliance for South West Hydrogen (DASH) will look at what infrastructure the region needs to develop the hydrogen economy and the potential of using hydrogen as a cleaner, greener fuel. DASH will consider the South West’s relatively dispersed industrial demands, which do not form a natural ‘cluster’, we see in other areas of higher industrial concentration across the UK. It will also take a closer look at the potential for onshore and offshore renewables and making the most of the South West’s natural renewable resources.

WWU expects the learning from both projects to contribute to local, regional and national energy planning. They will develop opportunities to inform future hydrogen schemes, use learning from previous and ongoing projects.

Working together for a Net Zero future

We are incredibly proud of the progress we are making at WWU to transform the gas network and to support business, industrial customers, and households in finding net zero options for every energy user. The transition will not happen overnight but will rely on collaboration and innovation, together with the long-term commitment from partners.

With that approach, the South West’s gas network will play a critical role in delivering safe, reliable and cost-effective energy for generations to come. Our ambition is to ensure hydrogen and biomethane contribute to the green economy, meeting the challenge of the net zero transition across the South West.  We will need the support and engagement of businesses, industry and the public to make this vision a reality.

To learn more about our net zero ambition, see:

Future of Energy | Renewable Gas | WWU

We’re also welcoming ideas to help deliver low carbon gases in the South West, or that could protect vulnerable customers through the energy transition. Submit your ideas here:

Energy Innovation | Wales and West Utilities