Energy regulators in the UK are funding the world's first trial of a 100% green hydrogen generation, storage and distribution network to heat 300 homes in Scotland, as part of the UK and Scotland's ambition to achieve net-zero emissions within 30 years.

UK energy regulator Ofgem is awarding $24 MM (£18 MM) to a project in Fife, Scotland to heat 300 homes with green hydrogen produced via offshore wind power. The project will receive additional investment of $9.2 MM (£6.9 MM) from Scotland's government. The H100 Fife project, led by SGN, is scheduled to begin construction in 2021, while the hydrogen network will go live in 2022.

The project will be operational for 4.5 years, until March 2027, and seeks to prove if green hydrogen is a viable solution to reducing emissions by providing home heating in the UK. The initial 300 customers in the Fife project will receive a free hydrogen hookup, free replacement hydrogen appliances and free maintenance over the length of the project. The customers will pay the same amount for hydrogen gas as they would pay for natural gas. At present, central heating is responsible for up to one third of the UK's greenhouse gas emissions, according to SGN.

Exploring options for hydrogen production reducing the cost of hydrogen energy is one of the key goals of the UK's Ten Point Plan for a Green Industrial Revolution, released in November 2020. The UK aims to generate 5 GW of low-carbon hydrogen production capacity by 2030 with the help of industry.